No reset

[Bloomberg]( Follow Us [Get the newsletter]( Joe Biden’s first [discussion]( as U.S. president with China’s Xi Jinping showed that he won’t abandon one key Trump administration policy: enhanced support for Taiwan. The White House said Biden underscored with Xi his concern over unfair economic practices, [Hong Kong](, Xinjiang and “increasingly assertive actions in the region, including toward Taiwan.” While that language by itself isn’t terribly surprising, it was significant given another meeting held on the same day in Washington. Before the call, Taiwan’s de facto ambassador to the U.S., Bi-khim Hsiao, met with Sung Kim, one of the State Department’s top officials overseeing Asia. In a tweet, the U.S. said the meeting showed it was “deepening ties with Taiwan, a leading democracy and important economic and security partner.” China’s readout of the Xi-Biden talks emphasized cooperation, illustrating Beijing’s eagerness to move past the [acrimonious]( relations that defined Donald Trump’s tenure. But it also mentioned clearly that Taiwan – as well as Hong Kong and Xinjiang — were internal affairs the U.S. should avoid. All of this shows that U.S.-China relations aren’t set for a fundamental reset under Biden. While the tone may be more respectful, the underlying [tensions]( remain — and Biden looks unlikely to roll back any Trump-era policies regarding Beijing anytime soon. — [Daniel Ten KateÂ]( Xi and Biden. Photographer: Tim Rue/Corbis Historical via Getty Images Tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines [Words, deeds]( | Democratic lawmakers used previously unreleased video and audio to detail a months-long campaign by the former president to stoke hatred and encourage violence that they said contributed to the mob attack on the U.S. Capitol. The impeachment managers, who will wrap up their case tomorrow, depicted the assault as the intended result of a multitude of actions calculated to incite Trump’s followers. - Trump’s impeachment lawyers intend to [lean]( heavily on his use of the words “peacefully and patriotically” in a Jan. 6 speech as part of his defense. [Key players missing]( | Biden is fighting his war against the coronavirus with several top health posts unfilled due to delays in the Senate and his own White House. As [Josh Wingrove]( explains, the absence of a confirmed Health and Human Services secretary and surgeon general threaten to hamper the U.S.’s rebound and undermine one of the biggest promises of the president’s election campaign. - Biden’s immigration [overhaul]( seeks to allow more skilled foreign workers into the U.S. without stirring widespread protest from labor groups. [Mutant threat]( | Chancellor Angela Merkel warned lawmakers today that aggressive coronavirus mutations will gain the upper hand in Germany sooner or later, threatening to destroy progress made in containing the pandemic. Europe’s largest economy needs to maintain tight controls even as contagion rates steadily decline and immunizations slowly ramp up, she said. Merkel and Germany’s 16 state premiers agreed yesterday to extend most virus restrictions until March 7. [Coup sanctions]( | Biden said his administration will sanction military leaders in Myanmar linked to this month’s coup and ensure they can’t access about $1 billion in government funds held in the U.S. The sanctions represent the strongest use of punitive measures against a foreign nation since he took office last month and come as thousands of anti-coup protesters took to the streets in Myanmar for a sixth straight day. Protesters demanding the release of Aung San Suu Kyi in Yangon on Tuesday. Photographer: Sai Aung Main/AFP via Getty Images [Chip autonomy]( | The European Union is looking into the feasibility of building an advanced semiconductor fabrication plant in Europe to secure supplies of the chips needed for its key industries. As [Helene Fouquet]( and [Natalia Drozdiak]( report, the EU is considering ways to reduce its dependence on the U.S. and Asia and bolster its strategic autonomy in key technologies. A global shortage of chips for automakers has added urgency to those moves. What to Watch - The EU is working on a [proposal]( to sanction Russia over the imprisonment of opposition leader Alexey Navalny, following discussions by the bloc’s ambassadors at a meeting yesterday. - China and India have begun [pulling back]( troops from some hot spots on their disputed Himalayan border, officials on both sides said, but other areas of conflict along the 2,167-mile boundary have yet to be addressed. - The EU [rebuffed]( the U.K.’s call to reset the two sides’ relationship, saying Britain needs to honor the promises it made on Northern Ireland as part of the Brexit deal. - South African President Cyril Ramaphosa [delivers]( his state-of-the-nation speech to parliament in Cape Town today as the country struggles to curb the spread of the coronavirus and contain the economic devastation it has wrought. [And finally]( ... Her arrest in 2018 made global headlines. Now prominent Saudi women’s rights activist Loujain Al-Hathloul has been released after nearly three years in jail, as the U.S. under President Biden steps up pressure on the kingdom over its human rights record. Best known for campaigning to overturn a ban on women driving, the 31-year-old is a symbol of the complexities of the social and economic change being led by Crown Prince Mohammed bin Salman. A tweet posted by Al-Hathloul’s sister Lina shows a screenshot of them having a video call yesterday. Photographer: Fayez Nureldine/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