Chinese phone manufacturer Huawei is selling its smartphone brand Honor, it reported in a statement Tuesday.
The sale follows "enormous pressure" from the United States;
Due to country sanctions, Huawei cannot buy computer chips that are needed for smartphones.
"This choice was made at Honors industry chain to ensure its own survival," Huawei wrote in the statement.
The US accuses Huawei of being a pawn of the Chinese government.
With its products, China could easily spy on the West.
Evidence that this actually happens has never been made public.
Huawei also makes telecom network equipment, but supplies to Western countries for the new 5G networks have become more difficult as a result of the accusation.
Honor is being sold to a consortium called Shenzhen Zhixin New Information Technology, which consists of thirty parties.
Huawei will not own stock or play a business role in the new standalone company, the Chinese phone maker said.
In this way, the new Honor company could bypass the US sanctions, for example by purchasing chips from American chip manufacturers.
Shenzhen Zhixin competes with Xiaomi and OPPO
Shenzhen Zhixin includes various investment companies of the Chinese government from Shenzhen, the metropolis bordering on Hong Kong and a melting pot for the Chinese technological industry.
Huawei is the largest smartphone manufacturer in the world after the South Korean Samsung.
With Honor, the company focused on cheaper smartphones that compete with, among others, models of the Chinese competitors such as Xiaomi and OPPO.
Huawei uses self-developed chips for its own, most expensive smartphones.
In August it was announced that the production of those chips is also suffering from the US sanctions.