Waiting for Xi

President Xi Jinping is becoming more reluctant to pull out the checkbook [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( The U.S. has often accused China of using “debt diplomacy” to make developing nations more dependent on Beijing. Yet the case of Sri Lanka and Pakistan — both friends of China facing dire financial situations as inflation soars — shows that President Xi Jinping is becoming more reluctant to pull out the checkbook. China still hasn’t made good on a pledge to re-issue loans totaling $4 billion that Pakistan repaid in late March, and it hasn’t responded to Sri Lanka’s pleas for $2.5 billion in credit support. Key Reading: - [Sri Lanka Will Default on Foreign Debt to Save Cash for Food]( - [Derided by Khan as U.S. Puppet, New Pakistan PM Bets on Centrism]( - [Sri Lanka Leaders Defiant at Home While Scrambling for Funds]( - [Sri Lankan Envoy Confident China Will Provide Debt Relief]( - [Pakistan’s New PM Pushes Populist Measures, China Projects]( While China has pledged to help both countries, the more cautious approach reflects both a rethink of Xi’s signature Belt-and-Road Initiative as well as a hesitancy to be seen interfering in messy domestic political situations. Pakistan got a new prime minister on Monday after parliament booted out former cricket star Imran Khan, and Sri Lankan President Gotabaya Rajapaksa is facing pressure from protesters to step down. With Covid-19 lockdowns taking a toll on the economy, Xi has enough problems at home to worry about. Yet ultimately China is likely to work with both nations to restructure their debt, as it has recently with governments elsewhere in the world. Instead of responding like a predatory lender, China these days is acting more like a disappointed relative who feels responsible to help.�€” [Daniel Ten Kate]( Lawmakers and supporters of Imran Khan. Photographer: Asad Zaidi/Bloomberg Sign up [here]( for the Special Daily Brief: Russia’s Invasion of Ukraine and share this newsletter with others too. They can sign up [here](. Global Headlines Genocide accusation | U.S. President Joe Biden said for the first time that Russian forces had committed “[genocide](” in Ukraine. After repeatedly [accusing]( Vladimir Putin’s troops of “war crimes,” Biden said he had seen more evidence of “the horrible things that the Russians have done,” adding that lawyers would ultimately make the official determination. - The Pentagon is monitoring claims that Russia deployed a [poisonous]( substance in the besieged Ukrainian city of Mariupol. Yet as [Marc Champion]( reports, clarity will be difficult to achieve. Lens focus | The city of Lens in France’s former mining heartland should be a bastion of support for President Emmanuel Macron as he vies for re-election against right-wing candidate Marine Le Pen. But its residents are worried about the rising cost of living even as unemployment falls, a [vulnerability]( Le Pen has zeroed in on as the April 24 runoff nears. The costs of fertilizers that power modern agriculture, already soaring in 2021, have spiked since the war in Ukraine began, prompting commercial farmers to [cut back](. That could result in smaller harvests and higher crop costs, with the Food and Agriculture Organization warning last month of an increasing risk of malnutrition and even famine. Space targets | China and Russia continue to develop and deploy weapons that can attack U.S. [satellites](, according to the Pentagon’s intelligence agency. While the report is based mostly on news accounts and declarations from Beijing and Moscow officials, it summarizes the threats Washington says are driving major investments in its proposed defense budget for 2023. Best of Bloomberg Opinion - [‘Air Worse Than Beijing’]([Isn't an Insult Anymore: Justin Fox]( - [Who Cares About 1MDB When Bridges Are Collapsing?: Daniel Moss]( - [Have Republicans Made Peace With Torture?: Jonathan Bernstein]( No contest | The sole candidate to become Hong Kong’s chief executive, John Lee, crossed the [threshold]( of support he needs to win, effectively confirming he’ll become the next leader. The former law enforcement official said he received a majority of nominations from the roughly 1,500-member Election Committee dominated by China loyalists ahead of the May 8 election. Explainers you can use - [Why Gulf Dollar Pegs Survive Through Wars, Oil Shocks]( - [Mandates, ‘Don’t Say Gay’ and Other U.S. Wedge Issues]( - [How Sri Lanka Landed in a Crisis and What It Means]( Game on | After a turbulent four-year term, Jair Bolsonaro is trailing his likely challenger, Luiz Inacio Lula da Silva, in polls for Brazil’s presidential election. But as [Daniel Carvalho]( reports from the impoverished northeast of the country, if the controversial incumbent can turn the tide in his favor, it’ll be because of his populist [handouts]( for Brazil’s poorest families. Towels featuring the two main candidates for the presidency near Salgueiro, in northeastern Brazil, in February. Photographer: Jonne Roriz/Bloomberg Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1 p.m. ET, with a second hour on Bloomberg Radio from 1 to 2 p.m. ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - U.K. Prime Minister Boris Johnson said he’s paid a [fine]( for breaching his own government’s Covid lockdown rules, just hours after disclosing the police were penalizing him. - German industry leaders met with Chancellor Olaf Scholz yesterday to outline [challenges]( from supply chain disruptions and rising energy prices stemming from sanctions against Russia. - Mexico’s ruling party [moved]( to Easter Sunday a key vote on President Andres Manuel Lopez Obrador’s plan to regain state monopoly of the electricity sector, in what critics say is an attempt to get the bill passed when attendance may be low. - Diplomats from Italy and Spain are in talks after Rome’s move to secure large volumes of Algerian gas stoked [concerns]( in Madrid that its own access to the key fuel will be affected, sources say. - A U.S. aircraft carrier group was east of the Korean Peninsula for the first time in nearly five years, with Pyongyang poised for [provocations]( that could include its first nuclear test since 2017. And finally ... Before Russian tanks stormed into Trostyanets, the small northeastern Ukrainian town near the border with Russia was known for its historic monuments, chocolate factory and progressive mayor, Yuri Bova. Now it’s scarcely recognizable, and the surviving population is reeling from 31 days of destruction under Russian occupation. Bloomberg talked to Bova about life during the occupation, and what [rebuilding]( might look like. A military monument in Trostyanets is surrounded by battle debris. Photographer: Chris McGrath/Getty Images Europe Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022