Warnings of a capital war between China and the US are growing louder.
The conflict between the two countries could expand beyond trade and technology, Bridgewater Associates founder Ray Dalio said at the annual gala of the National Committee on US-China Relations in New York on Thursday.
“There is a trade war, there is a technology war, there is a geopolitical war, and there could be a capital war. How that is approached is going to determine our futures,” said Dalio, according to a tweet by the NCUSCR describing his remarks. “I hope that it is done with mutual understanding instead of wars — a win-win relationship rather than a lose-lose relationship.”
Dalio’s comments come as lawmakers in the US are ratcheting up the pressure to slow the spigot of money that has flowed from US pension and investment funds into Chinese companies. The US and China are trying to reach a trade deal, aimed at reducing tariffs on goods that are hurting both economies and bringing an end to a year-long trade war.
The board that oversees retirement savings for US government employees said on Thursday that it would allow one of its funds to invest in an international index that includes Chinese companies. That’s in spite of the threat of legislation from lawmakers who say the investments will undermine national security and contribute to China’s economic and corporate growth.
Marco Rubio, the bill’s lead sponsor, condemned the decision as “unconscionable” and said it would direct the retirement savings of military service members and federal employees to the Chinese Communist Party.