Hurting Huawei financially also hurts China's economy, since the government faces a difficult choice of letting it fall or footing the bill (incurring opportunity cost).

> The US wanted China dependent on the west for high end smart phones and chips.

That again seems like a strawman. What US appears to be doing is it tries to stifle China's development geopolitically, economically, militarily. That's the high-level goal. Reducing access to high-end chips is just a mean to do it, not the goal itself.