America Movil SAB De CV logo

AMOV - America Movil SAB De CV News Story

$14.23 0.4  2.6%

Last Trade - 06/05/21

Large Cap
Market Cap £34.00bn
Enterprise Value £58.53bn
Revenue £36.44bn
Position in Universe 262nd / 6854

UPDATE 2-U.S. offers Brazil telecoms financing to buy 5G equipment from Huawei rivals

Tue 20th October, 2020 4:26pm
(New throughout, adds  developments in Brasilia)
    By Lisandra Paraguassu and Andrea Shalal
    BRASILIA/WASHINGTON, Oct 20 (Reuters) - The U.S. government
stepped up an offensive on Tuesday to keep China's Huawei
Technologies  HWT.UL  out of Brazil's 5G market, with Washington
offering to finance purchases by Brazilian telecom companies of
equipment from its competitors.
    During a visit to Brasilia, officials of the U.S.
International Development Finance Corporation (DFC), the U.S.
EXIM bank and the National Security Council told reporters that
funding was available to buy equipment from other companies.
     The U.S. delegation was headed by National Security adviser
Robert O'Brien, who met with Bolsonaro before they attended the
signing of an EXIM bank financing agreement that identifies
areas of business cooperation that includes 5G telecoms.
    In Washington, top U.S. officials urged Brazil to carefully
monitor Chinese investments in Brazil and moves by Beijing to
expand its influence in Latin America's largest economy through
sale of 5G technology by Huawei. 
    U.S. Trade Representative Robert Lighthizer said trade
agreements reached with Brazil on Monday would pave the way for
further negotiations on steel, ethanol and sugar, and promote
greater U.S. investment as Washington moves to provide a
counter-weight to China's expansion in the region.
    "I would say clearly there is a China element ... in
everything that all of us do," Lighthizer told an event hosted
by the U.S. Chamber of Commerce. "China has made a very
significant move in Brazil. They're Brazil's biggest trading
partner, so it's something that we're concerned about."
    Lighthizer's remarks were part of a full-court press. White
House economic adviser Larry Kudlow said Washington had urged
Brazilian President Jair Bolsonaro and other Brazilian officials
to keep a close watch on China's investments and advanced
technologies, as Washington had done.
    "We have encouraged Brazil .. to try to work together to
make sure that we watch China carefully with respect to all
manner of technology and telephoning and 5G," he told the event.
    "We have taken actions here in the States; we continue to
move, and it is my great hope that Brazil will move with us," he
added. "We hope that Brazil will also keep a careful, critical
eye on Chinese investment."
    Washington believes Huawei would hand over data to the
Chinese government for spying, a claim Huawei denies.
    Brazil plans to auction 5G frequencies next year to telecom
companies operating in Brazil, many of which already buy from
Huawei and would like to continue doing for their 5G networks
because the Chinese equipment is cheaper.
    "The U.S. concern is how they use the data, how they use the
technology for state benefit, not for the individuals who use
that the technology," Joshua Hodges, senior director for Western
Hemisphere affairs on the NSC, said in Brasilia.
    DFC Managing Director Sabrina Teichman said 20% of its $135
billion portfolio was available for commercial deals with
companies that wanted to partner with the United States as part
of the Trump administration's China and Transformational Exports
program, which is aimed at neutralizing Chinese competition.
    "We have equity financing and we also have debt financing
and those plans are available to Brazilian companies" that are
looking to acquire new technology," she told the reporters.
    "We are looking forward to supporting the Brazilian telecom
sector," she added.

 (Reporting by Lisandra Paraguassu in Brasilia and Andrea Shalal
in Washington; writing by Anthony Boadle; Editing by David
 (( +55 61 98204-1110;
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.