Brazil’s active engagement with Chinese companies in its telecommunications sector, aimed at advancing digital inclusion and 5G expansion, is prompting warnings about significant national security concerns. These initiatives include ambitious projects like “Norte Conectado,” designed to bring high-speed internet to the Amazon region via sub-river fiber optics, and the implementation of TV 3.0 transmission technology.
The risks from Chinese telecommunications technology stem primarily from Beijing’s national security laws, which compel Chinese companies to cooperate with intelligence operations. This legal framework means that Chinese tech firms, regardless of their “private” status, are obligated to provide data, access, or technical assistance to the Chinese Communist Party (CCP) if requested.
“China represents a greater risk due to Chinese legislation, which requires national companies to share data and information with the Chinese government whenever requested, increasing vulnerability to government espionage,” Filipe Augusto da Luz Lemos, a Brazilian researcher specializing in cybersecurity and critical infrastructure, told Diálogo.
This raises alarms about state-sponsored surveillance, where sensitive data and communications within a nation’s networks could be accessed. In addition, concerns exist about “backdoors” or hidden vulnerabilities within Chinese hardware and software that could be exploited for cyberattacks or to disrupt critical services.
The opacity of supply chains for this equipment also contributes to worries about its integrity and the potential for technological dependencies that could be leveraged for political or economic coercion during geopolitical tensions.
For Lemos, a solution for Brazil would be to develop these technologies domestically, a goal, however, he described as still unfeasible due to current limitations. As a pragmatic alternative, he suggests forming strategic partnerships between Brazilian and foreign companies that enable the transfer of technological knowledge and local technical training.
“A successful example of this model was the implementation of Digital TV, which led to the creation of centers of excellence and research laboratories dedicated to the topic at Brazilian universities, such as UTFPR [Federal Technology University of Paraná],” Lemos said.
The concerns surrounding Chinese telecom companies are reflected elsewhere in Latin America. In Costa Rica, Chinese telecommunications company Huawei faced accusations of exerting “atypical and excessive pressure” to secure 5G contracts.
“In my nearly three years as a Trade and Investment minister, I’ve never seen a foreign government push so hard, or even push to some limits, as the Chinese government has done with Huawei to be awarded a specific bidding process,” Costa Rica’s Minister of Foreign Trade Manuel Tovar Rivera told news site fDi Intelligence in April. “Whenever a company faces some challenge, they exercise their diplomatic protection to some extent, but not making it an affaire d’état as the government of China has done.”
Costa Rica’s government effectively moved to block Huawei from 5G contracts in August 2023 by banning providers from countries not signatory to the Budapest Convention on Cybercrime. Following this, Huawei reportedly hosted an exclusive party for at least 70 employees of Costa Rica’s state-owned telecommunications operator in April 2024, raising concerns about conflicts of interest and possible corruption in the procurement process. Tovar noted that “the line is very thin” between Huawei as a private company and the CCP.
Lemos proposed another approach involving “rigorous mechanisms to analyze, test, and validate this equipment through specialized national institutions” and “promoting local manufacturing of this equipment, with national supervision and control.” To prevent Chinese expansion in the telecommunications sector, Lemos believes that Brazil should prioritize significant investments in research, technological development, and innovation.
“This implies a broad reform of the Brazilian higher education system, strengthening and encouraging the role of research professors. In addition, it is essential to stimulate the transformation of academic research into viable commercial products and solutions, generating concrete economic value. Universities should be encouraged to develop practical, useful technologies aligned with national strategic needs, progressively reducing external dependence,” says Lemos.
Significant investments in Brazilian research, technological development, and innovation, Lemos concluded, are crucial to progressively reducing external dependence and establishing clear security standards.
