China’s sweeping military overhaul

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.As the US-China rivalry heats up, [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. As the US-China rivalry heats up, President Xi Jinping is putting information front and center of his [biggest military shakeup]( in nearly a decade. The reorganization comes ahead of US Secretary of State Antony Blinken’s three-day visit to China as leaders of the world’s two largest economies try to keep talking despite intensifying rhetoric. Today’s [condemnation of American complaints]( about China’s industrial overcapacity suggests some difficult conversations ahead. That followed US President Joe Biden [blasting Beijing as “xenophobic”]( and vowing to triple tariffs on Chinese steel and aluminum exports while on the campaign trail, and moves by Congress to ban TikTok. Blinken is expected to [criticize Chinese companies’ support]( for Russia’s war machine. WATCH: John Liu reports on China’s military reorganization. Source: Bloomberg Beijing’s military is an opaque institution, and little is known about the new Information Support Force beyond that it will deal with issues including cyber, political and electronic warfare. But the change has raised questions over the efficacy of Xi’s push to modernize the military and his country’s readiness for a conflict. An anti-corruption purge last year swept the armed forces, adding to the turmoil. Whatever the thinking, China appears to be intensifying its efforts to improve the military’s handling of information at a time of heightened competition with the West. Both sides of late have traded spy-versus-spy accusations: Beijing has publicized its capture of various agents allegedly working for American and British intelligence, while the UK and Germany [announced arrests]( of suspects believed to be in the employ of Chinese state security. Until now, the response to US bashing has been muted, highlighting concerns over China’s delicate economy and its recognition that tough talk during a US election campaign is normal. Visits by Treasury Secretary Janet Yellen and now Blinken suggest Washington, too, wants to keep guardrails on things. Yet, coupled with Xi’s sweeping military reorganization, signs are that the fight for global influence may well be stepping up a gear.— [Rebecca Choong Wilkins]( Xi and Russian President Vladimir Putin in Beijing in 2018. Photographer: Greg Baker/AFP/Getty Images Global Must Reads Israel is returning its focus to eliminating what it says is the last remaining stronghold of Hamas in Gaza as tensions with Iran ease, [reviving international concerns]( about the fate of about 1 million civilians sheltering in the south of the strip. Meanwhile, Israel has yet to provide evidence that workers for the United Nations relief agency in Gaza have ties to terrorist groups, [according to the results]( of an external probe. German Chancellor Olaf Scholz’s government is pushing the US to deliver at least one more Patriot anti-missile system to Ukraine to help close the [air-defense gap]( as Russia escalates a barrage of attacks, sources say. The UK announced it’ll send more Storm Shadow long-range cruise missiles as part of its single biggest [military aid]( package to Ukraine since Russia’s invasion began. UK Prime Minister Rishi Sunak claimed a rare political victory after parliament approved his controversial plan to send illegal immigrants to Rwanda, with his aides hoping it will energize his Conservative Party’s flagging reelection campaign. The bill was introduced last year to circumvent a UK Supreme Court ruling that [blocked deportations on human-rights grounds](, and the government is already preparing for last-minute legal challenges. Indian Prime Minister Narendra Modi has been predicting his Bharatiya Janata Party-led coalition can sweep three out of every four parliament seats as he criss-crosses the country to charm voters. Analysts and election strategists from his party say the task isn’t entirely impossible, but [will likely be difficult](. Modi at a rally in Uttar Pradesh in March. Photographer: Prakash Singh/Bloomberg Newfound unity within Venezuela’s opposition is testing President Nicolás Maduro’s willingness to regain international legitimacy by [taking his chances]( in an open presidential election. The government must decide whether to allow the opposition to continue with little-known former ambassador Edmundo González, who was unanimously chosen on Friday to represent the group in the vote. Mexican President Andres Manuel Lopez Obrador downplayed a weekend incident where his party’s candidate was stopped on a highway by masked men, and [blamed media and civil organizations]( for exaggerating violence during the electoral period. Chile recorded a 6% reduction in homicides in 2023 following a surge the previous year, giving President Gabriel Boric’s administration much-needed respite in its [struggle against crime](. Hong Kong’s leader said the finance hub won’t pass a fake-news law so long as media outlets exercise self-discipline, indicating the government has [paused plans floated three years ago](. The Hungarian government signaled backing for a sponsorship deal between Russia’s Gazprom and the country’s top soccer team, an agreement that would [spotlight Budapest’s efforts]( to maintain ties with Moscow. Washington Dispatch The release of the latest US human-rights [report]( gave Blinken the opportunity to warn of a rising danger — governments that extend “their abuses beyond their own borders.” “Nicaragua — attempting to pressure and punish exiled activists by seizing their assets. Tajikistan — working with other countries to forcibly return human-rights defenders, lawyers, and journalists who’ve fled abroad,” Blinken told reporters yesterday. The State Department’s Country Reports on Human Rights Practices contains a lengthy section on China, which begins with: “Genocide and crimes against humanity occurred during the year in China against predominantly Muslim Uyghurs and members of other ethnic and religious minority groups in Xinjiang.” Another part of the report details allegations of human-rights abuses by Israel in the Gaza Strip and the West Bank. Blinken, in a press briefing, said the US [was examining]( claims of international-law violations in Gaza — by both Israel and Hamas — and would not apply a double standard. “We apply the same standard to everyone,” he said. “And that doesn’t change whether the country in question is an adversary, a competitor, a friend or an ally.” One thing to watch today: Data from the US Census Bureau are expected to show that new home sales likely recovered in March following February’s surprise decline. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day China is losing its appetite for Russian coal as import taxes and logistical snarls push Asia’s biggest buyer to cheaper alternatives. Russian exports [plunged 22% in the first quarter]( after Beijing imposed a tax regime at the start of the year that favors some of Russia’s rivals. The higher costs have been compounded by an increase in tariffs on Russian railways amid limitations on capacity, as well as the Kremlin’s surcharge on exports to help fund its war in Ukraine. And Finally Bolivian President Luis Arce is proud of taming inflation, but a long-brewing financial crisis is [putting that signature achievement at risk](. It also potentially opens the way for his mentor-turned-rival, Evo Morales, despite a ruling that bars the former leader from seeking another term. The nation of 12 million is being buffeted by an economic storm long in the making, which has its roots in the end of a natural-gas boom and the country’s failure to capitalize on its massive reserves of lithium. A view of the Bolivian capital La Paz last month. Photographer: Marcelo Perez del Carpio/Bloomberg More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? 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