Wednesday, December 8, 2021

Licensing to stimulate business Huawei is planning to circumvent the sanctions

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Huawei wants to circumvent the US sanctions by licensing its own smartphones to other manufacturers. You can find out what possible partnerships could look like here.

According to the Bloomberg news site, Huawei plans to license the designs of its own phones from partner companies. This could circumvent the US sanctions that put the smartphone manufacturer in dire straits.

Through the licensing, Huawei hopes to regain access to key components such as computer chips and 5G cellular modules. These are especially essential for the production of modern and innovative smartphones.

Xnova, a subdivision of the Chinese state-owned company China Postal and Telecommunications Appliances Co. (PTAC), is to be authorized to purchase the important components and then assemble them. Xnova is already selling Huawei smartphones from the Nova range in its own online shop. This is now to be expanded to include self-produced devices based on Huawei designs.

Another possible cooperation partner is the Chinese telecommunications company TD Tech Ltd. This plans to sell the cell phones under its own brand as well.

So far, there has been no official statement or announcement of the cooperation either on the part of Huawei or from the two Chinese companies that are traded as potential partners.

PTAC is not affected by the US sanctions that the Trump administration imposed on Huawei in 2019. The Biden administration has so far shown no ambition to relax or even lift the sanctions.

Since the Chinese technology giant no longer has access to Google’s Android platform and important smartphone chips and cellular modules, sales figures have fallen dramatically.

Huawei was at times one of the top 3 largest smartphone manufacturers in the world. In the meantime, the company no longer has a noteworthy position in the global smartphone business and ranks far behind in the lower places. Huawei’s sales figures have suffered mainly from other Chinese manufacturers such as Xiaomi or Oppo.

The former in-house Honor brand, which is also involved in smartphone production, was sold to a consortium owned by the Chinese state in 2020. This made it possible for Honor to get the coveted chips from the Taiwanese manufacturer TSMC and the American competitor Qualcomm. Huawei is now hoping for the same through the license partnerships.

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