(OPINION) JPMorgan Chase CEO Jamie Dimon issued a stark warning about the state of US-China relations and the broader economic challenges facing the United States during his remarks at the Reagan National Economic Forum in Simi Valley, California, on May 30, 2025.

While acknowledging China as a “potential adversary,” Dimon emphasized that the real threat to America’s prosperity lies within its own borders, pointing to mismanagement and internal dysfunction as critical issues that need urgent attention.

According to CNN, Dimon’s comments come at a time when trade relations between the United States and China, the world’s two largest economies, are increasingly strained.

President Donald Trump’s aggressive tariff policies have significantly disrupted bilateral trade, with recent escalations following Trump’s claim that Beijing “totally violated” its latest trade agreement.

These policies have fluctuated, with tariffs on Chinese goods initially reaching as high as 145% before being partially rolled back to 30% for a 90-day period, while China reduced its tariffs on US goods from 125% to 10% for the same duration.

Despite these reductions, Dimon cautioned that the full economic impact of these tariffs is yet to be felt, warning of potential inflationary pressures and the risk of stagflation—a combination of economic stagnation and rising inflation.

“They’re not scared, folks. This notion they’re gonna come bow to America, I wouldn’t count on that,” Dimon said, highlighting China’s resilience and preparedness in the face of US trade pressure.

He noted that China has been fortifying its economy for years, with significant investments in technology and infrastructure, and suggested that American policymakers should not underestimate Beijing’s ability to withstand economic challenges.

While Dimon recognized China’s strengths and challenges, he reserved his sharpest critique for the United States itself.

He described the “enemy within” as the nation’s inability to address internal mismanagement, particularly at the state and local levels.

Dimon pointed to the $2 trillion US government deficit in 2024—approximately 7% of GDP—as a looming threat, warning that a recession could push this figure to 10%.

He cited inefficiencies in managing pensions and other public finances as existential risks that could “kill us” if left unaddressed.

“What I really worry about is us. Can we get our own act together—our own values, our own capability, our own management?”

Dimon asked, echoing sentiments shared by Berkshire Hathaway CEO Warren Buffett, who described America as “normalcy resilient” but in need of urgent reforms.

Dimon stressed that the United States must focus on strengthening its domestic policies and governance to maintain its global economic leadership.

Dimon’s remarks reflect a nuanced perspective on US-China relations. While he has previously supported tariffs as a tool for addressing unfair trade practices, he has grown increasingly cautious about their broader economic consequences.

In his annual letter to shareholders in April 2025, Dimon warned that Trump’s tariff policies could lead to inflation, slow economic growth, and potentially drive the global economy into a downturn.

He also expressed concerns about the United States’ global standing, noting that an “America First” approach must not result in “America alone.”

Despite these concerns, Dimon has advocated for constructive engagement with China.

In a recent Bloomberg interview in Shanghai, he praised China’s efforts to uplift its population over the past two decades, even as he reaffirmed his identity as an “American patriot capitalist.”

He emphasized that JPMorgan Chase remains committed to long-term investment in China, refuting claims of a retreat from the market.