Brazilian Vice President Hamilton Mourao on Monday defended Chinese technology company Huawei's participation in the bidding process to build Brazil's 5G internet network, arguing that Huawei is well positioned for the task.

"Huawei has capacity above its competitors and we do not yet see U.S. companies capable of defeating international competition," Mourao said during a videoconference with foreign correspondents in Sao Paulo.

Huawei, he noted, already has a presence in Brazil as the supplier of "more than a third of Brazil's 4G network used by operators who use Huawei equipment."

"Our legislation on participating in a bid is clear: no one can be prohibited," said Mourao, adding the only thing the company must do is to "demonstrate its transparency (in keeping) with the rules that will be established" for the process.