One of the primary reasons why Japan could be impacted by the ban on Huawei is intertwined supply chains.

On Friday, Japan’s Finance Minister Taro Aso stated, the U.S bid to block Huawei Technologies from purchasing American technology is likely to impact Japanese companies and weign on the country’s economic growth prospects.

“There are Japanese companies that supply parts to Huawei, and supply chains are intertwined in complex ways,” said Aso at a news conference following a regular cabinet meeting. “Through such supply chains, there could be direct and indirect effects on Japan”.

On Thursday, the U.S. Commerce Department placed Huawei on a trade Entity List, which effectively make it difficult for Huawei to do business with U.S. companies.