Debt ceiling negotiations threaten US global power and benefit China.

President Joe Biden will continue talks with congressional leaders on raising the US debt limit later this week and will meet them again after the G7 summit in Japan. Republicans want Biden to agree spending cuts in return for a bill to raise the US borrowing limit, while Democrats say Republicans should agree to a “clean” debt limit bill. The US treasury secretary, Janet Yellen, has indicated that without agreement, default could come as early as 1 June. Biden has agreed to a key demand from McCarthy: that negotiations be carried out by a small group of aides.