Discord in China

President Xi is set to secure a precedent-breaking third term later this year. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( As the US seeks to pressure China into changing its “aggressive” actions abroad, local Communist Party officials aren’t quite sure how to behave at home. President Xi Jinping wants them to eliminate Covid-19 completely with stringent controls on movement, while Premier Li Keqiang is regularly calling on them to boost the economy. Key reading: - [Xi-Li Discord Paralyzes Officials Responsible for China Economy]( - [Blinken Aims at Xi in Speech Vowing to Shape the Global Order]( - [US Plans Economic Talks With Taiwan in Latest Challenge to China]( - [Fiji Joins Biden Economic Deal as US-China Competition Heats Up]( For most bureaucrats, that’s an impossible choice. But the political calculation appears relatively straight-forward: Xi is set to secure a precedent-breaking third term while Li might be out the door. The discord at the top has left China stuck in neutral during a sensitive political year, unable to shift gears on a strict Covid Zero policy even as much of the world gets back to business. The hardline measures have led to rare bouts of open dissent against the government in places like Shanghai, which is slowly reopening after being locked down for weeks. The preoccupation with the virus is allowing the US to make diplomatic gains. President Joe Biden this week got a dozen countries in the region to sign on to his Indo-Pacific Economic Framework, even as the details of the policy remain hazy. Fiji became the latest country to join today, just as Chinese Foreign Minister Wang Yi — one of the few top officials in Beijing who is traveling abroad — visited the Pacific Islands to rally support. US plans to start similar talks with Taiwan risks angering China even more after Biden again vowed to defend the island if it’s attacked — comments the White House later sought to tone down. All the while, China’s economy continues to suffer, risking job losses that could feed into the discontent over seemingly endless Covid lockdowns. For all the efforts of the US to change Xi’s behavior, the question now is whether his own citizens might do so first. — [Daniel Ten Kate]( A healthcare worker collects a swab sample from a resident in Beijing on May 18. Source: Bloomberg Click [here]( for this week’s most compelling political images and share this newsletter with others. They can sign up [here](. Global Headlines Fighting a ‘crocodile’ | UK Prime Minister Boris Johnson urged further [military support]( for Ukraine including offensive weapons such as long-range multiple rocket launch systems and said in an interview that “crocodile” Vladimir Putin shouldn’t be trusted. Ukraine’s request for MLRS as it grapples with advances by the Russian leader’s forces in the eastern Donbas region has been met with caution over whether it would bring allied nations closer to direct military confrontation with Moscow. - The US [slammed]( Putin’s demand that sanctions on Russia must be lifted in return for him to facilitate grain and fertilizer exports, as concerns rise about global food shortages and surging prices. - Follow our rolling Ukraine coverage [here](. Gun steps | Senate Democrats said they were more optimistic about a compromise with Republicans on gun-control [laws]( in the aftermath of the massacre of 19 elementary school children and two teachers in Texas. Before they went on a 10-day recess, Democrats signaled they’d be willing to take incremental rather than big steps toward tougher gun laws, even as many Senate Republicans said this week they don’t think a legislative response is appropriate. Growing spat | Turkey has warned Greece against exceeding limits on military forces allowed on Greek islands in the Aegean Sea, as the US urged the NATO allies to defuse a recent escalation in tensions. The [flare-up]( comes as the military alliance separately tries to overcome Ankara’s opposition to the admission of Sweden and Finland. Turkey’s hosting of 3.7 million Syrians who fled their country’s war is stirring political tensions and [putting pressure]( on President Recep Tayyip Erdogan ahead of elections next year. He has announced a plan to send 1 million Syrians to a Turkish-controlled strip of territory, yet few refugees are interested in returning to their still-fractured nation. Best of Bloomberg Opinion - [Boris Johnson Steals a Windfall from Labour: Therese Raphael]( - [Guns Are Banned on Facebook, But Sellers Find a Way: Parmy Olson]( - [Dysfunctional Republicans Bail Out on Guns: Jonathan Bernstein]( National security | The UK has [powers]( to block, impose conditions or even pull apart investment deals under a new national security law, and it’s starting to use them. The government announced probes into transactions this week, scrutinizing both a Chinese-led takeover of a British semiconductor plant and a French telecom tycoon’s increased stake in BT Group. It said more cases will be announced in the coming weeks. - Oil giant BP said it will look again at its plans in the UK, raising questions about whether a £5 billion windfall tax on oil and gas profits announced by the government included enough incentives to preserve [investment](. Explainers you can use - [What Ideas Are in Play in (Yet Another) US Gun Debate]( - [How US and China Jockey for Economic Sway Across Asia]( - [What’s at Stake as Chile Writes a New Constitution]( Protectionist moves | Rice may be India’s next food protectionism [target](, a move that could have a devastating impact on global food security. New Delhi’s curbs on wheat and sugar sent shock waves through world markets, and similar action on rice by the No. 1 exporter would risk causing both hunger and inflation. Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1 p.m. ET, with a second hour on Bloomberg Radio from 1 to 2 p.m. ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - Former President Luiz Inacio Lula da Silva’s [lead surged]( over incumbent Jair Bolsonaro as the field of candidates seeking Brazil’s top office thins out ahead of the October election, an opinion poll showed. - Russian oil is being [supplied]( to Sri Lanka to produce fuel at its sole refinery as the bankrupt nation faces crippling shortages. - The rise of leftist Gustavo Petro in Colombia’s presidential race is [unnerving traders]( who worry that the economic model the nation has practiced for decades may be dismantled. - Russian visitors to resorts in Seychelles have jumped three-fold in the first four months of the year, [undeterred]( by the island nation’s opposition to Putin’s invasion of Ukraine. - The UK signed its first trade agreement with a US state, amid [warnings]( that Johnson’s stance on Brexit is hindering progress on a broader deal with the Biden administration. Pop quiz, readers (no cheating!). Which nation’s government declared a state of emergency immediately after being sworn in this week? Send your answers to balancepower@bloomberg.net. And finally ... All day long, kids stream in and out of the Tiffany-blue front door at Project Elimu, the premier ballet school in Kibera, a vibrant, low-income community in Nairobi, Kenya’s capital. But not all of the visitors are dancers. After a surge in [teen pregnancies]( during the Covid-19 pandemic, community-based programs are stepping in to help girls manage their lives and re-enroll in classes. Development experts say ​​community programs like Project Elimu are key to girls’ well-being. Photographer: Nichole Sobecki/Bloomberg Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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