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Disturbing behavior by China suggests the Cold War, Stephen Roach warns

Economist Stephen Roach warns that Beijing’s crackdown on US-listed Chinese stocks will have a widespread impact on the market.

Roach, considered one of the world’s leading experts in Asia, believes this action represents an early stage in the Cold War.

“I’m a congenital optimist when it comes to China, but I think these actions are very disturbing,” said CNBC’s former chairman of Morgan Stanley Asia.Trading country“On Friday.” China is pursuing the core of a new entrepreneur-led economy and pursuing their business model. “

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

“Even if US companies don’t do business directly with China, virtually everything they touch goes through the global supply chain,” Roach said. “Therefore, the chilling Sino-US relations will have a significant impact on US companies and investors investing in them. We cannot escape our ties with China.”

CNBC’s Jim Cramer offers similar warning investors.. He considers investing in Chinese stocks traded on US exchanges too risky due to regulatory threats.

On Friday, Beijing regulators targeted Chinese education stocks TAL education When New oriental education and technology.. Their stock has fallen.The same thing happened Didi, China’s leading ride-hailing service company, Beginning of the week..

Roach, now a senior fellow at Yale University, has been alerting for months in a controversial background. On “April “Trading State”He warned that US-China relations have been eroded and that both countries are on the verge of the Cold War. Now, Roach suggests that he has crossed the line.

“These are really actions to reach the heart of what has been so exciting about China over the years,” Roach said. “They are very worried about me.”

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Disturbing behavior by China suggests the Cold War, Stephen Roach warns

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