Attempting take-off

The US-China relationship doesn’t offer any easy fixes, but Blinken's trip is the first real chance of getting the process restarted. [View in browser]( [Bloomberg]( A meeting that was meant for February but delayed over an alleged Chinese spy balloon is finally back on. Secretary of State Antony Blinken is expected in Beijing, the clearest sign yet that the US and China are trying to stabilize a turbulent relationship. US officials are setting a low bar for the weekend visit, Blinken’s first to China since the Joe Biden administration took office nearly two years ago. Key Reading: [Blinken Heads to China Setting Low Expectations: What to Watch]( [Blinken to Travel to China This Week in Push to Repair Ties]( [Xi Proposes Palestinian Peace Conference After Saudi-Iran Deal]( [Top China Diplomat Urges Blinken to Stabilize Ties in Call]( The trip may look like a green sprout of progress, but it’s still a barren landscape when it comes to ties between the world’s two biggest economies. Washington and Beijing continue to square off over US restrictions on chip tech sales, Taiwan, China’s claims in the South China Sea, human rights and Russia’s war in Ukraine. Even their jets and ships keep having close encounters, the kind of episodes analysts worry could inadvertently spark a crisis. One of Blinken’s goals is to simply argue for more communication between the two sides, especially their militaries. When the balloon from China floated over the US before being shot down, Defense Secretary Lloyd Austin couldn’t get his Chinese counterpart to answer the phone. It’s not clear if Blinken will get a meeting with President Xi Jinping — that would be the strongest sign that relations are getting back on track. Xi has been flexing his own diplomatic chops recently. He pitched a new peace conference to address the Israeli-Palestinian crisis while hosting Palestinian Authority President Mahmoud Abbas this week, and he has reveled in a detente his team brokered between Saudi Arabia and Iran earlier this year. The US-China relationship doesn’t offer any easy fixes. But the trip is the first real chance the two sides have of getting the process restarted. — [Bill Faries]( Blinken listens in the White House on Nov. 15, 2021, as Biden meets virtually with Xi. Photographer: Sarah Silbiger/UPI/Bloomberg [Listen to our Twitter Space discussion]( on what Bola Tinubu’s policy changes in his first three weeks as president mean for Nigerian markets, the economy and politics. And if you are enjoying this newsletter, sign up [here](. Global Headlines Urgent meetings have been held among Chinese officials, business leaders and economists to map out ways [to reenergize]( the world’s second-biggest economy. There have been at least six consultations in recent weeks to search for ideas on ways to stimulate growth, restore confidence in the private sector and revive the real-estate industry, sources say. - The nation’s [economic recovery weakened]( in May as growth in industrial output and retail sales slowed, putting pressure on policymakers to step up stimulus. Major US environmental groups [endorsed]( Biden for reelection next year, despite his administration’s recent moves to allow a $6.6 billion natural-gas pipeline across West Virginia and an $8 billion drilling project in Alaska. Biden, in a speech to conservation groups yesterday, argued that his government has still made historic progress on climate change, including through the Inflation Reduction Act that makes some $370 billion available for clean technologies. - Donald Trump [remains]( the frontrunner for the Republican presidential nomination, a poll taken mostly after his federal indictment showed, as he touted a surge in campaign donations. Three years after the Covid-19 pandemic closed down offices around the world, the remote-work [revolution]( has morphed into a tug-of-war between frustrated bosses and fed-up staff. While workers don’t want to give up flexibility, managers want teams back to boost collaboration and avoid a productivity slump. The impasse is the latest phase in a high-stakes battle that’s putting careers, profits and mental health on the line. The Kakhovka dam burst on June 6 cut off any chance Ukraine’s troops might have had of crossing the Dnipro River in support of their counteroffensive against Russian forces. Yet as Marc Champion and Kateryna Choursina report, that benefit to the Kremlin may not last, with floodwaters already starting to recede. Upstream, as the 140-mile-long reservoir basin empties, an entirely [new landscape]( is emerging that could potentially create opportunities for Ukrainian forces. Best of Bloomberg Opinion - [Republicans Continue to Thwart McCarthy: Jonathan Bernstein]( - [To Be a Digital Power, India Needs Better Defenses: Mihir Sharma]( - [Mexico’s Nearshoring Bonanza Is Not Yet Near: Eduardo Porter]( The European Union needs to reduce greenhouse gases by as much as 95% by 2040 to achieve its objective of being climate neutral in 2050, according to the bloc’s advisers, a much [steeper]( path to net-zero emissions than previous trajectories. The EU has toughened its 2030 goal for reduction to 55%, and is now discussing an intermediate target for the following decade in an overhaul that will require radical actions by consumers and more effort from business. - Read how the arrival of the El Niño weather pattern bringing hotter and drier conditions to Asia is set to put global stockpiles of [rice]( under pressure. Explainers You Can Use - [Microsoft AI Blitz Sends Silicon Valley Into War Mode]( - [Why Coal Staged a Comeback Despite Climate Worries]( - [All About the New Obesity Drugs Causing a Big Stir]( The US and India are likely to agree to finalize a deal to jointly manufacture[fighter-jet engines]( in the South Asian nation when Prime Minister Narendra Modi visits Washington next week, sources say. The visit comes as the Biden administration is deepening ties with countries that it sees as crucial to counter China’s growing threat and looking to draw New Delhi away from Russia’s sphere of influence. Tune in to 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 - Former UK Prime Minister Boris Johnson committed a “[serious contempt](” of Parliament, according to a long-awaited lawmaker probe that found he misled members over parties at his Downing Street office that breached Covid lockdown restrictions. - The International Monetary Fund criticized Pakistan’s budget as [insufficient]( to meet the goals of its bailout program, a sign that a deadline this month to unlock aid will not be met. - President Bola Tinubu suspended the head of Nigeria’s anti-corruption agency, the latest in a series of [sweeping changes]( since being sworn in as the leader of Africa’s biggest economy three weeks ago. - Australia’s government will [intervene to block]( the construction of a new Russian embassy in its capital Canberra, potentially ending a long-running clash over a controversial land lease. - The Kuomintang, the party that ruled China and then Taiwan for much of the 20th Century, is at risk of [losing its position]( as the island’s main opposition, a new poll shows. And finally … Just 20 miles north of Pretoria, the capital of Africa’s most industrialized economy, where ministers meet in buildings that overlook lush gardens and a giant statue of Nelson Mandela, the [latest alarming evidence]( of South Africa’s political dysfunction is on display. The country’s worst cholera outbreak in 15 years in Hammanskraal has killed 29 people, highlighting the collapse of basic services nationwide after years of neglect and corruption. Puddles of sewage water on the side of a dirt road in the Kanana informal settlement in Hammanskraal on June 10. Photographer: Leon Sadiki/Bloomberg 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 Balance of Power newsletter. 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