Betting it all

[Bloomberg]( Follow Us [Get the newsletter]( Xi Jinping doesn’t come across as a gambling man. On the surface, the [crackdown]( by Beijing on sectors including tech, property and education makes sense. Xi and the Communist Party leadership view these industries as creating systemic [risk](. Alongside the biggest Chinese companies, they want greater regulation of foreign firms (and control of their data, ideally) operating in China, and increased self-reliance on things like [semiconductors](. On the political side, the moves against the giant after-school tuition market, where parents often spend money they don’t have to get their kids into a good university, and [gig]( employers like food delivery company Meituan, also seem logical. Xi is eager to lever more people out of poverty and keep those newly in the middle class feeling as though they are progressing. He wants them to have the financial security to have more babies, for the country’s own economic future. He also needs to avoid discontent going into key leadership meetings next year — to be firmly and publicly in charge. So it all appears a carefully thought-out strategy in the run-up to those party gatherings, likely in March. It’s a big bet at the same time. Xi is presuming the Chinese economy (and [markets]() can weather the [volatility]( caused by the crackdown. That may be the case, but it’s far from guaranteed. There are other variables, too, like global demand for China’s products. And as Beijing [tightens]( its grip on Hong Kong, there’s the chance foreign companies will decide to take their business elsewhere. Any serious slowdown could fan public dissatisfaction or create the perception within the top ranks of the party that he’s miscalculated. Those are high stakes to be playing. — [Rosalind Mathieson]( Xi speaks at the Chinese Community Party centenary in Beijing. Photographer: Qilai Shen/Bloomberg Click [here]( to follow Bloomberg Politics on Twitter and and tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines Victory delayed | President Joe Biden’s promise of a “summer of joy” to mark America’s [independence]( from Covid-19 is evaporating as infections skyrocket due to the delta variant and the refusal by some to be vaccinated. That could mean a return to restrictions many Americans hoped were over, a bitter setback for Biden who has counted on defeating the pandemic as a cornerstone of the U.S. economic recovery. - The Biden administration is proposing [sweeping]( changes to its government purchasing rule to increase the domestic content of American-made goods, sources say. Pursuing Trump | Former U.S. President Donald Trump’s top allies could [face]( subpoenas in a House committee probe of the Jan. 6 insurrection at the Capitol, [Billy House]( and [Jarrell Dillard]( write. The panel, which held its first public hearing yesterday, could use its summoning power next week to call witnesses including Trump administration officials and his supporters in Congress. Kremlin target | Moscow is ready to go to great lengths to [stop]( Annalena Baerbock, the Greens’s candidate to be chancellor of Germany, from winning office because of her hawkish attitude toward Russia, [Patrick Donahue]( and [Henry Meyer]( report. The Kremlin is particularly concerned about her opposition to completing the Nord Stream 2 gas pipeline between Russia and Germany, sources say. U.K. businesses are reporting record confidence but [struggling]( to hire staff, with workers forced to stay home after being “pinged” by the National Health Service Covid-19 tracing app amid a new wave of infections. Best of Bloomberg Opinion - [China’s ‘Great Wall of Steel’ Isn’t Just Idle Talk: Hal Brands]( - [The Nord Stream 2 Deal Is Nothing to Celebrate: Editorial]( - [Why Tunisia’s Democratic Experiment Must Succeed: Hussein Ibish]( Virus success | Singapore is attempting a [feat]( no country has achieved so far: reopen from the pandemic with a death toll still in the double digits. To do that, it’s trying to snuff out an outbreak driven by the delta variant and reach a vaccination level of 80%, which the government says will put it in a position where it can live with the virus. Blocking China | U.S. Secretary of State Antony Blinken kicked off his first official visit to [India](, warning of “rising global threats to democracy” as the nations seek common ground in their disputes with China. Also on the agenda during meetings with his Indian counterpart and Prime Minister Narendra Modi: the growing security crisis in Afghanistan triggered by the impending U.S. troop withdrawal and Covid-19. What to Watch - The U.K. government is set to allow visitors from the U.S. and the European Union to travel to England without [quarantining]( on arrival if fully vaccinated, with the policy likely to be finalized today. - WikiLeaks founder Julian Assange was [stripped]( of his Ecuadorian citizenship after an administrative court in Quito found his naturalization process was full of irregularities. - Pedro Castillo will be inaugurated as Peru’s president today and is expected to give his first address as leader after a fiercely contested runoff last month. And finally ... Turkey is reversing a short-lived ban on imports of some [plastic]( waste, prompting environmental groups to warn of the threat posed to farmlands, air and water resources in what was Europe’s top destination for trash. While it’s supposed to be mostly recycled garbage, images of rubbish piled in fields earlier this year sparked a public backlash, with Turkish importers accused of illegally dumping thousands of tons of refuse. A diver finds waste along the Gurpinar Coast in Istanbul, Turkey. Source: Anadolu Agency/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