No alternative

Follow Us Get the newsletter The U.S. is attempting to turn the screws on more Chinese companies, urging countries to avoid doing business with them. The problem is America is not offering much in the way of alternatives. Much of the attention has been on Chinese telecoms giant Huawei, whose advanced technology, global reach and deep pockets make it hard to shun entirely for nations looking to build out 5G networks. Consumers and companies want speed and bandwidth, and Huawei brings both. Other western firms trail behind in terms of capabilities. The U.S. argument is Huawei comes with a big brother in the shadows; that countries could compromise data and national security by dealing with it. Huawei denies being an agent (intended or otherwise) of Beijing. Now, as Sylvia Westall and Ivan Levingston report, the U.S. wants Middle East allies including Israel, Saudi Arabia and the United Arab Emirates to spurn Shenzhen-based genetics company BGI Group, which has secured lucrative contracts to build coronavirus testing centers. One U.S. official calls BGI the "Huawei of genomics," warning Beijing could glean information of intelligence value and share it with the likes of Iran. It's a hard sell. These countries are battling the virus and need to swiftly contain it. The U.S. is immersed in one of the worst outbreaks and doesn't look placed to supplant these arrangements. Many countries probably feel squeamish about the potential longer-term consequences of these deals. But the U.S. isn't necessarily giving them another option. — Rosalind Mathieson   A laboratory technician works on samples from people to be tested for the coronavirus at BGI's lab in Wuhan on Feb. 6. Photographer: AFP via Getty Images Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Wooing the base | President Donald Trump is seizing on his core voters' mistrust of international institutions and skepticism of science, heightened amid the pandemic. His threat to withdraw from the World Health Organization and revelation he was taking an unproven anti-malaria drug fit with Republican sentiment, Justin Sink writes, and are brazen appeals to his most avid supporters. Existential risk | Pandemic-induced joblessness could become a big headache for Chinese President Xi Jinping, who has promoted rising income levels as key to the Communist Party's legitimacy and control. At their big annual meeting this week, leaders may not give a numerical economic growth target for the first time in decades. While there are few signs for now of major unrest, the situation is increasingly desperate along the southern industrial belt — China's main growth engine. Tsai Ing-wen urged Xi to "find a way to co-exist" with Taiwan's democratic government, an overture Beijing immediately rejected. It also slammed U.S. Secretary of State Michael Pompeo for congratulating Tsai on the start of her second term as president. Hamilton moment | The proposal from France's Emmanuel Macron and, more importantly, Germany's Angela Merkel for a 500 billion euro economic recovery fund could mark a critical turning point for the European project. It involves joint debt issuance and direct handouts for the European Union's hardest-hit countries, like Italy, and underpins the currency union. But four hardline nations from the wealthier north have signaled their opposition and aim to release a rival plan later today. 100-year drought | A dry spell scorching parts of the EU's east is devastating harvests and exacerbating what's expected to be the region's deepest economic downturn since the fall of communism. It's also raising questions of how to ensure food security in a region with painful memories of shortages and a recent scramble for protective gear to fight the coronavirus. Drug push | As Brazil battles a rising virus death rate, President Jair Bolsonaro is set this week to sign a new protocol making the controversial anti-malarial drug chloroquine — the one Trump says he's taking — available for milder virus cases. Bolsonaro has lost two health ministers in quick succession amid clashes over his refusal to support lockdowns and social distancing to combat Covid-19. What to Watch Burundians took a step toward ending the political upheaval that's marred Pierre Nkurunziza's 15-year rule when they began voting in a presidential election today. Protests over food shortages in the Chilean capital yesterday signal the potential return of social unrest that wracked the nation late last year. Michael Flynn, Trump's former national security adviser, is asking a federal appeals court to let the Justice Department drop a criminal case against him for allegedly lying to the FBI, rather than wait for a lower-court judge to decide. And finally ... In malls in Saudi Arabia, the monotone of the muezzin beckoning Muslims to worship five times a day is usually accompanied by a rush to close stores. No longer. As Donna Abu-Nasr reports, in the time of coronavirus another hallmark of Saudi life appears to have been dispensed with — another step in the social overhaul since Crown Prince Mohammed bin Salman became de facto leader in 2017. Stores remain open during prayer times in Riyadh, Saudi Arabia, on May 19. Photographer: Tasneem Alsultan/Bloomberg     A special offer for Balance of Power readers | For just $1.99 a month, 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