US “in relative decline” because “Chinese power is increasing rapidly,” says Ray Dalio

Dalio’s comments are part of his series of articles published on LinkedIn.

Dalio’s observations published Thursday come as Sino-US tensions rise and create friction for the stock market, with the Dow Jones Industrial Average
DJIA
-0.41%,
the S&P 500
SPX
-0.77%
and the Nasdaq composite index
COMP,
-0.96%
shaken by a renewed witness among the world’s superpowers.

Indeed, The Wall Street Journal reported Thursday. that US senators introduce a bipartisan bill that would sanction officials of Chinese parties and those who enforce the new national security laws in Hong Kong.

This proposal comes when President Donald Trump said that “China’s disinformation and propaganda attack on the United States and Europe is a shame”,Wednesday missive on Twitter

.

The United States has accused China of mismanaging the COVID-19 pandemic, which was first identified in Wuhan in December and has since infected more than 5 million people and killed nearly 330,000 people around the world data aggregated by Johns Hopkins University from Thursday afternoon.

China defended its response, with Cui Tiankai, Chinese ambassador to the United States, in an editorial in the Washington Post earlier this month, saying that blaming Beijing “will not end the pandemic”.

On Wednesday, the Senate passed a bill that could force Chinese companies to drop their listing on US stock exchanges under legislation passed by the Senate on Wednesday, further boosting the spirits of the # 1 and # 2 economies.

Dalio believes that China is in a better position and that it will soon overtake the United States. The wealthy investor with an estimated net worth of $ 18 billion, according to data from Forbes, is not the first and is not even the most daring to make such a prediction.

It was assumed that China would eventually eclipse the economic dominance of the United States in real terms. The Standard Chartered Bank, for example, had predicted that China would likely become the world’s largest economy this year.

In the last check, the United States’ gross domestic product. The United States, or GDP, stood at $ 21.44 trillion on a nominal basis, while China’s GDP was around $ 14 trillion. For another measure, known as purchasing power parity, which weighs a country’s respective purchasing power, China’s GDP would be $ 27.31 trillion, based on International Monetary Fund data.

And in FebruaryElon Musk predicted that the Chinese economy would overtake the United States. United States At least twice. “One thing that will sound strange enough is that the Chinese economy will probably be at least twice as large as the American economy, maybe three times,” he said in an interview in Florida.

However, in January, researchers from Capital saving