Dalio Says 10-Day Beijing Trip Confirmed Power Shift to China After Hormuz Crisis
Updated
Updated · Fortune · Jun 24
Dalio Says 10-Day Beijing Trip Confirmed Power Shift to China After Hormuz Crisis
2 articles · Updated · Fortune · Jun 24
Summary
Ray Dalio said a 10-day Beijing visit convinced him the world order has shifted sharply toward China after the U.S. response to Iran’s Strait of Hormuz seizure.
In a June 18 essay, the Bridgewater founder argued Asian leaders now doubt Washington’s willingness to bear the costs of war, comparing the moment to Britain’s loss of imperial standing after Suez.
Dalio said leaders are increasingly seeking “tribute-type” ties with Xi Jinping—accepting Chinese primacy for economic access—rather than relying on a U.S.-led security order.
Taiwan sits at the center of that shift, he argued, with China likely to press reunification through economic and diplomatic coercion; he expects Trump could cancel planned U.S. arms sales under pressure.
For markets, Dalio said the change points to weaker U.S. primacy, growing renminbi influence and rising risk around Taiwan’s chip dominance, which he says underpins global AI supply chains.
As China nears chip self-sufficiency, will technology become its ultimate weapon to reshape global power?
With the dollar weakening, is the end of American economic primacy now truly inevitable?
Is China's new 'tribute system' a stable world order or a fragile economic empire?
China’s Ascendancy in 2026: Finance, Energy, and the Fragmentation of the U.S.-Led World Order
Overview
Ray Dalio’s 10-day trip to Beijing in June 2026 highlighted a profound and rapid transformation in the global order. Drawing on decades of experience, Dalio observed that the world is undergoing a fundamental reordering, which he compared to the historic 1956 Suez Crisis that shifted power from Britain and France to the United States. In his essay and interviews, Dalio emphasized that recent months have seen a big shift in power dynamics, signaling a new inflection point. This shift suggests a decline in U.S. influence and the rise of China as a central force in shaping the future world order.