Huawei. Following the numerous problems of the last period, the company is obliged to sell an important division, which brought considerable income. More precisely, Huawei officially announced today the sale of the Marine Systems division, which installs underwater cables. Huawei created this division to connect the continents with internet cables to improve data transfer speeds, but its reputation now forces it to give it up.
Huawei. The constant accusations coming from the USA against the Chinese company destroyed its reputation, making it impossible to conclude contracts with new clients. The Chinese owned 51% of the company before they decided to sell it, and they certainly didn't get there very easily, but there is no other solution. Another Chinese company decided to buy Huawei Marine Systems, the transaction having already been registered in Shanghai, the other day.
Huawei. OBLIGED to SELL a Part of the Company
Huawei. Customers who could benefit from the services of this division began to fear the possibility of being spied on by the Chinese government and the US quality come here The Americans managed to almost completely destroy the reputation that the Chinese have built for this business until now. It is not known how much money this division generates annually for the entire company, but it was probably a significant amount.
It's becoming a more difficult environment when trying to negotiate deals to build cables because the company is in the spotlight.
Huawei. Despite this, the constant pressure exerted by the Americans seems to have paid off in the end, with some of the Chinese clients succumbing to them. It is not known how long they had these problems, and how many contracts they lost, but the situation is old. If the problems had not been so serious, then the decision to sell the division would not have been made now.
Huawei. The announcement regarding the sale of this division comes a few days after it was revealed that including the production of telephones was substantially reduced. Basically, now the Chinese can't sell phones, they can't buy components, and they also sell pieces of the company.
