Please forgive me. According to what I have read the government of the USA (I am a citizen), fears phones and devices made by Huawei may have Chinese government spyware? The Huawei company, already has strong ties to the People's Liberation Army (the founder was a deputy regimental head) and has been accused of putting Chinese spyware on phones sold outside of China.
Yangtze Memory Technologies Corp (YMTC) is PROVIDING chips and hardware to Huawei. "Another reason why U.S. lawmakers are worried about YMTC is that it allegedly supplied 3D NAND memory and/or products to Huawei without obtaining an export license from the U.S. Department of Commerce. As of 2020, everyone making products for Huawei using technologies developed in the U.S. (hardware tools used in semiconductor fabs, electronic design automation tools used to develop chips, etc.) must obtain a license from the U.S. Department of Commerce. " While it may be a violation of a law in the USA, I rather doubt it is a violation of Chinese law. If the Chinese do not choose to recognize the laws of the USA, there are several actions: 1) Go to war, never a good choice; 2) Embargo, considering we get a large percentage of our chips and boards from China at least until the $72 billion multiplies chip and board production by at least 3-4 times current level, that would be more damaging to the USA; and 3) rattle sabers then sit down and be quiet
The article states, ""There is credible evidence that YMTC is breaking export control laws by selling goods to Huawei. Apple will effectively be transferring knowledge and know-how to YMTC that will supercharge its capabilities and help the CCP achieve its national goals."" Please tell me how Apple is transferring knowledge other than possibly providing chip and port pin-out information. I can easily determine that information with any multimeter and oscilloscope.
I truly doubt there will be any technology transfer to the China through a company SELLING parts.
As to the spyware, well I rather suspect that is there already. Carrying around a cell phone is carrying around a tracking device. Unless the device is properly isolated, the battery removed, and any capacitors discharged, the phones provided by T-Mobile, Verizon, AT&T, Apple, ... can all be used for domestic spying on the customers. If the government of the USA is so scared of a technology transfer to our international enemies, perhaps they should have special phones made by the government and issued to government employees and to contractor, and subcontractor personnel.