São Paulo, Brazil:
The US ambassador to Brasilia warned of “consequences” if Brazil chooses Chinese telecommunications company Huawei to develop its 5G network, in an interview published Wednesday.
“I wouldn’t say there would be retaliation, but there would be consequences” if Brazil goes against American advice and chooses the Chinese company, Ambassador Todd Chapman told the Globo newspaper.
Brazil is due to launch a tender next year for the project to develop the next generation of telecommunications technologies in Latin America’s most populous country, with a population of 212 million.
The United States has actively pressured countries around the world to boycott Huawei, arguing the company could allow the Chinese government to spy on their data.
“At any time, the Chinese government could ask Huawei to send information to it,” Chapman said.
“There is no purely American company competing. I’m not saying that to make a billion dollars. It’s a matter of national security.”
Other companies that have expressed interest in bidding for 5G in Brazil include Ericsson in Sweden and Nokia in Finland.
Chapman also warned that Brazil could scare off foreign investment by contracting a company that the United States says violates intellectual property rights and receives unfair state support that puts its competitors at a disadvantage.
“The US position is to alert our allies and friends, like Brazil, so they know who they are working with,” he said.
Chapman said the United States was ready to help raise funds through the International Development Finance Corporation, a US government institution, to roll out 5G “for those who buy products from reliable suppliers.”
The pressure puts the government of President Jair Bolsonaro in a bind.
Since taking office last year, the far-right leader has maintained close ties with US President Donald Trump, whom he admires.
But China is Brazil’s biggest trading partner.
The dispute comes amid what many analysts describe as a “new cold war” between the United States and China.
Britain announced earlier this month that it would be removing Huawei equipment from its 5G network, under pressure from Washington despite warnings of retaliation from Beijing.
(This story was not edited by GalacticGaming staff and is auto-generated from a syndicated feed.)