Source: Fortune
Summary
Ray Dalio, founder of Bridgewater Associates, believes the US is losing credibility as a global power, while China is gaining wealth and influence. After traveling through Asia, including 10 days in China, Dalio senses a shift in how countries view the two nations. He notes that the US is no longer seen as a reliable partner in the event of an attack. Dalio’s comments come as President Trump meets with China’s Xi Jinping amidst a stalemate in the US war with Iran. Dalio’s views on US clout waning against China’s carry weight due to his experience in China with Bridgewater.
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Dalio’s remarks amplify his long-running view that US clout is waning against China’s. He notes that China’s economy is now 60-70% as big as the US, a gain of over threefold in 20 years. Dalio sees a “tribute system” emerging, where countries recognize China’s growing power. He believes this shift has direct market implications, with investors needing to navigate a turbulent period.
The US is becoming the ” junior partner” in the eyes of the world.
Author: Evan Null
