TAIPEI (Taiwan News) – As the trade war between the United States and China continues to rage, the Trump Administration could cut off capital flows to the communist country and even invoke emergency powers, the founder of the world’s biggest hedge fund said.

Ray Dalio, founder and co-chairman of Bridgewater Associates, said the U.S. could freeze debt payments to China and target non-American financial transactions with Beijing with sanctions, CNBC reported Tuesday (October 1).

Trump Administration officials were already considering the delisting of Chinese firms from U.S. stock exchanges and barring government pension funds from investing in China, according to CNBC.

While top officials denied any radical moves were not being contemplated, Dalio saw a parallel between the present situation and World War Two, when the U.S. president used emergency powers for sanctions against Japan.

Trade talks between the two sides following rounds of tariffs are set to resume on October 10 in Washington.