Washington's ban on Huawei is now taking its toll on the Japanese economy. Investors and businesses have expressed concerns over the sanctions as CGTN's Terrence Terashima reports from Tokyo.

The United States' sanctions on Chinese tech firm Huawei have been making a considerable impact on the Japanese market.

Tokyo stocks dropped over concerns that electric parts businesses could be adversely affected by the sanctions especially given Huawei's role in Japan's implementation of 5G technology.

Investors now worry about how the loss of business will affect Japanese electric parts makers. Moreover, prolonged sanctions would also affect other China-related shares on industrial robots and information technology.

HIDEAKI EIMEI YOKOTA SENIOR VICE PRESIDENT, MM RESEARCH INSTITUTE LTD. "Huawei has been doing business with over 80 large and small Japanese companies, worth around six billion US dollars. They were expecting an increase in sales this year, with business transactions to increase to eight billion US dollars. So, the impact has been huge on Japanese firms providing modules and electronic parts to Huawei."

Huawei increased its shares in Japan's 100-billion-dollar mobile phone market climbing from seventh to fifth in sales in 2018 and expecting further expansion. The timing could not have been worse, as it just released its latest P30 and P30 Lite series.

Major Japanese mobile carriers – such as KDDI and SoftBank – have announced that they will postpone sales of new Huawei smartphones citing uncertainty over whether Google will continue to provide services -- especially its Android operating system -- to the Chinese smartphone maker.

HIDEAKI EIMEI YOKOTA SENIOR VICE PRESIDENT, MM RESEARCH INSTITUTE LTD. "One of the reasons why it is difficult for Japanese firms to stop providing components to Huawei is that if they contain anything with US technologies or patents, the firms will most likely to be banned from the US market as well. So, as long as the US-China trade friction continues, it will restrict Japanese firms from doing business with Huawei."

Electronic stores are worried that sales will be considerably affected, particularly in an expanding and competitive market.

TERRENCE TERASHIMA TOKYO "The sanctions have also affected Huawei's relations with major companies like Panasonic, Sharp, and Kyocera. Officials say they will continue finding ways to remedy the current situation and improve investors' sentiments. Terrence Terashima, CGTN, Tokyo."