Balance of Power
A call today between Trump and Xi is set to seal an agreement on TikTok and could lead to an in-person summit as early as next month.
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US President Donald Trump and Chinese leader Xi Jinping are set to seal the deal on a TikTok agreement. It’s unclear who exactly should be claiming victory.

When the two men speak by phone today, they’ll likely green-light a pact allowing the Chinese-owned app used by 170 million Americans to remain in the US. That’ll see Beijing license TikTok’s prized algorithm to a new majority American-owned entity, with all data housed overseas.

Trump’s weaponization of national-security laws has given the US control over one of China’s most-valuable private companies — ByteDance is worth about $400 billion.

That’ll be touted as a win in Washington, but it’s also a sobering thought for foreign CEOs looking at the American market.

Xi and Trump in 2017. Photographer: Fred Dufour/AFP/Getty Images

Xi might see it differently. The secret sauce behind TikTok’s success stays in China, on loan to America.

Just a few months ago, Commerce Secretary Howard Lutnick declared he wanted Chinese companies addicted to US tech. This shows Americans need Beijing’s innovations, too.

What’s more, Huawei is powering ahead with products that put it closer to not needing Nvidia’s best offerings.

Of course, TikTok is one round in a long fight. The call at 9 p.m. Washington time is expected to set up an in-person leaders’ meeting at a summit in South Korea as early as next month, where more business can get done.

What Trump wants is a big, beautiful deal. With an impending Supreme Court ruling threatening to strike down his tariffs, time is tick-tocking for him to wrangle more from China than a rental agreement for its best tech. Jenni Marsh

TikTok offices in Culver City, California. Photographer: Bing Guan/Bloomberg

Global Must Reads

Russian President Vladimir Putin has “really let me down,” Trump said yesterday, while insisting that allies must stop purchasing oil from Russia if they want the US to further intervene and pressure the Kremlin to end the war in Ukraine. The European Union is meanwhile planning measures to accelerate the bloc’s phaseout of Russian liquefied natural gas by a year, sources say.

With golden carriages, military splendor and an opulent banquet, the UK’s royal gambit paid off this week, as Trump and Prime Minister Keir Starmer concluded an historic state visit by hailing the trans-Atlantic relationship and — at least publicly —  smoothing over policy differences. To be sure, there was little sign of significant shifts in Trump’s stances on issues including trade and Ukraine, but the leaders stressed their common ground along with big-ticket investments in tech and energy, while skirting over the areas where they diverged.

Photographer: Chris Jackson/Getty Images

China slammed the US for blocking a United Nations Security Council resolution calling for an immediate ceasefire in Gaza, signaling Beijing’s frustration with the system just as it seeks to reshape global governance. Washington said the resolution, backed by all the 14 other Security Council members, failed to adequately condemn Hamas. Meanwhile, with the war intensifying, Israel’s economy and businesses are bracing for further strain.

French unions led widespread anti-austerity protests yesterday, raising the pressure on newly appointed Prime Minister Sébastien Lecornu as he struggles to find allies to piece together a budget. The latest official gauge of business sentiment published today remained stable at a low level, with French firms and households facing heightened uncertainty over taxation and spending after the second government collapse in a year this month.

WATCH: Paris Bureau Chief Alan Katz discusses the French protests on Bloomberg TV.

Trump said US broadcast networks should face scrutiny over their licenses if they’re too critical of him, in what amounts to his furthest-reaching threat to media freedoms. Presidents have long had adversarial relationships with the press — but no American head of state has taken the war on media to the extremes that Trump has.

One of the leading candidates to become the next head of Japan’s ruling party, Sanae Takaichi, said today she would roll out tax benefits and make cash payouts to households if she wins the party’s Oct. 4 leadership election.

Takaichi in Tokyo today. Photographer: Richard A. Brooks/AFP/Getty Images

The reformist party that won Thailand’s most-recent election is seeking a comeback by targeting populist and conservative strongholds ahead of an expected vote, even as its pact to back rival Anutin Charnvirakul for prime minister risks eroding support.

For the first time since at least the 1990s, China hasn’t bought any US soybeans at the start of the export season, a sign that Beijing is once again using agriculture as leverage in its trade fight with Washington.

South Africa expressed cautious optimism over progress in trade talks with the US, a month after Trump slapped the nation with 30% tariffs on its exports.

Don’t miss from Bloomberg Weekend: Historian Jung Chang tells Mishal Husain about the follow-up to her book Wild Swans and her frustrations with modern China. Derek Li, founder of Chinese ed-tech company Squirrel Ai Learning, outlines his belief that adaptive software powered by artificial intelligence is the future of education, and Dexter Fergie asks whether World War II really ended in September 1945. Subscribe to the Bloomberg Weekend newsletter here.

Sign up for the Washington Edition newsletter for news from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television.

Chart of the Day

European companies are halting production due to shortages of rare-earth products from China, even as the world’s top supplier ramps up overall exports to record levels. EU firms suffered seven stoppages in August because of the shortfalls, and an additional 46 are expected this month, according to the bloc’s Chamber of Commerce in China. The situation has prompted executives from the EU’s electric-vehicle industry to trek to Estonia to queue for rare-earths magnets that are essential components in their production process.

And Finally

Chinese startups — with the support of a full-throttle policy drive — are challenging US leadership in the cutting-edge field of brain technology. For years, US companies like Elon Musk’s Neuralink have led the industry with state-of-the-art procedures implanting chips into patients’ brains. A wave of clinical trials by Chinese startups this year is shifting that narrative. A May video by Shanghai StairMed Technology showed a paraplegic patient playing a computer game using only his thoughts, enabled by a coin-shaped implant comparable to the one used in Neuralink surgeries.

Shanghai StairMed Technology’s brain-computer interface device that can pick up neural signals. Photographer: Qilai Shen/Bloomberg

Pop quiz (no cheating!). Which Asian country’s president said this week that even his relatives and allies wouldn’t be spared in a corruption probe? Send your answers to balancepower@bloomberg.net

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