The National Intelligence Law...
http://www.npc.gov.cn/npc/xinwen/2017-06/27/content_2024529.htm
...Quite make everyone and every company an intelligence asset for the Party, not the government, but essentially -- for the Party.
That mean if the government, acting on behalf of the Party, want to know who you called, when, and where from, literally everyone in the chain that provided you that service, from the phone maker to the service provider, must obey and give up all information requested.
https://thediplomat.com/2019/02/the-real-danger-of-chinas-national-intelligence-law/
So if a government official issue to you, a cell phone service provider, a subpoena, or whatever legally equivalent in China, for information about your cell phone usage, the order can be as narrow or as broad as the government felt needed, you have to obey the order. Any reason can be interpreted as 'defensive in nature'.
https://www.lawfareblog.com/beijings-new-national-intelligence-law-defense-offense
All the defensive arguments about Chinese companies leaders' past relationships to the PLA are moot. Officially, all the Chinese CEOs can provide official documents stating they have none, or no longer, ties to the PLA and it would be pointless in light of the intelligence law.
Huawei's CEO Ren Zhengfei is not ignorant of the national intelligence law. No CEO of his stature is ignorant of this. At
ANY time unknown to the Huawei cell phone user, his/her usage record can be made available to the Chinese government. There are no allowance for Chinese companies to refuse an order the way US and Western companies can and have refused their governments' orders.
Regarding the highlighted, that was not a mistake in legislation.
Ideally, if you make a law, there is an accompanying provision on when and how the law could be challenged and that challenge would stop the government from executing that law until the challenge is resolved in court. The absence of that provision in the National Intelligence Law is deliberate to prevent any challenges.
In reality, is Zhengfei, or anyone in Huawei, going to challenge a request? The wealthier you are, the greater you lose in terms of tangible and intangible wealth. Tangible wealth are cash, stock values, cars, homes, and private jets. Intangible wealth are connections, friendships, accessibility, and influence.
Zhengfei is going to give all that up over the privacy of some unknown Huawei cell phone user in the ME or Asia or Europe?
This...
http://www.chinawhisper.com/10-chinese-mobile-phone-brands-with-the-most-global-recognition/
...Is a global intelligence gold mine that not even the NSA/CIA/MI-whatever/FSB have.