Ray Dalio, the founder of Bridgewater Associates and a long-time observer of China, says there’s a formula for President Donald Trump to be successful in a trade negotiation with China.

Ray Dalio, founder of the world's largest hedge fund, called for a U.S. deal with the Chinese on tariffs and said that the next goal for U.S. President Donald Trump's administration should be to cut the country's deficit to 3% of GDP.

The Bridgewater founder also advised investors to rethink their risk appetite after U.S. tariffs policies sparked wild swings in financial markets.