Tensions over Taiwan

[Bloomberg]( Follow Us [Get the newsletter]( Stay tuned for special Election Night editions of Balance of Power. Back when the U.S. was selling new F-16 fighter jets and Abrams tanks to Taiwan, China’s reaction at times seemed more like annoyance than anger. With a rapidly modernizing military and growing affluence, the country of 1.4 billion enjoyed a growing conventional edge over the self-ruled island of just 23 million people that Beijing [regards as its territory](. But two new arms deals in the past week between Washington and Taipei may have made [China more concerned](. The sales of more than $4 billion in anti-ship and extended-range missiles, as well as other gear, highlight a notable shift in the weapons the U.S. is shipping to Taiwan. The purchases underscore Taiwan’s move toward a [“hedgehog” or “porcupine” strategy]( to strengthen defenses and make a Chinese invasion too costly. They also show a willingness in Washington to sell Taiwan more effective weapons: Some of the missiles can even reach the Chinese coast some 100 miles away. Beijing has condemned these as offensive acquisitions, and hawkish figures have threatened to launch an economic blockade or even destroy the arms once they’re deployed. But Taiwan hopes the weapons will narrow the gap with China, forcing its leaders to think twice about making good on their increasingly vocal threats to invade, a scenario that could pull the U.S. into war. That’s a major security concern for whoever wins next week’s presidential election. — [Iain Marlow]( Howitzers fire during an annual Taiwanese military exercise in Taichung in July. The drills are aimed at repelling a Chinese invasion across the Taiwan Strait. Photographer: I-Hwa Cheng/Bloomberg Tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines [Re-imagined state]( | Florida, known for its voting flubs and hanging chads since an excruciating recount in the 2000 presidential contest, has remade itself into a model of election efficiency for the Covid era of mail-in voting. As [Todd Shields]( reports, the state is set to deliver results quickly — in contrast to other battlegrounds including Pennsylvania, Wisconsin and Michigan. Campaign 2020 There are six days until the election. Here’s the latest on the [race for control]( of the White House and Congress. Record-setting levels of U.S. coronavirus cases are coming at the [worst possible time]( politically for President Donald Trump. And Pennsylvania’s governor [deployed the National Guard]( after a police shooting sparked protests in a state that will help decide the Nov. 3 vote. Other developments - [Trump Says Midwest ‘Heated Up’ With Coronavirus Cases]( - [This Is What Biden’s Said on Major U.S. Flashpoints With China]( Don’t miss the biggest U.S. election headlines as they happen. Download Bloomberg's app [for Android]( or[for iOS]( and turn on push notifications. [Election referee?]( | The U.S. Supreme Court’s conservatives have started carving a path that could let Trump win a contested election, [Greg Stohr]( reports. An opinion this week by Trump-appointed Justice Brett Kavanaugh suggested sympathy for Trump’s unsubstantiated contentions that votes received after Election Day would be tainted by fraud. [Premature victory]( | Despite beating back the initial wave of Covid-19 with fast and strict lockdowns, Europe’s eastern countries are suffering an explosion of new cases and a soaring death toll. High-profile infections are eroding trust, feeding into a communist-era tradition of skirting rules and, with hospitals at risk of being overrun, governments are now reimposing measures that hammered their economies this spring. - In France, the disease [killed 523 people]( yesterday — the highest daily toll since April — as President Emmanuel Macron prepares new restrictions to fight its spread, while German Chancellor Angela Merkel is pushing to [close bars, restaurants and leisure facilities]( until the end of November. - Take a look at this [deep dive]( into the misery inside U.K. Prime Minister Boris Johnson’s cabinet, where the resurgent pandemic has wiped out the triumph of his December electoral victory, fractured Conservative Party discipline and shredded the premier’s authority. Czech soldiers completed a 500-bed field hospital in the Prague suburb of Letnany over the weekend.  Photographer: Milan Jaros/Bloomberg [Baghdad uprising]( | Iraq is the world’s third-biggest oil exporter, but its economy is cratering after the pandemic sapped global demand for energy and caused prices to collapse. The state’s finances are so dire that the government is trapped between an angry population and pledges made to OPEC allies to rein in oil supply. As [Paul Wallace]( and [Khalid Al-Ansary]( report, it’s an acute dilemma for a fragile government hemmed in on all sides. [Socialist comeback]( | Former Bolivian President Evo Morales’s socialist party has seen a dramatic resurrection barely a year after he stepped down and fled to Mexico. MAS, now under the leadership of Luis Arce, won big in this month’s election. And, as president-elect, Arce has a very different style from Morales: more academic and less confrontational, [Matthew Bristow]( explains. What to Watch - India’s eastern state Bihar goes to the polls today in the [first test]( for Prime Minister Narendra Modi since the pandemic hit and his lockdown pushed the economy into its worst downturn in decades. Voting is spread over two weeks and the results are due Nov. 10. - South African Finance Minister Tito Mboweni will have to balance the need to find money to fuel economic recovery from the longest recession in three decades with pledges to rein in debt when he [presents the budget]( today. - Spain, Greece and Portugal are among the countries [struggling to work out]( how to best keep their finances in check once they take on billions in new loans from the European Union’s 750 billion-euro ($882 billion) recovery program. - Poland’s most-powerful politician called on people to [defend Catholic churches]( from pro-choice protesters to ward off a civilizational threat amid demonstrations against a court ruling that effectively banned abortions in all cases except for incest and rape. [And finally]( ... Police corruption is endemic in Nigeria, and members of the country’s tech industry complain they’ve suffered more than most. Victimization, fueled by the impression that their laptops and gadgets mean they’re well-off and easy targets, risks taking a toll on the country’s booming start-up scene as entrepreneurs consider emigrating. As [Tope Alake]( and [Ruth Olurounbi]( report, those factors have put the tech sector at the heart of protests against police brutality that have swept Nigeria. Nigeria’s government is attempting to quell the demonstrations. Photographer: Phill Magakoe/AFP via Getty Images   Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.  You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022