The days of U.S. hegemony are numbered and China is waiting in the wings, argues Ray Dalio, in his most recent missive on LinkedIn.
‘As you can see the United States is now the most powerful empire by not much, it is in relative decline, Chinese power is rapidly rising, and no other powers come close.’
The co-chief investment officer and co-chairman of Bridgewater Associates, outlined his case for why the world’s largest economy would be overtaken by China soon, presently the second-largest economy on the planet, with aspirations for much more.
Dalio’s comments are part of his series of articles published on LinkedIn.
Dalio’s remarks published on Thursday come as Sino-American tensions are ratcheting higher and creating some friction for the stock market, with the Dow Jones Industrial Average DJIA, -0.03%, the S&P 500 SPX, +0.23% and the Nasdaq Composite Index COMP, +0.42% rattled by renewed testiness between the global superpowers.
Indeed, the Wall Street Journal reported on Thursday that U.S. senators are introducing a bipartisan bill that would sanction Chinese party officials and entities who enforce the new national-security laws in Hong Kong.
That proposal comes as President Donald Trump claimed China’s “disinformation and propaganda attack on the United States and Europe is a disgrace,” in a late-Wednesday missive on Twitter.
The U.S. has blamed China for mishandling the COVID-19 pandemic, which was first identified in Wuhan in December and has since infected more than 5 million people and claimed nearly 330,000 lives globally, according to data aggregated by Johns Hopkins University as of Thursday afternoon.
On Wednesday, the Senate passed a bill that could force Chinese companies to give up their listings on American stock exchanges under legislation approved by the Senate on Wednesday, further elevating the animus between the No. 1 and 2 economies.
Dalio thinks that China is on a better footing and may soon surpass the U.S. The wealthy investor whose net worth is estimated to be $18 billion, according to Forbes data, isn’t the first to make such a prediction and he isn’t even the most audacious one to so.
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