The Japanese government started tightening export controls on semiconductor manufacturing equipment on Sunday. Shipments to China will face stricter regulations.

Japan's trade ministry had already identified 23 items that would be subject to the new rules. These include lithography machines, in which Japanese companies are leaders.

The regulations will not affect items sent to 42 destinations on a so-called "white" list, including the United States, South Korea and Taiwan, as the ministry has acknowledged they have proper export control arrangements. But items bound for China and other destinations will face stricter screening.

The move comes after the US asked Japan and the Netherlands, countries with a significant share of the global chip-making equipment market, to tighten their export controls. Competition has been intensifying between the US and China over advanced technology.

China has announced that it will impose its own export controls on rare metals, including gallium and germanium, starting August 1.

Japan says it does not currently view China's move as a retaliatory step, and it plans to see how the measure is implemented to understand Beijing's intention and evaluate its impact.