According to two people familiar with the matter, Brazilian President Bolsonaro is seeking legal means to exclude Huawei from Brazil’s 5G network.
According to Reuters, sources said that Augusto Heleno, Bossonaro’s national security adviser, and the Brazilian telecommunications department are studying to make Brazilian telecommunications companies and their suppliers comply with some security regulations by issuing a presidential decree.
Reuters said that so far, the Brazilian government has not found a legally tenable way to ban Huawei without affecting other suppliers. According to another source
Brazilian government has considered excluding network equipment suppliers that are not listed in the Bovespa stock market in São Paulo to exclude Huawei, but such a policy will also affect other network equipment suppliers.
Reuters said that Brazil’s Minister of Communications declined to comment on the news, and the office of National Security Adviser Augusto responded that it was not involved in 5G-related matters.
Reuters reported that Brazilian President Bolsonaro followed Trump and opposed Huawei’s participation in the construction of local telecommunications networks under various unproven pretexts.
However, China is Brazil’s largest trading partner, and such a move puts Bolsonaro under pressure from the industrial field and within the government.
Reuters quoted anonymous sources as saying, “If you try to make rules to restrict a company without reasonable reasons, the court will not support it. This will not only affect technological progress, but also other areas of Brazil’s trade relations with China.”
According to Reuters, the U.S. government previously provided financing to Brasil Telecom, encouraging them to buy products from Western suppliers such as Nokia and Ericsson instead of from Huawei.
Huawei has previously said that Huawei has operated in Brazil for 22 years at the highest international network security standards, as it has done in 170 countries around the world, and has organized 5G testing with all Brazilian wireless network companies.
Huawei said in a statement: “We hope that all decisions on this issue are made strictly in a technical, non-discriminatory manner, in favor of the free market.”
According to a previous report by CCTV News, on December 7th local time, Brazilian Vice President Hamilton Moran said during the event of the São Paulo Business Association that Huawei and other Chinese enterprises can participate in Brazil’s 5G construction under the premise of respecting Brazil’s national sovereignty, ensuring the safety of data transmission and ensuring the economy of equipment. .
Morang said at the event: “At present, about 40% of 3G and 4G equipment in Brazil nationwide come from Huawei. If Huawei is excluded from the 5G construction plan, all the original equipment needs to be dismantled, and Brazil will pay a high price.”
Brazilian telecom sources pointed out that in fact, Huawei’s equipment actually accounts for more than 40% of the country’s 3G and 4G fields.
Six of the country’s seven largest telecom operators have more than half of their equipment from Huawei.
The proportion of Huawei devices used by the two largest operators is 65% and 55% respectively.
Some operators said that if the Brazilian government insists on banning the use of Huawei’s 5G equipment, it will claim compensation for the huge losses caused by the replacement of equipment.