That's really bad news for Huawei and mostly because their users have already created the need for Google apps such as Maps or Youtube.
It is a new way of trading war and it will either make Huawei stronger as it will no longer rely on Google apps and probably they will create their own or they will be destroyed and lose many users.
That only forces them to remove google apps from the default installation, but it doesn't prohibit user from installing them manually. Many of chinese vendors are lacking the google certification nowadays. That's not a problem, it is resolved by placing a shortcut on the home screen, which is letting user to install google apps, if these are needed.
But this company has already announced the hongmeng OS
As far as i know, a lot of rumours said if huawei will change their future devices to use hongmeng OS. but the problem when there were a few big companies is even using their own OS can't attract a lot of developers and demand. Remember windows mobile OS, Bada OS and tizen OS.
Another ban from various company makes the position of huawei even worst.