Chinese protests give Xi a headache

Protests are rising over China's slowing economy [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’s slowdown is presenting a fresh headache for President Xi Jinping: more protests. Instances of dissent rose 18% in the second quarter compared with the same period last year with [economic grievances making up]( two-thirds of cases. That’s according to a new report from China Dissent Monitor at Freedom House, a US advocacy group. So far, labor and real estate are the key pain points. Protests were often driven by stalled housing projects, sudden company closures or lack of liquidity, the inability to pay wages, or even local government’s problems with providing adequate benefits for retirees, the project’s lead said. The figures don’t capture the whole picture — researchers observed a new campaign to scrub content on video platforms early this year, and they also incorporated a new source of data in June. But it does provide a rare snapshot of the mood on the ground in some parts of the country. In tightly controlled and heavily surveilled China, protests don’t present an existential threat to its leader. They’re typically small scale, sporadic and don’t directly criticize Xi. This means they’re unlikely to prompt Beijing to take bolder steps to support the economy. But they are a problem for local officials responsible for resolving the disputes with concessions, suppression or a mix of both. The bigger issue is that the demonstrations are symptomatic of the economic malaise taking its toll across the country. People everywhere are feeling the pinch — and it’s even weighing on demand for the most accessible of goods. This week’s disappointing earnings results are another red flag. They prompted [record-breaking stock selloffs]( in China’s biggest consumer companies, the online retail giant PDD Holdings and the beverage firm Nongfu Spring. The big picture is a nearly four-decade rise in [living standards appears to be stalling]( in China. And for Xi, that means he’s not just dealing with the fallout from a sluggish economy but the much thornier question of how to govern as the country’s boom comes to an end. — [Rebecca Choong Wilkins]( A demonstrator holds a sign reading “There is faith in our soul” during a protest against Covid restrictions in Beijing in November 2022. Source: Bloomberg Global Must Reads Ukrainian President Volodymyr Zelenskiy said he’ll present a plan to force Russia to halt its invasion of his country to Joe Biden just weeks before the US presidential elections. Zelenskiy told reporters he wants to [discuss the blueprint]( with the American president during his visit to the United Nations General Assembly in New York next month. 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The network said yesterday that anchor Dana Bash will talk to the Democratic nominees in Georgia, a state that’s crucial to the election strategy of both parties. The session will mark the first lengthy interview for Harris since she replaced Biden at the top of their party’s ticket late last month. Trump and other Republicans have accused her of dodging reporters’ questions and avoiding a substantive discussion. Trump has taken part in recent interviews, albeit in relatively friendly settings. Last night, he appeared with talk show host Dr. Phil McGraw in a conversation recorded earlier. Harris and Trump have agreed to meet in an ABC News debate on Sept. 10. One thing to watch today: With the Federal Reserve poised to begin cutting interest rates, weekly mortgage applications will be reported by the Mortgage Bankers Association. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. 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