Huawei could sell Honor to bypass the US veto

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Since the US added Huawei to the list of entities, the Chinese manufacturer is in serious trouble as it cannot get the hardware and software components it needs for its smartphones. For this reason, it appears that the company could be working on restructuring its business and refocusing its efforts on its own high-end. According to Reuters, Huawei is looking to sell parts like its Honor subdivision to Digital China, Xiaomi, or TCL. It is not yet clear which parts exactly Huawei wants to sell, but sources say they could include “the Honor brand, research and development capabilities, and business related to supply chain management.” The sale could be made for an amount between 15 and 25 billion yuan (between 1.9 million and 3.1 million euros). A sale to Digital China would be the logical thing to do, as the company is the main distributor of Honor phones, but apparently TCL and Xiaomi are also in talks with Huawei. An Honor sale could exempt you from Huawei’s business restrictions, as the penalties only apply to Honor’s parent company.