Greenlight Capital founder David Einhorn has issued a stark warning about the economic risks of escalating US-China tensions, suggesting the United States is underestimating China’s preparedness for a full-blown trade war, according to a report by Bloomberg.
Speaking at the recent Sohn Investment Conference in Montreal, the veteran hedge fund manager cautioned that the US should “be prepared to be punched in the face” if it provokes further economic confrontation with Beijing.
Einhorn highlighted China’s superior manufacturing scale, lower labor costs, and strategic foresight as key competitive advantages in the global economic standoff.
“They’ve been preparing for this, and we haven’t,” he said. “I don’t think the US can win a trade war without absorbing some real economic pain – and no one here seems ready for empty shelves.”
His remarks come amid renewed trade tensions, with a US court this week blocking a swath of former President Trump’s tariff measures, before an appeal court granted the White House a temporary reprieve.
