Ray Dalio said internal conflicts will be the “highlight of this year,” particularly on the issue of whether the U.S. election result will be accepted by both sides. 

The policies from an administration run by Donald Trump would be very different from a Democratic one, Dalio said during a video speech at the Greenwich Economic Forum in Hong Kong Wednesday. However, on anti-China policies, there’s broad agreement between the two parties. 

“There’s a great risk of economic sanctions that would be really terrible for the world,” said Dalio, founder of Bridgewater Associates. “Economic warfare precedes military warfare.”

Dalio added that while it’s most likely there will be no imminent form of military conflict on the issue of Taiwan, the one-China policy “will not go on forever.” 

That’s triggered questions from international investors who are gauging whether they will suffer from actions taken by their own government. 

“American investors investing in China could experience negative consequences from their governments,” said Dalio. “And there’s worry that from the Chinese side they could make it challenging.” 

Those concerns are reflected in the falling stock market in Hong Kong and on the mainland earlier this year, Dalio said. Chinese assets are very attractively priced, he said, adding that Bridgewater has done very well operating there in the last five years.

This article was provided by Bloomberg News.