According to Reuters, citing unnamed sources, Japan and the Netherlands will soon agree to join the US to restrict the exports of semiconductor manufacturing equipment to China.

The sources say officials from both countries are set to finalize decisions on a new set of limits for what can be supplied to Chinese companies as soon as this Friday.

The set of implemented restrictions from the two countries is poised to impact the sale of high-tech manufacturing equipment used to make certain types of advanced chips from the Netherlands' ASML Holding NV and Japan's Nikon Corporation to the Chinese state.

The joint effort is an expansion of US President Joe Biden’s policy to limit China’s ability to manufacture and develop its own semiconductors, slowing its technological and military advances.

The move to get the Netherlands and Japan to impose tighter export controls on China would further erode its ability to make cutting-edge technology.