Ray Dalio says brinksmanship is pushing US-China conflict to a "risky" level

The founder of the world's largest security fund states that clashes between the United States and China are greater than just a trade war, and the United States can escalate it to a dangerous level.

In a LinkedIn blog post published Wednesday, Ray Dalio, founder and co-chairman of Bridgewater Associates LP, said the United States is "weapon controlling export controls" with its move to close US supplies to Chinese tech giant Huawei Technologies Co.

Dalio noted that the move could lead to China retaliating by closing the inflow of rare earth metals to US companies, a "critical import" needed for the production of mobile phones, night vision goggles, jet gyroscopes and LED lights among others.

"History shows that conflict countries have seen such conflicts easily escape their control and become horrific wars that deeply deplored all parties, including those who got their country into them, so the parties in the negotiations are careful not to Right now we see brinksmanship negotiations, so it's a risky time. "

Ray Dalio

Dalio also explained that the commercial war is only part of a larger conflict.

"There is an ideological conflict with comparable forces in a small world. It is about 1[ads1]) China that encourages to challenge the US force in many areas, and 2) these two countries have two different approaches to life – one that is top down and one that is bottom up, he wrote. "These conflicts extend to US and Chinese businesses, technologies, capital markets, influences over other countries, military, ideologies, and most everything else."

Dalio said both countries Moving toward being less dependent on each other. "It's a big deal because it's a big, multi-year business that will take resources away from other developments," he said, adding that the uncertainties of the conflict would be "major disturbances" for people, businesses and governments.

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