New CNAS Case Study Highlights U.S.-China Tech Competition in Brazil

Washington, April 24, 2025 – Today, the Center for a New American Security (CNAS) released a new report, Countering the Digital Silk Road: Brazil by Ruby Scanlon and Bill Drexel. The Digital Silk Road (DSR) is China’s initiative to shape critical digital infrastructure around the world to advance its geopolitical interests and technology leadership. As the DSR marks its 10th anniversary, the CNAS Technology and National Security Program has undertaken a major research project to assess its impact and explore how the United States and its allies can offer a more compelling and coherent alternative. The project produces four in-depth case studies of strategically critical nations—Indonesia, Brazil, Kenya, and Saudi Arabia—and culminates in a full-length report.

Last month, CNAS released the first case study of this series, which was about countering the DSR in Indonesia. In the new report, the authors identify Brazil as a critical front in the U.S.-China competition over next-generation digital infrastructure and emerging technologies. As Latin America’s largest economy, a regional political leader, and a strategic market of over 220 million people, Brazil’s choices in digital governance, telecommunications, cloud computing, and smart city infrastructure will echo across the region.

Brazil has long maintained a foreign policy emphasizing sovereignty and technological autonomy, managing relationships with both China and the United States. China has gained a significant edge by leveraging state-backed financing to invest in Brazil’s telecommunications infrastructure and cultivate deep partnerships with local firms. However, the United States continues to hold major advantages in areas such as cloud computing, artificial intelligence (AI), and low Earth orbit (LEO) satellites. Brazilian officials have indicated a desire for more robust U.S. political and strategic engagement to complement existing commercial ties.

The report argues that while countering China’s influence remains a priority, U.S. success will depend on advancing competitive technology offerings that align with Brazil’s development goals and democratic digital governance principles, rather than simply reacting to Chinese advances.

The report outlines several recommendations for U.S. policymakers and industry to provide a more competitive alternative to China’s DSR in Brazil, including:

• Seize opportunities in AI compute by leveraging Brazil’s abundant energy and rapid data center expansion;
• Expand strategic investment in Brazil’s smart city ambitions through the U.S. International Development Finance Corporation and U.S. Trade and Development Agency;
• Expand information and communications technology training initiatives and targeted diplomatic engagement;
• Discourage multilateral development financing for Chinese- and Russian-made tech; and
• Accelerate LEO adoption to expand rural connectivity.

The full case study can be read here.

For more information or to arrange an interview with the report’s authors, please contact Alexa Whaley at [email protected].