Ray Dalio warns US decline and rising China reshapes global order

Ray Dalio, founder of Bridgewater Associates, told Bloomberg TV that the United States is losing global credibility while China is rapidly accumulating wealth and influence. He said many nations no longer expect the US to intervene in a war and are increasingly viewing China through a historic “tribute system” model, where leaders acknowledge China’s power in exchange for protection.

Dalio linked this shift to the recent US‑China summit in Beijing, noting that President Xi Jinping appeared to secure a more favorable outcome than President Trump. He warned that the US’s soaring debt, extensive overseas military bases, and uncertain commitment to allies are eroding confidence. Dalio advised investors to secure liquidity, diversify holdings and keep gold as a hedge against currency volatility.

He also highlighted China’s expanding economic reach, including greater yuan use in international markets and Chinese firms’ global expansion, which he expects to accelerate the re‑balancing of the world order.