"deal with longstanding issues like government favoritism toward local companies"
How is it that that can be a point of contention ? Name me one country in this world that doesn't favor local companies.
people company representatives who are complaining about local favoritism would be howling like wolves if Huawei was given favor in the US over any one of them.
I'm not saying that there are no reasons to be unhappy about business with China, but that is not one of them.