[Text/Observer Network, Shao Yun] Following US President Donald Trump's announcement of a temporary suspension of the "reciprocal tariff" on multiple countries, Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, posted an article on social media X (formerly Twitter) on the evening of September 9th, calling for Trump to reach an agreement with China on the tariff issue.

"This is an excellent time for all parties involved to reconsider their approaches!" Dalio wrote on social media X on September 9th, stating that there are good and bad ways to handle tariff disputes, and "President Trump's decision to abandon the bad approach and resolve trade imbalances through negotiation is a better method."

Dalio then expressed his hope and expectation that Trump would "take similar measures" towards China as well, including negotiating a "win-win" agreement to resolve disputes between the two countries regarding debt and trade issues.

Dalio also mentioned that he believed that after resolving the tariff issue, the next step for the Trump administration should be to properly address the deficit problem by reducing the deficit-to-GDP ratio to 3%.

Photo Caption: Dalio, Visual China

On July 7th, Dalio had previously released a long post on X analyzing that the deeper reason behind Trump's tariff policy was the collapse of America's monetary and economic order. He stated that due to uncontrolled debt levels and excessive borrowing growth rates, the US has陷入恶性循环 of "borrowing to maintain excessive spending". "These imbalance pressures are seeking release in various forms, and their correction process will fundamentally restructure the monetary order."

In Dalio's view, the current global situation is experiencing a typical "large cyclical transformation", and tariffs are just a superficial phenomenon. In addition to the collapse of the monetary and economic order, he said that the domestic political order's collapse caused by the widening wealth gap and education gap, the gradual end of the multilateral order dominated by the United States, the destruction caused by frequent natural disasters, and the impact brought by frontier technologies such as artificial intelligence (AI), are also key drivers of this "large cyclical transformation".

Dalio believes that for individuals, this is a "once-in-a-lifetime" "collapse," but for the course of history, what is happening now is just a contemporary version of the countless events that have happened throughout history. He urged readers to understand these changes and properly respond to these forces.

Last year, when speaking about geopolitical issues in an interview with Nikkei Asia, Dalio expressed concern over Sino-US relations, believing that the "economic war" between the two countries would undoubtedly bring geopolitical risks. Previously, he had warned that Sino-US relations were already at the "red line" in some areas.

Regarding Sino-US relations, Dalio emphasized at the time that many Americans and Chinese were already "intertwined," and separating them would be terrible for almost everyone. This "mutual connection" benefits not only the people of both countries but also promotes global peace and progress through mutual understanding and influence.

Trump recently announced broad increases in so-called "reciprocal tariffs," claiming that this measure could reverse America's trade deficit, bring income to the US government, and revitalize American manufacturing, but these policies have sparked strong criticism and concerns. Affected by America's so-called "reciprocal tariff" measures, global stock markets have recently experienced continuous violent fluctuations.

After US Treasury bonds were heavily sold off this week, Trump announced a 90-day deferral of the implementation of "reciprocal tariffs" for most countries on September 9th, but retained a 10% "benchmark tariff" during this period. Although US Treasury Secretary Bostic insisted that this was part of the "strategy" set by the Trump administration early on, Trump himself seemed to admit on September 9th that his decision was influenced by bond market turbulence when facing media inquiries.

According to reports in The New York Times on September 9th, when asked if the bond market had influenced his decision, Trump admitted that he had seen the "rather gloomy" look of the market over the past few days. "I've been watching the bond market, which is very complex. The current bond market is beautiful... but last night I saw some unease among people." Trump also called the suspension of the "reciprocal tariff" a demonstration of "flexibility."

However, Trump did not cancel the previously announced "reciprocal tariff" of 84% on Chinese goods imported into the US, and posted on social media that he had increased the tariff on Chinese goods to 125%, taking effect immediately.

In response to the US announcement of increasing the "reciprocal tariff" rate on Chinese goods from 34% to 84%, the Chinese side adjusted the additional tariff rate specified in the announcement (Announcement No. 4 of 2025 by the Tariff Commission of the State Council on the Additional Tariffs on Imports from the United States) from 34% to 84%, starting at 12:01 PM on April 10th.

China also filed an additional lawsuit at the World Trade Organization regarding the further increase in 50% tariffs by the US on Chinese products. A spokesperson for the Ministry of Commerce said on September 9th that the US tariff measures seriously violate WTO rules, and adding another 50% tariff is a case of compounding errors, highlighting the unilateral hegemonic nature of the US measures. China will firmly defend its own legitimate rights and interests and uphold the multilateral trading system and international trade order based on WTO rules.

Regarding the US announcement of a 125% tariff on China, Foreign Ministry Spokesperson Lin Jian said on September 10th that the US, out of its own selfishness, uses tariffs as a weapon to impose maximum pressure and seek private gain, seriously infringing on the legitimate rights of all countries, severely violating WTO rules, seriously damaging the multilateral trading system and international economic and trade order based on rules, and seriously disrupting the stability of the global economic order. This is openly defying the whole world and going against the entire world.

"Taking necessary countermeasures to oppose US hegemony is not only to safeguard our country's sovereignty, security, and development interests but also to uphold international fairness and justice, protect the multilateral trading system, and safeguard the common interests of the international community. Righteousness prevails when the way is followed; righteousness wanes when the way is lost. The US's逆行 actions are unpopular and will ultimately fail." Lin Jian said.

Lin Jian emphasized that there are no winners in a tariff war or a trade war. China does not want to fight, but it is not afraid to fight. We will never sit idly by while the legitimate rights of the Chinese people are deprived, nor will we allow the international economic and trade rules and the multilateral trading system to be destroyed. If the US insists on fighting a tariff war or a trade war, China will certainly see it through to the end. The US placing its own interests above those of the international community, sacrificing the legitimate interests of countries around the world to serve its hegemonic interests, will inevitably face stronger opposition from the international community.

As for whether China has engaged in negotiations with the US on the tariff issue, a spokesperson for the Ministry of Commerce said at a regular press conference on September 10th that China's position is clear and consistent. Negotiations are open, but dialogue must take place on the basis of mutual respect and equality; if forced to retaliate, China will also see it through to the end. Coercion, threats, and blackmail are not the right way to deal with China. It is hoped that the US will meet China halfway and properly resolve differences through dialogue and consultation based on mutual respect, peaceful coexistence, and win-win cooperation.

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Original source: https://www.toutiao.com/article/7491596210927829567/

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