Chinese telecoms companies and Chinese smart phone manufacturers face a critical dilemma in Japan after the Japanese government's decision to boycott the purchase of Chinese communications equipment, followed by Japanese reluctance to buy Chinese smart phones.
This comes after Japanese government spokesman Yoshihida Soga announced the decision to prevent government and defense agencies from buying Chinese communications equipment due to fears of piracy, despite the diligence of these companies over the years to enter the Japanese market.
Japan's decision comes after a previous decision to boycott Chinese communications equipment by the US and Australian governments in August over concerns that Beijing could use the equipment for cyber-espionage.
Huawei lost its stake in the Japanese market, especially after Japanese telecoms companies said they would follow the example of the government in the province of Huawei's hardware.
Although the decision did not include boycotting the smartphones sold by Huawei and ZTE in Japan, their stores lost the long queues that followed them.