The trade dispute which erupted between the U.S. and China is unlikely to settle down anytime soon. With US President Trump imposing various restrictions on the Chinese tech giants, the tech companies have suffered tremendously due to various U.S. restrictions. Among all the chaos, the Chinese based tech giant Huawei has suffered the most in this scuffle.
But recently the company’s Co. Founder Ren Zhengfei has called the sale of its Honor budget smartphone division a “clean break.” He further states that its success will free the company from U.S. restrictions and create a new powerhouse in the world’s largest mobile arena. He also assured his employees, stating that the U.S. tactics to contain his company will no longer work. And as soon as Huawei gets access to American circuitry and software, the company will begin producing smartphones.
“Facing wave upon wave of attacks from the U.S., we finally realized that American officials weren’t trying to fix us. They were seeking to kill us. Once we’re divorced, there’ll no longer be any under-the-table relations with Honor. We’re handling the separation in an adult manner and will rigorously adhere to regulations and international norms.”
U.S. administration has been hitting hard on Huawei since 2018. Stating national security concerns, the U.S. administration started a campaign against the tech giant, which eventually led to its chief financial officer under house arrest in Canada. Due to the U.S.’s attempts, its 5G equipment has been banned in countries from the U.K. to Japan. Finally, the U.S. administration imposed restrictions earlier this year against suppliers of Huawei. With this, all routes were cut off for Huawei to procure ready-made semiconductors to keep its smartphone business afloat.
To keep its Honor brand’s smartphone business afloat, the company has deviated towards a collaboration of new owners. It includes local city-backed corporations such as Shenzhen Expressway and Shenzhen Energy. It can also lean on Suning.com Co., the country’s largest electronics chain backed by Alibaba Group Holding Ltd.
“Under its new leadership, Honor will very quickly resume production and resolve issues affecting its upstream and downstream partners. The U.S. is a technology superpower that has many excellent companies. You should firmly and boldly work with them.”