(Yicai Global) June 3 -- Hengtong Optic-Electric, a Chinese  fiber cable communications firm, is planning to purchase a majority  stake in Huawei Technologies's unit that builds networks across the  seas, which could show that Huawei is offloading some of its network  assets due to the US-China trade spat.

Hengtong aims to buy a 51  percent stake in Huawei Marine Systems by issuing new shares and paying  in part in cash, the Suzhou-based buyer said in a statement today,  without disclosing the price. The pair will still need to sign the  contract. 

The deal could signal that  the intensifying trade tiff has prompted Huawei to alter its business  strategy. The company has fended off claims of potential espionage via its networks after the  US Department of Commerce added it to a list of firms that need to  obtain a special permit to buy US technologies on May 16. 

Hengtong's shares  [SHA:600487] rose 2.4 percent before a trading halt at CNY15.9 (USD2.30)  on May 31, due to the pending agreement. The suspension may last up to  10 days.

Shenzhen's Huawei and  Britain's Global Marine Systems formed Huawei Marine Systems in 2008 to  provide international undersea cable network solutions. 

Founded in 1993, Hengtong has business in over 120 countries and regions, its website shows.

Editor: Emmi Laine