Biden’s tricky China tightrope

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Jun 16, 2023 View in browser
 
Playbook PM

By Eli Okun

Presented by

The Coalition to Protect America's Regional Airports

WASHINGTON, DC - JUNE 15: U.S. President Joe Biden speaks during a screening of the film “Flamin’ Hot” on the South Lawn of the White House on June 15, 2023 in Washington, DC. The  movie tells the story of Richard Montanez, a janitor at Frito-Lay who claimed to have created the recipe for Flamin’ Hot Cheetos, which turned the snack into a global   phenomenon.  (Photo by Alex Wong/Getty Images)

President Joe Biden reportedly wanted to have a direct call with Chinese President Xi Jinping earlier this year. | Alex Wong/Getty Images

As Secretary of State ANTONY BLINKEN heads to China this weekend, the U.S. faces difficult dynamics on multiple fronts — navigating the bilateral relationship with an increasingly skeptical rival and navigating complex policy debates back in Washington.

President JOE BIDEN came close to having a direct call with Chinese President XI JINPING earlier this year, shortly after the U.S. downed a Chinese spy balloon, NBC’s Courtney Kube and Carol Lee scooped today. But his national security team dissuaded him, they report. The president thought he could tamp down tensions with a direct conversation, but his advisers felt that it wasn’t the right time because China was too angry.

Now, China is still angry, and even as Blinken travels there, it’s not clear whether he’ll meet with Jinping, NYT’s Vivian Wang reports. Blinken hopes to smooth things down — but “China’s increasingly assertive, at times outright hostile, stance suggests that the visit will be as much about confrontation as détente.” And most people don’t expect any big breakthroughs.

Back home, the Biden administration is still working through how to structure its forthcoming, long-in-the-works national security executive order to restrict U.S. investments in the Chinese tech sector. One of the latest wrinkles is how the order should handle Chinese artificial intelligence — specifically how the U.S. should determine which AI constitutes a national security threat, WSJ’s Andrew Duehren and Ryan Tracy report. It’s tough for the U.S. to separate ordinary, commercially applied AI from tech that could be used for the military.

The order could run into some political hurdles on the Hill, too. Though there’s general consensus about the need for some policy like this, House Republicans are warning that they’ll intervene if it goes too far in infringing on markets, Semafor’s Morgan Chalfant reports. Rep. ANDY BARR (R-Ky.) says he’d work to “block” it on the Financial Services Committee if it’s not tailored precisely enough, and Chair PATRICK McHENRY (R-N.C.) says he’ll “keep all options on the table.”

FIRST IN PLAYBOOK — Betsy Woodruff Swan reports: AG MERRICK GARLAND is scheduled to travel to the Netherlands next week, stopping in The Hague to visit the International Criminal Court, according to a person familiar with the travel plans who was granted anonymity to discuss them. He also plans to meet with Dutch officials and discuss efforts to combat terrorism and cybercrime, as well as the war in Ukraine.

Garland and Homeland Security Secretary ALEJANDRO MAYORKAS are also scheduled to attend a ministerial in Stockholm next week with European counterparts focused on some of the same topics. A Justice Department spokesperson declined to comment.

The ICC visit comes as Biden’s administration seeks to warm U.S. relations with the tribunal, after the Trump administration put sanctions on the court’s chief prosecutor and a top aide in 2020 over an investigation into alleged U.S. war crimes. The Biden administration revoked those sanctions a few months after inauguration, but there are no indications the U.S. has moved any closer to formally joining the ICC amid concerns that it could target American citizens.

But the U.S. has offered support on some of the court’s investigations — JACK SMITH, the Justice Department special counsel investigating DONALD TRUMP spent years overseeing war crimes prosecutions there — and U.S. leaders hailed its March arrest warrant for Russian President VLADIMIR PUTIN.

WHAT GARLAND IS UP TO TODAY — “Justice Department finds pattern of discriminatory policing in Minneapolis,” by the Star Tribune’s Stephen Montemayor and Liz Navratil: “The Minneapolis Police Department routinely engaged in a pattern of racist and abusive behavior that deprives people of their constitutional rights, according to new findings of a Justice Department investigation.”

Happy Friday afternoon. Thanks for reading Playbook PM. We’ll be off Monday, but Playbook will still be in your inbox every morning. Drop me a line at eokun@politico.com.

 

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BEYOND THE BELTWAY

THE ABORTION LANDSCAPE — Iowa’s six-week abortion ban will not go into effect after the state Supreme Court today deadlocked 3-3, leaving a district judge’s order blocking the policy in place, per the Des Moines Register’s William Morris and Katie Akin. That means abortion will remain legal up to 20 weeks in the state.

“America’s unlikeliest abortion clinic has opened in its reddest state,” by WaPo’s Karin Brulliard in Casper, Wyo.: “[W]ith the state’s restrictions tied up in court, Wellspring’s small stucco building represents a dramatic abortion standoff and a stark expansion of abortion services in a region of wide-open range and sky.”

BATTLE FOR THE BALLOT — “Ohio Supreme Court OKs August election for plan to make it harder to amend constitution,” by The Columbus Dispatch’s Haley BeMiller: “In a 4-3 ruling, the Republican-leaning court determined that lawmakers legally set an Aug. 8 election for Issue 1.”

JUSTICE IN PITTSBURGH — “Gunman found guilty on all charges Pittsburgh synagogue massacre,” by the Pittsburgh Post-Gazette’s Megan Guza

2024 WATCH

UNION MAN — Biden is leaning hard into his union ties at the start of his reelection campaign, banking on long-standing labor ties to lift his chances in Pennsylvania in particular, AP’s Will Weissert and Seung Min Kim report. Despite occasional tensions over strikes or electric vehicles, the Biden administration has maintained strong ties with major labor unions, some of which are already backing his bid. The Biden team sees that support as critical in Michigan and Nevada, as well.

In addition to the AFL-CIO, Biden raked in 17 more big union endorsements today, including the American Federation of Teachers, AFSCME and the American Federation of Government Employees.

WAKING UP IN VEGAS — As Florida Gov. RON DeSANTIS heads to Nevada this weekend for the Basque Fry, the top two GOP campaigns are stepping up their contest to win the state, NBC’s Natasha Korecki and Henry Gomez report. Trump has won the state’s caucuses twice, and his team doesn’t plan to cede the terrain: “Not surprised Ron DeSantis is looking for a set of balls,” CHRIS LaCIVITA says of the event, which features deep-fried lamb testicles. But Trump has also lost the state in November twice, which DeSantis’ team sees as an opening — especially because the state may switch to primaries this cycle. “I was a two-time Trump chair,” says ADAM LAXALT. “I don’t see a path for him to win Nevada in a general election.”

 

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ALL POLITICS

WHAT JON TESTER IS READING — Montana Republican Senate hopeful TIM SHEEHY is being sued for negligence in lengthy litigation over a tragic 2019 plane crash, The Daily Beast’s Ursula Perano scooped. Sheehy was being trained to get a multi-engine sea license in Florida when the accident happened, killing the instructor on board and injuring a 17-year-old girl whose bedroom they crashed into. Sheehy didn’t respond to a request for comment.

DATA DIVE — “How data from abortion rights fights in 2022 could shape 2024,” by The 19th’s Grace Panetta: “Democrats and abortion rights organizers achieved significant wins in the 2022 midterms — and collected hundreds of millions of data points about voters along the way.”

THE ANTI-LGBTQ BACKLASH — The percentage of Americans who say gay or lesbian sex is morally acceptable fell 7 points from last year, falling from 71% to 64%, per a new Gallup survey. The drop-off was especially precipitous among Republicans, plunging from 56% to 41%, as prominent conservatives have mainstreamed lies conflating LGBTQ people with pedophiles.

RELIGION IN POLITICS — From Austin, Adam Wren pens a big POLITICO Magazine profile of Texas state Rep. JAMES TALARICO, a 34-year-old in seminary to become a pastor who’s going viral and exciting Democrats with faith-based defenses of progressive values. There’s already chatter of a possible 2026 gubernatorial run.

POLITICS IN RELIGION — “Southern Baptists’ Fight Over Female Leaders Shows Power of Insurgent Right,” by NYT’s Elizabeth Dias and Ruth Graham: “[T]he ultraconservatives are seizing power, and the ship is beginning to turn. … The crackdown on women is, on its face, about biblical interpretation. But it also stems from growing anxieties many evangelicals have about what they see as swiftly changing norms around gender and sexuality.”

TOP-EDS — Sen. MARCO RUBIO (R-Fla.) and CatholicVote’s BRIAN BURCH are out with a new piece in The Federalist decrying the L.A. Dodgers’ decision to honor the Sisters of Perpetual Indulgence. They also blast the L.A. Times, which they claim refused to respond to their effort to publish this op-ed in the paper over several days.

“Barbara Boxer warns progressives to back off on Dianne Feinstein or they may be sorry,” by the L.A. Times’ Mark Barabak

TRUMP CARDS

BREACH OF TRUSTY — Trump attorney JIM TRUSTY is withdrawing from Trump’s long-shot defamation lawsuit against CNN, just days after he pulled out of Trump’s team for the big federal criminal probes, Kyle Cheney reports. The filing cites “irreconcilable differences between Counsel and Plaintiff.” Read it here

AGAINST THE GRAIN — Trump’s polling resilience — or improvement — among Republicans since his federal criminal indictment has been much discussed. But NYT’s David Leonhardt dives into the data and finds a more nuanced narrative, with some more troubling signs for Trump. Notably, Republicans are less unified in their dismissal of the charges than Democrats are in their acknowledgment of the case’s seriousness. And the numbers of independents and Republicans who are concerned by the charges is growing compared to his last indictment.

TO SPEAK OR NOT TO SPEAK — “Biden allies start to chafe at Democrats’ silent treatment of Trump indictment,” by NBC’s Peter Nicholas, Katherine Doyle and Sahil Kapur: “Worried that Trump’s claim of political persecution might take hold if it’s left unanswered, some Democrats insist the party needs to mount a full-throated defense of the law enforcement agencies that charged Trump with mishandling sensitive national security records. They also want to paint the indictment as a fresh example of the chaos another Trump presidential term would bring.”

QUITE A HEADLINE — “Trump’s promise of payback for prosecution follows years of attacking democratic traditions,” by AP’s Nicholas Riccardi and Gary Fields

 

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POLICY CORNER

HMM … “Lina Khan Rejected FTC Ethics Recommendation to Recuse in Meta Case,” by Bloomberg’s Leah Nylen: “The FTC’s ethics official recommended that [Chair LINA] KHAN remove herself from the case to avoid the appearance of bias, but left it up to Khan to decide, concluding it wasn’t an ethics violation if she took part.”

CONNECTED — “$930 million in grants announced in Biden’s effort to expand internet access to every home in the U.S.,” by AP’s Kavish Harjai

PLAYBOOKERS

OUT AND ABOUT — SPOTTED at the Capitol yesterday for a member roundtable with deans from leading business schools hosted by Sen. Todd Young (R-Ind.) and Rep. Ro Khanna (D-Calif.): Sens. John Cornyn (R-Texas) and John Hickenlooper (D-Colo.), Reps. Jack Bergman (R-Mich.), Brad Schneider (D-Ill.), Jonathan Jackson (D-Ill.), Warren Davidson (R-Ohio), Annie Kuster (D-N.H.) and Jake Auchincloss (D-Mass.), Jonathan Levin, Ash Soni, Erika James, Costis Maglaras, Francesca Cornelli, Lillian Mills, Madhav Rajan and Matthew Slaughter. 

SPOTTED at an early screening of “The Flash” at the Motion Picture Association on Wednesday: Rep. Ted Lieu (D-Calif.), Rebecca Avitia, Neri Martinez, Melanie Fonder Kaye, Christopher Garver, Taft Phoebus, Sabrina Singh, Carlie Waibel, Candis Olmstead, Christine Thompson, Alexa Verveer, Sam Feist, Jeff Zeleny, Karyn Temple, David Inoue, Brent Wilkes, Kent Tong, Pablo Russo, Juan Manuel Cortelletti and Paul Rennie.

All in Together hosted its annual Black Women Lead Conference at the Howard Theatre yesterday, with panel discussions, a special discussion with singer, songwriter, actress and mental health advocate Michelle Williams, a performance of an original song composed for the event by Tarriona Ball (aka Tank) and a closing set by DJ Tryfe. SPOTTED: Rep. Nikema Williams (D-Ga.), press secretary Karine Jean-Pierre, U.S. Ambassador to the U.N. Linda Thomas-Greenfield, Lt. Col. Marisol Chalas, Symone Sanders-Townsend, Alisa Ballard, Brittany Masalosalo, Helene Cooper, Alethia Jackson, Laura Coates, Rachel Scott, Karen Finney, Darlene Superville, DeNeen Brown, Alexi McCammond, Michelle Williams, Jennifer Butler, Sahara Lake, Desiree Rogers, Jordyn Holman and Laphonza Butler.

FIRST IN PLAYBOOK — The Senate Foreign Relations Committee has added Eric Harris as comms director, Danny Rodriguez as press secretary and Kemani Scott as press assistant. Harris most recently was senior adviser and comms director for the House Select Committee on Economic Disparity and Fairness in Growth. Rodriguez previously was deputy press secretary for Sen. Alex Padilla (D-Calif.).

TRANSITION — Quint Forgey is now comms director for the congressional campaign of Michael Moore, a Democrat running in South Carolina. He will continue as an MPP candidate at the Harvard Kennedy School and is a POLITICO alum.

BONUS BIRTHDAY: Phil Cox of GP3 Partners and P2 Public Affairs

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The smaller VC boom and its impact on diverse investors and founders

TechCrunch+ Newsletter
TechCrunch+ logo
TechCrunch+ Roundup logo

By Walter Thompson

Friday, June 16, 2023

Welcome to TechCrunch+ Friday

Welcome to TechCrunch+ Friday image

Image Credits: Aitor Diago / Getty Images

Can emerging managers do a better job of expanding access to capital than established VC firms?

Because many funds with less than $50M under management “are led by those from underrepresented backgrounds,” there's "an opportunity for less experienced managers to step in and back the founders being overlooked and ignored on a higher level,” reports Dominic Madori-Davis.

To learn more, she interviewed:

  • B. Pagles Minor, founder, DVRGNT Ventures
  • Ramzi Rafih, founder, No Label Ventures
  • Madeline Darcy, managing partner, Kaya Ventures

Due to the Juneteenth holiday in the U.S., I'll be back next Friday, June 23 with a new roundup.

Thanks very much for reading TC+!

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

Read More

Rejoice, for startup valuations are slowly recovering

Rejoice, for startup valuations are slowly recovering image

Image Credits: Juanmonino / Getty Images

A song by Nancy Sinatra and Lee Hazlewood came to mind when I read that public SaaS companies have reached their highest valuations so far this year:

I’ve been down so long
It looks like up to me

Weaving data from the Bessemer Cloud Index and Altimeter investor Jamin Ball together with recent news coverage, Alex Wilhelm found reason for guarded optimism:

“Startups are hardly out of the woods, but the market is no longer moving away from their valuation marks and is instead bolstering the value of their public comparables.”

Read More

Wednesday, June 21: TechCrunch Live with Greylock and Chronosphere

Sponsored by TechCrunch

Join a live Q&A with Chronosphere CEO/co-founder Martin Mao + Greylock GP Jerry Chen.

Register now

New guidance from the US Treasury could unleash billions in renewable energy investment

New guidance from the US Treasury could unleash billions in renewable energy investment image

Image Credits: Marty Caivano/Digital First Media/Boulder Daily Camera / Getty Images

Under new rules released by the Internal Revenue Service and the Department of the Treasury, local, state and Tribal governments can now access clean energy tax credits.

“The changes could pave the way for hundreds of billions of dollars worth of investment in the coming decade,” reports Tim De Chant.

“That tidal microturbine startup you've been incubating? Now might be a great time to start looking for investors.”

Read More

Ask Sophie: How much time and money will we need for an H-1B transfer?

Ask Sophie: How much time and money will we need for an H-1B transfer? image

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

My startup is hiring and many excellent engineers need H-1B transfers, but I haven't done one yet.

Approximately how much time and money will we need to set aside for the process? Are there alternatives?

— Careful Co-Founder

Read More

Pitch Deck Teardown: Netmaker's $2.3M seed deck

Pitch Deck Teardown: Netmaker's $2.3M seed deck image

Image Credits: Netmaker

Some founders may expect investors to stop them mid-presentation by shouting "shut up and take my money!" but life is not an episode of Futurama.

No one literally sells their pitch in the room, but a tight deck is a strong signal that the founders understand their market, however.

Netmaker, an infrastructure startup that helps customers create and manage virtual overlay networks, raised a $2.3M round with this slightly redacted presentation:

  • Cover slide
  • Problem slide
  • Vision slide
  • Solution slide
  • Market-size slide
  • Product slide
  • How it works slide
  • Traction slide ("In active use on over 10,000 devices")
  • Product evolution slide
  • Go-to-market slide
  • Road map slide
  • Competition slide
  • Team slide
  • Closing slide

Read More

How two founders approach building ethical AI startups in health care

How two founders approach building ethical AI startups in health care image

Image Credits: Getty Images

On recent episodes of TechCrunch's Found podcast, two founders of AI-related health care companies talked about how they’re working to create ethical algorithms.

“If done in haste, or done poorly, AI models have the potential to cause real harm,” reports Rebecca Szkutak, who interviewed Amy Brown, founder and CEO of Authenticx, and Eli Ben-Joseph, co-founder and CEO of Regard.

Read More

Read more stories on TechCrunch.com

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California Today: Why it’s been so cloudy lately

"June Gloom" has felt extra gloomy this year.
Author Headshot

By Soumya Karlamangla

California Today, Writer

It's Friday. "June Gloom" has felt extra gloomy this year. Plus, the California Senate race is getting even more crowded.

Cloudy skies over Los Angeles last month.Mike Blake/Reuters

"June Gloom" has long been part of the California lexicon, an almost-rhyming reminder that a few weeks of overcast skies typically precede a sunny, scalding summer.

But perhaps you, like me, feel the gloom has gone a little overboard this year.

Memorial Day, the unofficial start of summer, was dreary across most of the Golden State. Since then, I've heard of many beach trips canceled and sports games rescheduled because of surprisingly uncooperative weather. A friend who is getting married in Los Angeles this weekend has sent out an "in case of rain" memo.

So, yes, though June Gloom — and "May Gray," and even "No-Sky July" — are familiar along the California coast, this year has been "unusually cool and cloudy," Miguel Miller, a meteorologist with the National Weather Service in San Diego, told me. There's often a thick layer of low clouds and fog in late spring and early summer, he said, but "this year it's on steroids."

In San Diego, a city synonymous with sunshine, there hasn't been one completely sunny day since Feb. 15, Miller said. And across much of Southern California, there have been nearly double the normal number of cloudy days lately.

In a typical May, the San Diego International Airport will log 11 cloudy days, defined as days with at least 75 percent cloud cover. This year there were 20. The story was similar at the Los Angeles International Airport weather monitoring site: 18 cloudy days logged last month, compared with the usual 10.

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The pattern in June has been the same, if not worse: Nine of the first 12 days of the month were cloud-filled in San Diego, and eight at LAX — as many as we usually see in the whole month, Miller said.

The trouble comes from a series of low-pressure systems that have been stalling over California, bringing cloudier and cooler conditions with them, experts say. Now and then, one of the systems will let up, allowing clearer skies and warmer temperatures, but then another quickly sets in.

The dreary weather pattern is particularly noticeable in Southern California, but these low-pressure systems have been keeping temperatures down in much of the West. In Sacramento, the high on Memorial Day was 75 degrees, well below the average of 84 degrees, according to Chelsea Peters, a Weather Service meteorologist in Sacramento.

"We've been in this pattern for a while, and I'm not complaining," Peters said. "It's normally, by this time, in the 90s, if not in the triple digits, so I'm perfectly happy with these low 80s."

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This cooler-than-normal start to summer isn't related to our very wet winter, experts told me. But the June Gloom has been a little harder for some Californians to bear coming so soon after all that rain.

Brigid McMahon, who lives in Huntington Beach, emailed me this week to say that she felt as though she hadn't woken up to sunshine in at least six months.

"On a good day, the sun might be out for a few hours," McMahon wrote. "It's very depressing. The weather is the reason we put up with the high costs and horrible traffic, right?"

The Weather Service doesn't make long-range predictions about cloudiness. But the agency does expect below-average temperatures to continue in California for the rest of June.

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The outlook for July through September is the opposite: Above-normal temperatures are expected throughout the state.

"Hopefully, by the end of June and early July, you'll be seeing a lot more sun across Southern California," said Richard Thompson, a meteorologist at the Weather Service office in Oxnard. "It'll get here eventually."

For more:

Enjoy all of The New York Times in one subscription — the original reporting and analysis, plus puzzles from Games, recipes from Cooking, product reviews from Wirecutter and sports journalism from The Athletic. Experience it all with a New York Times All Access subscription.

Elizabeth Holmes began an 11-year, three-month prison sentence in Texas in May.Annie Mulligan for The New York Times

The rest of the news

SOUTHERN CALIFORNIA
CENTRAL CALIFORNIA
NORTHERN CALIFORNIA
Humboldt Redwoods State Park in Northern California.Brian Baer/California Department of Parks and Recreation

Where we're traveling

Today's tip comes from Scott Hartman, who lives in San Jose. Scott recommends two places to enjoy redwood forests in the northern half of the state:

My two favorite state parks are Henry Cowell Redwoods State Park and Humboldt Redwoods State Park.

Henry Cowell is close to Santa Cruz, where I play in the symphony and love to hike in the hills. It has a 45-minute, very easy trail that has some giant old-growth trees. There are trees up to 1,800 years old, and the tallest is 285 feet tall. It's five minutes off the freeway but feels isolated and quiet.

Every summer I teach at Cal Poly Humboldt, and even though it's a six-hour drive for me, I drive the entire 30-mile length of the Avenue of the Giants both when I head up there and on the way home. I always have a car with a sunroof just so that I can drive the avenue with all my windows and the roof open.

Redwood forests are like no other place on earth. As soon as I smell the air, my blood pressure lowers and I can't stop smiling. The feeling of standing at the base of one of the Giants is like standing before an impressive mountain; the feeling of smallness is overwhelming and restorative.

Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

Tell us

We're almost halfway through 2023! What are the best things that have happened to you so far this year? What have been your wins? Or your unexpected joys, big or small?

Tell me at CAToday@nytimes.com. Please include your full name and the city where you live.

People participating in a water walk at Jawbone Canyon.Jasmine Beaghler

And before you go, some good news

California, a state plagued by droughts, has a strange relationship with water. That's inspiring people to try "water walks," which involve tracing a river or waterway "from sea to source" to better understand how the water supply works, The San Francisco Chronicle reported.

Water walks can take weeks to complete. "For many, it's about learning where our water comes from and bearing witness to what's happening with it," said Kate Bunney, co-founder of the Sonoma County nonprofit Walking Water. As she put it, the trips are about "how we restore our relationships to water."

Thanks for reading. We'll be back on Tuesday. Enjoy your weekend. — Soumya

Briana Scalia and Johnna Margalotti contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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