Strange bedfellows

Poland is punching above its weight concerning Russia’s war in Ukraine [View in browser]( [Bloomberg]( War often makes for strange bedfellows. Nowhere is that more evident than in the relationship between Poland, arguably Ukraine’s most stalwart ally in Europe, and the rest of Kyiv’s backers who are helping it defend itself from Russia’s invasion. Key Reading: [From the Fringe to Statesman: Poland’s Duda Is at a Crossroads]( [Zelenskiy Makes Diplomatic Tour as Ukraine Seeks a Path to NATO]( [Biden Set to Send Cluster Munitions to Ukraine Despite Concern]( [Polish President Snubs Investors as US Envoy Warns on Democracy]( Follow our [Ukraine Recap]( for the latest coverage of the war. Poland, which harbors a bitter history with Russia dating back to long before Josef Stalin’s invasion at the start of World War II, has become the effective gateway to the war for weapons, volunteers and diplomatic trips by Kyiv’s allies. Its president, Andrzej Duda, has become close with Ukraine’s Volodymyr Zelenskiy and has also leveraged an open channel with US President Joe Biden that helps Warsaw push other European Union countries to take a stronger line against the Kremlin on everything from sanctions to providing state-of-the-art NATO tanks. While Poland is punching above its weight concerning the war, Duda and his allies in the governing nationalist Law & Justice party have tested limits with measures Washington and Brussels say undermine the rule of law. The EU froze billions of euros in aid to Poland after it overhauled its courts in a way the bloc says infringes on their independence. Duda also approved a panel that would be used to investigate the head of the political opposition and only rowed back after the EU and US said the measure could undermine national elections in October. But the exchange laid bare the paradox of Poland’s emergence on the European stage. Duda is likely to have a prominent role at next week’s summit of NATO leaders, when he can tout Poland’s vast defense spending and his close ties to the Ukrainian leader at the center of events. As part of a diplomatic tour ahead of that meeting, Zelenskiy is slated today to meet Turkish President Recep Tayyip Erdogan, another leader criticized for an authoritarian bent, while also helping backstop Ukraine. Poland and Turkey each have historical reasons to oppose Russian aggression in Ukraine. That’s creating common ground with US and European allies even as they’re increasingly in conflict on other key democratic values. — [Michael Winfrey]( Duda and Zelenskiy in Warsaw in April. Photographer: Foto Olimpik/NurPhoto/Getty Images Check out the latest [Washington Edition newsletter](. You can [sign up]( to get it in your inbox every weekday. And if you are enjoying this newsletter, sign up [here](. Global Headlines Competition between the world’s biggest economies is not a [“winner-take-all” situation](, Treasury Secretary Janet Yellen said today, as she called for the US and China to manage their rivalry with a fair set of rules. Yellen made the comments in a meeting with Chinese Premier Li Qiang during a visit to Beijing that’s aimed at finding some common ground between the superpowers. - US audit officials have started a [fresh round of inspections]( of New York-listed Chinese companies in recent weeks as tensions persist between the world’s two largest economies. - Washington expressed concern over China’s behavior toward Philippine vessels in the South China Sea, as Manila reported Chinese vessels “swarming” [south of an oil and gas-rich]( area in contested waters. Pressure is building on Chinese authorities to back up their reassuring rhetoric on the economy with more [substantive action](. While Premier Li pledged yesterday to “spare no time” in implementing targeted stimulus, he offered none of the specifics that investors want. Shares in China are headed for their third straight week of losses, the yuan is trading near an eight-month low and angst in the nation’s credit market is growing. EU officials are working to [narrow the scope]( of export controls that China announced this week on gallium and germanium, key metals used in semiconductors, solar panels and electric vehicles, sources say. While China cites national security implications to justify the move, the EU is concerned Beijing is weaponizing critical materials. Norway is a trailblazer when it comes to electric vehicles, moving much more rapidly away from the internal combustion engine than its neighbors thanks to the oil-rich state’s generous tax breaks and incentives. And yet, as Kari Lundgren and Stephen Treloar explain, its experience highlights [the limitations of electric cars]( when it comes to curbing overall consumption of fossil fuels and achieving net-zero emissions. Best of Bloomberg Opinion - [Mark Zuckerberg Hard-Launched Threads. It Worked: Opinion Wrap]( - [Biden Should Leave Primary Schedule Alone: Jonathan Bernstein]( - [The True Cost of Water Includes Value of Trust: Lara Williams]( Taiwan is seeking to bolster its satellite communications to reduce the island’s dependency on 14 undersea cables that would be an easy target in the event of a war with China. Elon Musk and his Starlink network that has been so valuable in Ukraine is one obvious solution to prevent an internet blackout. Yet there are [problems](, not least Taiwan’s distrust of Musk given his business ties with China and pro-Beijing comments. Explainers You Can Use - [‘Greedflation’ and Other Terms for These Times]( - [Why Meta Is Launching a Twitter Rival Called Threads]( - [China Savers Trek Hundreds of Miles for Higher Deposit Rates]( Venezuela’s banned presidential hopeful María Corina Machado [holds a large lead]( in opinion polls over a pack of 14 opposition contenders vying to run against the ruling party’s candidate, expected to be President Nicolás Maduro, in next year’s election. Andreina Itriago Acosta writes that Machado likely got a boost when the government last week barred her from running for public office until 2030. 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 - An Indian court refused to suspend Rahul Gandhi’s conviction in a defamation case, [heightening the risk]( the opposition leader will remain out of parliament and be unable to contest national elections due in the first half of 2024. - The Biden administration urged China to do [more to combat]( the spread of illicit synthetic drugs, weeks after Secretary of State Antony Blinken visited Beijing and pressed leaders to help confront the fentanyl crisis. - Commuters in London will face [a week of disruption]( from July 23-28 as rail workers strike on the Underground in the latest walkout during a year of industrial action. - US House Judiciary Chairman Jim Jordan and two other House Republicans fired off letters to financial industry giants including BlackRock contending their efforts to combat climate change [could violate]( US antitrust law. - Biden will announce steps his administration is taking to help [lower health care costs](, part of an effort to rein in high prices that have been a persistent political liability. Pop quiz (no cheating!) A minister in which country deleted a tweet where she called former US President Donald Trump’s son a “big baby” after his speaking engagement was cancelled? Send your answers to balancepower@bloomberg.net. And finally ... Chinese researchers are planning to spread a [special reflective sheet]( across the Dagu Glacier high in the Tibetan plateau to shield it from the sun’s heat and hopefully preserve some of its ice. But as Sharon Chen and Luz Ding report, the scientists are under no illusion they can save Dagu, which has lost more than 70% of its ice over the past half century. The only real cure would be to drastically cut emissions of planet-warming carbon dioxide, of which China is the world’s biggest source. Scientists cover part of the Dagu Glacier with sunlight-reflecting film on June 30. Source: Tencent Follow Us Like getting this newsletter? 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