U.S., Brazil in talks on funding to buy 5G gear from Ericsson, Nokia: Paper

SAO PAULO: The United States is in talks with Brazil and its local telecommunications companies on funding the acquisition of fifth-generation gear produced by Ericsson and Nokia, U.S. ambassador for Brazil Todd Chapman told Brazilian newspaper Folha de S.Paulo.

In an interview published on Thursday night, Chapman said this type of funding is a matter of “national security” to Washington and aims to “protect data and intellectual property, as well as sensitive information of nations”.

His remarks were a blow to the world’s largest telecoms equipment maker, China’s Huawei Technologies Co Ltd, which has consolidated its presence in Brazil over the last 20 years.

Huawei did not immediately respond to Reuters’ request for comment.