Your Friday Briefing: Biden and Xi’s fraught phone call

Also, U.S. G.D.P. declined again and an Australian law against foreign meddling will be tested.

View in browser|nytimes.com Continue reading the main story July 29, 2022 By Daniel E. Slotnik and Matthew Cullen Good morning. We're covering a marathon call between Presidents Biden and Xi Jinping of China, and fears of a recession in the U.S. President Biden at the White House on Wednesday.Cheriss May for The New York Times A tense call between the leaders of the U.S. and China President Biden and President Xi Jinping of China spoke by phone for two hours and 17 minutes — their first direct conversation in four months during which relations between their countries have soured. China and the U.S. have been at odds over Russia's war in Ukraine, tariffs and aggressive Chinese action in the Asia-Pacific region. The future of Taiwan, a self-governing island which China covets and which Biden has said he would defend with force, has become a particularly contentious issue, especially since Speaker of the House Nancy Pelosi is reportedly planning to visit. China's Ministry of Foreign Affairs said that the call was productive, but issued a stern warning against what it considered American provocations, without directly mentioning Ms. Pelosi. "Playing with fire will set yourself on fire," the ministry's statement said. Analysis: Some American officials think that Xi is taking a harder line against the U.S. in order to distract the Chinese from domestic issues, "a tried-and-true technique of leaders everywhere," our colleague Peter Baker writes. Economy: China's economy grew at its slowest pace this month since the start of the pandemic, at least in part because of strict Covid policies that have prompted outrage even as cases rise in China. Quarterly changes in U.S. real gross domestic product. Source: Bureau of Labor StatisticsBy The New York Times U.S. G.D.P. continues to drop An important measure of U.S. economic output fell for the second consecutive quarter, fueling fears that the country may soon enter a recession — or that one may have already begun. Gross domestic product, adjusted for inflation, fell 0.2 percent in the second quarter, the Commerce Department said, following a contraction of 0.4 percent in the first three months of the year. The level of G.D.P. decline so far in 2022 means that by one common but unofficial definition the U.S. economy has entered a recession, just two years after it emerged from the last one. Most economists still don't think the U.S. economy meets the formal definition of a recession, but the data leaves little doubt that the recovery is losing momentum amid rising interest rates, high inflation and anemic consumer spending. Other economic news: Annual inflation in Germany increased in July to 8.5 percent, as Russia further cut its natural gas deliveries to the country, creating concern that record energy prices could climb even higher. Climate change is probably a drag on economic growth, but it's unclear by how much. The $369 billion climate and tax package announced by Senate Democrats would be the most ambitious climate action the country has ever taken, if it becomes law. Di Sanh Duong in Melbourne, Australia, in 2020.James Ross/Australian Associated Press, via Associated Press A test for Australia's law against foreign meddling A judge in Australia ruled that a Chinese-Australian man accused of preparing for an act of foreign interference will head to trial, providing the first court test of a sweeping law that is fueling concerns of overreach. The man, Di Sanh Duong, was charged in 2020 after raising money for a Melbourne hospital, which the authorities said was used to cultivate a relationship with a federal minister in order to influence policy to the advantage of China. Under the foreign influence law — enacted in 2018 amid anxiety over China's influence — he could receive a maximum sentence of 10 years. The evidence against Duong is largely circumstantial. His lawyers argue that the prosecution is relying on weak evidence to reach conclusions on future matters and that doing so "strains every sinew of the criminal law." They said the $26,000 donation was merely a way of combating anti-Chinese racism. But the judge agreed with the Australian authorities, allowing the prosecution to proceed without evidence that Duong was planning to commit an act of interference. Legal view: Sarah Kendall, a legal researcher at the University of Queensland, said the case reflected the extensive reach of the law. Under it, she said, conduct that might be harmless in itself could be considered a crime if police could prove that behind the conduct was the required intent to prepare for foreign interference. Continue reading the main story ADVERTISEMENT THE LATEST NEWS World News Pope Francis greeted people outside the Sacred Heart Church of The First Peoples in Edmonton, the capital of Alberta, on July 25.Ian Willms for The New York Times Pope Francis, who was in Canada to apologize to Indigenous people for the abuses they endured in church-run residential schools, used his own vulnerability to demand dignity for older people in a world increasingly populated by them. Iran has increased its sale of weapon-capable drone exports, providing funds for a country struggling under sanctions. Hundreds of Iraqi protesters breached Baghdad's Parliament, demonstrating against a nominee for prime minister chosen by Iran-backed parties. More than 1.5 million people globally became infected with H.I.V. last year, roughly three times the target, according to the U.N. Some patients, including a 66-year-old man, have been cured by stem cell transplants, Reuters reported. War in Ukraine Ukraine expressed urgency over its counteroffensive in the south, saying that Russia was hurrying to bolster its forces in the region and solidify control of the territory it holds. Russia renewed its assault on northern Ukraine, conducting strikes from the Black Sea to Belarus that injured at least 15 people in the Kyiv region. Viktor Bout, the arms dealer that the U.S. proposed exchanging for the W.N.B.A. star Brittney Griner and the former Marine Paul Whelan, has a notorious history that earned him the nickname Merchant of Death. A spokeswoman for Russia's foreign ministry said that negotiations for a prisoner exchange were underway, but "no concrete result has been achieved." Here are some other notable prisoner swaps that freed Americans. A Morning Read Present-day cows at a 4,000-year-old site in Wiltshire, England.Tim Gainey/Alamy For thousands of years, Europeans consumed milk products despite lacking an enzyme needed to avoid gastrointestinal discomfort. In a new report, scientists argue that the lactase mutation only became important to survival when Europeans began enduring epidemics and famines. Lives Lived: U Phyo Zeya Thaw, a Burmese hip-hop star turned pro-democracy activist and politician, was executed by Myanmar's military junta on Saturday. Subscribe Today We hope you've enjoyed this newsletter, which is made possible through subscriber support. Subscribe to The New York Times with this special offer. ARTS AND IDEAS Who can play the king? When three prestigious Shakespeare companies staged "Richard III" this year, each took a different approach to casting its titular character in ways that illuminated the fraught debate over which actors should play which roles. The Royal Shakespeare Company in Stratford-upon-Avon, England, cast Arthur Hughes, who has radial dysplasia, which means he has a shorter right arm and a missing thumb. The company said it was the first time it had cast a disabled actor to play the character, who describes himself in the opening scene as "deformed." The Stratford Festival in Ontario, Canada, took a different tack: It cast Colm Feore, who is not disabled, to play a Richard who has a deformed spine. And in New York City, the Public Theater's Free Shakespeare in the Park went in yet another direction, casting Danai Gurira, a Black woman who does not have a disability. Their varying approaches come at a moment when an intense rethinking of the cultural norms around identity, representation, diversity, opportunity, imagination and artistic license have led to impassioned debates over casting. PLAY, WATCH, EAT What to Cook Bobbi Lin for The New York Times A collection of fresh produce comes together in this corn salad with tomatoes, basil and cilantro. What to Try A beginner's guide to stand-up paddleboarding. What to WATCH Chan Tze Woon's "Blue Island" mingles documentary and dramatization as students from contemporary Hong Kong re-enact the political struggles of earlier generations. Now Time to Play Play today's Mini Crossword, and a clue: Unwanted emails (four letters). Here are today's Wordle and Spelling Bee. You can find all our puzzles here. That's it for today's briefing. See you next time. — Daniel and Matthew P.S. Max Strasser will be the new editor of The Times's recently renamed and redesigned Sunday Opinion. The latest episode of "The Daily" is about inflation. You can reach both of us at briefing@nytimes.com. Continue reading the main story ADVERTISEMENT Need help? Review our newsletter help page or contact us for assistance. You received this email because you signed up for Morning Briefing: Asia Pacific Edition from The New York Times. To stop receiving these emails, unsubscribe or manage your email preferences. Subscribe to The TimesGet The New York Times app Connect with us on: Change Your EmailPrivacy PolicyContact UsCalifornia Notices The New York Times Company. 620 Eighth Avenue New York, NY 10018