Ray Dalio: US Relationship More Concerning To China Than Tariffs

The U.S. and China appear to be engaged in a trade war, but the Chinese government and public merely view the situation as a "trade negotiation or dispute," according to billionaire investor Ray Dalio, the founder of Bridgewater Associates.

What Happened

Dalio is no stranger to China, having been first invited to the country in 1984 to teach the government how financial markets work, and is today viewed as a "rock star," according to the South China Morning Post. During a Tuesday CNBC interview, Dalio said President Donald Trump's new tariffs against the country are "not that big of a deal" given the large size of its economy.

Why It's Important

What is a big deal for China is the nature of the relationship with the American government, Dalio said. It's unclear if the Sino-American relationship is one of "give and take" or an "antagonistic relationship," he said, adding that the environment now is clearly "discomforting to Chinese officials." 

What's Next

The true issue is the cultural difference between China and America, Dalio said: from the Chinese perspective, America is a "country of individuals," but China is a "state family" that prioritizes "what is best for China and Chinese companies," Dalio said. 

"That is a very structural difference and it works for them." 

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