An anti-China trade sanction bill in the U.S. would be a "huge mistake", stresses Stephen Roach, chairman at Morgan Stanley, noting that it would be a bad political decision with a bad economic outcome.
"America has trade deficits because we don't save, and America has trade deficits with over 90 countries," he said on CNBC Tuesday.
However, with the Obama Administration "vulnerable" to both the House and the Senate leading up to the midterm elections, Roach said that there is a high possibility that President Obama will sign a bill to restrict the inflow of Chinese goods into the United States.
"There's broad bi-partisan support…for taking actions against China. High unemployment and political risk intensify that…this is a worrisome development," said Roach.