With the growing prowess of China in multiple domains as varied as banking and sciences, China has started giving tough competition to the United States. According to legendary investor and speculator George Soros, if the two countries don't "find an accommodation" soon, the consequences could be severe for the world.
Soros recently spoke at the World Bank's Bretton Woods Committee conference about the possibility of a Third World War if China doesn't start making necessary concessions. Here is what he had to say.
China Will Have To Make Moves
"The United States would be making a major concession [...] by allowing the renminbi to make a step forward in becoming a potential rival of the dollar," Soros said.
"So, China would have to make similarly major concessions and there are many things wrong with the Chinese system. The Chinese leadership doesn't abide by the rule of law; there is no independent judiciary and the multinationals are very often mistreated."
Related Link: Will Spain Become The Next Greece?
He continued, "And the other problems – like things that are connected with cyber warfare. So, these are areas where China would have to be willing to make concessions.
"So, this would involve very tough negotiations, but I think it is in the interest of both parties to find an accommodation, because the alternative is so unpleasant."
World War III: China Will Align Itself With Russia
"And there has been a major breakthrough in the area of climate policy. There needs to be a similar breakthrough in cooperation on economic matters," Soros stated.
He explained, "Without it, there is a real danger that China will align itself with Russia politically and militarily, and then the threat of a Third (World) War will become real," Soros concluded.
See more from Benzinga
- Oppenheimer: Costco Well-Run, But May Not Be Recommended Buy
- CBS CEO: 'When Apple Calls, You Always Listen'
- Expectations For Google's I/O Conference This Year
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.