After the United States government puts Huawei into its Entity List, Huawei had to face lots of issues. The whole blacklist is due to the security of its networking equipment. Today, Huawei is officially selling off its undersea cable operations including reducing its smartphone productions orders with Foxconn.
According to TheVerge, Huawei Marine System is the one who lays its undersea fibre optic cables between different continents. From its website, it states that Huawei lays more than 50,000km of undersea cables. Since Huawei was caught spying, it has been very difficult for them to win business. According to the International Cyber Policy Centre, Huawei is really having a hard time to negotiate deals to build undersea cables because of the blacklist issue.
At this moment, Hengtong Optic-Electric which is another Chinese company is buying the share of the submarine cable operation. Other than that, according to the news from South China Morning Post, it seems Foxconn is stopping a few production lines for Huawei phones. However, earlier before the Huawei was in the blacklist, Foxconn reported hiring new staffs to help to produce more Huawei phones.
In conclusion, Huawei business seems to drop due for being blacklisted by the United States government.