Hard lessons

[Bloomberg]( Follow Us [Get the newsletter]( The [Taliban]( are celebrating after the [departure]( of the last U.S. aircraft from Afghanistan, with militants strolling across the tarmac at Kabul airport and driving around the capital in military vehicles left behind in America’s scramble to exit. “We have defeated the world’s most powerful country and gained our independence,” Taliban official Bilal Karimi said. The images only serve to highlight the limits of Western nations’ ability to promote and defend democratic values. As [Jennifer Epstein](, [Tony Capaccio]( and [Nick Wadhams]( write, next month’s 20th anniversary of the Sept. 11 attacks that triggered the 2001 invasion will be marked with Afghanistan back under Taliban [control](, an outcome U.S. leaders could never have envisioned. China, Russia and other authoritarian states have watched as the West’s confidence has waned and asserted their interests more forcefully. Beijing [brought]( Hong Kong to heel with little consequence, while Moscow enthusiastically [backed]( the crushing of pro-democracy protests in neighboring Belarus and cozied up to the generals responsible for Myanmar’s [coup](. Even NATO allies such as Turkey have taken the opportunity to [expand]( their regional ambitions. The chaos of the exit from Kabul has left U.S. friends in Asia and the Middle East [jittery]( about their security in relation to China and Iran. President Joe Biden [declared]( in February that the world faces an “inflection point” in a contest between democracy and autocracy, adding: “We have to prove that our model isn’t a relic of history.” In reality, as they grapple with the fallout from the Taliban’s success, the U.S. and Europe may have to work with rivals like China and Russia on issues including Afghanistan, whether they like it or not. [— Tony Halpin]( Taliban spokesman Zabihullah Mujahed speaks to the media at Kabul airport today. Photographer: WAKIL KOHSAR/AFP/Getty Images Tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines Insurrection probe | The House committee [investigating]( the Jan. 6 riot in Washington asked AT&T, Verizon Wireless and 33 other companies to preserve the records of people linked to the insurrection and former President Donald Trump’s efforts to overturn the 2020 election. It’s part of a search for information that includes requests to social-media platforms about how a rally organized to support Trump’s false claims about the vote resulted in a mob storming the Capitol. Tightening grip | Chinese President Xi Jinping chaired a [meeting]( yesterday that “reviewed and approved” actions on issues ranging from monopolies and strategic reserves to battling pollution. Few details are known about the meeting that comes as authorities take aim at some of the nation’s largest tech companies, signaling unease with their rapid growth and influence. - [Read more]( about the emergence of the socialist catchphrase “common prosperity” in China. - China unveiled plans to keep a lid on home rents in cities and to preserve older properties, its latest move to ease price [pressures]( in the residential market and promote urban renewal. Budget bump | Japan’s Defense Ministry is seeking a [record]( $50 billion annual budget, the largest percentage jump in spending (2.6%) in eight years, amid simmering tensions with China. Its defense spending was about a fifth of China’s in 2019, according to the Stockholm International Peace Research Institute. Germany’s focus on manufacturing helped Europe’s largest economy fare better than its more service-heavy peers during Covid lockdowns, but its rebound is now at risk as companies report [shortages]( of materials ranging from memory chips to lower-tech parts and even basics such as wooden pallets. Ida fallout | While New Orleans’s levees withstood Hurricane Ida’s fury, its electrical grid [failed]( spectacularly, meaning those who rode out the storm face days, possibly weeks, without power in the summer heat. - John Kerry, U.S. special presidential envoy for climate, starts a [tour]( to Japan and China today after a report warned the planet would warm by 1.5 degrees Celsius in the next two decades without drastic efforts to cut greenhouse gas emissions. - Sudden and extreme heat [disasters]( around the world are raising questions over which cities and regions will be able to adapt to rising temperatures. Best of Bloomberg Opinion - [EU Travel Curbs Are A Necessary Message to Biden: Lionel Lauren]( - [Xi Is Forgetting What Made China Great Again: Michael Schuma]( - [Germany’s Coalition Politics Could Go Far Wrong: Andreas Kluth]( Easing tensions | Turkish President Recep Tayyip Erdogan spoke with the de facto leader of the United Arab Emirates, another [sign]( that ties are warming between the rivals. The outreach has broad implications at a time of uncertainty in the region, including how to deal with the Taliban and Iran weighing talks to revive its nuclear deal with world powers. What to Watch - President Jair Bolsonaro is mulling a new round of Covid cash [handouts]( for low-income Brazilians as his popularity sinks ahead of next year’s elections, sources say. - The world’s first pollution-import levy, proposed by the European Union on goods from steel to aluminum, may not actually [cost]( the bloc’s competitors that much, a new study shows. And finally ... China had one of its [slowest]( summer holiday box office seasons in years after a delta-driven outbreak kept audiences home, and concerns are growing that a regulatory crackdown on celebrities could prevent the industry from bouncing back. A lack of blockbuster releases also contributed to the slump. The three-month period was dominated by patriotic titles as the Communist Party celebrates its 100th anniversary. A worker sprays disinfectant at a cinema in Urumqi, Xinjiang, in August. Photographer: China News Service  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