Ray Dalio, founder of Bridgewater Associates, has expressed concerns about China’s economic health, noting that while a small portion of his family office’s investments remain in the country, significant challenges persist. According to a Bloomberg report, China’s economy is experiencing notable slowdowns, with industrial production declining for the longest period since 2021. This slowdown is pressuring the Chinese government to implement stronger financial measures to achieve its annual growth target of around 5%.
Dalio described China as “very attractively priced” for investment but cautioned about the scale and structure of investments due to the country’s economic issues. He compared China’s current economic difficulties to Japan’s struggles in the 1990s, suggesting that the situation could be even more challenging for China.
Dalio also highlighted the need for economic restructuring in China, particularly within the property sector. He pointed out that these economic troubles pose a significant challenge for President Xi Jinping, who must navigate growth while avoiding another boom-and-bust cycle.
Dalio advised investors to diversify their portfolios and avoid concentrating too much capital in any single country, acknowledging that all economies face fluctuations and challenges.
