Billionaire investor Ray Dalio, founder of the Bridgewater Foundation, pointed to the potential proximity of the U.S. and China to a military conflict over Taiwan, pointing out that Chinese leader Xi Jinping hinted at war when he spoke last month about his country’s need to prepare for a “dangerous storm,” Business Insider writes.

“It scares almost everyone and paralyzes activity”, Dalio said.

Such a situation is disastrous for global economic growth. Dalio noted that the two superpowers are dangerously close to having their tensions escalate into a full-scale military conflict:

“The US and China are now in a trade war, a technology war, a war for geopolitical influence and a capital/economy war, and now they are dangerously close to a war of arms.”

His comments came after U.S. President Joe Biden met face-to-face with his Chinese counterpart Xi Jinping for the first time since taking office on Monday, when they signaled they wanted to improve relations strained over Taiwan.

But days before that, Xi ordered the Chinese army to step up military training in preparation for war, according to The Guardian. And at the end of China’s Communist Party Congress in October, Xi said it was necessary to prepare for a “dangerous storm.”

Dalio also predicts the timing of a potential war over Taiwan: it’s likely to happen in about 2 years, given that the next U.S. presidential election will bring a more aggressively pro-China Republican Party to power, and a global economic recession is likely.

“The 2024 elections in the U.S. and Taiwan, Japan’s rearmament and the likelihood of a worsening global economic situation at that time make the period from 2024 to 2025 particularly risky,” he said.

Dalio suggested the likely imposition of sanctions by Western countries on goods from China if its attack on Taiwan does take place.