Investing.com -- Ray Dalio, founder of hedge fund Bridgewater Associates, said Wednesday he expects U.S. and Chinese leaders to find ways to work together when they meet next month.

Speaking to CNBC in Shanghai, Dalio said the meeting between U.S. President Donald Trump and Chinese President Xi Jinping will have "a particular emphasis on trade, but also capital flows."

Dalio said he expected the two leaders to demonstrate "empathy" and work through challenges together. "Investors should be encouraged by these things," he said, noting it "carries through" to investments and markets.

The lack of contact between the U.S. and China is "the biggest source" of bilateral tensions, Dalio said, wearing a pin bearing both the U.S. and Chinese flags.

"Chinese-American relationships and the oceans are the two most important things for the well-being of humanity," Dalio said.

Trump is scheduled to visit Beijing on May 14 and 15 to meet with Xi. Trump was originally set to travel in late March, but delayed the plans due to the Iran war.

When asked about the Iran war and Trump's two-week ceasefire announcement, Dalio emphasized that investors should look beyond the "news of the day" and said a "world war of sorts is going on."