China's Huawei Technologies is in talks to take control of a small domestic automaker's electric vehicle unit, two people with direct knowledge of the matter said, a move that would be a strategic shift for the world's largest telecom equipment maker.
A company spokesman denied such a step, however.
Huawei, which has been battered by U.S. sanctions, is in talks with Chongqing Sokon to acquire a controlling stake in the latter's Chongqing Jinkang New Energy Automobile, said the sources.
The move will allow Huawei to make intelligent cars bearing its own nameplate, they added. Jinkang counts U.S. EV brand Seres, formerly known as SF Motors, as its main asset.