Ray Dalio on China talks: This is much more important than trade


PRESIDENT NIETO AND PRIME MINISTER TRUDEAU LAST HOUR IN A FOX BUSINESS EXCLUSIVE IS PUSHED TO OF BRIDGEWATER ASSOCIATES AUTHOR OF THE BOOK PRINCIPLES FOR DISCLOSING BIG DEBT CRISIS RAY DALIO HERE THANKS SO MUCH FOR JOINING US THE BOOK HAS BEEN SO RESONATING WITH PEOPLE, BECAUSE WE HAVE A MAJOR ISSUE IN TERMS OF DEBT, AND I WANT TO TALK TO YOU ABOUT THAT LET ME GET YOUR CONTAINING FIRST WHAT IS HAPPENING INTERNATIONALLY HERE WE HAVE WORRIES ABOUT CHINA, AND U.S. NOT SURE WHAT WILL TAKE PLACE AT DINNER WITH PRESIDENT XI WHAT IS YOUR TAKE IN TERMS OF OF THE U.S. CHINA’S RELATIONSHIP RIGHT NOW.>>GONE FROM A COOPERATIVE RELATIONSHIP TO AS CONFRONTATIONAL RELATIONSHIP RECOGNIZING CHINA AND THE UNITED STATES ARE ESSENTIALLY, IN A STRUGGLE FOR — WORLD DOMINANCE ESSENTIALLY.>>BASICALLY IT.>>SO THIS IS MUCH MORE IMPORTANT THAN TRADE. I THINK THE TRADE MATTERS CAN BE DEALT WITH BUT I THINK THAT THERE IS A WAY OF BEING ISSUE — MORE TOP-DOWN WAY RELATIVE, AND I THINK THERE ARE GOING TO BE ISSUES BEYOND THAT, THIS WILL BE WITH US FOR A LONG TIME.>>OF YOU SAID THAT HOW DO YOU DEAL WITH A DICTATOR IN CHIEF OBVIOUSLY YOU’VE GOT BUSINESS IN CHINA, AND HAVE YOU BEEN FORCED TO TRANSFER ANY TECHNOLOGY? AS A BUSINESSPERSON?>>NO I HAVEN’T BEEN FORCED I WANT TO EMPHASIZE THAT, I HAVE A LOT OF RESPECT AND ADMIRATION FOR THE WAY THEY ARE OPERATING. NOW IT IS A VERY DIFFERENT WAY OF OPERATING, OKAY. IT IS A TOP-DOWN WAY OF OPERATING RIGHT? IT MIGHT BE GOOD EXAMPLE WOULD BE VIDEO GAMES, THEY DECIDE THAT KIDS WON’T WATCH CERTAIN TYPES OF VIDEO GAMES ONLY WATCH THEM A CERTAIN NUMBER OF HOURS; RIGHT? MARIA: THAT HAPPENS –>>IN UNITED STATES PARENTS DECIDE THAT KIND OF THING THE ESSENCE OF DIFFERENCE TOP-DOWN VERSUS BOTTOM-UP THING LIKE CHINA INC ESSENTIALLY LEADERS DEAL WITH BEST WAY OF LETTING THE WHOLE COUNTRY VIEW PARTS OF THE COUNTRY NOT HAVING THE SAME RULES IN TERMS OF DISCLOSURES ABLE TO FOLLOW IN THE DIRECTION THEY WANTED TO GO IF THEY WANT TO TAKE CARE OF EDUCATION SYSTEM IN A CERTAIN WAY, THEY GET IT DONE. AND THAT HAS BEEN WHAT THEY BELIEVE IS THE MODUS OPERANDI FOR SUCCESS THAT HAS GONE BACK TO 500 BC BASICALLY EVOLUTION CONFUCIUS KNOWING WHERE YOU HAVE UNITED STATES TOLD TO ME AS FROM CHINESE LEADERS PERSPECTIVE A BOTTOM UP INDIVIDUALISTIC SOCIETY COME TOGETHER VALUE INDIVIDUALISM AND WORK UP THAT CONFLICT WAY OF BEING ESSENTIALLY ELEMENT AS WE OPERATE IN THIS WORLD TOGETHER, BUMPING INTO EACH OTHER A LOT OF DIFFERENT WAYS. MARIA: DEMOCRACIES CAN BE SLOPPY A DEMOCRAT TAKES TIME DECIDE WHETHER OR NOT VIDEO GAMES ARE SAFE OR NOT DEBATE BACK-AND-FORTH BETWEEN CONGRESS AND EXECUTIVE OFFICE SO YOU ARE RIGHT, I MEAN COMPLETELY DIFFERENT, CAN U.S. EXIST DEALING WITH CHINA AS A PARTNER WHEN THEY’VE YOU KNOW THE PROGRAMS THE APPROACH GOVERNANCE ARE SO DIFFERENT?>>I THINK THAT IS THE REAL TEST OF OUR TIME YOU KNOW. HISTORY HAS SHOWN THAT WHEN THERE IS A RISING POWER CHALLENGING EXISTING POWER THAT IS A RISKY SITUATION THAT HAS HAPPENED 16 TIMES IN THE LAST 500 YEARS IN 12 OF THOSE TIMES THERE HAS BEEN CONFLICTS. I THINK IT IS THE CHALLENGE OF OUR TIME. IT CAN HAPPEN I THINK, IT HAS HAPPENED INSECURE FOUR OF THOSE CASES BUT I THINK THERE NEEDS TO BE THE QUESTION OF HOW YOU ARE WITH EACH OTHER, AND A RISKY SITUATION. SO WHEN WE DEAL WITH THAT ISSUE, WE’RE — THERE IS THE POSSIBILITY OF WAR, I AM NOT — THAT IS A BIG STATEMENT, BUT OVER A PERIOD OF TIME THIS TYPE OF CONFLICT IT IS INCONCEIVABLE YOU CAN BEING HAVE THAT KIND OF CONFLICT WHEN YOU HAVE THAT SITUATION IN EXISTENCE THAT MEANS BEHAVIORS CHANGE MEANS FOR EXAMPLE ARE CURRENCY INDEPENDENT? CAN THEY PRODUCE THINGS IN ONE COUNTRY, AND HAVE IT DELIVERED TO ANOTHER COUNTRY WHAT ARE THE SUPPLY LINES? ISSUES LIKE THAT HAVE BUSINESS AND MARKET IMPLICATIONS. RIGHT? SO THESE TYPES OF ISSUES WILL BE WITH US I THINK FOR A LONG TIME. MARIA: HOW IMPORTANT IS THIS USMCA DEAL WITH CHINA AND MEXICO? THESE ARE LARGEST TRADING PARTNERS LOOKING AT AGAIN A FREE TRADE SITUATION BETWEEN THREE COUNTRIES, AND I GUESS THIS IS IN SOME CASES CANADA BLINKS, BECAUSE THIS IS A BETTER DEAL FOR WORKERS FOR LABOR, I THINK BUT THERE ARE STILL THINGS TO FIX ACCORDING TO JUSTIN TRUDEAU HOW IMPORTANT WAS THAT FOR INVESTING WORLD.>>I THINK IT IS VERY IMPORTANT, AGAIN, WHEN WE THINK IN THIS GEOPOLITICAL WAY NOW MORE, THAT THAT ZONE IS VERY IMPORTANT. THE ABILITY TO HAVE INDEPENDENT PRODUCTION IN THAT AREA, AND TO ATTRACT IT THAT AFFECTS CHINESE AMERICAN DYNAMIC, TOO, BECAUSE AS MEXICO IS BEING USED IN MANY WAYS THAT CHINA MIGHT HAVE BEEN USED THAT AFFECTS THAT DYNAMIC SO DEAL WITH MEXICO

25 thoughts on “Ray Dalio on China talks: This is much more important than trade

  1. This guy is full of shit. He has business in China and now he's a spokesman for the communists. Typical liberal traitor.

  2. Whatever China may do, the US trade problem will persist because the problem lies with the US and no other country. Only USA can solve its trade problem.

  3. CCP in general lies on every treaties that they deal with foreign countries, in China parents teach kids they must be very competitive even they need to step up other people's bodies, Americans are so naive and ignorant to know the core value of CCP, they don't respect people, they kill their opponent just like that, similar like that Saudi Prince, two ideologies, communism and islamic, which are all dictatorship that they certainly kill we human being's creativity, and our rights. Look at Hainan Airlines CEO, Wang, Jian how he was murdered.

  4. All this talk of “TOP DOWN” and “BOTTOM UP” does not explain the successor failure of a nation. China for 5000 years has been a top down, centralized nation headed by hereditary emperor and administered by capable ministers. Each dynasty lasted a few hundred years because the hereditary system failed to produce capable successive emperor. In the ensuing interregnum period there were wars and divisions until a powerful new leader appeared. The nation war re-united again. The ethnic affinity and shared culture was and still is a powerful centrpedal force was and still is in China. This is in direct contrast to the Europe. After each conflict Europe was divided into different countries permanently. China was the richest country in the world until the colonial era when the West intruded the Far East. Now China is ruled by capable leaders chosen by the CCP which bases its choice on ability,, governing records and vision… over decades of record. The pitfall of hereditary abuses is eliminated. The BOTTOM UP theory is base on self interest and individual rights. One man one vote theory is a illusion. especially when corporation is treated as person. Money talks. The corporations sound louder to the politicians. the direction of this country is steered by shareholders and the rich. An army cannot win without a visionary and strong general. Yet we despise denigrate the Chinese citizens as slaves blindly following Xi’ leadership. Don’t we wish Trump for once forget his self interest and provide this country a clear direction instead just slogans.

  5. Bottom up approaches never work long term because internal conflicts between various special interest groups always doom the organization. Throughout history, most hegemonies are top down approaches because it's more efficient and stable.There are many examples: Roman Empire, Chinese Empire, Arab Empire, Spain, France and Communist China today

  6. Top down vs bottom up? The top down is leadership control, bottom up is individual liberty… I'm not sure if it's one way or the other it's some where in between

    I personally prefer bottom up– I like freedom. I don't like being told how to live, eat sleep invest or work

  7. I disagree with Ray (1:34) – both systems are "top down" paradigms. The difference being in who has the power at the top. In China, the Communist party makes the decisions. Whereas in America the rich make the decisions. The Communist party leaders got there through ruthlessness, political intelligence and games. The rich, generally, got there through a mix of luck, intelligence and empathy.

    Therefore, the American paradigm of the rich top down rulers works better because the rich are better at making decisions, because they have proved themselves to be the best at raising capital over a long period of time. The Chinese top down rulers only know how to make good political moves, hardly trained in human behaviour and market shifts.

    TEAM USA. from Australia.

  8. How do we fix our families and structures to compete when the left is busy tearing down all hierarchy because all competence is oppressive. All social institutions are torn down or loaded down learning stupid victimizing emotional things that only divide people.

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