Chinese telecom giant Huawei will sell its “Glory” mobile phone brand to Digital China and companies backed by the Shenzhen government, Reuters reported. Analysts believe that this action will make the “honor” brand products are no longer subject to U.S. sanctions.
The sale of “glory” brand assets, including its brand, research and development team and supply chain management. After the deal, Glory will retain most of its management team and 7,000 employees.
Digital China, which took over Pride, will be one of the top two shareholders, with a stake of about 15 percent. Digital China has been one of Huawei’s main distributors, and has deep cooperation with Huawei in cloud computing. There are also three other companies backed by the Shenzhen municipal government that will also participate in the takeover of the “Glory” brand.
For these companies, “glory” itself has the Internet of Things connectivity is one of the future growth points.
The U.S. Department of Commerce from May this year, Huawei is included in the “entity list”, and since then to increase the code of Huawei’s sanctions, to restrict the U.S. technology or equipment production company to provide Huawei with chips. Some industry analysts pointed out that Huawei’s withdrawal of the “glory” brand also means that the product is no longer in the scope of U.S. sanctions.