This is retaliation for China recently phasing out European gears, which should be expected after Europe already banned Chinese gears in effect.

China for years has been allocating a share of the market to European gears, considering their domestic offerings are much cheaper, this was basically a reciprocal gesture, but it's not needed now for neither side.

Germany has been reluctant to completely remove its Huawei gears, but now that German cars are losing ground in China, they probably felt it's time to make the move.