Dalio stated that investors should be "encouraged" by the upcoming meeting between Trump and China's top leaders.

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Investing.com - Hedge fund Bridgewater Associates founder Ray Dalio said on Wednesday that he expects U.S. and Chinese leaders to find a way to cooperate when they meet next month.

Dalio said in an interview with CNBC in Shanghai that a meeting between U.S. President Donald Trump and China’s top leader will be “especially focused on trade, but also includes capital flows.”

Dalio said he expects the two leaders to show “empathy” and jointly address challenges. “Investors should feel encouraged by these things,” he said, adding that it “will continue” into investing and the markets.

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Wearing a badge emblazoned with the flags of the U.S. and China, Dalio said that the lack of contact between the two countries is the “biggest root” of bilateral tensions.

“The U.S.-China relationship and the oceans are two of the most important things concerning human well-being,” Dalio said.

Trump plans to visit Beijing on May 14 and 15 to meet with China’s top leader. Trump had originally planned to visit in late March, but postponed the plan due to the war in Iran.

When asked about the war in Iran and the two-week ceasefire Trump announced, Dalio emphasized that investors should look beyond the perspective of “day-to-day news,” and said, “some form of a world war is underway.”

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