The Netherlands has announced that it will be restricting exports of specific semiconductor technologies to China, following the lead of the United States, which imposed similar rules earlier this year.

The move is significant, as the Netherlands is the home base of among the most important semiconductor technology companies in the world, ASML, which manufactures machines which are required to make the most advanced computer chips

Coming into effect on September 1st, the new  rules will force companies in the Netherlands who want to export specific semiconductor manufacturing equipment overseas to apply for a license from the government, who will review the matter from a perspective of national security.

Dutch Trade Minister Liesje Schreinemacher said, “We have taken this step in the interest of our national security,” noting that the equipment covered by the new rules could have military applications.

The minister added that the new rules would only affect a “very limited” number of companies and product models, and he declined to elaborate on the countries which would be the target of the limitations.

The Chinese Embassy in the Netherlands issued a statement calling the new law, “an abuse of export control measures and seriously disrupted free trade and international trade rules.”

The embassy added that it is prepared to “work with the Dutch side to address the issue based on the principle of mutual benefit, so as to jointly promote the healthy development of Sino-Dutch economic and trade relations.”

The measure comes on the heels of similar sweeping limitations imposed by the United States last October, which sought to restrict Chinese access to key chips and semiconductor tools. Since imposing its own restrictions, the United States launched a campaign to persuade other key chipmaking nations it is allied with, such as Japan and the Netherlands, to introduce their own export restrictions.

A report last week described how the United States was considering imposing new export controls limiting Chinese access to special microchips which are used in the development of Artificial Intelligence. Analysts expected the move would impact sales in the world’s biggest semiconductor market. Following the report shares of Chinese companies developing AI products fell.