Earlier this week, a Brazilian diplomat revealed that the US government is providing funds to companies in the country and other regions to buy 5G networking equipment from Huawei rivals.
The US is helping in financing telecom operators in Brazil and other countries. This is to prevent them from buying 5G gear from “untrusted” Chinese companies, which primarily hints at Huawei. According to Ambassador Todd Chapman, appropriate alternatives for 5G technology have been found through Ericsson, Nokia, and Samsung.
The funds have been allocated from the US International Development Finance Corporation (DFC), which is a government agency that finances private development projects. Furthermore, Chapman stated that Huawei Technologies is untrustable as a partner that will help build 5G across the globe, despite being the world’s largest telecommunications equipment provider.
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For those unaware, Huawei has been in Brazil for over 20 years and has partnered with local telecom operators to test 5G networking in the region. It has already built the backbone of the infrastructure regarding the newer and faster bandwidth using Chinese equipment. Notable partners include major carriers like Telefonica Brasil SA, TIM Participacoes SA, America Movil’s Claro and Oi SA.
The move from the US is another clear effort to pressurize the Chinese tech giant. Its recent sanctions have cut off its chip supply from TSMC and it has even urged other governments to remove Huawei’s presence in their respective 5G infrastructure as well. Chapman also said that “We are simply alerting our friends and allies in Brazil that we have those concerns shared by many countries around the world that such technology is not the way to go.”
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