When Donald Trump returns to the White House, he’ll be accompanied by a coterie of China hawks, all vowing to use tariffs and export bans to stop Beijing from challenging the United States’ supremacy in technology.

With Donald Trump about to start a second term in the White House, investors around the globe are bracing for big changes in trade policies. One sector they’re zeroing in on is China tech, and the sentiment is: wait and see.

Trump can damage China’s economy with trade penalties. But tech restrictions might hurt more in the long term.

Trade between the world’s two largest economies is on the brink of chaos again. The outgoing Biden administration has turned up the heat in its final days, handing Trump a loaded gun in the form of sweeping restrictions directed at Beijing.

Even before Donald Trump takes office on Monday, trade tensions between the world’s biggest economies are already heating up.