The Hague's new export limits, which take effect in September, require Dutch manufacturer ASML -- the world's leading supplier of semiconductors -- to obtain government export licenses to ship its trailblazing microchips and semiconductor manufacturing equipment, which were not yet widely available on the global market.
In a statement, Dutch Foreign Trade Minister Liesje Schreinemacher described the rule change as a matter of national security.
"It's good for the companies that will be impacted to know what they can expect. This will give them the time they need to adapt to the new rules,' he said.
The chips, which are made using ultraviolet light, are the latest innovation in a new wave of advanced military applications, with Washington becoming increasingly wary that China could use the technology to enhance its war capabilities.
The restrictions follow a trilateral pact in January between the Netherlands, the United States and Japan, who agreed to block some ASML technology from reaching China's shores.
The new measures also come as the U.S. has stepped up efforts to uproot Chinese telecommunications equipment worldwide amid increasing fears of espionage, while also working with global partners to stop advanced technology from floating freely to Beijing.
The European Union, meanwhile, was holding a second day of meetings in Brussels, with officials discussing ways to protect global supply chains and draw down the body's financial dependence on China.
Last week, the EU unveiled an economic security plan that seeks a full review of the bloc's supply chain system in an effort to mitigate risks to emerging technologies -- like quantum computers, artificial intelligence, and advanced microchips.
"We've taken a really close look and we worked as precisely as possible," Schreinemacher said in his statement. "We can tackle the most important vulnerabilities without an unnecessary disturbance of the global production of chips."
ASML also issued a statement saying it did not expect the rule change to hurt its business.
For years the company has been unable to ship its most advanced chip making systems to China because it hasn't received the export license to do so.
The Hague said it expects dozens of export license requests before the new controls take effect in two months.
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