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China's Huawei is set to sell a majority slice of its undersea cable division to Hengtong Optic-Electric Co., a Chinese manufacturer of optical cables, per a Shanghai regulatory filing.
Why it matters, via Axios' Dan Primack: This is the first concrete indication that Huawei is scaling back some of its global infrastructure ambitions.
The intrigue: The move comes as the Trump administration continues its push against the Chinese telecom giant, arguing that it might use its expansion across sectors like 5G to spy on Americans. Bloomberg notes that Huawei's undersea cable project "has drawn scrutiny because of its role in building fundamental internet-connection infrastructure."
Worth noting: Huawei did not disclose terms or timing for the deal, which is not formalized and still may change.