Bolsonaro to allow China's Huawei in Brazil's 5G as Trump set to leave office: paper

In an apparent U-turn on China’s Huawei, Brazil’s far-right President Jair Bolsonaro will reportedly allow the Chinese telecom giant to participate in an auction in the country, now that he is losing his ally in the White House.

Citing government and industry sources, a Brazilian newspaper reported Saturday that Bolsonaro will not restrict Huawei Technologies Co Ltd from 5G network auctions slated for June this year.

The Brazilian newspaper, Estado de S. Paulo, wrote on Saturday that financial costs potentially worth billions of dollars and the exit of President Donald Trump from the White House, are now forcing Bolsonaro to backtrack on his opposition to Huawei.

Under Trump's pressure, Bolsonaro was considering banning Huawei from supplying components to Brazil’s upcoming 5G network last year.

The Brazilian president, however, has faced resistance from industry and within his inner cycle, including from Vice President Hamilton Mourao, due to Huawei’s ability to compete on price.

Mourao and Science and Technology Minister Marcos Pontes advocated for an open and fair bidding process to pick the builders of Brazil’s 5G network.

Bolsonaro, who models his presidency on President Donald Trump's, opposed the Chinese telecom firm on unproven allegations that it shares confidential data with the Chinese government.

The Trump administration has cranked up pressure to limit Huawei’s role in rolling out high-speed, fifth-generation technology in Latin America’s largest economy, alleging that Huawei would hand over data to Beijing. Huawei denies the allegations.

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Trump has blacklisted Huawei to block the company from getting any US telecom equipment contracts and prevent the transfer of American technology to the Chinese firm.

The US had also warned Brazil of “consequences” if it allowed the Chinese tech giant into its 5G network.

Brazil’s relations with Beijing have been tense since Bolsonaro took office in 2019.

Though he heavily criticized Beijing during his campaign trail, Bolsonaro warmed up to President Xi Jinping last year as economic prospects worsened for his nation amid the coronavirus pandemic.

During a phone call last year, the two leaders agreed to work together to fight the new coronavirus.

Xi promised firm support to the Brazilian government and people in their fight against the pandemic.

China, Brazil’s largest trade partner, was the destination of 40% of Brazilian exports in the first half of the last year, according to data from the agriculture ministry.

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