HUAWEI, China’s Tech-giant has struck a licensing deal that will allow the use of its 4G technologies in connected vehicles manufactured by Volkswagen Group on Wednesday.
The deal is the largest yet in the automotive industry. The deal comes in the wake of numerous US sanctions on Chinese companies, as they moves aggressively into intelligent vehicles and other new sectors. The sanctions have caused damage to company’s traditional network equipment and smartphone business lines.
Huawei did not provide any financial terms or revealed identity of the Volkswagen supplier but it said the agreement included a license under HUAWEI 4G patents which cover Volkswagen vehicles equipped with wireless connectivity.
Viewing Huawei as a major security threat, the United States has restricted the company to function freely in the huge American market, cut it off from global supply chains, and pressured allies to ban or remove HUAWEI gear from their national telecoms system.
HUAWEI has denied the accusations, calling them baseless, and has turned its focus to other business segments for survival. The company is currently the world’s largest supplier of telecom networking gear and formerly a top-three smartphone supplier.
Huawei has moved into the software sector, as well as enterprise and cloud computing. Last month, it launched its indigenous home-built mobile operating system after US sanctions deprived it from using Google’s Android system on its smartphones.