Earlier this month, it was reported that Huawei was looking to sell its budget sub-brand Honor to a consortium, potentially saving Honor from the various trade embargoes placed on its parent company. The deal has now gone through, ceding control of Honor to a government-backed group of companies.

Honor is being sold to a consortium of over 30 agents and dealers, according to a joint statement from 40 of the companies involved in the purchase. The group is primarily made of government-backed entities like the Shenzhen Smart City Development Group and China Telecom. That likely won't appease United States regulators, who originally went after Huawei for its alleged spying on behalf of the Chinese government, but being separate from Huawei could be enough to sway officials. The deal will create an entirely new company for Honor, Shenzhen Zhixin New Information Technology, with Huawei having no shares or ownership.

The Trump administration has been the driving force behind Huawei's trade bans, going as far to pressure other countries to block the use of Huawei equipment, but restrictions could be lessened once Joe Biden takes office as US president in January. However, the move to sell Honor could indicate Huawei is still unsure of its future prospects. The official statement didn't mention Honor's sale price, but previous estimates placed it around 100 billion yuan or US$15 billion.