Testing Biden’s limits

[Bloomberg]( Follow Us [Get the newsletter]( If there’s one thing Vladimir Putin knows how to do, it’s get someone’s attention. With an economy that’s resource-rich but dwarfed in size by the U.S. and China, the Russian president gains influence by [meddling]( in other countries’ affairs and sending troops to conflicts many miles away. When it comes to America, Putin has found a particular sweet spot — its cyber infrastructure. [Ransomware]( attacks and other hacks are increasingly being traced to state-backed or encouraged actors operating inside Russia. In the latest development, [William Turton]( and [Jennifer Jacobs]( report exclusively from their sources that Russian government hackers [breached]( the Republican National Committee. The Kremlin denied involvement. Putin’s antics aren’t all that surprising, but they put President Joe Biden in an awkward spot after their [summit]( in Geneva. There, Biden said he spoke sternly with Putin about stopping the attacks, especially against critical infrastructure like pipelines where the [cost]( of outages is high. Putin, he said, heeded his words. And yet the attacks persist. Putin may be testing how much Biden is [willing]( to tolerate to keep overall ties on an even keel and collaborate on issues including Iran. Biden is also wary of pushing two U.S. rivals — Russia and China — closer. Equally, the U.S. leader will have the RNC on his tail, and it opens the way for ex-President Donald Trump to claim Biden is letting Putin boss him around. Even with Russia already heavily sanctioned, Biden will face pressure to do something. He’s convening a meeting today of various agencies and elevating the ransomware threat to a national [security]( priority. It will be interesting to see what, if anything, comes of it. — [Rosalind Mathieson]( Putin and Biden during the U.S.-Russia summit in Geneva on June 16. Photographer: Peter Klaunzer/Keystone/Getty Images [Click here]( to follow Bloomberg Politics on Twitter and tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines Tax pressure | The U.S. is urging the European Union to [back]( off plans to enact a digital tax that Washington believes will discriminate against American companies. Treasury officials told reporters ahead of this week’s Group of 20 finance ministers’ meeting that the dispute could undermine the drive for a global corporate-tax deal. Timber brouhaha | An EU strategy to boost the protection of its forests has exploded into a [fight]( between one of the bloc’s oldest industries and regulators. As [Jonathan Tirone]( explains, timber merchants are rallying to fight a European Commission proposal outlined in a leaked 19-page draft to deploy a suite of high-tech surveillance measures and rules to safeguard woodlands that are “under increasing strain.” Stable ties | Chinese Premier Li Keqiang called for [deeper]( cooperation and communication with the U.K. to boost relations even as political tensions simmer. Speaking during a virtual meeting with U.K. business leaders yesterday, Li said China would continue to open up its economy and treat all market players including foreign companies equally. - Regulators in Beijing plan rule changes that would let them [block]( Chinese companies from listing overseas even if the units selling shares are incorporated outside China, closing a loophole long used by the country’s tech giants. Some countries in Asia are starting to frame Covid-19 as a disease that must be [managed]( rather than stamped out, buoying hopes for freer travel toward the end of the year. Positive signs started to emerge this month, with green shoots beginning to show in airline seat capacity. Best of Bloomberg Opinion - [Pakistan Should Stop Looking to Leverage Taliban: Mihir Sharma]( - [An Ex-Trump Adviser’s Warning for Boris Johnson: Therese Raphael]( - [Saudi Arabia and the UAE Aren’t Breaking Up: Bobby Ghosh]( Trade tensions | Hong Kong apparel giant Esquel Group said it’s [suing]( the U.S. government for what it called the “erroneous” blacklisting of a subsidiary, saying it had been “falsely implicated” in the use of forced labor in China’s Xinjiang region. It’s one of dozens of companies ensnared in frictions between the U.S. and China over issues that span trade and human rights. Stalled program | Deep in [Trump]( country, where doubts run strong about vaccines and the virus, even personal tales of near-death experiences are only occasionally enough to persuade close family to get their shots. Two Americas have emerged from the growing vaccination gap: In states that Biden won in the last election, most adults are vaccinated and daily life is returning to normal. In other areas, it is a whole different story, as [Josh Wingrove]( reports. What to Watch - South African police plan to [arrest]( ex-President Jacob Zuma by midnight in the absence of any further instruction from the Constitutional Court. - Sweden’s caretaker prime minister, Stefan Lofven, says he’s [secured]( enough support to form a government and avoid snap elections in what’s expected to be a knife-edge parliamentary vote today. - A House Democratic lawmaker [warned]( he’d decline to vote for the legislative package in which party leaders plan to incorporate much of Biden’s longer-term economic proposals if it doesn’t include immigration reforms. - A Colombian businessman close to Venezuelan President Nicolas [Maduro]( is appealing a U.S. court decision to disregard his diplomatic immunity, in a last-ditch effort to block his extradition to American soil over corruption charges. And finally ... Thousands of Vietnamese workers are [sleeping]( in tents on factory floors and inside cavernous halls on metal bunk beds with bamboo mats. As [Chia Woon Eunice Chua]( and [Nguyen Dieu Tu Uyen]( report, it’s part of an effort to protect the country’s reputation as a vital cog in the global tech supply chain as it battles a resurgence in Covid-19, with staff facing quarantine until they test negative after returning from home. Hana Micron Vina’s factory floor at the Van Trung Industrial Park. Source: Giang Son Dong  Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022