Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’

Main Idea: Ray Dalio says a recent trip to China convinced him the world is shifting away from U.S. power and toward a new order shaped by Chinese influence.

Key Points:

• Dalio argues that U.S. leaders showed weakness in a recent Middle East crisis, which made Asian leaders doubt America’s will to keep its global role.
• He says China is building a modern version of its old tribute system, where other countries accept Chinese primacy in exchange for trade and stability.
• Dalio believes China will try to pressure Taiwan through economics and diplomacy, not open war, and that Taiwan’s chip industry gives Beijing major leverage.
• He warns that this shift could hurt U.S. markets and weaken the dollar-based system as China grows more powerful in trade and finance.