Huawei To Outsource Cellphones To Evade US Sanctions


Huawei: Chinese manufacturer Huawei is in the process of establishing partnerships to circumvent trade and political sanctions currently imposed by the US government against the company.

According to a Bloomberg report, the company now wants to license the design of its devices to third-party companies — and not banned in markets like the US — with the aim of not abandoning the sector. In this way, these companies could acquire semiconductors and other components from brands with US ties, which is currently prohibited for Huawei.

In ongoing negotiations, the designs would be sold to the China Postal and Telecommunications Appliances Company (PTAC), which has a smartphone unit called Xnova and even already sells some of the potential partner’s devices. Also Chinese TD Tech is another that has advanced conversations with the manufacturer. In both cases, the Huawei name would not be used commercially on the models, which would come practically ready for mass production.

Remember the crisis

Sanctions against Huawei’s mobile device and network infrastructure unit began in 2019, when the brand was barred from even using the Android ecosystem. The government of President Joe Biden intensified the actions initiated by the Donald Trump administration.

It also stopped dealing with US companies and, even trying to circumvent sanctions with internal investments, saw the cell phone sector’s revenue drop dramatically — it was the second world leader in sales two years ago, but today it doesn’t even occupy the top 5.

The US government accuses the Chinese of spying on the company’s devices and is even putting pressure on Brazil so that the company does not participate in the 5G structure in the country.