If you know anything about the Chinese (the nation, not at the individual level per se) is that they're notorious for engaging in espionage and IP theft; both at the civil and governmental level. The military technology secrets that they've stolen from the US armed forces is enough to make anyone cry. Part because the Chinese are darned good at it, and partly because of our own incompetence at keeping the stuff secure at all levels.
Our (US) government fears back-doors embedded in Chinese IC hardware. And given our own attempt at the Clipper Chip in the 90s, I get the irony and hypocrisy of it all at the same time. Nonetheless, it is a valid concern at the national security level.
Regardless of banning Chinese products, they will build and export them around the world regardless. For one, because it's cheaper. And secondly, probably because the CCP would mandate spying on their own citizens anyways. Remember, their government is totalitarian. To embed a "snitch" in every box isn't all that far fetched of an idea for an Orwellian society.