Financial billionaire George Soros warns that the cold war between the U.S. and China will soon evolve into a hot war. He mentioned at the World Economic Forum in Davos, there is increasing concern from investors about a severe economic plunge due to negative impacts on business and consumer sentiment by the US-China trade war. The US President Donald Trump’s decision to label China as a strategic competitor in late 2017 was too simplistic, he added.

Soros also pointed out that an effective policy towards China cannot be represented by a mere slogan. Instead it needs to be far more detailed and practical, as well as include a response from the White House toward the Chinese Belt and Road Initiative. Trump’s actions appear to follow a path of declaring victory while concurrently making demands to China and renewing his attacks on U.S. allies. This may well compromise the objectives of the U.S policy to subdue China’s abusive and excessive approaches.

In regards to China, Soros commented that China is the wealthiest and most powerful country in the world, as well as most technologically advanced in the area of artificial intelligence. This makes President Xi the most dangerous rival to advocates of open society, as he may utilize advanced technology to reinforce his political power.