Ever since the US tightened the noose on Huawei with various extensions of the trade ban, the Chinese manufacturer is in deep trouble, potentially left off without vital phone components. That appears to be the reason why the company might be working on restructuring its business and refocus its efforts on its own higher-end lineup. Reuters reports that Huawei is looking to sell parts of its subdivision Honor to Digital China, Xiaomi, or TCL.
It's still unclear which parts exactly Huawei wants to sell, but Reuters' sources say that they could include "Honor’s brand, research & development capabilities, and related supply chain management business." The deal is supposed to be an all-cash sale and might be worth between 15 and 25 billion yuan (about $2.2 billion to $3.7 billion).
A sale to Digital China would make the most sense as the company is already the main distributor of Honor phones, but TCL and Xiaomi are also reportedly in talks with Huawei.
A sale could benefit Honor: it could potentially exempt it from the trade restrictions Huawei suffers from, as the sanctions only apply to Honor's parent company. But that's not a given when you consider how the US government reacts to changes in Huawei's supply chain to hinder it from evading the sanctions.