Monday , November 29 2021

Huawei sells its Honor brand, weighed down by US sanctions | ECONOMICS



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China’s telecommunications giant Huawei announced that it has sold the Honor phone brand, according to the company, it is necessary to save that brand from the “tremendous” pressure caused by US sanctions in the supply chain.

Honor, which was bought by a consortium of 40 Chinese companies, namely distributors, agents and other companies that depend on this brand that sells cheap phones, Huawei and the consortium have stated in various documents.

Huawei, one of the world’s three largest mobile phone manufacturers, has said it is under “tremendous pressure” on the production of devices for unsuspecting users, as the group is unable to get supplies of electronic components due to the penalties imposed on it. tax United States of America.

“The sale will help Honorary vendors and suppliers overcome this difficult period,” the Shenzhen group in southern China said in a statement.

Honor, a brand aimed primarily at young people and small budgets, says it sells 70 million phones a year, according to Huawei.

Huawei no longer has any action and “is not involved in the management of the business or the decisions of the new Honor company,” he said.

Huawei is at the crossroads of the president’s administration Donald Trump, Who is suspected of spying for Beijing. The military past of Ren Zhengfei, the company’s founder, and membership in the Communist Party of China have sparked suspicions about the regime’s impact on the group.

The U.S. government has taken steps to exclude Huawei from the U.S. market, to allow the U.S. company to cooperate with the company and cut its overall supply of semiconductors and other components.

Washington has stepped up pressure on its allies to ban Huawei’s 5G equipment, arguing for cybersecurity risks.

Huawei has denied U.S. allegations, accusing the offensive of being a victim of a desire to eradicate a powerful U.S. competitor.

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