Chinese tech giant Huawei has decided to sell all business assets of its sub-brand Honor to ease financial impacts following the US trade restrictions that blocked the company’s access to semiconductor chips.
"Huawei's consumer business has been under tremendous pressure as of late. This has been due to a persistent unavailability of technical elements needed for our mobile phone business," Huawei said in a statement.
“Huawei Investment Holding Co., Ltd. has thus decided to sell all of its Honor business assets to Shenzhen Zhixin New Information Technology Co., Ltd. This sale will help Honor's channel sellers and suppliers make it through this difficult time,” the statement added.
It said Huawei will not hold any shares or be involved in any business management or decision-making activities once the sale is complete.
“This move has been made by Honor's industry chain to ensure its own survival. Over 30 agents and dealers of the Honor brand first proposed this acquisition,” the statement added.
Earlier this year, Washington slapped restrictions on many Chinese companies, including tech giant Huawei, for their alleged links to the Communist Party of China.
In August, Chinese media reported that the company is shifting its US investments to Russia after the Trump administration imposed restrictions on the Chinese tech giant.
* Writing by Islamuddin Sajid