It went through the usual approval procedures but there was no coercion. GE isn't even happy about it because they overpaid.
They announced that they would suspend everything because US IP is involved. This is the "nod and comply" stage. Keep in mind that Huawei is still paying them because they still build more ARM chips, just support has been cut.
Because the A76 was designed in Austin they can't even send an updated manual because that's US IP.
Guess what's going to happen with next years CPUs? Either Huawei will continue to use what they've already licensed and keep paying ARM for that or by then ARM will have figured out what's US IP and what isn't. They didn't have to keep track of this until but now they'll do it by the book and then they can still sell Huawei something instead of watching a significant portion of their revenue disappear while twiddling their thumbs.