Xi Jinping

Subterms

    More stories

    • 138 Shares199 Views

      in Elections

      China Returns to Davos With Clear Message: We’re Open for Business

      by

      Emerging from coronavirus lockdown to a world changed by the war in Ukraine, China sought to convey reassurance about its economic health.DAVOS, Switzerland — China ventured back on to the global stage Tuesday, sending a delegation to the World Economic Forum to assure foreign investors that after three years in which the pandemic cut off their country from the world, life was back to normal.But the Chinese faced a wary audience at the annual event, attesting to both the dramatically changed geopolitical landscape after Russia’s war on Ukraine, as well as two data points that highlighted a worrisome shift in China’s own fortunes.Hours before a senior Chinese official, Liu He, spoke to this elite economic gathering in an Alpine ski resort, the government announced that China’s population shrank in 2022 for the first time in 61 years. A short time earlier, it confirmed that economic growth had slowed to 3 percent, well below the trend of the past decade.Against that backdrop, Mr. Liu sought to reassure his audience that China was still a good place to do business. “If we work hard enough, we are confident that growth will most likely return to its normal trend, and the Chinese economy will make a significant improvement in 2023,” he said.Mr. Liu, a well-traveled vice premier who is one of China’s most recognizable faces in the West, insisted that the Covid crisis was “steadying,” seven weeks after the government abruptly abandoned its policy of quarantines and lockdowns. China had passed the peak of infections, he said, and had sufficient hospital beds, doctors and nurses, and medicine to treat the millions who are sick.A clinic waiting room in Beijing in December. The Chinese government announced a broad rollback of its zero Covid rules earlier that month.Gilles Sabrie for The New York TimesHe did not mention the 60,000 fatalities linked to the coronavirus since the lockdowns were lifted, a huge spike in the official death toll that China announced three days ago.Mr. Liu’s mild words and modest tone were in stark contrast to those of his boss, President Xi Jinping, who came to Davos in 2017 to claim the mantle of global economic leadership in a world shaken up by the election of Donald J. Trump in the United States and Britain’s vote to leave the European Union.Since then, the United States and Europe have united to support Ukraine against Russia, leaving the Russians isolated with the Chinese among their few friends. Russia’s revanchist campaign has raised questions among Europeans about whether China might have similar designs on Taiwan, and escalated security concerns among the world’s democracies.Mr. Liu steered clear of political issues like the war in Ukraine or China’s tensions with the Biden administration. But he did say, “We have to abandon the Cold War mentality,” echoing a frequent Chinese criticism of the United States for attempting to contain China’s influence around the world.But it is China’s demographics and economic growth that are raising the biggest questions among businesspeople. The decline in population lays bare the country’s falling birthrate, a trend that experts said was exacerbated by the pandemic and will threaten its growth over the long term. The 3 percent growth rate, the second weakest since 1976, reflects the stifling effect of the government’s Covid policy.“The Chinese are worried, and they should be,” said Evan S. Medeiros, a professor of Asia studies at Georgetown University. “The entire international business community is way more negative about China over the long-term. A lot of people are asking, ‘Have we reached peak China?’”Children playing in the village square after school in Xiasha Village in Shenzhen, China, in November. China’s population has begun to shrink, the government announced on Tuesday.Qilai Shen for The New York TimesProfessor Medeiros, who served as a China adviser in the Obama administration, said, “For the past 20 years, China has benefited from both geoeconomic gravity and geopolitical momentum, but in the last year it has rapidly lost both.”The signposts of China’s economic weakness are everywhere: the government announced on Friday that exports fell 9.9 percent in December relative to a year earlier. “China has an export slowdown, construction is in crisis, and the local governments are running out of money,” said Jean-Pierre Cabestan, professor of political science at Hong Kong Baptist University. “China needs the world: to boost its economy, to accompany the return to more normalcy.”Mr. Liu laid out a familiar set of economic policies, from upholding the rule of law to pursuing “innovation-driven development.” He insisted that China was still attractive to foreign investors, who he said were integral to China’s plan to achieve the government’s goal of “common prosperity.”Lianyungang port in China’s eastern Jiangsu province. The government announced on Friday that exports fell 9.9 percent in December relative to a year earlier.Agence France-Presse — Getty Images“China’s national reality dictates that opening up to the world is a must, not an expediency,” Mr. Liu said. “We must open up wider and make it work better. We oppose unilateralism and protectionism.”But China’s delegation was a reminder of how the government has sidelined some of its own best-known entrepreneurs as it has reined in powerful technology companies. Jack Ma, a co-founder of the Alibaba Group, used to be one of the biggest celebrities at the World Economic Forum, holding court in a chalet on the outskirts of Davos. Now shunted out of power, Mr. Ma is absent from Davos.Instead, China sent less well-known executives from Ant Group, an affiliate of the Alibaba Group, as well as officials from China Energy Group and China Petrochemical Group. Unlike other countries, notably India and Saudi Arabia, which plastered buildings in Davos with advertisements for foreign investment, China has been low-key, holding meetings at the posh Belvedere Hotel.After his speech, Mr. Liu, who has a command of English and holds a graduate degree from Harvard, met privately with business executives. Some expected him to be more candid in that session about the challenges China has faced.Mr. Liu did not meet top American officials in Davos, though he will meet Treasury Secretary Janet Yellen in Zurich on Wednesday. Martin J. Walsh, the labor secretary who is at the conference, said he welcomed China’s return. “China’s in the world economy,” he said. “We need to engage with them.”Mr. Liu speaking on Tuesday.Fabrice Coffrini/Agence France-Presse — Getty ImagesThough Mr. Liu, 70, has a significant international profile — having led trade negotiations with the Trump administration — China experts noted that he is not in Mr. Xi’s innermost circle. He is also no longer a member of the Chinese government’s ruling Politburo, though analysts said he retained the trust of Mr. Xi.When he spoke at Davos in 2018, Mr. Liu’s speech was among the best attended of the conference. This year, however, about a quarter of the hall emptied before Mr. Liu spoke, after having been packed for a speech by Ursula von der Leyen, the president of the European Commission.The difference in crowd sizes reflected the reshuffled priorities of the West, now focused on exhibiting unity against Russian aggression.Ms. von der Leyen, who celebrated that solidarity in her remarks, did not exactly warm up the audience for Mr. Liu. She accused the Chinese government, in its drive to dominate the clean-energy industries of the future, of unfairly subsidizing its companies at the expense of Europe and the United States.“Climate change needs a global approach,” she said in a chiding tone, “but it needs to be a fair approach.”Mark Landler More

    • 50 Shares189 Views

      in Elections

      Putin Is Onto Us

      by

      As the Russian Army continues to falter in Ukraine, the world is worrying that Vladimir Putin could use a tactical nuclear weapon. Maybe — but for now, I think Putin is assembling a different weapon. It’s an oil and gas bomb that he’s fusing right before our eyes and with our inadvertent help — and he could easily detonate it this winter.If he does, it could send prices of home heating oil and gasoline into the stratosphere. The political fallout, Putin surely hopes, will divide the Western alliance and prompt many countries — including ours, where both MAGA Republicans and progressives are expressing concerns about the spiraling cost of the Ukraine conflict — to seek a dirty deal with the man in the Kremlin, pronto.In short: Putin is now fighting a ground war to break through Ukraine’s lines and a two-front energy war to break Ukraine’s will and that of its allies. He’s trying to smash Ukraine’s electricity system to ensure a long, cold winter there while putting himself in position (in ways that I’ll explain) to drive up energy costs for all of Ukraine’s allies. And because we — America and the West — do not have an energy strategy in place to dampen the impact of Putin’s energy bomb, this is a frightening prospect.When it comes to energy, we want five things at once that are incompatible — and Putin is onto us:1. We want to decarbonize our economy as fast as we can to mitigate the very real dangers of climate change.2. We want the cheapest possible gasoline and heating oil prices so we can drive our cars as fast and as much as we want — and never have to put on a sweater indoors or do anything to conserve energy.3. We want to tell the petrodictators in Iran, Venezuela and Saudi Arabia to take a hike.4. We want to be able to treat U.S. oil and gas companies as pariahs and dinosaurs that should pump us out of this current oil crisis and then go off in the woods and die and let solar and wind take over.5. Oh, and we don’t want any new oil and gas pipelines or wind and solar transmission lines to spoil our backyards.I understand why people want all five — now. I want all five! But they involve trade-offs, which too few of us want to acknowledge or debate. In an energy war like the one we’re in now, you need to be clear about your goals and priorities. As a country, and as a Western alliance, we have no ladder of priorities on energy, just competing aspirations and magical thinking that we can have it all.If we persist in that, we are going to be in for a world of hurt if Putin drops the energy bomb that I think he’s assembling for Christmas. Here’s what I think is his strategy: It starts with getting the United States to draw down its Strategic Petroleum Reserve. It is a huge stock of crude oil stored in giant caverns that we can draw on in an emergency to offset any cutoff in our domestic production or imports. Last Wednesday, President Biden announced the release of 15 million more barrels from the reserve in December, completing a plan he laid out earlier to release a total of 180 million barrels in an effort to keep gasoline prices at the pump as low as possible — in advance of the midterm elections. (He didn’t say the last part. He didn’t need to.)According to a report in The Washington Post, the reserve contained “405.1 million barrels as of Oct. 14. That’s about 57 percent of its maximum authorized storage capacity of 714 million barrels.”I sympathize with the president. People were really hurting from $5- and $6-a-gallon gasoline. But using the reserve — which was designed to cushion us in the face of a sudden shut-off in domestic or global production — to shave a dime or a quarter off a gallon of gasoline before elections is a dicey business, even if the president has a plan for refilling it in the coming months.Putin wants America to use up as much of its Strategic Petroleum Reserve cushion now — just like the way the Germans gave up on nuclear energy and he got them addicted to Russia’s cheap natural gas. Then, when Russian gas was cut off because of the Ukraine war, German homes and factories had to frantically cut back and scramble for more expensive alternatives.Next, Putin is watching the European Union gear up for a ban on seaborne imports of crude oil from Russia, starting Dec. 5. This embargo — along with Germany and Poland’s move to stop pipeline imports — should cover roughly 90 percent of the European Union’s current oil imports from Russia.As a recent report from the Center for Strategic and International Studies in Washington, D.C., noted, “Crucially, the sanctions also ban E.U. companies from providing shipping insurance, brokering services or financing for oil exports from Russia to third countries.”The U.S. Treasury and European Union believe that without that insurance, the number of customers for Russian oil will shrink dramatically, so they are telling the Russians that they can get the insurance for their oil tankers from the few Western insurance companies that dominate the industry only if they lower the price of their crude oil exports to a level set by the Europeans and the United States.My sources in the oil industry tell me they seriously doubt this Western price fixing will work. Russia’s OPEC Plus partner Saudi Arabia is certainly not interested in seeing such a buyers’ price-fixing precedent set. Moreover, international oil trading is full of shady characters — does the name Marc Rich ring a bell? — who thrive on market distortions. Oil tankers carry transponders that track their locations. But tankers engaged in shady activities will turn their transponders off and reappear days after they’ve made a ship-to-ship transfer or will transfer their cargo into storage tanks somewhere in Asia for re-export, in effect laundering their Russian oil. Oil in just one very large tanker can be worth roughly $250 million, so the incentives are enormous.Now add one more dodgy player to the mix: China. It has all kinds of long-term, fixed-price contracts to import liquefied natural gas from the Middle East at roughly $100 a barrel of oil equivalent. But because President Xi Jinping’s crazy approach to containing Covid — in recent months some 300 million citizens have been under full or partial lockdown — China’s economy has slowed considerably, as has its gas consumption. As a result, an oil industry source tells me, China has been taking some of the L.N.G. sold to it on those fixed-price contracts for domestic use and reselling it to Europe and other gas-starved countries for $300 a barrel of oil equivalent.Now that Xi has locked in his third term as general secretary of the Communist Party, many expect that he will ease up on his lockdowns. If China goes back to anything near its normal gas consumption and stops re-exporting its excess, the global gas market will become even more scarily tight.Last, as I noted, Putin is trying to destroy Ukraine’s ability to generate electricity. Today more than one million Ukrainians are without power, and as one Ukrainian lawmaker tweeted last week, “Total darkness and cold are coming.”So add all of this up and then suppose, come December, Putin announces he is halting all Russian oil and gas exports for 30 or 60 days to countries supporting Ukraine, rather than submit to the European Union’s fixing of his oil price. He could afford that for a short while. That would be Putin’s energy bomb and Christmas present to the West. In this tight market, oil could go to $200 a barrel, with a commensurate rise in the price of natural gas. We’re talking $10 to $12 a gallon at the pump in the United States.The beauty for Putin of an energy bomb is that unlike setting off a nuclear bomb — which would unite the whole world against him — setting off an oil price bomb would divide the West from Ukraine.Obviously, I am just guessing that this is what Putin is up to, and if the world goes into recession, it could take energy prices down with it. But we would be wise to have a real counterstrategy in place, especially because, while some in Europe have managed to stock up on natural gas for this winter, rebuilding those stocks for 2023 without Russian gas and with China returning to normal could be very costly.If Biden wants America to be the arsenal of democracy to protect us and our democratic allies — and not leave us begging Saudi Arabia, Russia, Venezuela or Iran to produce more oil and gas — we need a robust energy arsenal as much as a military one. Because we are in an energy war! Biden needs to make a major speech, making clear that for the foreseeable future, we need more of every kind of energy we have. American oil and gas investors need to know that as long as they produce in the cleanest way possible, invest in carbon capture and ensure that any new pipelines they build will be compatible with transporting hydrogen — probably the best clean fuel coming down the road in the next decade — they have a welcome place in America’s energy future, alongside the solar, wind, hydro and other clean energy producers that Biden has heroically boosted through his climate legislation.I know. This is not ideal. This is not where I hoped we would be in 2022. But this is where we are, and anything else really is magical thinking — and the one person who will not be fooled by it is Vladimir Putin.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

    • 100 Shares129 Views

      in Elections

      Your Tuesday Briefing: Rishi Sunak to Lead Britain

      by

      Plus Chinese markets react to a stronger Xi Jinping and young Chinese pursue quiet dissent.“We now need stability and unity, and I will make it my utmost priority to bring my party and country together,” Rishi Sunak said yesterday.Aberto Pezzali/Associated PressRishi Sunak to lead BritainRishi Sunak, who lost to Liz Truss just under seven weeks ago in the contest to lead Britain, will become prime minister today.Sunak, 42, prevailed in a chaotic Conservative Party leadership race yesterday after Penny Mordaunt, his remaining rival, withdrew. Sunak, the former chancellor of the Exchequer and the son of Indian immigrants, will be the first person of color to lead Britain.His immediate challenge: reunite his deeply divided party and rebuild its reputation. Some Tories view Sunak as Boris Johnson’s political assassin — his resignation from Johnson’s cabinet in July led to his boss’s fall and Britain’s political upheaval. And Conservatives lag behind the opposition Labour Party by more than 30 percentage points in polls.Sunak faces profound economic challenges, especially a cost of living crisis. Britain is also reeling from the self-inflicted damage of Brexit and of Truss, whose free-market economic agenda, featuring sweeping tax cuts, upended markets and sunk the pound.What’s next: While Sunak’s warnings about inflation and his fiscal conservatism may have cost him the post in September, his accurate assessments may help undo the damage left by his predecessor. India: Indian news media celebrated his historic ascension, but people were more focused on celebrating Diwali.Reaction: Calls are growing for a broader political reassessment. “I think we should have had a general election because of all the mistakes the previous two prime ministers made,” one woman told The New York Times.A Beijing vegetable market last month. China’s economy has already been dragged down by its commitment to “zero Covid” policies.Gilles Sabrié for The New York TimesMarkets react to Xi’s consolidationInvestors unnerved by Xi Jinping’s power grab — and the state-heavy agenda of China’s top leader — sent Chinese shares tumbling yesterday.In Hong Kong, share prices plummeted more than 6 percent, reaching 13-year lows as traders dumped huge numbers of shares. In mainland China, markets fell nearly 3 percent, even though Beijing puts heavy pressure on institutional investors not to sell during politically fraught moments. And the renminbi dropped to a 14-year low against the dollar.The heavy selling was particularly striking given that the Chinese government said the economy grew 3.9 percent in the three months that ended in September, from the same period a year earlier. The data, released yesterday, was stronger than expected but still fell short of Beijing’s target of 5.5 percent for this year.Analysis: Xi has put a premium on politics and security — and a stringent “zero Covid” policy — even at the cost of slowing economic growth and employment.Details: The nosedive in financial markets was particularly focused on the shares of Chinese internet companies, which have been a key target of Xi’s campaign to strengthen the Communist Party’s economic control.Background: During last week’s Communist Party congress, Xi pushed out longtime economic policymakers like Premier Li Keqiang and Wang Yang, an architect of the free-market economic boom in southeastern China.A protestor hung banners openly bashing Xi Jinping from Sitong Bridge, in central Beijing.Dake Kang/Associated PressYoung Chinese quietly dissentThis month, a demonstrator unfurled two banners on a highway overpass in Beijing, denouncing Xi Jinping as a “despotic traitor.”China’s censors went to great lengths to scrub the internet of any reference to the act of dissent, prohibiting all discussion and shutting down many offending social media accounts.But the slogans didn’t go away, my colleague Li Yuan writes. Instead, young Chinese, frustrated with censorship, repression and Xi’s “zero Covid” policies, have used creative ways to amplify and spread his message. They graffitied the slogans in public toilets and used Apple’s AirDrop feature to send fellow subway passengers photos of the messages, even though they’re forced to remain anonymous — often from one another.In doing so, members of a generation known for toeing the government line are overcoming their fear of the repressive government, their political depression and their loneliness as political heretics in a society that espouses one leader, one party and one ideology.Context: The protester, who is now viewed as a hero, was last seen being detained by the police. He’s being called the “Bridge Man,” a reference to the “Tank Man,” who stood in front of tanks during the bloody crackdown on pro-democracy demonstrators in Beijing in 1989.THE LATEST NEWSAsia PacificAustralia’s government will release its budget today, Reuters reports. Growth is expected to slow as inflation cuts into consumer spending.North Korea and South Korea exchanged warning shots along a disputed sea boundary, The Associated Press reports.Around the World“They are not preparing to exit now,” a top Ukrainian official said yesterday, of Russian troops. “They are preparing to defend.”Nicole Tung for The New York TimesThere are growing signs that Russia’s occupation government in Kherson is preparing the city for fighting ahead of a possible Ukrainian counteroffensive.Math scores fell in nearly every U.S. state, a sign of the pandemic’s toll.Jair Bolsonaro, Brazil’s president, and conservative lawmakers are trying to criminalize incorrect election forecasts after polls underestimated his support. The presidential runoff is on Sunday.Other Big StoriesThe first formal peace talks between Ethiopia’s government and Tigrayan rebels are scheduled to begin today in South Africa.Top U.S. executives are heading to a major business conference in Saudi Arabia, despite the Biden administration’s misgivings.OpinionsIn a short documentary, Maria Fredriksson asks: Should Sweden’s tax agency let an Indigenous Sami woman deduct her reindeer-herding dog?Ellen R. Wald, the author of “Saudi, Inc.: The Arabian Kingdom’s Pursuit of Profit and Power,” explains why OPEC is cutting oil production.Noam Shuster Eliassi, a comedian who lives in Tel Aviv-Jaffa, lived through a terrorist attack. She realized that not everything can be funny.A Morning ReadPolitical scientists say the pattern shows how white fear of losing status shaped the movement to keep Trump in power.Annie Mulligan for The New York TimesIn the U.S., the white majority is shrinking disproportionately fast in districts represented by Republican lawmakers who refused to accept Donald Trump’s defeat.Their constituents also lagged behind in income and education. Rates of so-called deaths of despair, like suicide, drug overdose and alcohol-related liver failure, were notably higher as well.Lives lived: Ngo Vinh Long was the most prominent Vietnamese in the U.S. to campaign against the war in Vietnam. He died at 78.CLIMATE FOCUSWhy attack a painting?On Sunday, climate activists in Germany threw mashed potatoes on a painting by Claude Monet, “Grainstacks.” The action came just days after activists in London threw tomato soup on “Sunflowers,” a painting by Vincent van Gogh.The attacks on art, intended to draw attention to climate change, have drawn widespread reaction online. Neither painting was harmed — an intentional choice by the activists. Still, many worried about the paintings’ safety and described the form of protest as misguided.But the dramatic tactic may have a lasting impact, Andreas Malm, the author of “How to Blow Up a Pipeline: Learning to Fight in a World on Fire,” argues in a guest essay for the Opinion section. The tactic has historical precedent, he says: Even though paintings are hardly responsible for the climate crisis, the point is to “create enough disorder to make it impossible to ignore the ongoing climate breakdown.”PLAY, WATCH, EATWhat to CookLennart Weibull for The New York TimesIf you can boil water, slice an onion and use a strainer, you can make niku udon, a Japanese beef noodle soup. It’s Kenji López-Alt’s go-to weeknight dinner.What to Read“The Pachinko Parlor” is a powerful story of dislocation and self-discovery set in Tokyo.The CosmosA solar eclipse will be visible today across Europe and Asia. Here’s how to watch.Now Time to PlayPlay the Mini Crossword, and a clue: Tall and thin (five letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. Vox named Zeynep Tufekci, a Times Opinion columnist, to its inaugural list of 50 people working to make the future better.The latest episode of “The Daily” is on election denial in the U.S.You can reach Amelia and the team at briefing@nytimes.com. More

    • 100 Shares129 Views

      in Elections

      Markets Are Ready for Stability in U.K. Government

      by

      Investors appeared heartened by the prospect of Rishi Sunak, Britain’s former chancellor, becoming prime minister — but he must still solve huge economic problems.The front-runner.Isabel Infantes/Agence France-Presse — Getty ImagesMeet Britain’s (likely) new leader After weeks of turmoil, British politics appears headed for some stability, as Rishi Sunak, the former chancellor of the Exchequer, is poised to succeed the ill-fated Liz Truss as prime minister. The British pound and government bonds rose a bit on the news — but the economic problems that trouble the country aren’t likely to be cured quickly.Sunak has the numbers, with over 164 Conservative Party lawmakers backing him for prime minister as of Monday. (Conservative Party rules require candidates to have at least 100 pledged supporters to be considered.) The only remaining challenger, Penny Mordaunt, trails with roughly 90 pledged supporters, she says. But the clock is ticking. She has until 2 p.m. London time on Monday to reach the needed support threshold.Sunak’s most potent challenger was Boris Johnson, the former prime minister who was ousted after his own cabinet ministers — including Sunak, then chancellor — quit in protest over a series of scandals. Johnson pulled out of the race on Sunday, despite claiming to have the support of 102 lawmakers (with the BBC estimating he had just 57 public backers).Investors expect relative predictability from a Sunak government. During the race for prime minister this summer, Sunak defended his plans for higher taxes as fiscally responsible, compared with Truss’s promises of tax cuts to spur economic growth. The markets’ virulent reaction to Truss’s plans, which led to sweeping efforts by the Bank of England to prop up the government bonds known as gilts, suggest investors favor a less revolutionary approach, like what Sunak has promised.Investors appear particularly relieved that Johnson — a notably divisive figure in Britain and abroad, who still faces a parliamentary inquiry into whether he lied to lawmakers about breaking Covid lockdown rules — is out of the running.But Britain still faces enormous challenges. The Bank of England remains likely to raise interest rates to tamp down inflation that has reached 10 percent; Britain is still facing a huge cost-of-living crisis, owing largely to soaring energy costs; and homeowners face significantly higher mortgage payments. On Friday, Moody’s downgraded Britain’s credit rating outlook to “negative” from “stable,” citing weak growth and “unpredictability” in policymaking.Sunak must also corral a Conservative Party that has splintered into several warring factions. Hard-right lawmakers favor cracking down on immigration and taking a hard line against the E.U. over the checking of goods crossing the trade border between Northern Ireland and Ireland. He may also face rebellion from Johnson loyalists who blame him for the downfall of the former prime minister.HERE’S WHAT’S HAPPENING Tesla cuts prices for key models in China. The electric carmaker has reduced the baseline prices for the Model 3 and the Model Y by as much as 9 percent, Reuters reports. The move appears to be tied to slowing demand in China, the world’s biggest E.V. market, and growing competition from domestic rivals.The Trump family business goes on trial on Monday. The Manhattan district attorney’s office has accused the Trump Organization of tax fraud and other crimes, focusing on undeclared perks for executives. Among the star witnesses of the trial will be Allen Weisselberg, the company’s former C.F.O.Japan struggles to prop up the yen. The currency continued to slide against the dollar on Monday, despite what investors suspect was another intervention by the Bank of England to curb volatility. Japan is in a difficult bind because it is trying to maintain ultralow interest rates, which could bolster the yen, to spur economic growth.Chip makers struggle with tighter U.S. restrictions on China. YMTC of China has reportedly asked American employees in key roles to leave, to comply with new rules from Washington that require U.S. citizens to get permission to work at Chinese fabrication plants. And TSMC of Taiwan is said to have stopped work for a burgeoning Chinese semiconductor start-up.Brace for a potential “tripledemic” this year. With pandemic lockdowns mostly in the past, experts predict a resurgence in Covid cases this winter — along with more traditional outbreaks of flu and, perhaps, of respiratory syncytial virus. “It’s going to be a rough winter,” one infectious disease specialist told The Times.An “even more dominant” Xi China released third-quarter economic data on Monday, laying bare the deep challenges facing the country days after Xi Jinping was appointed to an unprecedented third term as leader.Gross domestic product in the world’s second-biggest economy grew 3.9 percent compared to the same period last year. That is higher than expected, but short of the full-year target of 5.5 percent — China’s lowest annual target in three decades. The authorities unexpectedly delayed publication of the data last week.Financial markets tumbled. The Hang Seng Index in Hong Kong closed down more than 6 percent at a 14-year low on Monday, reflecting anxieties about the worsening economy, and after Xi stacked Communist Party leadership positions with loyalists. Chinese tech stocks listed in the U.S. are the worst performers there premarket, led by the e-commerce companies Pinduoduo and JD.com. Xi’s move to tighten control was widely expected, but it underscores his ambition to accelerate China’s rise as a military and technological superpower, despite the potential economic damage, write The Times reports. That could have big implications for business.“He was dominant already and is even more dominant now,” Dali Yang, a political science professor at the University of Chicago, said of Xi. A newly energized Beijing is likely to remain defiant in the face of international criticism of its hard-line behavior. It still wants to become the pre-eminent military force in the region and to assert its claim over Taiwan. At the congress, Xi said China would promote its own initiatives to solve global development and security problems.Unchecked power could slow economic growth. Xi’s exceptionally stringent approach of imposing mass lockdowns and quarantines to eradicate Covid-19 outbreaks has throttled consumer spending and hit supply chains. The hugely important property market is also in a slump after he sought to curb speculation in the sector.The geopolitical divide between the U.S. and China is widening. President Biden has waged a crackdown on China’s access to U.S. technology — in particular, chips and chip production — and the threat of Russia-like economic sanctions looms. Some of the Western world’s biggest corporations are now evaluating how to reduce the business they do in China. Goldman Sachs, though, hasn’t closed the door. On Monday, it announced a joint venture in China to boost investment in local infrastructure-related real estate assets.Critics come after S.B.F. for his stance on crypto rules Sam Bankman-Fried, the founder of the crypto exchange FTX, got skewered by his crypto colleagues after proposing voluntary digital asset standards to better protect consumers last week — and he’s still reeling from the experience. “Whelp, that was an interesting few days,” the billionaire wrote on Twitter on Sunday, responding to complainants denouncing him as “S.B.F. — The Regulator.”Industry insiders are growing wary of S.B.F. The head of a sprawling global empire mostly built beyond the reach of U.S. regulators, the 30-year-old billionaire has donated about $40 million to various PACs and candidates in the 2022 election cycle and become a fixture on Capitol Hill. Some advocates for decentralized finance have grown increasingly concerned about Bankman-Fried’s high-profile support for a newish Senate Agriculture Committee bill on digital assets, which they feel could set back the DeFi movement. Bankman-Fried also got into hot water for suggesting that DeFi adopt “know your customer” mandates to appease authorities. Opponents say this would undermine the decentralized crypto ethos, and would force DeFi firms to adopt rules associated with traditional finance. Some users and influential industry voices, meanwhile, have called for a boycott of FTX.The crypto exec relented after the onslaught. S.B.F. thanked his critics for their input, which he used to revise some of his proposals. Among the most prominent was Erik Vorhees, the libertarian-leaning founder of the platform ShapeShift, who argued that DeFi should remain distanced from regulatory oversight, as it “transcends humans and their political machinations.”“The devil is in the details,” Kristin Smith, the executive director of the Blockchain Association, an industry trade group representing about 100 companies, told DealBook. The industry agrees that centralized exchanges are ready for regulation, she said, but DeFi is new and nuanced and regulating this area would require more time. Translation: S.B.F. should stop speaking for DeFi.Bankman-Fried thinks congressional action is coming. “It’s important to protect customers and to get federal oversight,” he wrote in an email to DealBook, adding that it’s equally important that code remain free. There’s still “some chance” that a narrow crypto bill that leaves DeFi untouched gets congressional approval after the November election, he predicted. “I think that, if it’s well-drafted (which I’m optimistic it will be!), it would make sense to pass it this year.”“This is a moment of truth for education. How we respond to this will determine not only our recovery, but our nation’s standing in the world.” — Miguel Cardona, the secretary of education, warning that a pandemic-fueled drop in the math and reading scores of U.S. students has deeper economic and societal implications.The week ahead What’s on the agenda this week? It will be a busy one for earnings — big banks in Europe, plus Big Tech in the U.S. We also have interest-rate-setting decisions and economic data releases.Tuesday: The Saudi Arabia-sponsored “Davos in the Desert” begins. Despite tensions between Saudi Arabia and the U.S. over oil, many U.S. executives still plan to attend.Wednesday: Meta reports earnings. An advertising slump and new privacy rules from Apple (which reports on Thursday) are expected to have eaten further into its revenue, which in the second quarter dropped for the first time since the company went public.Thursday: Credit Suisse presents a plan to fix itself. A broad strategic review is set to conclude with a restructuring that will likely involve thousands of layoffs and an overhaul of its investment bank. Elsewhere: The U.S. reports third-quarter G.D.P., and it’s rates decision day for the European Central Bank.Friday: deadline day for Elon Musk and his $44 billion Twitter deal. Last week, the Washington Post reported that he planned to cut Twitter’s staff by as much as 75 percent after taking the company private. In Asia, the Bank of Japan wraps up a two-day rate-setting meeting where no change in policy is expected.THE SPEED READ DealsMagic Johnson is reportedly in talks to buy a minority stake in the Las Vegas Raiders N.F.L. team. (Semafor)The banks tasked with financing Elon Musk’s bid for Twitter are expected to keep the $13 billion worth of debt on their books and try to sell it later, rather than immediately booking a $500 million loss. (WSJ)Amazon will take a stake in the parent of Hawaiian Airlines as part of a cargo-hauling deal. (Bloomberg)PolicyThe Republican National Committee sued Google, accusing it of directing the party’s political emails to users’ spam folders. (Axios)The White House is hoping that plans to refill the Strategic Petroleum Reserve will spur new domestic oil production, but energy companies are skeptical. (WSJ)Best of the restIsraelis and their adopted feral dogs — what could go wrong? (WSJ)“Rebranding is hard but there is no excuse for disemvowelling.” (FT)The British economy is reeling, but the country’s whisky makers are having a banner year. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

    • 88 Shares149 Views

      in Elections

      Your Monday Briefing: Xi Jinping Consolidates Power

      by

      Plus Britain prepares for a new leader and Russia forcibly resettles Ukraine’s children.Xi Jinping is poised to push his vision of a swaggering, nationalist China even further, with himself at the center.Kevin Frayer/Getty ImagesXi Jinping tightens his gripTo no one’s surprise, Xi Jinping has formally secured a third term as head of China’s Communist Party.He thoroughly shook up the party’s top tiers, elevating loyalists and forcing out moderates. In so doing, Xi consolidated his power and created a new ruling elite primed to elevate his agenda of bolstering national security and turning China into a technological great power. And in a moment packed with symbolism, Hu Jintao, who presided over one of China’s more open and prosperous periods, was ushered out of an important political meeting.Xi chose six men with longstanding ties to him for the Politburo Standing Committee, the top echelon of the party. Wang Huning, his chief theoretician, remains on the body, a sign that hard-line policies and the role of ideology will persist. Xi also appointed to the Politburo, the party’s second tier, a number of domestic security officials and military commanders, as well as several people with backgrounds in science and engineering.As Xi tightens his control, Beijing is likely to remain defiant in the face of international criticism of its authoritarian policies. Notably, at the party congress this week, Xi did not mention two long-repeated maxims about peace and strategic opportunity. The omissions revealed Xi’s anxieties about an increasingly volatile world, and warned of a looming conflict with the U.S. for global dominance.Analysis: To supporters, Xi’s centralized control and continuity are strengths. But some argue that ousting critics could leave Xi’s government vulnerable to failures like its mismanagement during the early days of Covid-19.Standing Committee: New appointees include Ding Xuexiang, Xi’s right-hand man, and Li Qiang, who worked under Xi when they were local officials in Zhejiang Province. Li oversaw a contentious Covid lockdown in Shanghai and is now in line to become China’s new premier.Other updates:For the first time in decades, no women will be on the Politburo.Hu Chunhua, once seen as a potential successor to Premier Li Keqiang, has been sidelined: He’s not in the Standing Committee or the Politburo.From Opinion: Ai Weiwei, an artist and outspoken critic of the Chinese government, argues that the Communist Party has suppressed all possible dissent, despite hopes that capitalism and the internet would create opportunities for rebellion.Liz Truss’s departure plunged Britain deeper into financial uncertainty.Sam Bush for The New York TimesBoris Johnson bows outBritain’s Conservative Party plans to select a new prime minister this week, days after Liz Truss resigned.One thing is for sure: It won’t be Boris Johnson, who was forced to resign as prime minister in July. Johnson pulled out of the race yesterday evening, despite speculation that he was eyeing a return to power.The State of the WarA Looming Crisis: Russia’s stepped-up attacks on infrastructure and vital utility networks in Ukraine herald a new phase of the war — one that threatens millions of Ukrainians with the prospect of a winter without electricity, water and heat in half-destroyed buildings.A New Front?: Russia is massing thousands of troops in its western neighbor Belarus, raising fears that Moscow might plan to open another front in the war. But officials in Kyiv and Washington are casting doubt on whether the buildup represents a serious threat.Occupied Regions: President Vladimir V. Putin of Russia declared martial law in four illegally annexed regions of Ukraine as pro-Kremlin authorities in the city of Kherson said they would evacuate tens of thousands of people in advance of a possible Ukrainian counterattack.An Opportunity Ahead: American officials are convinced that the next six weeks, before fall mud spreads, could allow Ukraine’s military to press forward in the Donbas region and potentially retake Kherson.Rishi Sunak, the former chancellor of the Exchequer who had lost to Truss, is now the favorite to win. He had lined up at least 147 votes by late afternoon yesterday, according to a tally by the BBC.Sunak could become prime minister as early as today: If only one candidate receives 100 or more nominations from the 357 Conservative members of Parliament, that person will become the next prime minister.Analysis: Some experts link Truss’s downfall to the bitter factions Brexit created in the Conservative Party.A broken window at a hospital in Mariupol, where many resettled children once lived.Evgeniy Maloletka/Associated PressRussia resettles Ukraine’s childrenSince Russia’s invasion started in February, thousands of Ukrainian children have been transferred to Russia, often against their will, to be adopted and become citizens.Russian authorities have celebrated the adoptions with patriotic fanfare. On state-run television, officials offer teddy bears to new arrivals, who are portrayed as abandoned children being rescued from war.But this mass transfer of children is a potential war crime. Some were taken after their parents had been killed or imprisoned by Russian troops, according to Ukrainian officials. And while many did come from orphanages and group homes, the authorities also took children whose relatives or guardians want them back.“I didn’t want to go,” one 14-year-old girl told my colleague Emma Bubola. “But nobody asked me.” Fighting: Russian forces pounded Ukraine’s power plants with some of the heaviest missile strikes in weeks.THE LATEST NEWSAsia PacificThe women say that they have suffered lasting trauma from the episode at Hamad International Airport in Doha, Qatar.Karim Jaafar/Agence France-Presse — Getty ImagesFive Australian women have sued Qatar two years after they underwent invasive medical procedures when a newborn was found in an airport bathroom.Pakistan’s election commission effectively barred former Prime Minister Imran Khan from office, escalating a political showdown and raising the possibility of mass unrest.Indonesia has banned cough syrup sales amid worries that tainted product from India may be connected to the deaths of dozens of children in Gambia.BTS members can still perform at South Korean national events during their upcoming military service, The Korea Times reports.Around the WorldThe Jan. 6 committee subpoenaed Donald Trump for testimony and documents.At least 50 people died when security forces in Chad opened fire on protesters, who were demanding that the military junta stick to a promise to hold elections.Palestinians have moved into caves as Israel tries to expel them from their villages and demolish their homes, which could amount to a war crime. Other Big StoriesSteve Bannon, a former adviser to Donald Trump, was found guilty of two counts of contempt of Congress.Chip Somodevilla/Getty ImagesSteve Bannon was sentenced to four months in prison for defying a Jan. 6 committee subpoena.A U.S. court temporarily blocked the Biden administration from canceling any student debt.Protests, a riot and gunshots: Here’s how a fire at a notorious Iranian prison spread.A Morning ReadTamara Plieshkova, right, feels like “an old, mature tree being replanted into new soil,” her daughter said. Plieshkova reunited with her granddaughter in Colorado after escaping the war in Ukraine in September.Theo Stroomer for The New York TimesThere is a name for the specific type of grief that both refugees and migrants experience. It’s “cultural bereavement.”Lives lived: Peter Schjeldahl, an art critic whose enthusiasm and elegant reviews helped define New York’s art scene, died at 80. Read his witty essay from 2019 on his lung cancer diagnosis.GLOBAL GASTRONOMYNoma in KyotoNoma, the celebrated Danish restaurant, will open a 10-week pop-up in Kyoto, Japan. It will span sakura (cherry-blossom) season and incorporate ingredients and methods from the region, which is the historic center of Japanese Buddhism.The very structure of the meal also references Buddhist culinary traditions. The ubiquitous modern tasting menu has its roots in kaiseki, a carefully orchestrated progression of small plates that grew from a Buddhist tea ceremony into a luxurious cuisine in Kyoto. In the late 1960s, elements of the meal began to flow from Japan into fine dining, often through the influential Tsuji culinary school in Osaka.The conceptual approach to ingredients was partially born in kaiseki, too: Kyoto’s kaiseki menus have always changed to reflect the seasons. That idea has given rise to foraging, restaurant gardens and the farm-to-table movement.“I was taught that the tasting menu was invented by the French and then reinvented in Spain,” René Redzepi, Noma’s chef, told The Times. “I had no idea of the vast repository of ideas and techniques that is Japanese food.”Details: Noma Kyoto will be open from March 15 through May 20. The meal will cost just over 850 euros (about $839) per person and reservations will open on Nov. 7 on Noma’s website.PLAY, WATCH, EATWhat to CookKate Sears for The New York TimesYou only need one pan for this shrimp scampi with crispy gnocchi.What to Listen toTaylor Swift’s new album, “Midnights,” comments on life as a deeply observed figure.What to Read“Is Mother Dead,” a harrowing Norwegian novel, features a middle-aged painter desperate to reconcile with her estranged parent.Now Time to PlayPlay the Mini Crossword, and a clue: British baked good (five letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. Best wishes for a great week. — AmeliaP.S. The Concorde made its last commercial flight 19 years ago today.Start your week with this narrated long read about Yiyun Li, a novelist beloved for her powerful distillations of grief. And here’s Friday’s edition of “The Daily,” on Liz Truss’s downfall.You can reach Amelia and the team at briefing@nytimes.com. More

    • 138 Shares199 Views

      in Elections

      Your Thursday Briefing: Vladimir Putin and Xi Jinping Likely to Meet

      by

      Plus India’s growing economy and China’s “zero-Covid” trap.“I hope to see Chairman Xi Jinping soon,” Vladimir Putin, Russia’s president, said.Pool photo by Greg BakerPutin and Xi are expected to meetVladimir Putin, Russia’s leader, said yesterday that he expected to meet next week with Xi Jinping, his counterpart in China.Putin will attend a gathering of Asian leaders in Uzbekistan on Sept. 15 and 16. Chinese officials did not immediately confirm that Xi would attend; he has not left China since the start of the coronavirus pandemic in 2020. But Russia’s ambassador to China described the session as the leaders’ “first full-fledged summit during the pandemic.”An in-person conversation could help the Kremlin expand its strengthening partnership with China. Russia reoriented its economy toward Asia after European and American countries severed economic ties with Moscow after its invasion of Ukraine.Context: Putin said he also hoped to have a joint meeting with the president of Mongolia, where Russia is considering building a natural gas pipeline that would reach China.Diplomacy: Beijing has not endorsed the invasion, but it has echoed Kremlin talking points in describing the U.S. as the “main instigator” of the conflict and provided Russia with much-needed economic support. Russia has offered geopolitical backing to China, including in the escalating tensions around Taiwan.Other updates:In a speech, Putin appeared to brush off the toll of the war, which U.S. officials estimate has killed or wounded 80,000 Russian soldiers. “We have not lost anything and will not lose anything,” he said.European countries are growing more confident that they can move away from Russia’s fossil fuels. Yesterday, the European Commission said it would ask countries to approve a price cap on Russian gas.Despite the war, daily life in Moscow seems almost unchanged.India’s economy must support 1.4 billion people.Atul Loke for The New York TimesIndia’s resilient economyIndia’s government expects the economy to grow 7 percent or more this year. That’s more than double the projections for global growth, which has slowed sharply as major economies stall.The rapid expansion partly reflects the depths to which the economy had fallen during the most devastating shocks of the pandemic, which forced an exodus of laborers from cities. It also reflects the nature of India’s economy, which is partially insulated from global trends because it is driven more by local demand than exports.Many also credit a suite of government policies — including increased public investment, relief to debtors and credit guarantees — which have helped keep inflation relatively in check and cushion the public from economic shocks. And discounted oil from Russia, against the wishes of Western allies, have helped buffer rising energy prices.The State of the WarZaporizhzhia Nuclear Plant: After United Nations inspectors visited the Russian-controlled facility last week amid continuing shelling and fears of a looming nuclear catastrophe, the organization released a report calling for Russia and Ukraine to halt all military activity around the complex.An Expanding Military: Though President Vladimir V. Putin ordered a sharp increase in the size of Russia’s armed forces, he seems reluctant to declare a draft. Here is why.Russia’s Military Supplies: According to newly declassified American intelligence, Russia is buying millions of artillery shells and rockets from North Korea — a sign that global sanctions have severely restricted its supply chains and forced Moscow to turn to pariah states.Far From the War: Though much of Russia’s effort on the battlefield has not gone as Mr. Putin had planned, at home he has mostly succeeded in shielding Russians from the hardships of war — no draft, no mass funerals, no feelings of loss or conflict.Data: India’s economy is now the fifth largest economy in the world. It surpassed Britain, its former colonizer.Challenges: India’s economy remains unable to create enough jobs for the waves of educated young people who enter the labor force each year, and its growth remains top-heavy, analysts said. Growth is projected to slow next year to about 6 percent.In Chengdu, roads were nearly empty as a lockdown continued.CNS, via Agence France-Presse — Getty ImagesChina’s “zero Covid” bindAlmost every country in the world has moved past Covid restrictions. But tens of millions of people in China are again under some form of lockdown as the country continues its total commitment to fighting the coronavirus.Economic and social costs are mounting. Youth unemployment reached a record 20 percent in August, according to official statistics. But Beijing has backed itself into a corner.It has repeatedly prioritized politics over science: China has been relying only on homegrown vaccines, which are less effective than foreign ones. And buoyed by its early success at containment, Beijing was slow to encourage shots, leaving a disproportionate number of older people unvaccinated.Since few Chinese people have natural immunity, the risks of loosening controls may be even higher. “That sort of makes the zero-Covid policy self-sustaining,” a senior fellow for global health at the Council on Foreign Relations said.Politics: Xi Jinping, the country’s leader, has tied support for the “zero Covid” policy to support for the Communist Party, ahead of a meeting in October where he is all but assured to extend his rule.THE LATEST NEWSNatural Disasters in AsiaXi Jinping, China’s leader, personally ordered that the government will “spare no effort to rescue” people.Ye Xiaolong/Xinhua, via Associated PressThe death toll from the earthquake in southwestern China has risen to 74, The Associated Press reports. People in Chengdu, which is under lockdown, were prevented from leaving their homes even as their buildings shook.At least 10 people died after Typhoon Hinnamnor hit South Korea, BBC reports.Flooding in Pakistan damaged Mohenjo-daro, a UNESCO World Heritage site that is at least 4,500 years old, The South China Morning Post reports. Reuters reports that Shehbaz Sharif, the prime minister, said some areas look “like a sea.”Other Asia and Pacific NewsFive speech therapists in Hong Kong were found guilty of sedition, Reuters reports. Authorities said they planned to publish anti-government children’s books.At least 32 people died in a fire in a karaoke parlor in Vietnam, BBC reports.Archaeologists found a 31,000-year-old skeleton in Borneo, which appeared to have the earliest known evidence of surgery, The Guardian reports.The Japanese yen continues to slide, Bloomberg reports. It is on track for its worst year on record.Around the World“It is great to be back,” Barack Obama said at the ceremony.Doug Mills/The New York TimesThe White House unveiled the long-delayed official portraits of Barack and Michelle Obama.Liz Truss, Britain’s new prime minister, is assembling a racially diverse but ideologically uniform cabinet. Most are conservatives loyal to her.France expelled a Moroccan imam accused of hate speech after a legal fight and debate over civil liberties.What Else Is Happening“I feel like I’ve let so many people down,” Nick Kyrgios said. Julian Finney/Getty ImagesNick Kyrgios, the temperamental Australian, lost at the U.S. Open after beating Daniil Medvedev, the top seed.Apple unveiled its new iPhone and expanded its line of smartwatches.Jaap van Zweden, the New York Philharmonic’s music director, will lead the Seoul Philharmonic Orchestra.A Morning ReadPresident Xi Jinping, in his trademark blue wind jacket with oversize trousers, has not been seen as a fashion influencer. Until now.Li Xueren/Xinhua, via Associated PressYoung men in China are donning an understated, middle-aged “office and bureau style”: Oversized trousers, dull colors, maybe a small briefcase.Some trend followers may be poking fun at China’s conformity. But others are earnest: They say that the unabashedly conservative look suggests a stable career path and a respectable lifestyle — sort of a Communist Party version of preppy.Lives lived: Dr. Ronald Glasser, a U.S. Army physician, wrote the acclaimed book “365 Days” about wounded soldiers. He died last month at 83.ARTS AND IDEASBooker finalistsSix novels have been named finalists for this year’s Booker Prize. Several of them use humor to address painful chapters of history: In “Glory,” the Zimbabwean author NoViolet Bulawayo writes about the fall of an African dictator from the perspective of talking animals. Percival Everett’s story of Black detectives, “The Trees,” lampoons the inescapable nature of American racism.The authors come from four continents and have a wide range of styles — from quiet, introspective fiction to fantasy. “The prize is a moment for everyone to pause and to marvel at what English as a language can actually do,” Neil MacGregor, the chair of this year’s judges, said.Read more about the finalists.PLAY, WATCH, EATWhat to CookDavid Malosh for The New York TimesThis baek kimchi jjigae, or white kimchi stew, is deeply savory with a gingery bite.What to Listen toTake five minutes to experience Alice Coltrane’s spiritual jazz.What to Read“Strangers to Ourselves,” by the New Yorker writer Rachel Aviv, is an intimate and revelatory account of mental illness.Now Time to PlayPlay today’s Mini Crossword, and a clue: Dead Sea and Caspian Sea, despite their names (five letters).Here are today’s Wordle and today’s Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. The Times is launching a new team focused on data analysis of U.S. elections.The latest episode of “The Daily” is on the nuclear plant standoff in Ukraine.You can reach Amelia and the team at briefing@nytimes.com. More