Huawei sells Honor phone brand in face of US sanctions

Chinese tech giant Huawei is selling its budget-price Hor smartphone brand in an effort to rescue struggling business from damaging U.S. sanctions imposed on its parent company. move anunced Tuesday is aimed at reviving Hor by separating it from Huawei’s network equipment and or businesses, which Washington says are a security threat, an accusation Huawei denies. y are under sanctions that block access to most U.S. processor chips and or techlogy.

Huawei Techlogies Ltd.’s anuncement gave financial details but said company will have ownership stake once sale is completed. Huawei will retain its flagship Huawei smartphone brand. buyer is a company formed by a techlogy enterprise owned by government of sourn city of Shenzhen, where Huawei is hequartered, with a group of Hor retailers.

Earlier news reports on rumors of a possible sale put price as high as 100 billion yuan ($15 billion). Huawei, China’s first global tech brand, is at center of U.S.-Chinese tension over techlogy, security and spying. American officials say Huawei might facilitate Chinese spying, which company denies. y also see Chinese government-supported techlogy development as a threat to U.S. industrial dominance.

Sanctions imposed last year block Huawei’s access to most U.S. processor chips and or techlogy. Those were tightened this year when White House barred manufacturers worldwide from using U.S. techlogy to produce chips for Huawei, including those designed by its own engineers.

Tuesday’s anuncements gave indication how Hor’s new owners planned to regain access to U.S. chips and or techlogy including Google's popular music, maps and or services. Or Chinese smartphone brands such as Xiaomi, Oppo and Vivo operate without such restrictions. 

(Im Credits: AP)