On Thursday evening, the National Committee on U.S.-China Relations (NCUSCR) held a black-tie Gala Dinner at the Grand Hyatt NYC honoring Bridgewater Associates founder Ray Dalio, who warned that relations between the U.S. and China could significantly worsen from here, first reported by Bloomberg.
"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. I hope that it is done with mutual understanding instead of wars -- a win-win relationship rather than a lose-lose relationship," Dalio told the audience.
During the event, NCUSCR tweeted out several key quotes from Dalio's speech:
Dalio's comments come at a time when the Trump administration is restricting capital flows between China and the U.S.
U.S. lawmakers are pressuring pension and investment funds to discontinue investments in China because it undermines national security and contributes to China's economy.
There was even a recent report that the Nasdaq is cracking down on Chinese IPOs of small companies.
The trade war is metamorphosing into a capital war Dalio said during the speech.
The U.S. and China have fallen into Thucydides Trap, one where the U.S., the status quo power of the world, is being challenged by the rising power of the world, China. The trade war is much more than trade and blue-collar workers in the U.S.' Rust Belt, it's about empire and how China has the ability by 2030 to displace the U.S. as the global superpower.
Also at the event, former U.S. Secretary of State Henry Kissinger told the audience: "There may not be a complete agreement. What is imperative is that both countries understand that a permanent conflict between them cannot be won. There will be a catastrophic outcome if it leads to permanent conflict."
“There may not be a complete agreement. What is imperative is that both countries understand that a permanent conflict between them cannot be won. There will be a catastrophic outcome if it leads to permanent conflict.” Henry Kissinger, speaking on US-China relations @NCUSCR pic.twitter.com/4NFMTooAgt— Akiko Fujita (@AkikoFujita) November 15, 2019
That "catastrophic outcome" Kissinger speaks of is a shooting war. And it should now make sense why President Trump is spending record amounts of money on the military, boosting fifth-generation fighter jet output and hypersonic weapons development, that is because the preparation for war is well underway.