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The selection of 5G providers is not a business issue but a matter of "national security", Ambassador Chapman acknowledged
The U.S. Ambassador to Brazil Todd Chapman alerted President Jair Bolsonaro's administration about possible "consequences" if Brazil allows the participation of Huawei in the 2021 auction for the construction of the 5G network.
"I would say that there will be no retaliation, but there will be consequences. Each country is responsible for its decisions," Chapman told local outlet O Globo.
The ambassador suggested that Huawei's presence could jeopardize future investments by U.S. companies in fear that their intellectual property secrets would be violated.
"First, the information will not be secure. At any time, the Chinese government may ask Huawei for the information to be sent to them," Chapman said.
"Those who are investing in pharmaceuticals or software, look at that. Our economy is based on services. The U.S. largest export is intelligence, intellectual property. And Brazil has to do the same, or it will continue exporting commodities and not high-tech," he added.
The meme reads, “Bolsonaro is ‘Trump's carpet’ and will not support 5G, says Glauber Braga. Lawmaker Glauber Braga predicts that Jair Bolsonaro will obey the U.S. Ambassador’s order and will veto Huawei in Brazil.”
Besides generating great international interest, the 5G auction has become a new chapter in the U.S. tech war against China, as President Donald Trump is actively working to get the Asian company banned.
Although Huawei is not a telephone operator and would not take part in the auction, it is one of the world's largest providers of infrastructure for 5G tech, along with Ericsson (Sweden) and Nokia (Finland).
According to Chapman, the selection of 5G providers is not a business issue for the United States but a matter of "national security."
Recently, however, Brazil's Vice President Hamilton Mourao stated that it will be difficult to leave Huawei out of the auction, although he acknowledged that the U.S. will increase its pressure in that regard as the November presidential elections approaches.