I think Xi over-judged his strength when he publicly pushed for the Made in China 2025 program. While his vision is correct (and this ban really underscore that), it would have been better to do so discretely rather than so in-your-face.
Anyway longer term it will likely be worse for the U.S. than China. A key part of U.S. technological leadership is not that other countries cannot compete, but that it doesn't make economic sense to do so. However the bedrock of that is a reliable trade partner. Today it may be Huawei, tomorrow it can be any other firm. What China should do now is to reform on its own and address the grievances of its many trade partners. Trump is making too many enemies and it is the perfect time to control the narrative.