‘Disturbing’ actions by China signal early stages of a cold war, economist Stephen Roach warns

‘Disturbing’ actions by China signal early stages of a cold war, economist Stephen Roach warns

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Economist Stephen Roach warns Beijing’s crackdown against U.S.-listed China stocks will have widespread market implications.

Roach, who is considered one of the world’s leading experts on Asia, believes the actions are signaling the early stages of a cold war.

“I am a congenital optimist when it comes to China. But I find these actions really quite disturbing,” the former Morgan Stanley Asia chairman told CNBC’s “Trading Nation” on Friday. “China is going after the core of its new entrepreneurial driven economy, and it’s going after their business models.”

According to Roach, the tensions between the world’s two largest economies could get to levels not seen since the early 1970s.