Ray Dalio, the billionaire hedge fund manager, warned that China is thrashing the US of their trade war and expressed fears the 2 superpowers are “on the brink” of military conflict.
The founding father of Bridgewater Associates, which has an estimated $140 billion in assets under management, recently told a conference in Dubai that the Chinese currency, the renminbi, is being more widely utilized in international trade.
“China’s winning the trade war for those who just take the numbers – the proportion of world trade and dominance,” Dalio said.
Dalio’s comments, first reported by Bloomberg News, got here amid the backdrop of heightened tensions between two of the world’s largest economies following last week’s shooting down of a suspected Chinese spy balloon after it hovered over American airspace.
Dalio said that the US was “on the brink” of military conflict with China, though he expressed optimism that a full-blown confrontation could be avoided.
Billionaire hedge fund titan Ray Dalio thinks China is thrashing the US in a trade war.Getty Images
“Brink doesn’t mean we’ll go over the brink,” he said. “Hopefully we don’t go over the brink.”
The balloon incident prompted Secretary of State Antony Blinken to cancel a planned trip to Beijing for high-level discussions with Chinese officials.
China has also been engaged in saber-rattling against longtime US ally Taiwan, the breakaway republic which Beijing views as a part of its territory.
Except for the balloon incident, the US and China have struggled to navigate a fraught economic relationship.
Dalio warned that the 2 largest economies on the earth remain “on the brink” of military conflict.Getty Images
Washington has long accused Beijing of mental property theft and unfair business practices that violate international trade rules.
Overall US imports from China remain well below the pre-trade war trend, per an evaluation by the Peterson Institute for International Economics.
Rhodium Group data shows American direct investment has been cooling for years, hitting a low of $8.7 billion in 2020, down from a peak of $21 billion in 2008.
Ties have frayed between the US and China.AP
Dalio said the most important challenges facing the US are from inside, including “a deterioration of infrastructure, education, political conflict, leadership.”
He also cited the opioid crisis and income inequality as further signs of internal decay.
“The first threat is internal,” Dalio said.
“Mainly, be strong. If you happen to’re strong and healthy, you’ll be domestically and internationally well-off.”
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