Huawei saga enters Brazil as US starts posturing

The US Ambassador to Brazil has warned the country would face severe consequences should it allow Huawei to supply equipment to 5G networks.

While the focus in recent years has been on European allies, the US has now seemingly turned attention to the LATAM markets. Not content on extinguishing the Huawei presence in Europe alone, the US has started throwing its weight around Brazil, one of the continents leading economies.

“I wouldn’t say there would be retaliation, but there would be consequences,” Ambassador Todd Chapman told local newspaper Globo.

It doesn’t matter if you put a cardigan on a pig, it is still a pig not a sheep. The US is threatening Brazil, imposing its anti-China campaign on another sovereign nation. What remains to be seen is whether the Brazilians have more control over their foreign policy than the UK has demonstrated.

Prospects for Huawei in the European region seem to be diminishing to zero as US administrative and bureaucratic hurdles forced the UK to effectively ban the Chinese vendor from 5G networks. The same pressure is being applied to other European nations, and it would surprise few to see similar decisions made.

It does appear the US is attempting to reduce commercial opportunities in LATAM for Huawei, though Brazil has a lot to lose also.

As it stands, Huawei has a manufacturing site in Brazil which employs 2,000 people and supports a local ecosystem. The Chinese company plans to open a smartphone manufacturing plant in Sao Paolo, employing an additional 1,000 people. With direct and indirect employment and investment tied to Huawei, banning the firm as per US demands would be quite a big call for the Government to make.

Aside from the Huawei investment, it is also worth bearing in mind that China is also one of Brazil’s most important trading partners. According to the OEC statistics, China is the largest destination for Brazilian exports (26.5%) while it is also the biggest importer to the country (19.6%). This is a very important relationship to potentially compromise at the whim of the White House.

The US is also an important trading partner, while Brazilian President Jair Bolsonaro is a Trump fan. There is also US investment being made available in exchange for a Huawei ban. This could be another example of the US deciding the foreign policy of an allied nation.

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  1. Avatar Dr David Wong 30/07/2020 @ 6:04 pm

    Last month, the PRC’s Brazilian embassy wrote to the Brazilian Congress demanding that it not congratulate the President of Taiwan, Tsai Ying Wen’s, election victory and that it adhere to the so-called ‘one China principle’ (where the CCP claims Taiwan, threatening to invade it by force and take its as its own territory despite the vast majority of Taiwanese rejecting Beijing.) Such interventionism or threatening behaviour is now common under Xi.

    The PRC’s belt and road project has also proved an opportunity for Beijing to dictate the internal affairs of its allies, most notably Pakistan and Nepal recently.

    Also last month, the CCP demanded UK banks like HSBC and Standard Chartered endorse the national security law in Hong Kong (a law which gives the ability to arrest those advocating for HK freedoms and voicing against the CCP to be imprisoned potentially for life.) Beijing threatened that if the banks did not endorse the law, their business would be severely curtailed, if not expelled entirely, in Mainland China.

    There are two sides to every story and the CCP is also clearly intervening in its allies, as well as its adversaries, affairs too.

    • Avatar zhongguodiyi88 30/07/2020 @ 7:29 pm

      Taiwan is part of China. No negotiation. If we want to invade Taiwan and take it back thats our choice. Nothing can stop the progress of China. People in Taiwan need to realise the Communist party is the best choice and need to stop following evil western countries. We have earned the right to guide Brazil to the right way. This is China’s correct status in the world. Get use to it.

      • Avatar Micky 31/07/2020 @ 7:14 am

        You are talking like the crusades of those barbaric armies who invaded thousands of years ago.Another east india company can’t develop in 21st century

    • Avatar Jerome 31/07/2020 @ 2:27 pm

      I never heard of a doctor use a docotor title to talk on a political forum to show his superority over ours, is he out of patients? I read lots of his coments that all china mindset and deeds are bad. BRI no matter sucessful or not, at least china has the guts to do it, to interact with countries in need. This dr just want to subotage china . Since he is from taiwan he must admire Japen very much. I would like to give him a nickname banana instead of doctor, who has a yellow skin but with trump’s white heart.

      • Avatar A Chan 31/07/2020 @ 11:40 pm

        Do you Wu Mao people earn 1 RMB if you make 2 posts that are pretty much exactly the same or does it still count as only 50 mao? ?

    • Avatar Jerome 31/07/2020 @ 2:33 pm

      I never heard of a doctor use a docotor title to talk on a political forum to show his superority over ours, is he out of patients? I read lots of his coments that all china mindset and deeds are bad. BRI no matter sucessful or not, at least china has the guts to do it, to interact with countries in need. This dr just want to subotage china . Since his mame is wong i believe he is from taiwan, he must admire Japen very much, which I would like to give him a nickname banana instead of doctor, who has a yellow skin but with trump’s white heart.

  2. Avatar ladakhchina 30/07/2020 @ 11:46 pm

    evil usa india and all western country need be quiet.china now very strong.we can do any thing.the brazil actualy good country but need follow the beijing way now.china brazil have same in many way.huawei number 1 and can help brazil stop to be the poor country.

    • Avatar Jerome 31/07/2020 @ 2:00 pm

      I am a loyal chinese but i am ashame of this gentleman’s wording, who i believe is a loyal chinese too. Most westerns are chinese friend except trump administation and pompal and japan. India only have a small coflict with china, once trump lost the election, india will have a equal distance between china and usa. Forget japan, it killed million of asia people and it now has a yellow skin but with a white heart, we call it banana. Ladakhchina, please watch your wording and your poor english, you will push away lots of western friend unless you are a spy want to destory hwawei.

      • Avatar A Chan 31/07/2020 @ 11:58 pm

        To be fair, your English seems pretty awful too, Jerome. Surely Wu Mao should earn less per post on the basis of poor grammar, punctuation and spelling as an incentive to improve their English.? I suggest 1 Jiao for ladakhchina and perhaps 5 Mao for you, Jerome.

        • Avatar Jerome 01/08/2020 @ 4:30 pm

          Try to write your comment in chinese , I bet you could not earn get one cent. I did not live in USA, but still can get 5 Mao to talk to you in English, which I am very proud of. You must be a Chan live in USA.

          • Avatar A Chan 01/08/2020 @ 8:36 pm

            You’re so right. I’d get 0 RMB. And locked up in jail for speaking my mind. A message to you from us Hong Kongers: 屌你老母臭閪.

        • Avatar Jerome 01/08/2020 @ 5:19 pm

          I think you are a chan live in USA, and I believe you are David Wong using a fake name looking for a revenge trying to sabotage me, ladakhchina and Chinese people. If you write your comment in chinese , I bet you could not even get one cent. I did not live in USA, but still can get 5 Mao to talk to people in English, which I am very proud of. Your purpose is trying to distract people and make this forum meaningless, which is always is the deed of a banana,. Am I right? A write heart trump!

          • Avatar A Chan 01/08/2020 @ 8:44 pm

            Your quite paranoid my friend. I’m sorry to disappoint you but ‘dr wong’ and I are not the same. Your banana reference is also racist and bizarre.

  3. Avatar Jerome 02/08/2020 @ 2:53 am

    I try to tell Chan’s motive was trying to distract and criticize Wong’s mindset that all Chinese deeds are evil include BRI. Now I want to read to all our friends in this forum what he wrote in Chinese, I only understand may be 80 percent of Hong Kong Chinese, he said something like ” fuck your mother ass”. After saying this he then criticize me I am a racist in English, which is a reasonable comments. he showed himself somewhat a gentleman to Westerner but used a very dirty words to curse me privately in chinese. Not all hong konger are bad, but this guy is a dirty hypocrite.

  4. Avatar Jerome 02/08/2020 @ 9:27 am

    Even though I am pro China, I do not agree hwahwei dominant too much on world 5G market. However pompal’s hyporcryct behaviour to quell hwahwei makes me angry.

    Your previous report claim that open ran will mitigate hwahwei ability to compete, which I found it absurd. On the contrary, a country like British if decide to use open ran infurstrutrue, it then never can stop hwahwei’s participation in the future.

    As matter of fact, Open ran is a good idea but the trade off is the security. However open ran is related to outer of 5g not related to the core system to the base station.

    Why do you say hwahwei and ZTE is out of the consideration, which is totally untrue. In either 2 ways hwahwei is the front runner. 1. If telecom vendor do not want open ran, hwahwei is all ready, since hwahwei has its typical IoT ready. In their non-official but employees to friends conversation, they have completed testing in some cities. Good about their IoT is that every commercial equipment to be fit to the application only follow their simple protocol to use and that only requires simple hardware plugins. And every equipments function can be different by settings for security and competition. 2. In case vendor want to use open ran, fine, vendor can use open source to have third parties to program those open code. I bet 9 of 10 software developer or vendor want to use hwahwei hardware and infurstrutrue as a front end control. If you you want to use open ran methodology, those front end piece of telecom hardware got to be opened too.
    Hwahwei hardware is much cheaper and have the highest quality in terms of stability and efficiency, and their engineers are 24 hours ready to solve problems for a local customers site.

    From above, I do not know why do you say hwahwei and GTE is out of consideration. If a country want to use open ran, actually it give more chance for hwahwei to compete in the outer equipments. Once you decide to use open ran, with open source, the vendor and the customer is free to choose their front end equipments.

    However, open ran can only open to some extent, or cities will be in a chose, since it will attract 100 time more hacking and virus attack any place from the globe, just like computer virus. The other shortcoming is building time and speed, open ran definitely will take another five years to catch up and any one use it, the speed, efficiency and stability will be down graded too.

    The perfect solution is to build a complete 5g central system in 1 to 3 years which includes a fast smart phone environment, then utilizes their open ran system provided to cope with future needs for small businesses, but I worry it will be removed eventually for security reason.

  5. Avatar John 04/08/2020 @ 9:09 am

    There would be less trouble in the world if Usa heep their nose out of things.

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