Weekend News: China, Taiwan gain major attention

Having heard inflation as the primary catalyst during the last week, geopolitical factors surrounding the US-China ties and the covid woes in Beijing are back in focus after the latest developments. Headlines surrounding the US tax bill’s passage and BOE Governor Andrew Bailey’s readiness for review also crossed wires and seemed interesting.

A Wall Street Journal (WSJ) piece suggesting a probable meeting between US President Joe Biden and his Chinese counterpart Xi Jinping gained major attention.

The news said, “Chinese officials are making plans for Xi Jinping to visit Southeast Asia and meet face-to-face with President Biden in November, according to people familiar with the preparations, in what would mark the Chinese leader’s first international trip in nearly three years and his first in-person meeting with Mr Biden since the American leader’s inauguration.”

On the other hand, Nikkei Asia came out with the news suggesting the increased count of US lawmakers who are visiting Taiwan after the dramatic visit of House Speaker Nancy Pelosi. “A delegation of American lawmakers is visiting Taiwan just 12 days after a visit by U.S. House Speaker Nancy Pelosi that angered China,” said the news.

Nikkei Asia also added that the five-member delegation, led by Democratic Sen. Ed Markey of Massachusetts, will meet senior leaders to discuss U.S.-Taiwan relations, regional security, trade, investment and other issues, the American Institute in Taiwan said.

Elsewhere, Reuters conveyed improved coronavirus conditions in China's financial hub Shanghai as the policymakers announced, per the news, that they will reopen all primary, middle and high schools, kindergartens and nurseries on September 1 after months of COVID-19 closures. “Shanghai shut all schools mid-March before the city's two-month lockdown to combat its worst COVID outbreak in April and May,” Reuters added.

It should be noted that the US House passed the Climate and Tax Bill and sent it to Biden.

On a different page, Bank of England (BOE) Governor Andrew Bailey would be “open to a review” of the central bank’s mandate after Foreign Secretary Liz Truss criticized its approach to inflation, the Telegraph reported, citing a person familiar with the situation, per Bloomberg.

Bailey’s reported remarks follow comments by Truss to the Telegraph this month that she would “look again” at the BOE’s mandate “to make sure it is tough enough on inflation,” per Bloomberg News. The piece also mentioned that price gains are currently approaching double digits and forecast to peak at 13.3% in October, more than six times the BOE’s target.”

Also read: Gold Weekly Forecast: Next direction depends on September Fed hike bets