Thats how all countries approach this especially the US. If you, for example, buy a tank for the US and plan to attack a US ally with it well good luck getting access to the bullets or software updates.
It wouldn't be the first time this happens. Romania was in a defensive alliance with Austria-Hungary in 1914. A-H attacked Serbia and asked Romania to join. Romania said: ummm... it's a defensive alliance.
So far so good, nothing wrong with that.
But in 1916 Romania decided to attack A-H. Okay, I guess?
The dumb part? As former allies, Romania used to get guns and ammo from A-H before 1916. That became a problem post-1916, for obvious reasons :-D
Iran seemingly continues to operate their fleet of F-14s which US had supplied when the Shah was in control, decades after the relationship soured with the US. It seems even that an Iranian pilot is the top ace with the most kills of all F-14 pilots.
But speaking of Huawei they are'nt in the business of military supplies, they sell commodity telecom gear. Imposing such extreme restrictions, seemingly encroaching upon the sovereignity of other nations, feels strange. In this whole matter, it the US who appears to be acting foremost with political considerations.
I don't think the US legal justice system sees democratic countries and others as different, what matters is that they are sovereign entities.
So politically motivated measures are likely to be drawn into courts.
Also US has/had no issues doing business with many prominent non democratic countries like Saudi Arabia, South Korea (i.e before it transitioned to democracy), etc.
So far so good, nothing wrong with that.
But in 1916 Romania decided to attack A-H. Okay, I guess?
The dumb part? As former allies, Romania used to get guns and ammo from A-H before 1916. That became a problem post-1916, for obvious reasons :-D