Watch this: https://www.youtube.com/watch?v=ZrsOM8ww8ug
Second, this isn't something China-specific. The US Federal government also has enormous power to compel companies to cooperate in surveillance. Just recall when the US government ordered Lavabit to turn over its SSL keys, so that the government could intercept Snowden's emails.
In some cases, yes.
For instance, I'm sure China wouldn't build its nuclear deterrent around some hypothetical US-made COTS "Nuclear Weapon Control System," even if there was zero evidence that system was compromised. Absence of evidence is not evidence of absence. Ditto with Huawei.
IMHO, if its decision-making wasn't so addled by wishful thinking and capitalism, the US would use far less Chinese technology for this reason.