Ray Dalio, the founder of the world’s largest hedge fund, says the Trump administration may be “inching toward bigger moves” in its tit-for-tat trade hostilities against China, amid reports of limiting capital flows to Beijing.

“That’s why the proposed step of limiting American portfolio investments in China makes me both think about the implications of this step and wonder if it is an inching toward bigger moves,” said the co-chief investment officer at Bridgewater Associates, in a post to LinkedIn.