It’s like being caught in a fight between your drunk uncle and your berserk cousin.
Europe does not have to align with either side. It is a superpower in its own right if it gets its shit together (one can dream).
They’re giving up a partnership they entered after independently reviewing the equipment, I can’t see how it is a good outcome for them.
This is not the same situation for the EU.
France for instance is about to take the same steps as UK, and get out of Huawei deals within the next years.
The issue of a deeper integration is an old one and evolving, but the trend is more integration.
It is becoming more and more important for Europe to stand on its own two feet and be independent in all aspects.
There are benefits in having the other superpowers locked in conflict if you can stay out of it as much as possible and further your interests while they are distracted.
The UK, on the other hand, is in a very weak position. China will feel comfortable retaliating strongly, and the US will probably extract a sweet trade deal from them.