President Donald Trump is gearing up to impose $50 billion in tariffs on China, intensifying a long-running dispute over unfair trade practices and possibly endangering a personal relationship as well.

Trump is set to announce his decision Thursday afternoon. The tariffs will applied in such a way as to protect U.S. business sectors or intellectual property considered critical to the future of the economy. Advanced technologies such as robotics and high-speed wireless communications are among them.

Read:Trump’s China tariffs a fight for control over robots, wireless, other future technologies

Yet unlike with the controversial steel tariffs, the White House sought a more coordinated interagency approach against China using the so-called 301 trade law. It’s also reached out to businesses and investors to allay their concerns.

“These findings [against China] are very well documented,” said Everett Eissenstat, deputy director at the National Economic Council.

Read:China talks tough on trade, vows action against U.S. tariffs

The tariffs are likely to be designed, analysts say, to limit the harm to U.S. businesses. Many complained vociferously about the damage that would be caused to them by broad tariffs on steel since it would lead to higher prices for a critical raw material.

“Our most up to date understanding of the White House’s approach emphasizes structuring tariffs to minimize impact to U.S. businesses,” said Clayton Allen of Height Securities. “We now expect a more flexible approach to computing the value of tariffs.”

The tariffs won’t be applied immediately. The White House will direct the U.S. Trade Representative to draw up the sanctions within 15 days of Trump signing a memorandum. The list of tariffs would then undergo a 30-day period of public comment.

Read:Fed’s Powell seeks “middle ground,’ but others on FOMC push aggressive approach

The White House is leaving the door wide open for China to negotiate a resolution, but the Chinese have already vowed to retaliate. Taking a page from the European handbook, they reportedly plan to restrict imports of U.S. products such as soy beans that largely come from the states such as Iowa responsible for Trump’s election.

The Chinese ambassador to the U.S., Cui Tiankai, called the White House complaints “totally groundless.” He said China does not want a trade war, but “if people want to play tough, we will play tough with them and see who lasts longer.”

The latest spat won’t necessarily lead to trade war whose damage spreads beyond the U.S. and China to the broader global economy, however. The last time a true trade war broke out was more than 80 years ago during the Great Depression.

Simply put, there’s too much at stake for both countries to let the dispute get out of hand. China’s economy relies heavily on exports to the U.S., for instance, and the U.S. funds chronic budget deficits in part by selling Treasurys TMUBMUSD10Y, 0.664% to Chinese investors.

“We think that the two sides still intend to negotiate and that an all-out trade war can very likely be avoided. However, avoiding a trade war depends as much on China as the U.S.,” analysts at Societe Generale wrote.

The threat of a wider trade fight is still making investors very nervous, though. The Dow Jones Industrial Average DJIA, -1.84% fell 350 points in recent trades.

Trump, for his part, has touted his strong ties to the Chinese president, Xi Jinping, and he frequently talks about improved relations. The latest spat will put those ties to the test, including Trump’s self-proclaimed status as a great negotiator.

“I view China as a friend. I have tremendous respect for President Xi,” Trump said Thursday. But he stressed that China has to change its ways.

China is unlikely to gain much sympathy in Washington or around the world, unlike allied countries in Europe and North America that objected to the steel tariffs.

The Asian giant has long protected its young industries to allow them to grow and to ensure a steady supply of jobs for its huge population. It’s often done so by rigging its rules to put Western businesses at a disadvantage, forcing them to transfer sensitive technologies to Chinese partners or limiting their ownership of Chinese assets.

The influential Business Roundtable, an outspoken foe of the steel tariffs, adopted a more low-key approach to the proposed Chinese tariffs. The roundtable urged the White House to work with allies to address trade barriers in China instead of the U.S. tackling the issue by itself.

“Unilaterally imposing tariffs ... will only stifle job creation, reduce the competitiveness of businesses, and increase prices for American families,” roundtable President Joshua Bolten said Wednesday.

White House officials said they would do that in part by taking their case to the World Trade Organization, a global arbiter of free trade.