What I'm interested to see is how this will spur additional divestment from Chinese supply chains in Western countries. Now that Israel has set a precedent, Western governments will likely be even more hesitant to use any goods that touched Chinese territory during production.
If that were the case, I think China would have the incentive to remove this from their own supply chains, they don't want to be excluded from world trade because of this stuff. But as others have noted, China was not the link in this specific instance, rather a European country was
Well the classic route for electronics manufacturing is chips get fabricated in Taiwan/Japan/SK/America -> the PCB and other mechanical elements get integrated in China -> the finished product gets exported to the West. So you could certainly have the explosives adding process be done in step 2 regardless of if step 2 occurs in Europe or China.
I don't think the current Hungarian government could be trusted with this. The only participation from Hungary was that the company selling the tampered devices was supposedly registered there.
But we all know that company was just a front for Mossad, and in all likelihood the devices never even touch Europe.