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Japan, as well as the Netherlands, are expected to soon become part of the United States in restricting exports of semiconductor equipment manufacturing machinery towards China.
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The talks between the two countries could end by Friday and will conclude with negotiations expected to conclude on Friday.
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With the Netherlands curtailing ASML Holding NV from selling machines to China that are used to manufacture specific types of chips that are advanced.
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Deputy chief cabinet secretary Seiji Kihara, a government spokesperson, said Japan would take "appropriate steps" that are based on what is happening in the United States and other nations' regulations.
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He refused to provide further details when asked about the report during an afternoon press conference on Friday.
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The Dutch foreign ministry did not provide a comment.