FirstFT: Biden delivers defiant message to Beijing

President Joe Biden has warned that the US will move to protect itself if China threatens its sovereignty as he used a joint address to Congress to deliver a defiant message to Beijing and defend his economic record in the White House.

“I am committed to work with China where it can advance American interests and benefit the world,” Biden said. “But make no mistake . . . if China threatens our sovereignty, we will act to protect our country.”

The president’s comments during his State of the Union address last night come as tensions between the US and China have flared up after the Pentagon detected a Chinese spy balloon flying over the US and shot it down over the Atlantic Ocean off the coast of South Carolina.

The episode led to the cancellation of a planned trip to China by US secretary of state Antony Blinken and dashed hopes of a detente between Washington and Beijing after Biden’s meeting with Chinese president Xi Jinping in November.

In an energetic oration that was met with cheers from Democrats and boos from Republicans, Biden also said his economic plans, including billions of dollars in subsidies for domestic manufacturing, including semiconductor production, were helping the US win the economic competition.

“I will make no apologies that we are investing to make America strong. Investing in American innovation, in industries that will define the future, and that China’s government is intent on dominating,” Biden said.

Five more stories in the news

1. Erdoğan declares state of emergency Turkish president Recep Tayyip Erdoğan declared a state of emergency in areas ravaged by the region’s worst earthquake in decades, as the death toll in his country and neighbouring Syria approached 8,000.

2. UAE grants Russian lender rare banking licence The United Arab Emirates has approved a licence for MTS Bank. The move will help meet growing demand for financial services from Russian expatriates but also risks exacerbating western concerns about the Gulf state’s emergence as a potential financial haven for Moscow.

3. UK Treasury bans capital spending by Gove’s department Michael Gove’s Department of Levelling Up, Housing and Communities has been banned from making spending decisions on new capital projects without specific permission from the Treasury, after concerns were raised about its ability to deliver value for money.

4. NHS integrated care at risk from failings, warn MPs A shake-up of Britain’s NHS aimed at ensuring health providers and local government work together more closely risks failure unless longstanding deficiencies in the service are addressed, the parliament’s public accounts committee said, adding that it was unclear what “tangible benefits” the overhaul would bring for patients.

5. Wind industry body attacks Denmark’s ‘absurd’ halt to approvals The chief executive of industry body WindEurope has called a sudden Danish government decision to suspend approvals for all offshore wind farms “absurd”. Denmark’s so-called “open door” programme for approving renewables projects was called to a halt on Monday after the government cited concerns that it violated the EU’s state aid rules.

The day ahead

Economic data France releases fourth-quarter private-sector payroll data, while Poland’s central bank holds its rate-setting meeting.

Earnings Adyen, AP Møller-Maersk, CVS Health, Equinor, Fox, MGM Resorts, Pandora, Société Générale, Uber, Walt Disney Company and Yum Brands report.

What else we’re reading

Credit Suisse’s make-or-break moment Tomorrow the scandal-plagued lender is set to publish what will arguably be the most important set of financial results in its 167-year history. Credit Suisse has already warned it is on course for its second consecutive annual loss, with chair Axel Lehmann describing 2022 as a “horrifying year”. Will a radical restructuring be enough to turn it into a banking powerhouse?

What the west’s shifting red lines mean for Ukraine There is growing consensus among western military officials that Ukraine has a narrow window to launch a counteroffensive against Russia in the spring, prompting the US and other allies to commit weapons systems once considered off limits. Analysts say the constant crossing of self-imposed boundaries reflects Kyiv’s changing battlefield requirements.

The revenge of the incumbents Amazon’s retreat on physical stores shows that disruption is harder than it looks, writes Brooke Masters. We are seeing the best environment in decades for established companies with strong franchises to push back against disrupters with innovative products and services of their own.

‘Dysfunctional’ Berlin holds election rerun Germany is one of the west’s most stable democracies, so the need for foreign observers to monitor an election in the country comes as a shock. But 14 officials from Europe’s top human rights body will arrive in Berlin this week to observe Sunday’s rerun of its 2021 election, an event so chaotic its results were scrapped.

Who are Germany’s value creators and destroyers? Olaf Storbeck looks at how domestic companies have performed in the country, finding that Siemens has led the way over 20 years while Deutsche Bank languishes at the bottom of the table.

Take a break from the news

Swiss artist Ugo Rondinone is paired with illustrious predecessors Ferdinand Hodler (1853-1918) and Félix Vallotton (1865-1925) in a sprawling exhibition that shakes up Geneva’s Museum of Art and History.