China is unlikely to hit back at the U.S. blow for blow over the Biden administration’s new investment ban on certain Chinese tech companies. That’s because Beijing is limited both in its ability and desire to fire a big salvo, analysts say.

American tech companies aren’t as reliant on Chinese investments as their Chinese counterparts are on U.S. capital. China is also grappling with worsening macroeconomic conditions and falling investor confidence, which makes it less inclined to escalate an economic standoff, they say. On the political front, Beijing is also seeking to sustain a diplomatic thaw with Washington.

This week, the U.S. issued an executive order banning Americans from investing in Chinese companies developing advanced semiconductors and quantum computers and requires American investors to notify Washington about investments in other types of semiconductors and artificial intelligence. The limits, which come into place next year, amp up the race between the two major rivals over who controls the next generation of critical technology.