China announced on Friday that it would establish a blacklist of"unreliable"foreign companies and organisations,effectively forcing companies around the world to choose between Beijing or Washington.
Australia has already passed contentious laws to allow security agencies access to encrypted communications.
The tech giant has become the poster child for trade uncertainty,with warnings its profits could plummet if China retaliates and bans sales of the iPhone.
Huawei founder Ren Zhengfei struck a defiant tone in the face of US sanctions that threaten his company's very survival.
Washington last week effectively banned US firms from doing business with Huawei,the world's largest telecoms network gear maker.
One thing is clear:Now that Trump has gotten rough with Huawei,he would pay a real strategic cost for backing down.
China has reacted with fury to what it deems a US attack on its national champions. But one diplomat showed a touch of humour as he jumped to Huawei's defense.
The Australians had long harboured misgivings about Huawei in existing networks,but the 5G war game was a turning point.
The US government said it imposed the restrictions because of Huawei's involvement in activities contrary to national security or foreign policy interests.
The US move escalates trade-war tensions with Beijing,but also risks making China more self-sufficient over time.
This is the moment Huawei has been waiting for. Now China can make its own digital iron curtain.