The U.S. and China's high-stakes game of economic "chicken" is set to reach a critical juncture in the next two weeks, as the world's largest trading partners approach deadlines on tariffs and other barriers that may determine who blinks first.

The Treasury Department on Friday is due to announce restrictions on Chinese investment in the U.S. as well as enhanced export controls, as part of the Trump administration's actions taken under Section 301 to respond to China's alleged theft of U.S. intellectual property.

President Donald Trump in March directed Treasury Secretary Steven Mnuchin to address investment concerns in critical U.S. technologies. The administration is expected to justify imposing the curbs by declaring an economic emergency using the International Emergency Economic Powers Act, or IEEPA, people familiar with the plans said. They said the investment sanctions will focus on Beijing's "Made in China 2025" sectors that include aerospace, robotics and new energy vehicles, among others.