Global peacemaker?

We look at China’s efforts to project a statesman image for President Xi Jinping. [View in browser]( [Bloomberg]( Xi Jinping is playing peacemaker in the Middle East. Next up: Russia and Ukraine. The Chinese president is looking to bolster his credibility as a responsible global actor after successfully helping to deliver a landmark deal to resume diplomatic ties between Iran and Saudi Arabia. Key reading: - [Xi Reboots Statesman Image in Push to Counter US on World Stage]( - [What Role Did China Play in Brokering Iran-Saudi Detente: Q&A]( - [Saudi Arabia and Iran Ease Mideast Rift That Rattled Oil]( - [Xi to Call Ukraine’s Zelenskiy After Russia Visit Next Week]( - [Biden-Xi Call Eyed by White House After People’s Congress]( Now, Xi’s forging ahead with a trip to Moscow to meet President Vladimir Putin, and plans to hold his first-ever call with Ukrainian President Volodymyr Zelenskiy. He might even put in another call to Joe Biden to help ease spiraling tensions with the US. Despite skepticism among the US and its allies over China’s 12-point position paper for a ceasefire between Russia and Ukraine, Beijing may well end up urging Zelenskiy to agree to peace talks. While Xi has spoken to Putin four times since the invasion, the Ukrainian leader has been careful to avoid criticizing Xi’s close ties to Moscow and remains open to discussions. Beijing’s success as a mediator between Iran and Saudi Arabia is a coup for Xi. It’s a testament to China’s success in building an alternative world order to challenge the US and forge closer ties with Russia. But China’s push to create its own powerbase — strengthening ties in the Middle East and with Moscow — is also the reason why Beijing may struggle to convince the US and its allies that it can play the role of honest broker. Beijing’s insistence on challenging so-called Western hegemony is precisely what undermines Xi’s prospects as a peacemaker in Ukraine. —[Rebecca Choong Wilkins]( Saudi Crown Prince Mohammed bin Salman and Xi in 2016. Source: Pool/Getty Images Coming Soon: Understand power in Washington through the lens of business, government and the economy. Find out how the worlds of money and politics intersect in the US capital. [Sign up now for the new Bloomberg Washington Edition newsletter](, delivered Mondays, Wednesdays and Fridays. And if you are enjoying this newsletter, sign up [here](. Global Headlines Cashing in | Some of the biggest US banks including JPMorgan Chase, Bank of America and Citigroup are receiving a [rush of deposits]( after the back-to-back failure of three smaller lenders. Silicon Valley Bank’s seizure Friday, the biggest US bank failure since the financial crisis, was precipitated by fleeing clients and sent shock waves across the global financial system. - The Federal Reserve is launching an [internal probe]( of its supervision of SVB after its collapse sparked sharp criticism of the central bank’s oversight. Breaking ranks | Florida Governor Ron DeSantis criticized the Biden administration for providing a virtual “[blank check](” to Ukraine in resisting Russia’s invasion while doing too little on immigration, military readiness and confronting China. His comments marked a break with not only the White House but other prominent Republicans. - Former President Donald Trump said he considers DeSantis as his strongest [potential challenger]( for the Republican nomination and attacked him during his first 2024 campaign stop in Iowa. Across the UK, thousands of job applicants are running the numbers on how much more they’ll have after benefits are withdrawn and childcare costs added — and deciding the job [just isn’t worth it](. Worker shortages and inactivity are now one of the most urgent issues facing Prime Minister Rishi Sunak’s government, and the incentives for those on the edge of the labor market could either fix the problem or make it worse. Picking up the phone | National Security Adviser Jake Sullivan said Biden plans a call with Xi once the Chinese legislature concludes its annual gathering (it wrapped up on Monday) and the government in Beijing returns to work. The promise of dialogue comes as new Premier Li Qiang struck a [conciliatory tone]( on ties with the US, suggesting a fresh openness by Beijing to resume talks. - China’s local governments are growing [increasingly reliant]( on money transferred from Beijing to pay for public services, as a drop in tax revenue and jump in Covid Zero costs pushed them further into the red last year. Best of Bloomberg Opinion - [Fed Reset Doesn’t Mean Inflation Fight Is Over Yet: John Authers]( - [UK Does Better Than the US on SVB Intervention: Mohamed El-Erian]( - [Nigeria’s Next Leader Doesn’t Have Any Time to Waste: Editorial]( Offshore cash | Russia was able to save roughly a third of the [windfall]( from its commodity exports last year, leaving about $80 billion in cash, real estate and investments abroad, according to a Bloomberg Economics estimate. Those funds are now in focus as Ukraine’s backers look to tighten sanctions and push for frozen Russian assets to be used to compensate Kyiv and help in the country’s eventual reconstruction. - Ukraine and Russia sent [conflicting signals]( on whether a deal will be extended that allows for the safe passage of Ukrainian grain exports. Explainers you can use - [How Military Has a Thumb on Scales in Thai Election]( - [What SVB’s Failure Means for the Bank and Its Clients]( - [What to Watch in Money Markets for Signs of Systemic Bank Stress]( Doctor no | Thousands of junior doctors are striking in the UK this week over low pay and poor working conditions. As [Eamon Akil Farhat]( and [Irina Anghel]( report, polls show many are considering [switching]( from the National Health Service to a career in business, from management consulting to banking. Watch Bloomberg TV’s Balance of Power at 5pm to 6pm ET weekdays with Washington correspondents [Annmarie Hordern]( and [Joe Mathieu](. You can watch and listen on Bloomberg channels and online [here](. News to Note - The International Monetary Fund urged Argentina to make [stronger efforts]( to address foreign reserve losses, galloping inflation and other “policy setbacks” amid a severe drought that’s hitting the country’s crucial commodities sector. - China will allow all domestic companies to import [Australian coal](, signaling an end to trade restrictions imposed in late 2020. - Biden expressed [assurance]( in the viability of his student debt cancellation plan during a television interview last night. - US National Security Adviser Sullivan urged Turkey to ratify membership of Sweden and Finland into [NATO](, ahead of talks with his Turkish counterpart in Washington today. - South Korea will reconsider its plan to raise the maximum weekly work hours to 69 after millennials and Generation Z members balked at the idea many saw destroying a healthy [work-life balance](. And finally ... Japanese Prime Minister Fumio Kishida has a [treat in store]( when he welcomes Yoon Suk Yeol to Tokyo on Thursday: “omurice,” or fried rice topped with an omelette at the famed restaurant Rengatei, local media report. Yoon is set to become the first South Korean president to visit Japan since 2019 when bilateral ties nosedived over a dispute regarding forced labor during Japan’s colonial rule of the Korean Peninsula. A plate of omurice. Photographer: John S Lander/LightRocket Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Bloomberg Politics newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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