Liberal billionaire George Soros on Thursday warned that the U.S. and China, the world’s two largest economies, are locked in a “cold war that could soon turn into a hot one.”

His comments come at a time when investors are increasingly concerned about a serious economic downturn, with a long-running U.S.-China trade war souring business and consumer sentiment.

Soros, a major Democratic donor and critic of President Donald Trump, was speaking at a private dinner at the World Economic Forum in Davos, Switzerland.

“Regrettably, President Trump seems to be following a different course: make concessions to China and declare victory while renewing his attacks on U.S. allies. This is liable to undermine the U.S. policy objective of curbing China’s abuses and excesses,” he said.