As President-elect Donald Trump’s team takes shape, one recent appointment was particularly relevant to Asia. Trump is naming former Sen. David Perdue as U.S. ambassador to China and tasking him with maintaining peace and “a productive working relationship with China’s leaders,” the new president said Thursday in a post on his Truth Social network. The election of Perdue, who worked in Singapore and Hong Kong helping American companies find cheap labor in Asian countries before turning to politics, could be a sign to Beijing after Trump took a tougher stance on China during the campaign . During the first trade war, Perdue delivered a conciliatory message to the Communist Party, telling then-Chief Beijing negotiator Liu He that “cooperation is our ultimate goal,” according to an opinion piece he wrote in 2019. Also in Trump’s evolving lineup, venture capitalist David Sacks of Craft Ventures is hired as artificial intelligence and crypto czar, a newly created position.

China is not waiting around helplessly. This will give domestically manufactured products a price advantage in government procurement, a move likely aimed at helping domestic manufacturers weather possible tariff hikes by the United States. According to a draft regulation released on Thursday, Chinese-made goods are offered at prices 20% lower than actual sales volume when considered alongside products made abroad. Beijing has also moved to extend its domestic laws across international borders and ban the sale of certain goods to the United States, which applies to companies both inside and outside China. Meanwhile, Chinese stocks rose on Friday as investors expected new economic support measures from a key upcoming policy meeting.