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Fireworks in Alaska

While nobody expected the first U.S.-China meeting after Donald Trump's presidency to be a lovefest, the unusually vitriolic start to talks in Alaska still managed to surprise.

U.S. Secretary of State Antony Blinken reeled off a list of sensitive issues in his opening statement yesterday and called China a threat to "the rules-based order that maintains global stability." Communist Party Politburo member Yang Jiechi laced into the U.S. in reply, calling it the "champion" of cyber attacks and citing the Black Lives Matter protests in telling Washington to "do better on human rights."

When Blinken replied to those comments before journalists left the Anchorage ballroom, the Chinese side called for the cameras to return to take some more shots at the Americans. Chinese stocks slumped after the inital talks, which continue today.

Both sides have domestic incentives to exude strength. The Biden administration wants to prove it won't go easy on Beijing, while China's diplomats must show President Xi Jinping they are on an equal footing with the U.S.

Now the question is whether they can find a way to cooperate. While it's nearly impossible for the U.S. to meet Chinese demands to lift Trump's tariffs, sanctions or restrictions on Big Tech companies, both sides want to do more on climate change.

To that end, the biggest sign of success would be an agreement for President Joe Biden to meet with Xi around Earth Day next month. If that doesn't happen, the fireworks in Alaska may just be a taste of what to expect over the next four years. — Daniel Ten Kate

Blinken speaks at the opening session of U.S.-China talks in Anchorage, Alaska yesterday.

Photographer: Frederic J. Brown/AFP/Getty Images

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Global Headlines

Pipeline penalties | The Biden administration is weighing additional sanctions to block construction of the Nord Stream 2 pipeline from Russia to Germany, including the project's parent company and firms providing support and material, sources say. There's concern in the U.S. and some European countries that the pipeline, which is almost complete, could increase the Kremlin's leverage over Germany and other NATO allies.

Another chance | Armed with an all-clear from regulators for AstraZeneca's vaccine, the European Union has a chance to put its Covid-19 inoculation campaign back on track after a chaotic week of suspensions, health scares and export-ban threats that sacrificed precious time. With a spike in cases underscoring the urgency of the threat, governments in Germany, France and Italy said they'll immediately resume administering the Astra shots, which several EU countries suspended after reports of blood clots in some patients.

  • The uncoordinated rollout of so-called Covid passports means the EU's plan to introduce its own health pass to reboot travel by June is a tall order, according to the company that runs dozens of airports, including Paris-Charles de Gaulle.

Feeling the heat | Until recently, it seemed First Minister Nicola Sturgeon could do no wrong, with her pro-independence party soaring as she steered Scotland through the pandemic and gained profile through her avowedly anti-Brexit stance. Now she's facing calls to step down over charges that she misled Parliament over her government's mishandling of harassment complaints against her male predecessor. With Scottish elections on May 6, it's an explosive situation with potential repercussions for the whole U.K.

Gertler's letoff | The Trump administration's controversial decision to ease sanctions on Israeli magnate Dan Gertler, accused earlier by the U.S. of corruption in the Democratic Republic of Congo, came after Israeli officials including Mossad boss Yossi Cohen said he was a vital national security asset. As Ethan Bronner details, they made the case for the value of Gertler's connections in Africa and his philanthropy in Israel.

Gertler at his office in Ramat Gan, Israel in 2012.

Photographer: Simon Dawson/Bloomberg

Rare collaboration | The angry spat between Moscow and Washington over Biden's characterization of Vladimir Putin as a "killer" hasn't stopped the former Cold War foes from cooperating on Afghanistan, Henry Meyer reports. Russia and the U.S., along with China and Pakistan, are working to persuade the Afghan government to share power with the Taliban.

What to Watch

  • Pentagon chief Lloyd Austin is in New Delhi this weekend as the U.S. puts more emphasis on the Indo-Pacific region.

  • In a virtual Bloomberg Equality Summit interview, Biden adviser Cecilia Rouse pledged "aggressive" policies to tackle inequalities in income, wealth and other measures holding back the U.S. economy.

  • The EU may start punishing members over rule-of-law issues as soon as this year with a new sanctions tool that could see the likes of Hungary or Poland lose out on billions of euros.

  • Prime Minister Boris Johnson said he's open to the idea of an amnesty for migrants who move to the U.K. illegally.

Pop quiz, readers (no cheating!). Which Latin American country's president survived an impeachment vote this week? Send your answers to balancepower@bloomberg.net.

And finally ... It's inevitable that some of the 10 million people who get Covid vaccines every day will experience serious symptoms or even die soon after. The question is, are the shots responsible? John Lauerman and Jason Gale dig deeper into the difficulties in untangling the relationship between vaccines deemed safe in trials of tens of thousands of people and conditions that have arisen after immunization, including blood clots, allergic reactions, temporary facial paralysis, and even death.

A Palestinian man receives a dose of the Moderna Covid-19 vaccine at the Meitar checkpoint crossing into Israel, south of Hebron, West Bank, on March 9.

Photographer: Kobi Wolf/Bloomberg

 

 

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