Huawei sells Honor brand after US cuts chip supply

Huawei Technologies Co. sold its Honor smartphone business to a Chinese government-backed consortium for an undisclosed amount, hiving off the entry-level devices arm after the Trump administration cut off its access to American technology.

The consortium was formed by the Shenzhen Smart City Technology Development Group Co. and more than 30 of Honor’s partners, agents and dealers, from private giants such as Suning.com Co. to government-affiliated entities such as a branch of China Postal and Telecommunications. Huawei will no longer hold any shares in Honor after the transaction.

The deal could help augment a brand that’s gained popularity among younger budget-conscious users in recent years and made headway in overseas markets like Europe.