Huawei to Sell Undersea Cable Business

China's Huawei to sell undersea cable business buyer's exchange filing shows

If the USA 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.

The ban on US tech companies doing business with Huawei is expected to drastically curtail demand for Huawei phones in the future.

Last week, Huawei declared in a US court that the Trump administration's efforts to ban the technology giant's equipment is unconstitutional.

As you probably know by now, Huawei is facing plenty of heat from the USA, which claims Huawei's 5G infrastructure could pose a threat to national security, given that the company may be forced by the Chinese government to install backdoors for espionage.

However, Huawei's shareholding is being acquired by Hengtong Optic-Electric, another Chinese company, which could face similar issues.

And China might retaliate with similar bans against USA technology "that ultimately stagnates our tech leadership around the world", Katie Moussouris, founder of Luta Security, warned.

Some critics of the ban argued that it wouldn't actually help reduce Chinese spying and theft of USA companies' intellectual property as the Trump administration hopes - but may even increase it.

Washington has long voiced suspicions that Huawei is controlled by the Chinese government and thus a global security threat - charges strongly denied by the firm and by Beijing.

"Huawei will not make cars in the future, but will instead focus on ICT technology to help vehicle manufacturers produce better cars", said Xu Zhijun, deputy chairman and rotating chairman of Huawei.

Huawei has insisted that it would resist any efforts to force it to act as an intelligence-gathering arm of the communist Chinese state.

The US Commerce Department last month placed the company on an "entity list" on grounds of national security, a move that curbs its access to US-made components it needs for its equipment.

Some were optimistic about the effect of USA economic pressure.

Hengtong Group on its website said it is China's biggest solutions provider in fibre-optic networks and smart electricity grids, with over 70 subsidiaries at home and overseas, including Indonesia-listed cable maker PT Voksel Electric Tbk.

Even some supporters of the ban, however, anxious it might have some negative outcomes for global cybersecurity. "But we hope the United States can change their way". The Trump administration has delayed the ban from taking full effect until later this summer. Jamil Jaffer, vice president for strategy and business development at IronNet Cybersecurity, supports the Trump administration's decision but warned that the government can wield its authority to cut off Huawei's American suppliers "as a cudgel or a scalpel" - and urged "using the scalpel approach".

The potential sale comes as Huawei Technologies' main business of selling telecom network equipment and smartphones is under intense global scrutiny as the United States alleges its products pose a security risk.

Huawei has consistently denied assisting Chinese government spying and the US government has never produced smoking-gun evidence to prove otherwise.