In May 2019, the United States added Huawei to the so-called “Prohibited List of Organizations”, with which American companies, including Google, are prohibited from working. At the time, Honor was a sub-brand of Huawei, using most of Huawei’s assets to manufacture its goods.
Huawei sold Honor last fall to save the brand from the effects of the ban. However, the US government is now considering the possibility of including the now independent company Honor on the aforementioned blacklist.
According to The Washington Post, four departments are discussing this decision. During the vote, the Pentagon and the Department of Energy said they want to include Honor on the banned list of organizations. Meanwhile, the Department of Commerce and the Department of State do not believe this step is necessary. If the departments do not agree, the final decision will be made by US President Joe Biden.
Of course, if the same US sanctions were imposed on Honor, it could completely destroy its business. However, it is not yet clear why the company was targeted. It is no longer affiliated with Huawei, nor does it have a 5G network equipment division and is not represented in the US market. It is worth noting that over the past year, Huawei, under the yoke of sanctions, has several times weakened its position in the global smartphone market, losing its share to Chinese competitors.
Probably, a decision on this issue will be made in the near future.
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