The founding father of the world’s largest hedge fund says the conflict between the U.S. and China is greater than only a commerce conflict, and the U.S. could also be escalating it to a harmful degree.

In a LinkedIn blog post published Wednesday, Ray Dalio, founder and co-chairman of Bridgewater Associates LP, stated the U.S. is “weaponizing export controls” with its transfer to close off U.S. provides to Chinese language tech large Huawei Applied sciences Co.

Dalio famous that the transfer may result in China retaliating by shutting off the supply of rare-earth metals to U.S. corporations, a “vital import” vital for the manufacturing of cell phones, night-vision glasses, gyroscopes in jets and LED lights, amongst others.


“Historical past exhibits that international locations in battle have seen that such conflicts can simply slip past their management and develop into horrible wars that each one events, together with the leaders who bought their international locations into them, deeply regretted, so the events within the negotiations ought to be cautious that that doesn’t occur. Proper now we’re seeing brinksmanship negotiations, so it’s a dangerous time.”


Ray Dalio


Dalio additionally defined that the commerce conflict is only one a part of a better battle.

“It’s an ideological battle of comparable powers in a small world. It’s about 1) China rising to problem the ability of the U.S. in lots of areas and a pair of) these two international locations having two totally different approaches to life — one which’s high down and one which’s backside up,” he wrote. “These conflicts prolong to American and Chinese language companies, applied sciences, capital markets, influences over different international locations, militaries, ideologies, and most the whole lot else.”

Dalio stated each international locations are shifting towards being much less depending on one another. “That may be a large deal as a result of it’s a main, multi-year endeavor that can take sources away from different improvement,” he stated, including that the uncertainties attributable to the battle can be “main disruptors” to folks, corporations and governments.­



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