Reporters learned that Japan and the Netherlands would join the US in sanctions against China. The source writes that the goal is to “undermine Beijing’s ambitions to build its own chip manufacturing capacity.”

In particular, Dutch company ASML Holding HV will be banned from transferring the machines used to make chips to China. Similar restrictions will apply to Japan’s Nikon Corp.

The move is part of US President Joe Biden’s plan to restrict China’s ability to manufacture and develop its own semiconductors used for artificial intelligence in the military. It will also impact the mobile technology industry.

US equipment manufacturers have already complained that trade restrictions with China are affecting the balance with competitors. ASML’s CEO warned that US controls over lithography equipment exports would eventually push China to develop his own. “It will take time, but eventually they will get what they want,” the manager said.