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

Roach 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,” Roach said. “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.

“Even if U.S. companies don’t trade directly with China, virtually everything they touch goes through global supply chains,” said Roach. “So, a chill in the U.S.-China relationship has significant implications for U.S. companies and for investors investing in U.S. companies. You can’t get away from the China connection.”