INTRO: Huawei is reportedly looking to sell parts of its ‘Honor’ smartphone business following backbreaking US sanctions that have made it almost impossible for the corporate to hold on with the business. According to Reuters, the Chinese giant is in talks with a corporation called Digital China for a possible deal that would be worth between 15 and 25 billion yuan (~$2.2 billion – $3.7 billion).
The report further states that other prospective buyers, including fellow Chinese tech giants, TCL and Xiaomi, also are within the fray to grab what they believe would be a really lucrative deal. None of the businesses named within the Reuters report have made a political statement, but a minimum of one anonymous source apparently claimed that it’d be an all-cash deal.
It is worth noting that this is often not the primary time we’re hearing about Huawei’s supposed plans to hive off parts of its smartphone business following stringent trade bans imposed by the United States government. Last week, Chinese tech blog, IT Home, first published an identical report citing noted TF International analyst, Ming-Chi Kuo, but was met with vehement denials from the corporate . The blog eventually retracted the story.
As a part of the Trump administration’s continuing actions against Huawei and other Chinese tech firms, the US government, in August, announced new trade restrictions to stop the Chinese giant from accessing technology produced by US companies. The administration had earlier pressured Taiwan’s TSMC into stopping the manufacturing of Huawei’s Kirin chipsets in a move described by the company’s consumer business CEO, Richard Yu, as “a huge loss for Huawei”.