Investors debate whether the US or China will control the future

The Millennial Source
4 min readMar 7, 2021

This appeared in The Millennial Source

While Warren Buffett remains confident in the future of America, other investors have begun viewing China as the next global superpower.

High-profile investors have taken somewhat different stances when it comes to measuring the future of the United States and China. Two big ones are Warren Buffett and Ray Dalio. Warren Buffett is incredibly optimistic about the US whereas Ray Dalio believes that China is the future.

In February 2021, Warren Buffett released his annual shareholder letter where he expressed his beliefs in America’s future.

“Despite some severe interruptions, our country’s economic progress has been breathtaking … Our unwavering conclusion: Never bet against America,” Warren Buffett said.

The letter comes as the world approaches the three-year mark of a trade war between the US and China started by former President Donald Trump.

US-China trade war

In 2018, Trump famously tweeted that “trade wars are good, and easy to win” as he began to impose tariffs on about US$360 billion of imports from China. The dispute has seen the US and China impose tariffs of hundreds of billions of dollars on one another’s goods.

Trump had accused China of unfair trade practices along with the theft of intellectual property. The former administration began the trade-war by not only establishing these high tariffs but also by including restrictions on investments and visas for Chinese nationals.

Despite Trump’s claims that “trade wars are good, and easy to win,” experts have pointed out that the US has not “won” the trade war.

“China is too big and too important to the world economy to think that you can cut it out like a paper doll,” Mary Lovely, an economics professor at Syracuse University, told Bloomberg. “The Trump administration had a wake-up call.”

While Warren Buffett remains confident in the future of America, other investors have begun viewing China as the next global superpower.

Ray Dalio’s predictions

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