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The fate of a Chinese technology giant at risk of unprecedented U.S. sanctions will show whether the administration of U.S. President Joe Biden intends to significantly ramp up tensions with the world’s second-biggest economy.

The U.S. is weighing whether to add Hangzhou Hikvision Digital Technology Co., which makes cameras and surveillance systems, to its Specially Designated Nationals and Blocked Persons List, according to people familiar with the situation. The company’s shares tumbled by the 10% daily limit on Thursday on news of the potential sanctions tied to alleged human-rights violations by China against mostly Muslim minorities in its far-western region of Xinjiang. They fell again on Friday by as much as 10%.

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