Biden’s Asia Policy Should Pivot to Digital

[Bloomberg]( Follow Us [Get the newsletter]( This is Bloomberg Opinion Today, a cumulonimbus of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - A [U.S.-led digital trade accord]( could counter China. - Antitrust policy reform can be [bad for workers](. - We’re still a long way from [living with Covid](. - The [exodus from Hong Kong]( is accelerating. Biden Can Outflank China With a Digital Trade Deal A digital trade accord — a set of common standards on how online data and their processors from one country will be treated in another — is the perfect vehicle for President Joe Biden’s much-awaited Asia pivot. It could also be [a powerful tool for countering Beijing](, say Andy Mukherjee and Tim Culpan. The U.S. should embrace the recent Digital Economy Partnership Agreement between Singapore, New Zealand and Chile as a starting point. Its strength is a modular approach that allows countries to join without having to accept the agreement in its entirety. For Washington, this could be crucial to building the  momentum needed to building a large digital trade bloc. Small firms in emerging markets getting assured online access to large advanced markets would be America’s answer to China’s Belt-and-Road network. Washington can work with allies to set standards of interoperability and behavior. With many countries teetering on the brink of digital authoritarianism, risking a plunge toward the kinds of controls seen in China and Myanmar, the Biden administration has the chance to lay out an alternative vision of interconnectedness, encompassing everything from data management to electronic commerce and artificial intelligence. Bonus China Reading: Beijing is likely to [weaken the yuan](, which would curb inflation elsewhere. — John Authers Why Antitrust Policy Reforms Are Bad For Workers Biden’s executive order promoting economic competition in the U.S. includes welcome changes to labor markets, but these could be [undermined by his proposed reform of antitrust policy](, argues Karl W. Smith. The order encourages the Federal Trade Commission to ban or limit anti-competitive practices in labor markets, such as non-compete agreements, occupational licensing requirements and collaboration by employers to suppress wages. These measures should help raise wages and draw marginal workers back into the workforce. But efforts to either break up big companies or force them to do business in less efficient ways will hurt workers, eroding wages and raising prices. Over time, high prices will put pressure on the Federal Reserve to increase interest rates and slow down the economy. That’s also bad for workers. Bonus Finance Reading: It’s easier to [bet on Wall Street]( than on Main Street. — Lisa Abramowicz Europe is Showing Why Living With Covid isn’t Easy The reopening of Europe’s major economies are starting to hit a speed bump as Covid-19 cases rebound. Hospitalization is on the rise in Spain and France, and restrictions now tightening in Lisbon and Amsterdam. The delta variant of the virus is ripping through the continent, exposing gaping holes in a vaccination campaign that’s caught up with the U.S. but still has a lot further to go. As Lionel Laurent points out, “living with Covid” — in the way that we live with the flu —  will remain an elusive goal without a renewed boost to pandemic management, a more urgent focus on expanding vaccinations and clearer signals for people to keep their guard up when it comes to social distancing. Besides, Covid management is not a purely domestic matter: Variants thrive in places where vaccine coverage is low, and travel restrictions to keep infections out are almost always mistimed and leaky. In addition to speeding up vaccination in their own countries, European leaders need to greatly increase assistance to low-income countries around the world, where only a fraction of the population has received at least one dose. Bonus Covid Reading: [Better ventilation in workplaces]( and public buildings should be a post-pandemic priority. — Bloomberg’s editorial board Telltale Charts Bullied by Beijing, Hong Kong is voting with its feet. As she prepared for her own departure, Clara Ferreira Marques examined [the exodus from the city]( as China tightens it grip on the restive territory. Her conclusion: Emigration is accelerating and will likely be permanent.  Further Reading [Brands are more vulnerable than ever before]( thanks to the vagaries of partisan politics and shifting social mores. — Ben Schott Elon [Musk says he didn’t want to be CEO]( of Tesla. But what does that even mean? — Matt Levine British Prime Minister Boris Johnson [can’t have it both ways]( on racism in soccer. — Therese Raphael ECB President Christine Lagarde has taken an important step in [restoring the bank’s credibility](. — Lena Komileva Investing is not about good against evil, and much [less about the right versus the left](. — Jared Dillian The U.S. should help Haiti, but [stop short of military intervention](. — James Stavridis History is not a reliable guide on [how the Democrats will fare in the midterms](. — Jonathan Bernstein A delivery app raises hopes for data-rich unicorns in India, but Chinese-style warning signs are growing. — Andy Mukherjee ICYMI Green signal: China’s national carbon market, destined to become the [world’s largest emissions trading system](, is ready to go. Popping corks: [Champagne exports are on a tear]( as consumers everywhere toast the easing of lockdowns. Sweet music: The K-pop impresario who bought a piece of Bieber[has doubled his fortune](. Kickers Remember [yesterday’s Kickers]( about pricey watches and Super Mario? Turns out, [you can have both](. Seoul’s gyms have been told to [play slower music](. (R/T Scott Kominers) The products of failed startups (think Theranos, Juicero and Jibo) are more fun — and just as useless — [as toys](. Notes: Please send thunderclaps and refreshing rain to Bobby Ghosh at aghosh73@bloomberg.net. [Sign up here]( and follow us on [Twitter]( and [Facebook](. Like Bloomberg Opinion Today? [Subscribe to Bloomberg All Access and get much, much more](. You’ll receive our unmatched global news coverage and two in-depth daily newsletters, The Bloomberg Open and The Bloomberg Close. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. 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