It has been rumored for quite some time, and this decision taken by Huawei was allegedly made in an attempt to circumvent U.S. economic sanctions
About a month ago, Huawei entered into negotiations with potential buyers regarding a partial sale of the business of its subsidiary producing Honor smartphone.
The Chinese giant seems to have reached an agreement, but it would be more a matter of selling the subsidiary in its entirety.
Still according to information revealed by the news media, it is the Digital China group and the local government of the city of Shenzhen that will buy the company for 15 billion dollars, or about 13 billion euros.
The transaction between the three parties involved is expected to be entirely in cash.
Under the terms of the agreement, Honor will retain its own brand, research and development facilities, and supply chain.
The majority of the management team and the company’s 7,000 employees are also expected to be retained.
This may mean that the sale of the business as a going concern has been completed so that it can be freed from Huawei’s influence.
This could relate, among other things, to Huawei’s current difficulties with the U.S. government.
The question now is how Huawei will relate to Joe Biden’s administration. Will the Chinese company and its peers find favor in the eyes of the Americans?