There's a significant risk catching economist Stephen Roach's attention, and it has nothing to do with earnings season.
Roach, one of the world's leading authorities on Asia, is concerned U.S.-China relations could erode further in the coming weeks. "There are a lot of balls in the air right now that are very worrisome," the former Morgan Stanley Asia chairman told CNBC's "" on Wednesday. "You've got a real problem here, and it's one that worries me a lot, and I think the markets are completely ignoring."
Roach sees bipartisan in the Senate for the Strategic Competition Act of 2021 as a troubling development. His reason: it reflects a hard-line approach against China that could spark retaliation. "My fear for the last several years is that what started out as trade war would turn into a tech war, and then eventually morph into a cold war," Roach said. "Those fears have come to pass. Just this week, there are significant developments that lead me to underscore that risk."'The annual threat assessment was released yesterday [Tuesday] by the office of national intelligence and it clearly labeled China as America's No.
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