China’s hunt for spies

Chinese citizens are being urged to report on potential spies [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. President Xi Jinping’s growing obsession with national security is turning ordinary Chinese citizens into an unofficial army of spy hunters. Students returning to Beijing’s top universities this month were blitzed with posters and events commanding them to watch out for spooks. One enrolled at the aeronautics institute even launched an interactive training game called Who’s The Spy? China’s Ministry of State Security is [leading efforts to promote such campaigns](. After years of anonymity, it joined social media platform WeChat this year and has been delivering a steady stream of anti-spy directives to its followers. On Friday, the MSS said preventing cyberattacks would “require the joint efforts of all of society.” Across the country, as citizens are being offered a 500,000 yuan ($68,570) reward for successfully turning over a spy, tales are emerging on social media of people reporting their friends over matters as small as not knowing the lyrics to popular Chinese songs. Xi has been on a mission this year to crack down on foreign threats. In May, he chaired a National Security Council meeting that called for “extreme-case scenario” thinking on this topic. That phrase had previously been used in relation to preparing for natural disasters, signaling Xi was moving things up a gear. Since then, China has expanded an already sweeping anti-espionage law, cracked down on expert networks China accuses of working with foreign intelligence agencies and even alleged outside forces were influencing the energy sector. As China tries to root out spies at home, other powers are detecting Beijing’s infiltration efforts abroad. Police in the UK recently arrested a former parliamentary researcher on spy allegations, while last month the US arrested two Navy sailors on charges of providing sensitive military information to China. How far this will develop is unclear, but it’s unlikely to win China more friends. — [Jenni Marsh]( Posters aimed at raising awareness of national security outside a popular temple in Beijing on Sept. 14. Source: Bloomberg Global Must Reads Iran is expected to release as many as five Americans detained in the Islamic Republic for years under an agreement that’s seen [as a precursor to reviving talks]( on the country’s nuclear program. The detainees are set to be handed over to US officials today as part of a cash-for-prisoners deal that sees the US allow Iran to access $6 billion in frozen funds.​ Ukraine plans to file a World Trade Organization complaint today against Poland, Hungary and Slovakia over bans on [imports]( of its grain, and said it may retaliate with its own prohibitions. The three countries defied a European Union decision to lift a ban on Ukrainian crop imports after the bloc said market distortions that triggered the measure had disappeared. Their farmers complained a supply glut was lowering local prices. The walkout led by United Auto Workers President Shawn Fain at three General Motors, Ford Motor and Stellantis factories is [no ordinary labor-versus-industry clash](. Decades of discontent have fueled calls for a dramatic reset of wage scales and working conditions — 40% pay increases over the next four years and a 32-hour work week — unheard of in American manufacturing. It’s also perilous for President Joe Biden’s reelection campaign. The risk of a US government shutdown on Oct. 1 remains high. Demands for an 8% temporary spending cut for domestic agencies and a resumption of border-wall construction that Republican House Speaker Kevin McCarthy announced have [little chance of being accepted]( by the Democratic-controlled Senate. His proposal also doesn’t contain emergency Ukraine war funds or disaster relief for victims of Maui wildfires and a Florida hurricane. A clash between France and Germany over the role of nuclear power in the EU as it seeks to go carbon neutral is ultimately about where [the continent’s industrial heart]( is located. As both governments face rising public pressure over prices, Paris is seeking a revamp of EU power-market rules to help prolong its aging reactors, while Berlin is blocking the initiative as it tries to rebuild its own energy system. China flew a record number of warplanes around Taiwan in an [apparent show of displeasure]( over visits by a pair of American officials. Kim Jong Un is returning from Russia with pledges to help with his space program that could finally allow North Korea to [reach its long-held goal]( of placing multiple satellites in orbit. The Republic of Congo’s government denied speculation on social media that [there had been a coup]( in the central African nation, with a spokesman calling it “fanciful information.” Washington Dispatch The United Nations General Assembly in New York provides American presidents a unique forum to both engage with multiple world leaders face-to-face and set out US policies and accomplishments in a major address. The week also presents a political opportunity — for campaign fundraising. With the election next year, Biden plans to take part in a series of events with Democratic donors in the city this week, including a Broadway concert tonight with Lin-Manuel Miranda, Sara Bareilles and other performers. Biden is scheduled to speak before the General Assembly tomorrow. The fundraisers can be lucrative. As an incumbent seeking a second term, Biden can tap donors for much more than the $3,300 maximum contribution to his campaign. Because he’s also raising money for the Democratic National Committee and state party committees, he can ask contributors for as much as $929,600. One person to watch: Florida Governor Ron DeSantis heads to Texas this week to make a pitch for funds to bolster his struggling campaign to win the Republican Party presidential nomination. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day Millions of borrowers across the world have found their aspirations for a better life are colliding with the [steepest monetary tightening campaign in a generation](. In a world saddled with about $300 trillion in debt, how long individuals can shoulder the burden will depend on factors beyond their control, such as de-globalization, aging and the cost of the energy transition. And Finally There is growing disappointment with the [capacity of the UN]( to keep up with the array of global shocks, crises and coups. Yet the annual General Assembly remains a good place for leaders and personalities to engage. Elon Musk and Turkish President Recep Tayyip Erdogan yesterday [discussed artificial intelligence]( and a potential Tesla factory, while figures including New York Congresswoman Alexandria Ocasio-Cortez and actor Susan Sarandon joined [tens of thousands of protesters calling]( for an end to the use of fossil fuels. Erdogan with Musk in New York. Source: Turkish Presidency Thanks to the 21 people who answered our Friday quiz and congratulations to Rafael Ortiz, who was the first to name Guatemala as the country whose president-elect has withdrawn from the transition process to a new government after prosecutors raided electoral offices. More from Bloomberg - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance Explore more newsletters at [Bloomberg.com](. 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](. 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