Leaders from Tesla, Intel, Reddit, Pfizer and more discuss challenges companies face – Community News
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Leaders from Tesla, Intel, Reddit, Pfizer and more discuss challenges companies face

Ray Dalio, founder of Bridgewater Associates, said investing in China is important because of the benefits of portfolio diversification and because of China’s continued economic growth.

mr. Dalio said when he first visited China half a lifetime ago, he would hand out $10 calculators to senior officials that they thought were miracles. Noting how much China had progressed since then, Mr. Dalio said, “A miracle has happened in China.”

“In the case of China, they know that it’s very important to have that market economy and develop those things and that the root is not the extremism that is widely observed. That doesn’t mean there’s no tightening… but because of the idea of ​​diversification and the power of what’s to come, I think it’s important to invest in China,” said Mr. Dalio in The Wall Street Journal’s CEO Council Tuesday.

He added that Bridgewater thinks about investing in China in the same way that it invests in the 40 or so countries it invests in, and that the company invests more in asset classes than individual companies. But when asked if human rights considerations would ever lead him to leave China, he said: “If it was clear there were violations, so it was abhorrent to me and I knew enough about it, I wouldn’t invest there.”

Dalio, an ancient Chinese bull whose giant hedge fund has counted the Chinese government and other Chinese institutions among his biggest clients, made controversial comments last week about human rights considerations in investing in China. “I can’t be an expert at that sort of thing,” he told CNBC, adding later, “shouldn’t I invest in the United States because of other things — our own human rights issues or other things?”

The comments sparked a reaction from Senator Mitt Romney (R-Utah), who wrote on Twitter that “China’s feigned ignorance of the horrific abuses in China and the rationalization of complicit investments there is a sad moral mistake.”

During an internal Bridgewater call Thursday, Mr. Dalio said he answered the question poorly, but the company’s investments in China were important to consider. Mr. Dalio clarified his CNBC comments in a Sunday LinkedIn post, writing that he believes human rights are important and that he believes in the American system. He wrote that he had tried to explain that China’s approach to government is “a more autocratic approach akin to a strict parent.” I did not express my own opinion or endorse that approach.”

Bridgewater has recently penetrated one of the largest foreign private fund managers in China, raising the equivalent of $1.25 billion for its third investment fund in China.

mr. Dalio also said on Tuesday that he was concerned about the possibility of a US-China decoupling, pointing to the interconnectedness between US and Chinese companies that make products he described as “an essential part of our well-being,” and about the prospect of war between the two countries.

He also touched the stock market, saying it wasn’t a bubble and crypto “has reasons for rationality”. He said crypto had not been hacked and had gained value over the past 11 years, and that while it was inferior to other assets, it should be considered in an environment where governments print money.