That only works if the Western alternatives are clearly better. If they are not, it would be unsustainable over the long term to ask people in other countries to buy inferior products at higher prices. The actions against Huawei worked only because it was a single company.
If these reports are true that the US will target the entire EV sector then it won't just be one company. It would be against an entire ecosystem. I criticised a few Chinese OEMs like BYD for investing into Nvidia platforms a few years ago, saying that this put a huge mark on their back. These companies should have learned their lesson to complete de-risk their supply-chain by moving away from US suppliers.
But as so often is the case, the US govt has a wonderful tendency to force these lessons on slow learners inside corporate China.
Huawei 5G products and smartphones are clearly better than western alternatives.