China’s Huawei to sell stake in undersea-cable unit

China’s Huawei to sell stake in undersea-cable unit

Huaweiis poised to sell its majority stake in a submarine cable company, amid pressure from the U.S. to blacklist the company over spying fears.

Ben Wood, Chief of Research at CCS Insight, commented, "Huawei has been working hard on developing its own App Gallery and other software assets in a similar manner to the work it has done on developing its own chipsets for phones".

Liang accused the US of inappropriate conduct, while at the same time striking a conciliatory tone - a response reflecting a level of exasperation now felt by the Chinese tech giant.

Three months ago, The Wall Street cited U.S. security officials which claimed Huawei Marine could also be a part of that national risk.

"We are willing to sign a no-spy agreement with the USA", said Huawei Chairman Liang Hua, while speaking with a group of USA journalists visiting the company's Shenzhen, China, headquarters with the China-United States Exchange Foundation.

If the United States persisted with its moves, Liu said, it would "force us to use Plan B", referring to heavy investments in new technology, including developing its own chips. "So, I don't know if there's opportunity to sign such an agreement".

Liang Hua went on to accuse the United States of mixing political and industrial interests, saying that it is "inappropriate to use political means to disrupt an industry".

Founded by Ren in 1987, Huawei has risen to become the world leader in telecom networking equipment and one of the top smartphone manufacturers alongside Samsung and Apple.

Last month, Huawei was slapped with a trade ban by the US Commerce Department that threatens to significantly disrupt its supply chain, though it has since been given a temporary reprieve.

President Trump signed a bill in 2018 banning both Huawei and ZTE's devices. The ban is going to take full effect later this summer.

If the effort "to reduce [China's] overall dependence on the USA tech sector is successful", warned Stamos, who's now a Hoover fellow at Stanford University, China "could emerge as the indispensable nation in consumer technology".

Huawei Marine plays a key role in Ren's ambitions.

Experts in China say that the US government's ban might hurt Huawei in the short term, however, in the long term this might strengthen the company even more.

Hengtong has its own projects based in South America, as well as a fibre-optic co-venture with a USA firm.

A filing on Monday shows that the company's undersea cable business is the first sandbag to be tossed from the wavering hot-air balloon of Huawei.

The Commerce Department imposed that ban last month as part of a broad government effort to punish Huawei over concerns it's helping the Chinese government spy on USA companies.

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