GUANGZHOU, China — Huawei is boosting its efforts in software areas like cloud computing and smart cars as U.S. sanctions hurt its hardware business.

Last week, Arcfox, a brand under automaker BAIC Group, launched a car with Huawei’s vehicle technology. It included a cockpit kitted out with HarmonyOS, the operating system Huawei launched in 2019, as well as autonomous driving capabilities. Huawei will not be making cars and will instead focus on the technology that powers them.

And on Sunday, Huawei launched some new cloud computing products as it looks to challenge China’s market leader, Alibaba.

Huawei said in a press release on Sunday that it hopes the focus on cloud will “eventually increase the proportion our software and service business has in our total revenue mix.”

The pivot to software comes after U.S. sanctions on Huawei have caused smartphone sales to plunge. The Chinese giant was put on a blacklist known as the Entity…

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