US-China War Looms as Billionaire Ray Dalio Sounds Alarm: Trade Deal on the Verge of Collapse

"Billionaire Ray Dalio warns of impending war between U.S. and China, predicts collapse of trade relations"

Renowned billionaire and founder of Bridgewater Associates, Ray Dalio, has issued a warning that the United States and China are on the brink of war and have surpassed the ability to hold talks. Dalio, who has been visiting China for almost 40 years and has built close relationships there, shared his insights from his recent 13-day trip to China, meetings with policymakers from other countries, and experts on China residing outside the country. Dalio emphasized that the US-China relations are getting worse, and trade between the two nations could collapse. He added that the next 18 months will be a very risky period.

Dalio’s warning about the United States and China comes as the US Department of Defense revealed that it is focused on potential conflict with China. The deputy secretary of defense noted that their strategy is focused on China, and they aim to ensure that the People’s Republic of China leadership wakes up every day and says, ‘Today is not the day to undertake aggression that threatens US interests.’

Dalio stressed that the United States and China are close to having a sanctions war and/or military war that neither side wants. He clarified that the two countries are on the brink, but it does not necessarily mean they will go over the brink. If the two countries cross red lines, it would cause severe and irrevocable damage to the world order. He likened it to Russia’s invasion of Ukraine, which caused significant damage to Russia and the world, but the US-China war would be much bigger.

The next 18 months will be a very risky period for China and the US, according to Dalio. He noted that the hawkish political influences in the United States will exert more pressure on the relationship over the next 18 months due to the emergence of the 2024 election season. 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 US.

Dalio added that US-China relations are getting so bad that there is reason to worry that anti-China sentiment could make doing business with China like doing business with Russia. This situation would lead to the collapse of US-China trade, causing similarly damaging economic consequences that would severely hurt supply chains and trade. It could cause severe economic consequences for the United States, China, and the world and, at worst, lead to military war.

Dalio’s warning is a significant concern for many countries and multinational companies’ relations and how the world is operating in innumerable ways that are intensifying. It is essential to note that this article is for informational purposes only and is not a direct offer or solicitation of an offer to buy or sell or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in this article.

Martin Reid

Martin Reid

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