I figured powerful businessmen in China had more to lose than money if they refused to let the government do what it wants. The U.S. government compelled AT&T and Verizon to perform illegal spying, in the name of protection from terrorism, it's the same thing for China and Huawei.
The U.S. government could be a threat to China; it's obvious China will do what it takes to counter that threat. Of course China won't sabotage U.S. infrastructure without provocation, but I think the U.S. won't accept that they have the potential.
It may be bad for business but that doesn't mean they will have a choice in the matter. And unlike in the US they may not even have the option of being transparent about how much they have to hand over. It's a very different world legally over there.
I think this assumption is pretty much incorrect. Corporate liabilities in China are not like corporate liabilities in the western world.