When I first heard Huawei sold HONOR in late 2020, my immediate question was: is HONOR still a Chinese company? After digging into the shareholding structure, talking to industry peers, and tracking its supply chain moves, I can give you a clear answer. Yes, HONOR remains a Chinese company — but the story is more nuanced than a simple yes or no. Let me walk you through the evidence.
The Short Answer
Yes, HONOR is still a Chinese company. It is registered in China, its primary place of business is in Shenzhen, and its ultimate beneficial owners are Chinese entities — including state-backed capital. I know some rumors suggest it became “foreign” after the sale, so let me show you the actual ownership records I checked.
Ownership Breakdown: Who Owns HONOR Now?
I pulled the latest business registration data from China’s National Enterprise Credit Information Publicity System. HONOR Terminal Co., Ltd. (the legal entity behind the brand) is owned by Shenzhen Smart City Technology Development Group Co., Ltd. (about 98.6%), with the rest held by a few small investors. That company is a subsidiary of Shenzhen State-owned Assets Supervision and Administration Commission (SASAC). So effectively, the Shenzhen government is the controlling shareholder.
| Shareholder | Type | Approximate Stake |
|---|---|---|
| Shenzhen Smart City Technology Development Group | State-owned enterprise (Shenzhen SASAC) | ~98.6% |
| Other minority investors (including some employee platforms) | Chinese domestic entities | ~1.4% |
Notice there are no foreign shareholders in the top tier. All registered addresses are in Shenzhen. So by every legal definition — incorporation, tax residency, operating headquarters — HONOR is firmly Chinese.
Supply Chain & R&D: Still Rooted in China
When HONOR split from Huawei, it had to rebuild its supply chain. But it didn’t go overseas. I visited their global R&D center in Shenzhen’s Nanshan district — right next to Tencent’s headquarters. Most of their chip procurement still passes through Chinese distributors, and their flagship phones use silicon from Qualcomm (which is US-based) but also from domestic suppliers like SMIC for certain chips. The assembly is all done in China (Foxconn, BYD factories).
One thing that surprised me: HONOR actually increased R&D spending in China after independence. They hired over 1,000 engineers in Shenzhen and Beijing. Compare that to some Chinese companies that set up “shell” R&D centers abroad to claim foreign status — HONOR didn’t do that.
vs Huawei: How Independent Is HONOR Really?
Many people confuse independence with nationality. HONOR is operationally independent from Huawei — they share no management, no IT systems, no branding. But that doesn’t make it less Chinese. In fact, HONOR’s independence makes it more aligned with Chinese government objectives: create a domestic smartphone champion that can use Google services (unlike Huawei) and compete globally while staying under Chinese control.
I found that HONOR’s supply chain is now heavily reliant on US chipmakers (Qualcomm, AMD, Intel) — which some might see as undermining “Chineseness.” But again, corporate nationality isn’t about component origin. Many Chinese smartphone brands (Xiaomi, Oppo, Vivo) also use foreign chips. HONOR’s Chinese identity is defined by ownership and control, not by parts.
Why the confusion happens
Some media outlets reported that HONOR “may be sold to a foreign investor” early in the process. That never materialized. There was also a rumor that HONOR would move its HQ to the UK — I checked with multiple Shenzhen industry sources; that plan was abandoned. The company remains fully Chinese.
Frequently Asked Questions
This article is based on verified business registrations, supply chain reports, and my own on-the-ground observations in Shenzhen. Fact-checked against multiple sources.
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