Good morning. Xi Jinping arrived in Europe yesterday with a mission to ease growing tensions that threaten to spark a trade war between China and the EU.
On his first trip to the region since 2019, Xi will face tough negotiations in France over trade and Ukraine before enjoying a warmer welcome in Serbia and Hungary, where Chinese investment is soaring highlights both the benefits of close ties with Beijing and the EU's divisions on international politics. .
China is determined not to let its relations with Europe move further in the direction of its relations with the United States, said Yu Jie, an analyst at the British think tank Chatham House. There will be a new charm offensive from Beijing, but it will also give the EU stark warnings about trade protectionism.
Xi's top priority for his six-day visit will be damage control, Chinese officials said. The president intends to counter a litany of EU trade investigations into Chinese companies, including a blockbuster anti-subsidy probe into electric vehicles that is expected to conclude within weeks.
But Xi also intends to play tough guy. Behind expected displays of public bonhomie and promises of Chinese investment, he would warn European leaders that taxes on Chinese exports would elicit an uncompromising response, analysts added.
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Related: The EU is pressuring China to exclude agriculture from a series of growing trade disputes, calling for the strategic sector to be shielded from trade tensions in the renewable energy and electric vehicle sectors.
Here's what I'm keeping an eye on today:
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Economic data : S&P Global publishes services purchasing managers' indices for China and India, as well as economy-wide PMIs for Hong Kong and Singapore.
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Elections: Chad's leader will seek to consolidate his fragile position in today's presidential election amid signs he is willing to dilute alliances with the West and turn to Russia and the United Arab Emirates.
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Japan/South Korea: Closed financial markets are closed for Children's Day.
Five other headline news
1. European intelligence agencies warned their governments that Russia was planning violent acts of sabotage across the continent as it engages in ongoing conflict with the West. Assessments from three different European countries suggest that Kremlin agents are planning bombings, arson and infrastructure damage.
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Russian financial flows collapse: A U.S. crackdown on banks financing trade in goods ahead of Vladimir Putin's invasion of Ukraine has made it much harder to move money in and out of Russia, according to senior Western officials and Russian financiers.
2. Joe Biden's attempt to challenge Chinese supremacy in commercial shipbuilding That probably won't do much to revive U.S. shipyards, analysts say, but it could help producers in South Korea and Japan resist competition from Beijing. The US president's investigation into China's alleged unfair economic practices in shipbuilding and maritime logistics could lead to the imposition of tariffs on Chinese-built ships calling at US ports.
3. Israel's far-right government has voted to close Al Jazeera. the satellite channel financed by Qatar, and prevent it from operating in the country. The motion was passed unanimously at a cabinet meeting on Sunday, with Prime Minister Benjamin Netanyahu accusing him of being a mouthpiece for Hamas. Al Jazeera called the move a misleading and slanderous decision. Read the full story.
4. Two of Hollywood's biggest names backed Skydance's bid for Paramount. Supporters of James Cameron, whose film Titanic is the biggest hit in Paramounts history, and Endeavor Chief Executive Ari Emanuel steps in as exclusive negotiations end without deal and Sony and private equity group Apollopush offer rival 26 billions of dollars.
5. Warren Buffett said Greg Abel should have the final decision on investments at Berkshire Hathaway, specifying that his successor will have authority not only over buyouts, but also over the gigantic stock portfolio of the sprawling conglomerates. Read more from Berkshires' annual general meeting in Omaha on Saturday, where Buffett gave his most direct answer yet on how responsibilities will be distributed when he's no longer in charge.
FT Magazine
Since Taiwan became a democracy in the early 1990s, most of its residents have resisted the idea that they are part of China. But Chinese President Xi Jinping has made clear he will not accept such self-determination. The People's Liberation Army, fueled by the benefits of a 40-year economic boom, has become a force that far eclipses that of its neighbor. As the threat of a Chinese invasion intensifies, one soldier fights his own battle against defeatism.
We also read…
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K-pop: A battle between star producers and entertainment company Hybe has captured the imagination of young Korean women inspired by her criticism of her male superiors.
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Elon Musk: There is much to criticize about the Tesla boss, but distinguishing bad from good is not as easy as many think, writes Jemima Kelly.
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How Goldman Sachs grew: Lloyd Blankfein, Hank Paulson, David Solomon and others on what's changed since its 1999 IPO.
Chart of the day
Shell sold millions of carbon credits linked to CO removal to Canada's largest oilsands companies that never happened, raising new doubts about a technology seen as crucial to mitigating gas emissions Greenhouse effect. The subsidy system in Alberta allowed the oil major to record carbon credits equivalent to twice the volume of CO captured.
Take a break from the news
What do the Michelin stars say about the world? FT columnist Janan Ganesh explains what geopolitics and gastronomy have in common, and how the West's relative loss of power is reflected in the restaurant guide.
