Huawei confirmed plans to sell all its Honor business assets to a domestic consortium, as the Chinese vendor moves to avoid toughened trade sanctions from the US.

In a statement, Huawei said its consumer business had “been under tremendous pressure” due to “a persistent unavailability of technical elements needed for our mobile phone business”.

It said the sale to Shenzhen Zhixin New Information Technology Co would “help Honor’s channel sellers and suppliers make it through this difficult time”.

“This move has been made by Honor’s industry chain to ensure its own survival. Over 30 agents and dealers of the Honor brand first proposed this acquisition.”

After the sale, Huawei won’t hold any shares or be involved in the management of the new company.

Last week, Reuters reported Huawei was close to finalising a deal to sell Honor assets including the brand, R&D functions and supply chain management to a group led by handset distributor Digital China and the Shenzhen government for CNY100 billion ($15.2 billion).

Since its creation in 2013, the youth-focused Honor brand marketed handsets in the low- to mid-tier price range and shipped more than 70 million units annually, Huawei said.