Business News Press Release

Brazil Caught In US-China Tensions

Brazil
Source: startribune.com

The United States ambassador to the Brazil has warned of consequences if President Jair Bolsonaro’s government partners with Huawei to develop Brazil’s 5G network.

In an interview to a Brazilian Daily E-American envoy warned Brazil against ignoring U.S. advice on Huawei.

The United States has been running a global campaign against Huawei urging countries to reconsider ties with the Chinese tech giant. Washington has accused Huawei of being an extended arm of Chinese surveillance.

U.S. ambassador to Brazil, Todd Chapman, said that the Chinese government can ask Huawei to share user data at anytime.

Ambassador Chaplin said that while the U.S. would not retaliate with force, Brazil would definitely have to bear the consequences of such a move.

Brazil is expected to invite bids for a 5G rollout in 2021. Sweden’s Ericcson and Finland’s Nokia are also in the running along with Huawei.

The U.S. has said that its warning to Brazil is not driven by economic calculations as no American company has expressed interest in the project.

Ambassador Chapman said that Brazil risks scaring away any investors if partners with Huawei and he also promises to secure funds for Brazil’s 5G rollout if it partners with the U.S. approved supplies. 

America’s warning put President Jair Bolsonaro in a tight spot since taking office he had developed close ties with U.S. president Donald Trump

At the same time, Bolsonaro cannot risk antagonizing China which is Brazil’s largest trading partner.

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