Huawei 5G role prompts diplomatic pressures in Brazil

Subject

The politics of 5G in Brazil.

Significance

Brazil has started the process of choosing the supplier of its 5G network. The United States is a key player in this competition, and US President Donald Trump himself lobbied against the potential option of China’s Huawei during a March dinner with his Brazilian counterpart Jair Bolsonaro. While these efforts seek to reduce Huawei’s chances in the 5G auction, there is resistance within parts of the Brazilian government. Moreover, a diplomatic faux pas by Bolsonaro’s son may have favoured China’s position.

Impacts

• US overtures may favour the Brazilian defence industry, with new partnerships on the cards.
• Beijing may seek to increase Huawei’s attractiveness with further Chinese infrastructure investments in Brazil.
• China will take advantage of its position as a provider of medical supplies and expertise to promote its position in Brazil.
• The result of the auction could prove to be a compromise arrangement grudgingly accepted by both sides.