SHANGHAI | Chinese telecoms giant Huawei announced on Tuesday that it had sold its Honor phone brand, an operation it said was necessary to save the brand in the face of “terrible” tensions caused by US sanctions on its supply.
Honor, an entry-level brand, was bought by a consortium of 40 Chinese companies including distributors, agents and other companies whose survival depends on the survival of the brand, Huawei and the consortium said in statements. separated.
Huawei, one of the world’s three largest smartphone makers, said its production of consumer devices “is under tremendous pressure” as the group fails to source enough electronic components due to sanctions imposed. by the United States.
“The sale will help Honor vendors and suppliers overcome this difficult period,” the Shenzhen-based group in southern China said in a statement.
Honor, a brand aimed primarily at young people and on a budget, according to Huawei sells some 70 million phones per year. After this sale, Huawei no longer has any shares and “is no longer involved in the management of business or in the decision-making of the new company Honor”, he said.
Huawei is in the crosshairs of President Donald Trump’s administration, which suspects him of spying for the benefit of Beijing. The military background of the company’s founder, Ren Zhengfei, as well as his membership in the Chinese Communist Party, fueled suspicions about the regime’s influence on the group.
The US government has taken steps to drive Huawei out of the US market, to deter US companies from collaborating with it, and to cut off its global supply of semiconductors and other components.
Washington has also increased pressure on its allies to ban Huawei’s 5G equipment, arguing risks in terms of cybersecurity.
Huawei has denied the American accusations, and attributes the offensive against it to the United States’ desire to eliminate a powerful competitor.