Huawei Is Selling Its Brand Of Affordable Honor Smartphones

Huawei Is Selling Its Brand Of Affordable Honor Smartphones

Chinese telecommunications giant Huawei announced on Tuesday that it is selling its brand of affordable Honor smartphones in an effort to save it, as it has been paralyzed by US sanctions. Huawei said in a statement that its consumer division was under "enormous pressure" for the unavailability of components needed to make smartphones. The administration of US President Donald Trump blacklisted Huawei. This means that US companies cannot trade with the Chinese giant without special permission. The reason is the suspicion that Huawei is making it easier for the Beijing government to spy, which the Chinese concern has repeatedly denied. Sanctions prevent Huawei from buying US processor chips and other technologies. The decision to sell the affordable smartphone division was "made by the Honor industry to ensure its own survival," Huawei said. Huawei claims that it will not own any shares or participate in the management of the new company after the completion of the sale. The buyer is Shenzhen Zhixin New Information Technology, a state-owned company from the city of Shenzhen in southern China, where Huawei is also headquartered. The financial details of the agreement were not disclosed. Huawei said it supplies more than 70 million Honor smartphones to the market each year. Referring to security concerns, the US is pushing European countries and other allies not to use Huawei technology to build its 5G networks.