I mean, I guess that would be a great benefit to the non-Chinese competitors then, Samsung, Google, Apple, etc. I don't see that this would be hugely disruptive to the country.
Xiaomi phones are better and cheaper than Samsung, Google, and certainly Apple equivalents. The Mi 10 Ultra is ~780$ and is just flat out better than a 1200$ phone from Samsung, including the best camera of any phone bar none.