A delicate dance

[View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( British Prime Minister Boris Johnson has highlighted the dilemma facing many leaders on China. In an interview with Bloomberg’s Editor-in-Chief John Micklethwait yesterday, Johnson said he was not about to “pitchfork away” offers of Chinese investment and declared “I am no Sinophobe — very far from it.” Read the interview story [here](. For related stories: - [Boris Johnson Interviewed by Bloomberg News: Transcript]( - [Johnson Sees ‘Extremely Tough’ Global Climate Talks in Glasgow]( - [Johnson Hosts Business Leaders’ Dinner Amid Investment Push]( The premier was speaking on the eve of a big investment summit he’s hosting. He’s keen to tout the U.K. as open for business and investment, especially after its tumultuous divorce from the European Union. It’s very difficult to push that message and not engage with Beijing. China is the U.K.’s third-largest trading partner. It’s also the world’s largest investor. Britain remains pretty high on the list in terms of global FDI recipients, though it took an outsized hit during the pandemic relative to peers. But while some Chinese companies may show up for the summit today, the attendee list is dominated by U.S. and European financial firms. Despite Johnson’s words, the U.K. has already barred Huawei from its 5G network and could cut a Chinese company out of a nuclear power plant. He wouldn’t be drawn on what else might qualify as a strategic or critical asset. The reality is Johnson also has to manage his Conservative ranks, with ruling lawmakers concerned about China’s human rights record and pressing to be tougher on prospective investment from China. That’s particularly tricky given he needs China onside to get a big climate deal in Glasgow early next month. He insists Britain can have both hard chats about human rights in Hong Kong and the Chinese province of Xinjiang and enjoy trade and investment with China. It’s a line the U.S. and others are also taking. But it’s easier said than done. — [Rosalind Mathieson]( Boris Johnson interviewed in the study of No. 10 Downing Street yesterday. Photographer: Andrew Parsons/No. 10 Downing St Click [here]( to see our Bloomberg Politics website and share this newsletter with others too. They can sign up [here](. Global Headlines Another obstacle | U.S. Democratic Senator Joe Manchin [cast]( more doubt on quick passage of President Joe Biden’s economic agenda, saying there’s little chance Congress can finish work on the package by the Oct. 31 deadline set by his party’s leaders. Biden spoke with Manchin, whose vote is pivotal, by phone yesterday as he attempts to push the Democrats’ rival factions toward an agreement. - Manchin’s opposition to a key climate program has left Democrats [struggling]( to replace it before leaders gather in Scotland for the COP26 summit. - Biden and Treasury Secretary Janet Yellen are scheduled to meet today with Democratic party moderates and progressives. Testing limits | North Korea appears today to have [fired]( a ballistic missile from a submarine for the first time in about two years, adding to a series of tests of nuclear-capable weapons designed to evade U.S. interceptors. It’s a reminder to Biden that Pyongyang’s arsenal remains one of America’s biggest foreign policy challenges. - China’s reported launch of a hypersonic missile into orbit raises [concern]( that U.S. rivals are neutralizing the Pentagon’s missile defenses even as it invests tens of billions of dollars in upgrades. The global supply crunch is propelling inflation at such a pace that central bankers may be forced to respond, even though fixing that imbalance is beyond their power. Their dilemma is that it’s hard to tell just how much of the [inflation]( is being driven by demand as lockdowns end, and how much by log-jammed ports and shortages of materials and workers. Dispute deepens | Polish Prime Minister Mateusz Morawiecki escalated a rule-of-law dispute with the EU in an address to lawmakers in Strasbourg today. He [accused]( the European Commission of “financial blackmail” in delaying Warsaw’s request for $42 billion in stimulus funds, after Poland’s top court ruled that some EU laws are incompatible with the country’s constitution. Best of Bloomberg Opinion - [Colin Powell’s Lessons on War and Optimism: James Stavridis]( - [Republicans Are Winning the Debate on Voter ID: Ramesh Ponnuru]( - [What Xi Jinping Really Means by Common Prosperity: Shuli Ren]( Corruption probe | Credit Suisse is [nearing]( an agreement with the U.S. to resolve a criminal investigation into its role in a $2 billion Mozambique bond scandal, sources say. The scheme involved deals to build a coastal patrol force and tuna fishing fleet for the country that the U.S. Justice Department says were a front for government officials and bankers to enrich themselves. Fraught time | Thousands of Chileans marched in Santiago and other cities on the second anniversary of the start of [unrest]( that shocked investors in the South American nation. Social tensions are running high again ahead of the first round of presidential elections on Nov. 21, with the top contenders a former student protest leader and a conservative who has pledged law and order. Demonstrators in Santiago yesterday. Photographer: Javier Torres/AFP/Getty Images Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. See today’s interview with Pfizer CEO Dr. Albert Bourla, where he’ll talk about vaccine boosters, vaccine distribution, adolescent vaccines and more. What to Watch - The U.S. has not made any [financing]( offers on Turkey’s request to buy F-16 warplanes, the State Department said yesterday, while it’s continuing talks with Ankara on a blocked order of F-35 jets. - A [secretive]( Chinese Communist Party body is managing a “Minority Report” system of pre-crime policing that uses mass data collection to prompt investigations into millions of Uyghurs, according to a report. - Turkey [summoned]( ambassadors of 10 countries, including the U.S. and Germany, for demanding the release of Osman Kavala, a businessman charged with attempting to overthrow the government. - China’s latest Covid-19 outbreak, centered around a [rule-breaking]( retired couple enjoying its tourist sites, has spread to Beijing and possibly beyond. And finally ... India will likely have [administered]( 1 billion Covid-19 vaccine doses by this week, but the milestone masks a yawning gap between the number of fully-inoculated people and those who have had just one shot. As [Chris Kay]( reports, nearly 21% of its population of about 1.4 billion has received two shots compared to 51% that has had a single dose, one of the highest disparities in the world. Signs for Covid safety measures on the window of a clothing store in New Delhi. Photographer: Prashanth Vishwanathan/Bloomberg  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]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022