U.S.-China tensions, Facebook feeling the heat: Weekend Reads

[Bloomberg]( Follow Us [Get the newsletter]( Tensions between Washington and Beijing intensified with news that a small number of American troops has been training local forces in Taiwan to defend the island in case of attack by China. Beijing [called]( for their withdrawal. The U.S. Senate [approved]( a short-term increase in the amount of money the government can borrow, but there will be another debt-limit fight in less than two months. And Democratic divisions continue to jeopardize Biden’s economic agenda. Facebook’s business practices came into sharp focus once again as a whistleblower told the Senate that the social-media colossus puts profits ahead of user safety. Chief Executive Officer Mark Zuckerberg [said]( the allegations are “just not true.” U.K. Prime Minister Boris Johnson [wrapped]( up his Conservative Party’s annual conference with a pitch to build a high-wage, high-skills economy. Delve into these and more of Bloomberg’s best stories from the past seven days in this edition of Weekend Reads. — [Karl MaierÂ]( The U.S. Navy, U.K. Royal Navy and other forces conduct an exercise in the East Philippine Sea. Source: Japan Maritime Self-Defense Force Click [here]( for this week’s most compelling political images and tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Democratic Strife Risks a 2022 Bloodbath — and Biden’s Legacy Divisions among Democratic progressives and centrists are [threatening]( Biden’s economic agenda and his legacy. If they fail to unite to pass a safety-net package, [Joshua Green]( reports, the party could pay a steep price in next year’s midterm elections. - Senate Minority Leader Mitch McConnell [told]( Biden that Republicans won’t help the next time the U.S. debt limit has been reached. Xi Picks Opportune Time to Cool Tensions With Biden Meeting There are [pressing]( reasons for Chinese President Xi Jinping to arrange a meeting with Biden and dial back tensions between the world’s two largest economies. [Iain Marlow]( lays out what’s at stake when the two hold a virtual summit before the end of the year. Dueling U.S., China Military Drills Highlight Rising Taiwan Risk Taiwan was the focus of rival [displays]( of might by the world’s major military powers this week. [Samson Ellis]( reports on the record sorties by Chinese military planes off one coast and flotillas of U.S. and allied warships off another. - Xi [renewed]( his pledge today that unification with Taiwan “will and must be achieved.” Johnson Skips Over Economic Chaos in Sales Pitch for New Britain Putting forward his [vision]( for a new Britain, Johnson pledged to invest in skills, narrow social inequalities and unleash the national spirit. Just how he planned to do that, [Kitty Donaldson](, [Alex Morales]( and [Emily Ashton]( write, was less clear, as businesses warned of more disruption to the economy. Whistleblower’s Guide to Fixing Facebook Centers on Algorithms In her testimony to the U.S. Senate on Tuesday, former product manager Frances Haugen stressed an [overarching]( point: Facebook needs to make big product changes that would likely lead to less engagement, a decline in advertising dollars, and ultimately less profit. [Naomi Nix]( and [Anna Edgerton]( outline what she said. Facebook was [ordered]( by a court-appointed referee to search for any personal notes by Zuckerberg that might be relevant to a consumer lawsuit accusing the social networking giant of failing to safeguard privacy in the years leading up to the Cambridge Analytica scandal. Global Corporate-Tax Overhaul Advances as 136 Nations Sign On Plans for a vast overhaul of corporate taxation [won]( support from 136 countries yesterday. [William Horobin]( and [Isabel Gottlieb]( report on how governments resolved key differences over the level of a global minimum rate and an end to new digital taxes that the U.S. deemed discriminatory. Hong Kong’s National Security Law Is Changing Everything China’s expansive [crackdown]( on dissent in Hong Kong has transformed the Asian financial hub in little more than a year and raised big questions for individuals and companies alike. [Kari Soo Lindberg](, [Natalie Lung]( and [Pablo Robles]( explain that the message is: Beijing is running the show. Afghanistan’s Fragile Economy Is Collapsing as Cash Disappears Just weeks after the U.S. withdrawal from Afghanistan, a cash crisis has [gripped]( an already feeble economy. [Eltaf Najafizada]( reports workers aren’t being paid, companies are closing and banks are limiting withdrawals. Taliban fighters during a rally in Kabul on Sept. 11. Photographer: Aamir Qureshi/AFP/Getty Images Rage-Fueled Politics Threaten Latin America’s Business Haven Gabriel Boric is tapping into public [rage]( over inequality and a shift in attitudes about gender and sexuality to become the front-runner in the race for Chile’s presidency. The rise of the 35-year-old former student protester is part of a broader swing to the left across Latin America. Global Energy Crisis Shows Fragility of Clean-Power Era The richest countries are [undergoing]( one of the most ambitious industry overhauls since the dawn of the electric age. But with no easy way to store energy generated from renewable resources, the transition has made the global power network more fragile. Putin Plots Climate Shift as Advisers Warn of Economic Risks After years of dismissing climate change, President Vladimir Putin is [prodding]( officials to take the threat it poses to Russia’s economy more seriously. [Evgenia Pismennaya](, [Yuliya Fedorinova]( and [Ilya Arkhipov]( explain the shift means Moscow will bring concrete proposals on carbon emissions to the COP26 climate change summit in Glasgow in November. North Korea Trades Scorn for Flattery to Win Benefits from Moon North Korea has called President Moon Jae-in a meddlesome mediator and reduced to rubble a $15 million liaison office that was one of the South Korean president’s biggest diplomatic achievements. Yet, [Jon Herskovitz]( reports, leader Kim Jong Un on Monday [restored](hotlines with South Korea. And finally … Fossil fuels are becoming unacceptable to many consumers and investment funds, and in Europe this year, electric and plug-in hybrid vehicles outsold diesel cars for the first time. The outlook isn’t all bleak for the Glasgow climate summit that starts this month. But as [Marc Champion]( and [Jess Shankleman]( report, the rivalry between the U.S. and China and a global energy squeeze could make progress difficult. Dark smoke drifts over a hotel complex during a massive forest fire on Turkey’s southern coast near the town of Manavgat on July 29. Photographer: Ilyas Akengin/AFP/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. 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