US Considering Action against Honor

US Considering Action against Honor

Foto: Honor

A former Huawei-owned smartphone manufacturer Honor is rumoured to be at risk of similar sanctions to former parent company. Representatives from two of four key US government departments reportedly sre in favour of imposing restrictions.

According to The Washington Post report, Pentagon and Department of Energy experts are in favour of moving Honor onto the country’s list of companies with export restrictions, while those at the Departments of Commerce and State are against. If the quartet fail to reach a consensus on whether Honor poses a security risk, and subsequently be placed on the list, the matter will reportedly be escalated.

Huawei divested Honor in late last year and, as a result the unit was protected from trade restrictions on its former parent covering sourcing components and software from US companies. While Huawei’s handset business has since suffered a decline in shipments, under new ownership and using US-sourced parts Honor executives have been bullish on its prospects.

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