China's Huawei scores 4G patent deal for VW cars

Huawei has struck a licensing deal that will allow use of its 4G technologies in connected vehicles manufactured by Volkswagen Group, the Chinese tech giant said yesterday. The deal is its largest yet in the automotive industry.

It comes as the company moves aggressively into intelligent vehicles and other new sectors after American sanctions imperilled its traditional network equipment and smartphone business lines.

Huawei did not provide financial terms or identify the VW supplier, but said the agreement includes a license under Huawei's 4G patents that covers Volkswagen vehicles equipped with wireless connectivity.

Branding Huawei a security threat, the United States has barred the company from the huge American market, cut it off from global supply chains and pressured allies to ban or remove Huawei gear from their national telecom systems.

Huawei has denied the accusation and said no supporting evidence has ever been provided by the US.

In response, the world's largest supplier of telecom networking gear and formerly a top-three smartphone supplier has pivoted to other business segments for survival.

In addition to supplying technologies to manufacturers of intelligent cars, it has tipped plans to move into the software sector, as well as enterprise and cloud computing.

Last month it also launched its own homegrown mobile operating system.