'..China .. wonder if the Trump administration is “inching toward bigger moves.” '

'In a new essay posted on LinkedIn Tuesday, the Bridgewater Associates co-chairman points to the U.S. freezing Japanese assets and embargoing oil to Japan in the late 1930s to early 1940s as a potential example of how special emergency powers could be used by the president.'

'Ray Dalio, the billionaire founder of the world’s biggest hedge fund, said preliminary discussions on limiting U.S. investments in China make him wonder if the Trump administration is “inching toward bigger moves.”

In a new essay posted on LinkedIn Tuesday, the Bridgewater Associates co-chairman points to the U.S. freezing Japanese assets and embargoing oil to Japan in the late 1930s to early 1940s as a potential example of how special emergency powers could be used by the president.

“Regarding the capital and currency wars, the ability of the U.S. president to unilaterally cut off capital flows to China and also freeze payments on the debts owed to China, and also use sanctions to inhibit non-American financial transactions with China must be considered as possibilities,” Dalio wrote. “That’s why the proposed step of limiting American portfolio investments in China makes me both think about the implications of this step and wonder if it is an inching toward bigger moves.” '

- Dalio Outlines Possible Trump Path to Limit Capital to China, October 1, 2019



Context

The Broken Promises of China's WTO Accession: Reprioritizing Human Rights