Xi’s delicate mission to Europe

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.President Xi Jinping’s first trip [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. President Xi Jinping’s first trip to the European Union in five years comes with one clear goal: avoid stumbling into a trade war with Brussels over a manufacturing boom that’s powering China’s economic recovery. Xi kicked off that [campaign in Paris today](, where he will dine with President Emmanuel Macron before a trip to the Pyrenees mountains with his host. Macron has been vocal about Europe’s need for “strategic autonomy” from Washington, while trying to shield itself from a deluge of cheap Chinese exports of electric vehicles and other green products the EU says are spurred by “unfair” state subsidies. Macron’s determination to not become a “vassal state” of the US makes him Xi’s best bet for influencing opinion in Brussels, as the EU tracks ever closer to President Joe Biden’s hawkish China policy. Yet the Chinese leader’s decision to add stops in Serbia and Hungary to his trip irritated Macron because he would have preferred an exclusive focus on Franco-Chinese relations, according to a person familiar with the planning. Both central European nations want to woo Chinese capacity rather than complain Beijing has an excess of it. For Hungary, that puts it at odds with the EU’s broader position. Those [Russia-friendly states]( also represent the other sticking point in Xi’s ties with Europe: his support of President Vladimir Putin in the wake of Moscow’s invasion of Ukraine. Capping his trip with a pro-Kremlin signal might underscore Beijing’s determination to forge its own path, and not bow to pressure from the US-led world order. But it also risks souring any goodwill built in Paris, and ultimately hurting the industries Xi left home to protect. — [Jenni Marsh]( WATCH: What is Xi trying to achieve during this trip? Rebecca Choong Wilkins explains on Bloomberg Television. Source: Bloomberg Global Must Reads Israel’s military started moving civilians out of Rafah, a possible prelude to a [long-expected attack]( on the city in Gaza. The decision came after cease-fire talks between Hamas and Israel in Cairo appeared to stall and the militant group killed three Israeli soldiers with a rocket barrage yesterday on the border crossing of Kerem Shalom. An Israeli official says CIA Director William Burns is due to visit today to try to save the negotiations. Putin ordered Russia’s military to carry out combat drills involving [tactical nuclear weapons](, the day before his inauguration for a fifth term. The army will carry out exercises in southern Russia to “practice the preparation and use of non-strategic nuclear weapons,” the Defense Ministry said today. The drills are in response to “provocative statements and threats made by certain Western officials,” it said. Russian officers rehearse for the Red Square Victory Day Parade yesterday in Moscow.  Photographer: Contributor/Getty Images Move further to the right is the message UK Prime Minister Rishi Sunak is receiving from Conservative lawmakers after the party [suffered a drubbing]( in last week’s local elections including [losses in Britain’s two biggest cities](. Sunak is facing calls to consider policies including an immigration cap and a withdrawal from the European Court of Human Rights ahead of a general election expected in the second half of the year. Panama elected investor favorite Jose Raul Mulino as its new president after he pledged to revive the once-stellar economy, [crack down on drug cartels]( and close migration routes to the US. The Central American nation has been battered by unrest, credit-rating downgrades, low water levels in the Panama canal and the closing of a major copper mine. Togo’s ruling party won a landslide in legislative elections, setting the stage for the family dynasty of President Faure Gnassingbé to [extend its 57-year rule]( of the West African nation. The vote followed a controversial constitutional amendment that transfers power to the head of a council of ministers, appointed by the largest party in parliament — almost certain to be Gnassingbé — with no term limits. Black Hawk helicopters descended to Itbayat today, carrying a platoon of US and Philippine marines to [conduct rare military drills]( on the Southeast Asian nation’s northernmost inhabited island — and one of its closest to Taiwan. Graduation ceremonies were held at several US colleges over the weekend under the shadow of recent student [protests against the Israel-Hamas war](, while other institutions grappled with how to navigate tensions ahead of their own events. Chad’s military ruler Mahamat Deby is almost certain to win today’s presidential election, cementing the ruling junta’s power in a move that could jeopardize the [future of US military engagement]( in the region. WATCH: Jennifer Zabasajja speaks with Bloomberg’s Fasika Tadesse about how Ethiopia is now seen as a growth market in the crypto industry. Source: Bloomberg Washington Dispatch Members of the US House will be watching whether this week brings more demands for the resignation of Representative Henry Cuellar, the Texas Democrat [who was indicted]( last week on charges of accepting some $600,000 in foreign bribes. On Friday, Representative Dean Phillips of Minnesota became the first Democrat to call on Cuellar to step down. The Justice Department has accused the congressman and his wife, Imelda Cuellar, of accepting bribes from an oil and gas company owned and controlled by the government of Azerbaijan, and a bank headquartered in Mexico City. The Cuellars have proclaimed their innocence. Cuellar says he plans to continue running for reelection, but the race for his seat could perhaps determine which party controls the narrowly divided House. The chamber’s Democratic leader, Hakeem Jeffries, called the congressman “a valued member” of the party and that he was entitled to his day in court. He added that Cuellar would step aside from his influential role as the top-ranking Democrat on an Appropriations subcommittee. One thing to watch: King Abdullah II of Jordan will visit the White House today for talks with Biden on the Israel-Hamas conflict. [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 For decades, the rapid inflow of immigrants helped countries including Canada, Australia and the UK stave off the demographic drag from aging populations and falling birth rates. That’s now breaking down as a surge of arrivals since borders reopened after the pandemic runs headlong into a [chronic shortage of homes]( to accommodate them. And Finally The new Palestinian Authority in the West Bank is by many measures just what the US and others want for a future Palestinian state that could extend its rule to a post-war Gaza: a modern, technocratic group focused on solving problems. But its [chances of success are low](. The administration is bloated; the economy is collapsing after Israel barred 150,000 West Bankers from entering to work and withheld tax receipts needed to pay Palestinian public employees; and Israeli settler violence is increasing. Israeli troops during a raid in the occupied West Bank town of Deir al-Ghusun on Saturday. Photographer: Jaafar Ashtiyeh/AFP/Getty Images Thanks to the 65 people who answered the Friday quiz and congratulations to Gerard Verschoyle, who was the first to name Spain as the country whose prime minister said he would continue in office after withdrawing from the public eye to consider his future. 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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