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Xi’s message

Balance of Power
Bloomberg

Chinese President Xi Jinping sure knows how to time his speeches to the global financial elite.

Four years ago, he greeted Donald Trump with an address at Davos asserting China's openness and warning against protectionism, earning him praise against the backdrop of the "America First" rhetoric coming from Washington.

Xi will have a somewhat tougher challenge drawing a contrast with the U.S. in his first speech — this time to a virtual Davos — during the presidency of Joe Biden, who has embraced multilateralism and pledged to work more with allies. Biden's administration has already vowed to maintain pressure over human-rights abuses in Hong Kong and Xinjiang and condemned Beijing's latest show of force against Taiwan.

Biden is also likely to keep many measures Trump put in place restricting technology exports to some of China's biggest companies. Not to mention the punitive tariffs on some $500 billion worth of Chinese goods.

But Xi does have a positive story to share: China was the only major economy to grow last year, and he just signed an investment pact with the European Union. China has done a far better job than the U.S. at containing Covid-19.

And Biden has offered to cooperate with Beijing in areas like climate change, while emphasizing the need to compete with, rather than contain, China, a welcome respite from Trump's efforts to kneecap its economy.

All things considered, Xi is in a stronger position than four years ago. And America has fallen behind. — Daniel Ten Kate

Xi and Biden walk across the Dujiangyan Irrigation system in China's southwest province of Sichuan on Aug. 21, 2011.

Photographer: Peter Parks/AFP via Getty Images

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Global Headlines

Courting Congress | Biden will escalate appeals for Congress to back $1.9 trillion in pandemic relief, seeking to overcome Republican opposition as he enters his first full week in office. Biden's top economic adviser discussed the proposal yesterday with a bipartisan group of lawmakers. Some asked the White House to further justify what would be the second-largest emergency spending measure in U.S. history and expressed interest in a narrower bill focused on accelerating vaccine distribution, Jordan Fabian reports.

Shifting ground | Prospects for convicting Trump in his Senate impeachment trial are waning as more Republicans embrace the argument that a conviction would be divisive, unwarranted or even unconstitutional. As Steven T. Dennis reports, a key point of argument is whether the Constitution allows Congress to try a president who has left office. Many constitutional scholars and 19th century precedent say yes; a growing number of Republicans say no.

Recovery postponed | Surging coronavirus infections and the time needed to roll out vaccines mean the world economic rebound will take longer and won't be as strong as previously forecast. Enda Curran writes that double-dip recessions are expected in Japan, the euro area and the U.K. — and record cases in the U.S. are dragging on retail spending and hiring. Only China has managed a V-shaped recovery.

Wealth gap | Inequality across the globe is rising to a record, with the poor likely to feel the impact of the pandemic for years while the "mega rich" have already witnessed a turnaround, the charity Oxfam said in a new report. It echoes a recent analysis by the World Bank that said the economic crisis is sending a new generation into poverty and debt turmoil.

  • Big business groups that fuel Washington's influence industry have taken a pandemic-era hit, with many spending less on lobbying in 2020 than in 2019.

Falling sick | Mexican President Andres Manuel Lopez Obrador tested positive for Covid-19 but says his symptoms are mild and he will continue with his schedule, including a planned call today with Russian leader Vladimir Putin. Lopez Obrador, 67, has refused to impose mandatory lockdowns and instead pressed hard to keep the economy open for business, even as Mexico has the fourth-highest number of fatalities globally.

What to Watch This Week

  • Biden will sign an executive order today to boost federal agencies' purchases of U.S. products, fulfilling a campaign pledge to lay out a "Buy American" plan.
  • Italian Prime Minister Giuseppe Conte could decide to resign in a tactical move to position himself to lead a new government if he thinks he faces defeat in another crucial Senate vote this week.
  • Turkish and Greek diplomats meet in Istanbul today to try and iron out differences over maritime boundaries for the first time since 2016.
  • Uganda's High Court ordered the security forces to free presidential challenger Bobi Wine from house arrest after ruling his indefinite confinement was unlawful.

Thanks to all who responded to our pop quiz Friday, and congratulations to Stephen Markscheid, who was the first to name Thailand as the country whose king is seeking to burnish his image after political and economic instability spawned unprecedented demands for reform of the monarchy.

And finally ... Putin regularly touts Russia's rise to the top of the world's agricultural exporters as another sign of its global power. But with his popularity near record lows — and with the jailing of opposition leader Alexey Navalny spawning the largest demonstrations since at least 2018 — Putin is imposing measures to curb exports and drive domestic prices lower in an attempt to mollify a public battered by falling incomes and rising food costs.

Russia's wheat farmers face potential revenue losses.

Photographer: Andrey Rudakov/Bloomberg

 

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