A cuddlier China

Chinese President Xi is seeking to ease tensions with Washington [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. In a room full of business executives, Xi Jinping didn’t shy away from addressing a concern that has increasingly absorbed companies, governments and military strategists: Are the US and China headed for war? The answer, according to the Chinese president, is a resounding no — at least if it’s up to him. [Beijing just wants to be friends]( with the US, he said yesterday, and “has no intention to challenge the United States or to unseat it.” Underscoring the point, Xi said: “China does not seek spheres of influence and will not fight a cold war or a hot war with anyone.” The “hot war” reference appeared as a bid to lower tensions over Taiwan, the biggest long-term flashpoint between the world’s largest economies, and other places like the South China Sea. While Xi has used the term previously, it’s the first time since then-House Speaker Nancy Pelosi’s visit to Taiwan prompted China to respond with unprecedented military exercises surrounding the island, which the Chinese leader has vowed to take back by force if necessary. Xi didn’t stop there: He also spoke about his time in Iowa, even mentioning the address where he stayed in his younger years, speaking about all the ways Americans and Chinese were similar. And he announced that pandas are heading back to American zoos — fully leveraging one of the most potent manifestations of Chinese soft (and cuddly) power. It’s no accident Xi is trying to play nice. China’s economy is struggling to regain its footing after the Communist Party’s Covid controls took a toll. And foreign investors are looking elsewhere, as talk of war, export controls, corruption probes and executives being arrested all paint a grim picture. To be sure, it’s going to take more than a speech for Xi to reverse the downward slide in US-China ties. The fragility of the relationship was underscored by US President Joe Biden’s impromptu remark to reporters calling Xi a “dictator” — a word that stole the headlines and generated concern the atmosphere could sour yet again. But for now, at least, Xi is back to playing peacemaker. — [Daniel Ten Kate]( WATCH: Here’s the moment Biden called Xi a dictator as he was leaving a press conference. Source: Bloomberg Global Must Reads Biden defended Israel’s military operation at Gaza’s largest hospital in the face of international criticism. The president said Hamas headquartered their military operations [underneath]( Al Shifa hospital, an act he labeled a “war crime,” and added that Israel had taken precautions to limit civilian casualties. [Read this report]( on militant leader Yahya Sinwar, who tricked Israel into thinking Hamas had given up militarism. Al Shifa hospital and surrounding area in Gaza City. Photographer: Maxar Technologies/AP Photo A temporary funding measure to avert a US government shutdown was overwhelmingly approved by the Senate, delivering a reprieve from [a bitter ideological struggle]( over spending until the new year and leaving out emergency aid to allies Ukraine and Israel. The 87-11 vote late yesterday sends the measure, already passed by the House, to Biden. International climate policy has been shaped largely by a close-knit group of politicians in the twilight of their careers. Now leaders from beyond the traditional US-Europe-China power center — some new to the international stage, others already veterans — are emerging. [Read this story]( on the women at the forefront of today’s climate diplomacy. Spain’s acting prime minister, Pedro Sanchez, looks set to win a third term on the [back of a fragile alliance]( including a mix of far-left groups, pro-business parties and secessionists, and with the opposition stronger than ever. He will try to pass a barrage of measures including higher taxes on the rich, increased maternity and paternity benefits, and mortgage aide for low-income earners. Prime Minister Rishi Sunak promised a new treaty with Rwanda that would guarantee the safety of asylum seekers after the UK Supreme Court ruled that government proposals to deport migrants to the African country were illegal. Sunak is racing to revive his plan to [stave off a revolt by right wingers]( that threatens his control of the Conservative Party. UK opposition leader Keir Starmer suffered a major rebellion over his stance on the Israel-Hamas war when more than [50 Labour lawmakers defied him]( by backing a rival party’s call for an immediate cease-fire in Gaza. A decision by Germany’s top court to strike down off-budget funding for climate action [has called into question]( about €770 billion ($840 billion) of state funding, sources say. Madagascan President Andry Rajoelina will seek a third term in an election today that has been [marred by clashes]( between police and the opposition, with 10 candidates calling for a boycott. Washington Dispatch A House Ethics Committee report scheduled to be released today on indicted New York congressman George Santos [will reignite efforts to expel him](, according to the panel’s chairman, Michael Guest. Guest, a Mississippi Republican, wouldn’t describe what new information the committee had uncovered. But he said the panel’s review of Santos’s conduct has been “unprecedented, at least in the time that I’ve served on the committee, for the number of allegations that have been forthcoming.” He cautioned that there was no explicit recommendation in the report for removal or any other sanction to be taken. Santos, who denies wrongdoing, has survived two attempts to remove him from office, most recently this month. He faces federal charges that accuse him of filing false campaign finance and disclosure reports, stealing money from donors, and committing unemployment insurance fraud. The Ethics Committee is investigating those allegations in addition to a complaint of sexual misconduct in his congressional office. One thing to watch today: Initial jobless claims and US industrial production data will be released. [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 Key sectors of Russia’s economy are adapting and, in some cases, completely rebounding from [unprecedented international sanctions]( imposed over its war on Ukraine. Russia’s economic growth and surging consumer demand, boosted by ample government spending, have allowed businesses as diverse as banks, car manufacturers and airlines to readjust and even find ways to thrive.​ And Finally Some 40% of heavy industrial companies worldwide say they’re unable to [invest further in decarbonization]( due to the global economic slowdown, according to a survey of 1,000 executives by consultant Accenture. The findings come as some governments have pulled back from plans to support renewable energy and low-carbon products amid high inflation and concerns about costs and energy security. Visitors at the India Gate amid heavy smog in New Delhi on Nov. 4. Photographer: Prakash Singh/Bloomberg More from Bloomberg - Listen to our [X Space discussion]( on the meeting between Xi and Biden - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [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](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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