I think even Chinese companies believed that Huawei was banned and sanctioned because they did something wrong and not just because they were Chinese and really good at what they do.
Now of course they are all sanctioned and Huawei is sitting pretty with years invested in a sanctions proofed supply line.
> I think even Chinese companies believed that Huawei was banned and sanctioned because they did something wrong
I'd be surprised to see anyone seriously thinking that way outside of the western bubble.
I personally can't even recall what exactly they were accused of. Probably something typical along the lines of "tech theft" or clandestine? I do remember all this happening during Trump presidency, who was already attacking other Chinese companies (e.g. forcing Tik Tok to sell shares). And that there was some heavy competition for 5G stuff at the time.
My impression (and definitely not mine alone) was that it was all about clearing the market.
Also Huawei has a quite capable AI offerings:
https://e.huawei.com/en/products/computing/ascend