Balance of Power
Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.China might be finally ready to ta
View in browser
Bloomberg

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.

China might be finally ready to talk to the US — but only with counterparts willing to show their “sincerity.”

After the two sides squabbled for days over whether trade negotiations had even begun, Beijing is now offering the clearest sign yet that it’s willing to start discussions.

China’s Commerce Ministry said today that it’s “evaluating” the possibility of trade talks with the White House, after senior US officials repeatedly expressed an openness to talk about tariffs. 

It’s the first major sign of thaw between the two sides — with one expert saying it’s all but certain to lead shortly to discussions. 

The timing of China’s shift in stance may well favor Beijing. After a difficult week for President Donald Trump, there are reasons to think the self-declared “Tariff Man” could be looking to tout a win in his bid to rebalance trade with the rest of the world. 

Uncertainty over levies contributed to the steepest contraction for US manufacturing output in April since 2020. Meanwhile, jobless claims spiked to the highest level since February. Trump responded by saying that he won’t rush deals to appease nervous investors and remains determined to push on.

Still, the path to talks remains murky, even as investors cheer signs of progress. For one thing, it’s unclear what either side is willing to offer as an opening gambit: both insist that lowering their respective tariffs — a 145% US rate on all Chinese imports, and China’s 125% retaliatory levies — is a pre-requisite. 

For now, even talking about talking looks like a significant step forward. 

But any prospect of a meeting between Trump and President Xi Jinping in the coming months still looks dim. —  Rebecca Choong Wilkins

Xi in Brasilia in November. Photographer: Ton Molina/Bloomberg

Global Must Reads

Trump will nominate Michael Waltz, his national security adviser, to be the next US ambassador to the United Nations, sidelining a top aide who inadvertently added a journalist to a group chat where officials discussed sensitive attack plans. It’s a downgrade for Waltz while a boost for Marco Rubio, who will serve as interim national security adviser while keeping his job as secretary of state.

The right-wing populist Reform UK party led by Brexit cheerleader and Trump ally Nigel Farage won a by-election in northwest England, suggesting that it can convert poll support to parliamentary seats. The result — in a district that Labour won with a 14,700-vote majority in July — portends a difficult set of local elections for Prime Minister Keir Starmer’s party, with counts taking place today in more than 1,600 council seats as well as six mayoral votes.

Farage with Reform UK candidate Sarah Pochin today. Photographer: Oli Scarff/Getty Images

South Korea’s former Acting President Han Duck-soo has entered the fray for the June 3 presidential election. The country has been rocked by political chaos in recent months following Yoon Suk Yeol’s bungled attempt to enforce martial law and his subsequent ouster, while the opposition Democratic Party’s frontrunner candidate Lee Jae-myung faces his own legal complications

With its shipping lanes, deep-sea ports and undersea cables, the South Pacific has long been a focal point of strategic competition as the US and its allies try to prevent China from gaining a foothold. Australian Prime Minister Anthony Albanese, seeking reelection tomorrow, has made significant progress in solidifying security ties in the region, but such gains are at risk as Trump alienates local leaders with massive tariffs, foreign aid cuts and his retreat on tackling climate change.

Japan’s stock of US government debt the largest of any nation — could be a card in its trade talks with Washington, Finance Minister Katsunobu Kato said, in remarks that referred to the country’s roughly $1.13 trillion in Treasury securities.

Germany’s domestic intelligence agency formally classified the Alternative for Germany, which is leading in some polls, as a right-wing extremist movement, meaning authorities will have enhanced powers to monitor the party as a potential threat to democracy.

Trump said he would slap secondary sanctions on nations or companies buying Iranian oil, ratcheting up pressure on Tehran after nuclear talks due to take place this weekend were postponed and US officials said they’d never agreed to join the latest round in the first place.

Vice President JD Vance said the US was working to ensure tensions between India and Pakistan don’t escalate into a broader conflict in the wake of an attack last week that killed dozens of people in Indian-controlled Kashmir.

Sign up for the Washington Edition newsletter for news from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television.

Chart of the Day

Since launching his tariff offensive, Trump has issued exemptions for a select but growing family of products like auto parts and smartphones. One group of companies, though, is engaged in an increasingly urgent waiting game: Firms wanting to import the machinery from China they say they need to set up or expand their US manufacturing facilities — precisely the production boost that Trump has billed as the ultimate goal of his trade war.

And Finally

This week, Amazon.com’s Project Kuiper put its first 27 production satellites into orbit as Executive Chairman Jeff Bezos looks to build out an internet constellation to compete against Elon Musk’s Starlink. Last year, more than 2,800 satellites were deployed compared to 500 in 2019, according to one analysis. But satellites in low-Earth orbit eventually have to come down, and companies rely on the upper atmosphere to act as a waste incinerator. That’s exposed a blind spot in environmental laws: They only deal with pollution from human activities near Earth’s surface.

The satellite-filled sky is getting more crowded.  Photographer: Alan Dyer/VW Pics/Universal Images Group/Getty Images

Pop quiz (no cheating!). Which country acknowledged this week that it had deployed troops to support Russia’s war on Ukraine? Send your answers to balancepower@bloomberg.net 

More from Bloomberg

  • Check out our Bloomberg Investigates film series about untold stories and unraveled mysteries
  • Next China for dispatches from Beijing on where China stands now — and where it’s going next
  • 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 policymakers, 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.
Unsubscribe
Bloomberg.com
Contact Us
Bloomberg L.P.
731 Lexington Avenue,
New York, NY 10022
Ads Powered By Liveintent Ad Choices