Huawei is reportedly considering selling off its undersea telecom cable business for an undisclosed sum of money.
According to a filing sent to the Shanghai Stock Exchange by Hengtong Optic-Electric, a Chinese optical telecommunications network provide, it will bebuying a 51 per cent stake in Huawei Marine Systems.
Undersea telecommunications cables are the backbone of the modern internet. Much of today's traffic goes through those cables and it's a huge business in which US firm SubCom dominated the market, together with the European Alcatel-Lucent and Japan's NEC Corp.
However, Huawei's has also been gaining solid traction in the field, ever since its inception in 2008.
According to Reuters, Huawei Marine has participated in 90 projects worldwide and built 50,361 kilometers of cables. This includes a 6,000 km cable connecting Africa and South America for the first time completed in September last year.
Last year, it earned $16.66 million in net profit, out of a $54m revenue.
As you probably know by now, Huawei is facing plenty of heat from the US, which claims Huawei's 5G infrastructure could pose a threat to national security, given that the company may be forced by the Chinese government to install backdoors for espionage.
Three months ago, The Wall Street cited US security officials which claimed Huawei Marine could also be a part of that national risk.
Image Credit: Huawei