Ray Dalio warns China, Japan may cut demand for US Treasuries, flags risks of AI bubble

Billionaire Ray Dalio has warned that the US Treasury market could face weaker demand from China and Japan, two of the biggest foreign holders of US government debt. The US depends on foreign investors for about a third of its debt. Japan and China account for a large share of that demand, Dalio, founder of Bridgewater Associates, said in an interview with Bloomberg Television in Singapore on Tuesday.

“The Chinese don’t want to continue to accumulate — there are geopolitical issues as well as economic issues,” he said. “When you have a debtor-creditor relationship and you have an adversary relationship, that’s a very difficult dynamic.”