Reuters, citing the Brazilian newspaper O Estado de S. Paulo, has said that Brazil is likely to allow Huawei to participate in the 5G auction that’s set to take place in June. The Bolsonaro government of Brazil has been looking for ways to exclude the Chinese company from the country’s networks, following the lead of the United States, but between Trump’s upcoming departure from the White House and the cost of excluding Huawei, Jair Bolsonaro is being forced to backtrack on his plans.
The Brazilian newspaper had cited government and industry sources to back up claims that Brazil will allow Huawei into the 5G network auctions later this year. It said that with China being Brazil’s biggest trade partner and Huawei being more cost-competitive, Bolsonaro has faced resistance to banning the Chinese firm from industry and members of his government including Vice President Hamilton Mourao.
VP Mourao told the newspaper that any company that takes part in the auction will be subject to the country’s data protection laws and must respect Brazil’s sovereignty. One of the arguments put forth by the current U.S. administration is that Huawei has links to the Communist Party of China and therefore data won’t be safe if Huawei is allowed into 5G networks.
While Trump’s departure may have saved Huawei’s prospects in Brazil, it has come too late for the company in other countries like Poland and the United Kingdom which have already moved to ban Huawei from their 5G networks and remove it where it has already been installed.