Taiwan frets

Xi-Trump meeting poses many questions for Taipei ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here. As the US and China seek to stabilize ties strained by disputes including tariffs, rare-earth exports and technology, people in Taiwan are left wondering what it means for them. Both sides came away positive from talks yesterday between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng that covered artificial intelligence, trade and investment. The meeting was expected to set the tone for this week’s summit in Washington between Donald Trump and Xi Jinping. For Taiwan the bigger question is whether the island will come up in discussions — and whether Trump could trade away some of its interests in return for concessions from Beijing. Taiwan has reason to be watchful. WATCH: Bloomberg’s Stephen Engle shares what we know about the talks. After the president met with Xi in Beijing in May, Trump said they’d discussed US arms sales to Taiwan and remarked that he didn’t want “a war that’s 9,500 miles away.” The US administration’s reported withholding of a $14 billion weapons package for the self-governed democracy Beijing views as its own have added to the unease as Taipei steps up preparations for scenarios like an invasion or blockade. Taiwanese faith in Washington is divided. A United Daily News survey published today found 47% of respondents lacked confidence that the US would continue providing Taiwan with military assistance and arms, compared with 44% who expressed confidence it would. Taipei may be watching for any shift in US language amid suggestions that Beijing wants Washington to change its position from saying it “does not support” Taiwan independence to saying it “opposes” it. Such wording could diminish the longstanding US policy of strategic ambiguity toward Taiwan. Still, Taiwan’s government downplays the chances of a major shift, at least publicly. Former US deputy national security adviser Matt Pottinger struck a similar note, saying he didn’t expect any “grand bargain” or “unwise deal.” Many in Taiwan will be hoping he’s right. — Yian Lee A tank being transported for a military exercise in Hualien, Taiwan, on Aug. 9. Photographer: An Rong Xu/Bloomberg Global Must Reads Friedrich Merz will try to convince leaders from his conservative party to stick with him as German chancellor after the Christian Democratic Union posted its worst-ever result in Mecklenburg-Western Pomerania. His position was made worse by the result in Berlin, where the anti-capitalist Left party, which pledges to expropriate housing from private real-estate companies, won an election in Berlin, beat out the ruling CDU to place first. The Left’s main candidate in Berlin, Elif Eralp, celebrates after her win yesterday. Photographer: Jens Schlueter/AFP/Getty Images Ukrainians are drawing up contingency plans for what threatens to be their worst wartime winter since Russia’s full-scale invasion in February 2022. The Moscow Oil Refinery meanwhile was hit as Russia reported the largest overnight Ukrainian attack this year involving 1,110 drones, on the final day of parliamentary elections that were swept by the ruling pro-Kremlin party. Qatar’s prime minister, Sheikh Mohammed bin Abdulrahman Al-Thani, says Gulf states must cooperate to restore stability in the region and help find a settlement between the US and Iran. The nation’s energy minister, Saad Al-Kaabi, added at the Qatar Economic Forum that Bessent was “wrong” when he said the strategic Strait of Hormuz will be worthless in two years. Leaders from Canada, Brazil, Kenya and the European Union unveiled a joint diplomatic front on the eve of the United Nations General Assembly to represent so-called middle powers and developing nations in an increasingly transactional geopolitical order. The group says the mechanism, dubbed P4M, will serve to build coalitions for reform and practical action on shared principles. A strengthening El Niño is stirring up a dangerous mix of typhoons and hurricanes across the Pacific, fueling storms that have killed hundreds, disrupted trade and caused billions of dollars in damage. Container shipping giant Maersk warned that a string of severe typhoons had caused congestion at some of the region’s biggest ports. Rescue workers evacuate residents affected by floods in Putian, China, on Sept. 4. Photographer: Lyu Ming/China News Service/Getty Images Poland’s first credit-rating downgrade in a decade is set to complicate Prime Minister Donald Tusk’s spending plans ahead of crunch elections next year. Citigroup CEO Jane Fraser says companies are racing to build up their defenses as AI models become even more powerful and risk spurring cyberattacks.  South African police are questioning three people over the murders of nine women found around Johannesburg, while cautioning that investigators have yet to establish whether they are linked. Italy’s center-right coalition government moved to counter the surge of the ultranationalist National Future party, with Prime Minister Giorgia Meloni proposing new education laws that would place more restrictions on foreigners, including a ban on burqas and hijabs in schools. 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 Support for Australia’s center-left government fell to a new low as approval for Prime Minister Anthony Albanese weakened with higher fuel prices linked to the Iran war stoking concern about stubbornly high inflation. Support for Pauline Hanson’s far-right One Nation was around 30%, making it the most popular party in the latest Newspoll survey. And Finally International attention has been on the Strait of Hormuz and spiking oil prices over the Iran war, but the impasse in the Black Sea is compounding the economic damage because it’s a critical conduit for crop shipments to some of the world’s most populous nations. Supplies have been choked off since July when Russia and Ukraine, which make up more than a quarter of the global wheat trade, stepped up attacks on each other’s ports, pummeling grain terminals, silos and vessels. A Russian-flagged cargo ship near Istanbul after suffering drone attacks and drifting across the Black Sea before running aground, on Sept. 7. Photographer: Khalil Hamra/AP Photo Thanks to everyone who answered Friday’s quiz question, and congratulations to Mond McKenzie, who was first to correctly identify Peru as the country where the central bank governor has been in his post for 10 presidents. 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 Get Next Japan for an inside view of the forces reshaping Japan, and what’s next for its businesses, markets and consumers Explore more newsletters at Bloomberg.com We’re improving your newsletter experience and we’d love your feedback. 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