U.S. Willing to Fund Brazilian Firm’s Purchase of Huawei’s Counterparty Equipment Top U.S. Officials Express Concern Over Beijing’s Expansion Influence in Brazil

The U.S. government on Tuesday (Oct. 20) stepped up its offensive to exclude Chinese telecom giant Huawei, offering to finance the Brazilian telco’s purchase of equipment from Huawei’s competitors. At the same time, the U.S. Trade Representative said the United States is concerned about China’s expanding influence in Brazil.

A delegation of officials from the U.S. International Finance and Development Corporation, the U.S. Export-Import Bank, and the National Security Council told the media during a visit to Brazil that the U.S. has funds to help Brazilian companies buy equipment from other companies.

The U.S. delegation was led by National Security Advisor O’Brien. He met with Brazilian President Jair Bolsonaro, and the two later participated in a ceremony to sign a financing agreement with the U.S. Export-Import Bank. The agreement outlines areas of business cooperation, including 5G communications.

On the same day, top U.S. officials in Washington urged Brazil to take a hard look at Chinese investment.

U.S. Trade Representative Robert Lighthizer spoke at an event hosted by the U.S. Chamber of Commerce on Tuesday, expressing concern about China’s expanding influence in Brazil.

In his remarks, Lighthizer urged the Brazilian government to carefully monitor Chinese investments in Brazil and China’s move to expand its influence in the country by selling Huawei’s 5G technology. He also said the Trump administration wants to expand economic engagement with Brazil.

The trade agreement reached with Brazil on Monday paves the way for negotiations between the two countries on steel, ethanol and sugar, as well as expanding U.S. investment to counter China’s regional expansion, Leitshuiser said.

I would say that there is clearly a Chinese element to everything we do,” Leiteschiser said, “and China has taken a very important step in Brazil. They’re Brazil’s largest trading partner, so we’re concerned about that.”

Kudlow, the White House’s chief economic adviser, also said that the U.S. government has urged the Brazilian government to ensure that it “carefully monitors China” on 5G and other technology issues.