Billionaire Ray Dalio Warns US and China on Brink of War, Beyond Ability to Talk — US-China Trade Could Collapse

Bridgewater Associates founder Ray Dalio has warned that the U.S. and China are “on the brink of war” and “are beyond the ability to talk.” The billionaire added that their relations “are getting so bad” that U.S.-China commerce may collapse. He cautioned that the following 18 months “can be a really dangerous interval.”

U.S. and China on the Brink of War, Says Dalio

Ray Dalio, the founding father of the world’s largest asset supervisor, Bridgewater Associates, warned in a Linkedin put up, printed Wednesday, that the U.S. and China are on the point of warfare. The billionaire, who has visited China for nearly 40 years and has constructed shut friendships there, shared his views from his current 13-day journeys to China, in addition to from conferences with Chinese residents, specialists on China residing exterior the nation, and policymakers in different international locations, together with the U.S.

Regarding U.S.-China relations, Dalio confused:

The United States and China are on the point of warfare and are past the flexibility to speak.

He famous that the 2 nations look like “close to having a sanctions war and/or military war that neither side wants.”

Dalio clarified: “I want to emphasize that by saying that they are on the brink, I don’t mean to say that they will necessarily go over the brink. I mean to say that they are very close to crossing red lines that, if crossed, will irrevocably push them over the brink into some type of war that damages these two countries and causes damage to the world order in severe and irrevocable ways — like Russia’s invasion of Ukraine did for Russia and the world, just much bigger.”

Next 18 Months ‘Very Risky’ for China and U.S.

The Bridgewater Associates founder cautioned that the following 18 months can be very dangerous for China and the U.S. Noting that “The hawkish political influences in the United States will exert more pressure on the relationship over the next 18 months because of the emergence of the 2024 election season,” Dalio opined:

That can be a really dangerous interval as a result of China and the U.S. are actually already on the point of warfare.

“The political timetable of the election cycle between now and the 2024 elections in the United States and Taiwan will likely lead to more push-the-limit anti-Chinese brinksmanship from the U.S.,” he continued.

The billionaire founding father of Bridgewater Associates added:

U.S.-China relations are getting so unhealthy that there’s cause to fret that anti-China sentiment may make doing enterprise with China like doing enterprise with Russia, which might lead U.S.-China commerce to break down.

“This would have similarly damaging economic consequences, though many times larger, severely hurting supply chains and trade. That would at a minimum cause severe economic consequences for the U.S., China, and the world and at a maximum could lead to military war,” he cautioned. “These conflicts are affecting most countries’ and multinational companies’ relations and how the world is operating in innumerable ways that are intensifying.”

Meanwhile, the U.S. Department of Defense revealed this week that it’s centered on potential battle with China. “We have a clear strategy that’s focused on China,” the deputy secretary of protection informed Bloomberg. “Our focus is making sure that the PRC [People’s Republic of China] leadership wakes up every day and says, ‘Today is not the day to undertake aggression that threatens U.S. interests’ … That’s our focus today, in 2027, and in 2035 and 2045.”

What do you concentrate on billionaire Ray Dalio’s warning? Do you suppose the U.S. and China will go to warfare? Let us know within the feedback part beneath.