Billionaire investor Ray Dalio, founder of Bridgewater Associates, is excited about China.

"They've opened up their financial markets and created capital market innovation over the last three years," he said in an interview with TheStreet. "It's an incredibly fast place. They have liquid markets, which have depth and accessibility-so of course we're going to want to be part of that."

China's high debt levels aren't stopping Dalio.

"They definitely have a debt issue. But the debt is denominated in their own currency. What I've found is their economic policymakers are very, very smart and sensible people," he said, adding that debt denominated in their own currency is manageable via maturity extensions, interest rate changes and other methods.

China's debt stands at 304% of its GDP as of May, according to the Institute of International Finance.

Dalio is also author of the new book Principles.

Watch our full 15-minute interview with Ray Dalio:

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