China’s neighborhood woes

[Balance of Power]( From [Bloomberg Politics]( [FOLLOW US [Facebook Share]]( [Twitter Share]( [SUBSCRIBE [Subscribe]](  As Hong Kong leader Carrie Lam [fights to survive](, she’s taking heat from another government whose population is similarly skeptical of Beijing: Taiwan, an island claimed by China. Taiwanese President Tsai Ing-wen has strongly supported the hundreds of thousands of demonstrators who’ve opposed Lam’s “evil bill” to allow extraditions from Hong Kong to the mainland for the first time. And her government didn’t like that Lam used a grisly murder in Taiwan to justify the move. “Embrace democracy & stand on the right side of history!” Taiwan's Foreign Minister Joseph Wu implored on Twitter amid a fresh round of enormous protests over the weekend. The issue has given Tsai — whose popularity has faltered in recent months — a bump in the polls ahead of a January election in which her pro-independence Democratic Progressive Party will face a tough challenge from the more China-friendly Kuomintang. Both parties, however, have dismissed the “one country, two systems” model that China applies to Hong Kong as [unworkable]( in Taiwan, which already has a functioning democracy. For Chinese President Xi Jinping, the fallout from the extradition bill is proving to be a big problem. While he wants to integrate both Hong Kong and Taiwan with the mainland, Beijing's strong-arm tactics have only made their populations more wary of Xi’s rule. “Beijing turned the whole generation of students to be dissidents,” said Joshua Wong, a Hong Kong pro-democracy activist [released from prison]( today. In the wake of mass protests, Lam spoke of the need to be humble and suspended consideration of the bill. To eventually win over the people of Hong Kong and Taiwan, Xi may need to do the same. �€” [Daniel Ten Kate]( Global Headlines Just In: Iran [says it will exceed]( agreed-upon limits on its inventories of low-enriched uranium June 27, potentially breaching for the first time a landmark 2015 agreement that was meant to prevent it from developing a nuclear bomb. It’s the latest blow to the accord, which suffered a potentially crippling blow when President Donald Trump nixed U.S. support. [Campaign snapshot]( | About to break records for the longest expansion, the U.S. economy looks like a 2020 asset for Trump, who's been quick to claim credit. But, as [Christopher Condon]( and [Steve Matthews]( explain, that doesn’t mean it will carry him to a second term. Trump’s campaign has [reportedly]( dropped pollsters after leaked surveys showed him trailing former Vice President Joe Biden in key states. 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Potential decisions [include]( whether the Trump administration can put a citizenship question on the 2020 census and if courts can strike down voting maps as too partisan. - China asked the World Trade Organization to suspend a dispute against the European Union in an announcement that preserves the EU’s ability to apply higher anti-dumping measures against certain Chinese imports. [And finally](... The internationally recognized Libyan premier is calling for a United Nations-backed conference to end the battle for control of Tripoli as conflict threatens to rip apart the North African oil producer. While Fayez Al-Sarraj says he wouldn’t succumb to the offensive by eastern-based strongman Khalifa Haftar, he suggested the gathering could decide on a road map for elections this year. But the prime minister’s suggestion fell short on two key elements: outlining cease-fire lines and how to include Haftar in talks. Fighters loyal to Libya’s internationally recognized government fire a heavy machine gun in May during clashes against Haftar’s forces. Photographer: MAHMUD TURKIA/AFP   You received this message because you are subscribed to the Bloomberg Politics newsletter Balance of Power. You can tell your friends to [sign up here](.  [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022