As the world watches to see if Huawei Technologies Co. survives the ongoing turmoil stemming from the U.S.-China trade war, wider implications are likely to hit Japan if the Chinese telecom giant continues to be blacklisted by Washington.
The move by the administration of U.S. President Donald Trump to put the firm on the so-called Entity List, effectively barring it from doing business with American firms without government approval, could severely harm Huawei's ability to manufacture and market its products, including smartphones.
Consequently, the Japanese smartphone market is likely to see a change in the balance of power with the looming troubles facing Huawei, which had boosted its presence in the country in recent years, industry observers said. Japanese makers of electronic components that supply their products to Huawei may also take a hit from the potential loss of business with the world's No. 2 smartphone-maker.