Amidst the ongoing contest between the US and China, Europe's biggest producer of advanced chipmaking technology has joined the US in the standoff. 

On Wednesday, the Netherlands announced via a letter from its trade minister to parliament, that new restrictions on overseas sales of semiconductor technology were needed to protect national security.

As reported by CNN, 'while the letter didn't name ASML Holdings (ASML), Europe's biggest tech firm, the curbs will affect the Dutch company, which is a key supplier to global chipmakers, including those in China.'

Notably, Veldhoven-based ASML is a global leader in the production of lithography machines that employ light to print patterns on silicon. Customers such as TSMC (TSM), Samsung (SSNLF) and China's SMIC (SMICY) use the Dutch company's equipment to mass-produce microchips.

Japan has also been involved in three-way discussions with the Netherlands and the United States, a source familiar with the talks told CNN. 

Reuters reported that Tokyo is expected to issue an update on its policies on chip equipment exports soon. 

China said on Thursday it "firmly opposes" the Netherlands' upcoming curbs, which come just months after the United States restricted sales of some semiconductor machinery to Beijing. 

Chinese foreign ministry spokesperson Mao Ning accused "certain countries" of "coercing and inducing other countries to take export restriction measures against China at the expense of their allies' interests."

"We hope the Netherlands won't follow some countries in abusing export control measures," Mao said, adding that "China will take all necessary countermeasures to protect our legitimate rights and interests."

Earlier this week, China's Xi Jinping jibed at the US by calling on Chinese private companies to "fight" alongside the Communist Party. He went on to accuse western nations of trying to "contain" and "suppress" China.

Image courtesy: Representative image