huawei is not just selling hardware it is selling complete ecosystem of services and hardware is just part of it. It is trying to become cisco of mobile networking world. Based on your understanding we should completely write off intel/amd and only microsoft/facebook should be considered important. Other chinese companies will ride on huawei's offering and will rival western companies, thats the reason why US does not want to give huawei a foot hold in the industry to grow further.
Bad analogy. Intel/AMD have no other competitors. The correct analogy would be write off Honda and pick Hyundai or any other car maker.
When it comes to 5G, there are many, many companies.
I have no clue what Huawei is offering in terms of services, but I'm sure it's all backed up with Chinese apps that need to be banned. At the very least, they need to ban Chinese apps and demand opening up of Chinese internet to foreign companies.
I don't think anybody understands what's actually happening. We need economic action NOW, not what something may offer sometime in the future. If action is not taken now, then the EU's inaction will simply allow China to take more drastic steps with respect to their neighbours just a little while later. People in the West will lose interest quickly because it's not happening to them.