Huawei will sell its majority share in a submarine cable unit, Huawei Marine Networks, amid a US-led drive to isolate the Chinese telecom giant from global information networks over spying fears. Huawei Marine Networks is a joint venture between Huawei and UK-based undersea cable firm Global Marine Systems.
The 51% stake in Huawei Marine Networks will be bought by Hengtong Optic-Electric, an optical-cable manufacturer based in eastern China's Jiangsu province, according to a filing with the Shanghai Stock Exchange.
Huawei Marine is involved in around 90 projects, from the Pacific to the Atlantic, totaling more than 50,000 kilometers of undersea cables.
Reached by AFP, a Huawei spokesperson said the company had no immediate comment on the status of Huawei Marine. Hengtong Optic-Electric's stock exchange filing said the company was purchasing the stake from Huawei Technologies Co, Huawei's corporate parent.
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. But the US Commerce Department last month placed Huawei and dozens of affiliates on an “entity list” on grounds of national security, a move that curbs its access to US-made components it needs, though a 90-day reprieve was later issued.