Old rhythm

US, China work to preserve fragile truces ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here. If this felt familiar, that’s because it was. Chinese President Xi Jinping and US leader Donald Trump slipped back into something resembling their old rhythm in Beijing — warm words, easy praise, and a heavy emphasis on personal rapport. Trump called Xi a “great leader.” Xi said the two countries should be “partners, not rivals.” At moments, it had echoes of the headier days of their relationship in 2017. But the backdrop has dramatically shifted. Back then, the pageantry masked tensions that were just beginning to surface. Today, those strains define the relationship, even as the tone at the top remains cordial. Bloomberg’s Minmin Low reports on the summit. That contrast played out in real time. Xi raised the “Thucydides trap” — which refers to the risk of war when a rising power threatens to displace an established one — casting the ties in historic terms. He proposed a “constructive, strategic and stable relationship.” Trump leaned into the personal connection, saying problems between the two sides had always been resolved quickly. But even before the more than two hour-long meeting had finished, the issue of Taiwan quickly cut through that warmth. While the two leaders were still speaking, Chinese state media published Xi’s remarks to Trump calling Taiwan the most important issue in the US-China relationship and explicitly warning Trump that mishandling it could lead to conflict. Still, both sides are keen to keep things working, even if only at the surface level. Xi greeted Trump at the Great Hall of the People with a full state welcome, featuring red carpet, honor guard, flag-waving children and a 21-gun salute. And there’s a heavy dose of pragmatism on display. Xi shook hands with Secretary of State Marco Rubio, who was permitted as part of Trump’s delegation despite being sanctioned by Beijing. The economic agenda is another reminder of that practical diplomacy. Trump once promised sweeping changes to China’s economy. Now the focus is narrower, preserving a fragile truce and boosting US exports like planes and soybeans, while avoiding escalation after Beijing last year threatened to cut off supply of critical rare earths. US beef exporters look like an early winner, with China renewing import licenses for hundreds of American plants. A delegation representing roughly $20 trillion in market value — from Nvidia to Boeing — is in town, with CEOs already interacting with Chinese counterparts and Xi telling them China will open its economy further. For now, it’s all smiles and platitudes. The next few months will tell if the relationship once again goes off the rails. — Rebecca Choong Wilkins Tesla and SpaceX CEO Elon Musk with Trump upon arrival in Beijing yesterday. Photographer: Alex Wong/Getty Images Global Must Reads The lawmaker at the center of escalating political chaos in the Philippines left the Senate chamber’s premises, where he had taken refuge since Monday, after gunfire rang out at the complex. Ronald Dela Rosa sought to escape security agents serving an International Criminal Court arrest warrant in dramatic scenes tied to a rift between President Ferdinand Marcos Jr. and ally-turned-rival Vice President Sara Duterte, the daughter of former leader Rodrigo Duterte. WATCH: Gunshots could be heard inside the Philippine Senate yesterday. Keir Starmer’s efforts to hold back a leadership challenge showed new cracks as allies of top Labour rivals signaled they were ready to vie for the UK prime minister’s job. His former deputy, Angela Rayner, indicated today she’s preparing for a bid to lead the governing party after being cleared by a tax probe, while Starmer’s supporters are expecting Health Secretary Wes Streeting to quit the Cabinet and declare his own challenge. US efforts to end the war with Iran were dealt a setback after a vessel was seized by unauthorized personnel near the United Arab Emirates, raising uncertainty over control of the Strait of Hormuz. A Japanese supertanker meanwhile emerged in the Gulf of Oman after last signaling that it was inside the Persian Gulf, a rare undercover transit through the strait, while two India-bound vessels carrying cooking fuel also appear to have crossed the waterway. India has asked the US to extend its waiver on Russian oil imports, sources say. Oil tankers and boats in the Strait of Hormuz in April. Photographer: Asghar Besharati/Getty Images Leaked audio messages linking Brazilian presidential candidate Flávio Bolsonaro to the man at the center of a multibillion-dollar bank fraud scandal are threatening to torpedo the right-wing senator’s campaign before it even gets started. The government announced more fuel subsidies to cushion the impact of the Iran war on inflation and help support President Luiz Inácio Lula da Silva’s popularity, and a dish-soap recall has sparked a social-media debate, with right-wing supporters claiming political persecution. A Ukrainian court ordered President Volodymyr Zelenskiy’s former chief of staff be held on 60-day pre-trial detention today, setting bail at 140 million hryvnia ($3.2 million) after prosecutors accused Andriy Yermak of laundering stolen state funds through the construction of luxury real estate. Yermak denies wrongdoing. With Russia continuing to bombard Ukrainian cities, President Vladimir Putin replaced the governors of two regions bordering Ukraine that have been repeatedly targeted by Kyiv’s forces. India faces the challenge of bridging deep divisions within the BRICS bloc gathering in New Delhi this week as members remain split over the Middle East conflict and China’s focus is diverted by Trump’s visit to Beijing. A BRICS leaders’ summit in Rio de Janeiro on July 7. Photographer: Dado Galdieri/Bloomberg Lithuanian Defense Minister Robertas Kaunas said the US has paused rotation of troops to Europe as the Pentagon reviews its deployment plans on the continent. The western Canadian province of Alberta will appeal a court ruling that blocks a potential vote on separation from the country after a judge found the state government failed to meet its obligation to consult with Indigenous peoples. French President Emmanuel Macron’s summit with African leaders in Nairobi this week yielded billions of euros in investment commitments, but also highlighted the challenges Europe faces as China, the UAE, Turkey and India expand their reach across Africa. A billboard of Kenyan President William Ruto and Macron in Nairobi on May 6. Photographer: Simon Maina/AFP/Getty Images Sign up for the Washington Edition newsletter for news from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day US oil refiners are sending more jet fuel overseas than at any time in history as airlines around the world struggle to cope with the Strait of Hormuz closure. Exports surged to a record 455,000 barrels a day last week, the Energy Information Administration said, as prices jump in Europe and Asia where airlines and refiners are heavily reliant on steady shipments of oil and other energy cargoes from the Persian Gulf. And Finally US authorities say they thwarted an overseas scheme to trick Trump supporters into buying bogus “Trump Bucks” on the promise that they could be exchanged for legal tender. Two citizens of North Macedonia hoodwinked buyers, many of them senior citizens, out of hundreds of thousands of dollars by selling the fictitious financial instruments, according to the US attorney’s office in Manhattan. The pair were indicted on wire-fraud charges but remain at large. Images of some of the Trump Bucks products. Source: US Attorney’s Office More from Bloomberg Check out our Bloomberg Investigates film series about untold stories and unraveled mysteries Next China for dispatches from Beijing on where China stands now — and where it’s going next Next Africa, a daily newsletter on where the continent stands now — and where it’s headed Economics Daily for what the changing landscape means for policymakers, investors and you Green Daily for the latest in climate news, zero-emission tech and green finance Explore more newsletters at Bloomberg.com We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Balance of Power newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |