A very clever move by Trump indeed. Something that I wasn't expecting at all. This will surely delay China's streak of Domination in the Telecom sector.
The premise under Capitalism would be that the state-sponsored / state-owned corporations were acting as conquering agents and should be treated as a form of invasion in terms of national defense. The theory is that it'd be defending the rights of the people to not be brought under the heel of a conquering foreign government. Such trade would be regarded as a military action on behalf of the foreign country, since under Capitalism the government has no role to play in the economy in terms of owning & operating economic assets.