Splits in US-led campaign against China

The US-led campaign to isolate China faces opposition [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. There was a striking moment during Tuesday’s US presidential debate when Kamala Harris accused Donald Trump of [being soft on China.]( It was a demonstration of how much Washington has soured on Beijing. For those with long memories, Trump imposed trade tariffs that were extended by President Joe Biden’s administration. With China-bashing a rare point of consensus in America’s highly polarized political system, it’s a course that will likely be continued whoever wins the White House in November. Some US allies, though, are growing less inclined to follow that path. Spanish Prime Minister Pedro Sanchez made that clear yesterday when he [called on the European Union]( to drop its planned additional tariffs on Chinese electric vehicles. He was quickly joined by German Chancellor Olaf Scholz, whose government [reiterated its opposition]( to the EU move. China is disputing the bloc’s decision, made on grounds of unfair state subsidies, at the World Trade Organization. WATCH: Bloomberg’s Minmin Low reports on why Spain is calling for a rollback in EU tariffs on Chinese-made electric vehicles. Source: Bloomberg Germany and Spain are Europe’s two largest car producers, with Germany dependent on auto sales in China and Spain keen to attract Chinese investments to develop its own EV industry. While there’s an obvious economic rationale for their move, it surely won’t go unnoticed in Washington. The US has already imposed tariffs on Chinese EVs, and has made efforts to curtail Beijing’s access to advanced technologies a flagship of “Bidenomics.” In doing so, it’s twisted the arms of allies, notably high-tech producers in Japan, South Korea and the Netherlands, to go along. Japan’s reward? Biden opposes Nippon Steel’s planned [$14 billion takeover of US Steel]( on what appear purely political grounds — US Steel is based in Pennsylvania, a swing state, and the United Steelworkers union rejects the deal. Both Harris and Trump are also opposed. That’s a reality that won’t go unnoticed in Europe, either. — [Alan Crawford]( Sanchez in Shanghai on Sept. 10. Photographer: Hector Retamal/Getty Images Global Must Reads China’s 8,700 investment bankers have been forced to take big pay cuts and adhere to other belt-tightening measures under President Xi Jinping’s years-long common prosperity campaign. Now they are [in the crosshairs]( of the nation’s top graft buster, with at least three from different securities firms being detained by authorities since August, sending a chill through the industry. Israel’s army is large by global standards, with about 170,000 active personnel out of a population of 10 million, but it’s having a hard time [coping both with the war]( against Hamas in Gaza and aerial attacks from Iran-backed Hezbollah to the north. Israel is struggling to boost military ranks while preventing a shortage of workers from harming the economy and facing resistance by the ultra-Orthodox community to heed the call to national service. Mounted police disperse ultra-Orthodox Jewish men during an anti-draft protest in June. Photographer: Jack Guez/Getty Images The US and UK signaled they may be open to Ukraine’s request to use Western-supplied weapons [to strike deeper into Russia]( despite concerns it could escalate the conflict. Visiting Kyiv yesterday, the two countries’ top diplomats didn’t rule out agreeing to President Volodymyr Zelenskiy’s request, saying Biden will discuss it with Keir Starmer when the British prime minister visits Washington this week. Japan’s ruling party leadership race kicked off today with the [weakened grip of elders]( enabling a record number of candidates to enter a wide-open contest to steer the nation through a critical period of transition. Nine hopefuls, including two under the age of 50 and two women, gave opening remarks at the Liberal Democratic Party headquarters in Tokyo to begin the campaign for the Sept. 27 vote. England and Wales jail a bigger proportion of their combined populations than anywhere else in Western Europe apart from Scotland. An early release of [thousands of prisoners]( was a calculated move by Starmer’s new Labour government to ease overcrowding, and his new prisons minister is championing greater rehabilitation to reduce reoffending. The prime minister’s other problem is that he doesn’t have the money to fix the aging system. North Korea fired multiple short-range ballistic missiles off its east coast today, South Korea’s military said, days after leader Kim Jong Un vowed to [bolster his nuclear weapons capabilities]( and prepare his troops for combat. More than half of Mexico’s state legislatures voted in favor of a judicial overhaul already approved by the congress, allowing President Andres Manuel Lopez Obrador to [sign the controversial bill]( into law. Islamic State in Somalia, the group’s affiliate in the Horn of Africa, has grown in influence through its ability to [mobilize funds for disbursement]( to the network on the continent, according to the International Crisis Group. Alberto Fujimori, the former president of Peru who oversaw the defeat of Maoist guerrillas, tamed hyperinflation and continued to loom large over national politics [after being imprisoned]( for his role in killings by death squads, has died. He was 86. Washington Dispatch The counting and certification of Electoral College votes on Jan. 6, 2025 —four years to the day after a mob of Trump supporters stormed the US Capitol to undo the outcome of the previous election — has been designated as [a National Special Security Event]( by the Department of Homeland Security. The announcement by the US Secret Service yesterday came at a time of heightened anxiety regarding potential election violence in this year’s contest. The designation provides for increased resources and planning. Homeland Security came under criticism for failing to employ it on Jan. 6, 2021. One thing to watch today: The producer price index for August will be released, a day after the Bureau of Labor Statistics showed that [underlying inflation rose]( in August above forecasts. Check out [Republic of Distrust]( a new Bloomberg Opinion series examining how Americans have lost faith in major institutions. [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 China no longer looks like the [engine driving global crude demand]( for the first time in decades. Its economic slowdown is dire, with its property market in the doldrums and consumer confidence weak. Add to that structural changes from an aging population, the energy transition to renewables and a growth model that leans less heavily on big-ticket infrastructure, and traders and executives that gathered for the APPEC oil conference in Singapore this week are in for a big adjustment. And Finally Human activity is imperiling eight of the planet’s critical life-support systems and seven have already passed into a danger zone, according to a review of Earth science [published yesterday]( in The Lancet Planetary Health. Looking at necessities of a livable Earth — including the climate, freshwater systems, biodiversity and soil nutrients — researchers found that the only system yet to breach safe limits is atmospheric aerosols, even as small-particle air pollution contributes to 8 million deaths a year. An image of Earth from the International Space Station. Photographer: ESA/Getty Images  More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [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](. 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