Xi reigns supreme

The political triumph of Chinese President Xi Jinping. [View in browser]( [Bloomberg]( For five years, much of Chinese politics has turned on Xi Jinping’s unrelenting quest for a third term. Now he’s got to own it. China’s parliament re-appointed Xi as president today, the final step in a process that began with the 2018 repeal of constitutional provisions intended to prevent one-person rule. The unanimous vote comes five months after a Communist Party congress that saw Xi pack leadership posts with allies while sidelining would-be rivals. Key reading: - [US-China Downward Spiral Raises Fresh Fears of Eventual Conflict]( - [Xi’s Third Term as President Cements Effort to Consolidate Power]( - [Xi’s Casual Chats on Stage Show Closeness With New China Leaders]( - [China’s Faith in All-Powerful Xi Shaken by Chaos of Covid Pivot]( - [China Warns US Risks Catastrophe in Push to Contain Beijing]( Xi’s supremacy was evident in everything from the standing ovation he received to his casual chat on the rostrum with incoming premier, Li Qiang, his one-time personal secretary. Only one “no” vote was cast in voting for 18 top positions today, a demonstration of loyalty likely to be repeated in balloting for other senior roles before the annual parliamentary session wraps up on Monday. But outside the hall, faith in Xi’s leadership has been shaken, particularly after mass protests in November precipitated a chaotic exit from his Covid Zero strategy. The MSCI China Index erased all its gains for the year after the legislative session disappointed investors hoping for a clearer call to revive growth. The next five years are expected to see China sink deeper into a “negative feedback loop” with the US that’s fanning fears of outright conflict. This week, both the US and China announced military spending hikes, while Chinese Foreign Minister Qin Gang asked out loud who will bear the “catastrophic consequences” of a war. Having surrounded himself with yes men, it’s unclear who’d be likely to stand up to Xi at home or question his actions. The result of Xi’s political triumph is that, increasingly, responsibility for everything that happens in China rests on his shoulders. — [Brendan Scott]( Xi takes oath after his reelection in Beijing today. Photographer: Noel Celis/AFP/Getty Images Coming Soon: Understand power in Washington through the lens of business, government and the economy. Find out how the worlds of money and politics intersect in the US capital. [Sign up now for the new Bloomberg Washington Edition newsletter](, delivered Mondays, Wednesdays and Fridays. Click [here]( for this week’s most compelling political images. And if you are enjoying this newsletter, sign up [here](. Global Headlines Getting along | Today’s White House meeting between US President Joe Biden and European Commission leader Ursula von der Leyen is likely [to be convivial](, despite trade tensions and the pressure of the war in Ukraine. In a bid to avoid a clash over the Inflation Reduction Act that aims to bolster the development of clean technology, they’re expected to agree on a way for European firms to benefit from some subsidies offered only to American producers. - The European Union is ready to coordinate a bloc-wide approach to export controls on [advanced chips](, following a decision by the Netherlands to restrict some of its supplies amid pressure from the US to clamp down on China’s access to the technology. Cordial entente? | French President Emmanuel Macron has been among the most strident critics of the UK since its fateful vote to quit the EU. British Prime Minister Rishi Sunak will seek to turn his French antagonist into an ally today when he crosses the Channel for talks with Macron in Paris. Read [here]( what to watch out for. The UK economy grew far more strongly than forecast in January, adding to evidence of its resilience in the face of a cost-of-living squeeze and widespread industrial unrest. The figures raise hopes the economy [may avoid]( a protracted recession, or dodge a downturn all together. Weapons revival | As Ukraine’s NATO allies mull ways to increase the production of weapons and ammunition, crumbling towns that once produced arms for Russia may offer a ray of hope. [Daniel Hornak]( and [Andrea Dudik]( report on how eastern Slovakia is seeing a boost in investment as defense companies race to [revive]( plants that once made the now impoverished region a symbol of the Warsaw Pact’s military might. - British law enforcement agencies have identified large numbers of sham companies incorporated in the UK, likely for the purposes of [money laundering]( or tax evasion, [Alex Wickham]( and [Alberto Nardelli]( report. - Follow our rolling coverage of the war in Ukraine [here](. Best of Bloomberg Opinion - [Oil Frackers Hold a Piece of the Net Zero Puzzle: David Fickling]( - [Boris Johnson Wants to Knight Dad? That’s Britain: Martin Ivens]( - [From New York to New Delhi, Cities Are Unwell: Jessica Karl]( High stakes | Allegations of six-figure bribes, shady middlemen and fabricated evidence featured in the $11 billion UK trial ending this week that may cost Nigeria a third of its foreign reserves. Africa’s biggest economy wants the High Court in London to [strike down]( the massive arbitration award in favor of hedge fund-backed Process & Industrial Development for a failed 2010 gas deal. Explainers you can use - [Planet-Saving Wind Farms Fall Victim to Global Inflation Fight]( - [US Races to Close Loophole in Ban on Chinese Server Maker Inspur]( - [Trump Probe Sets Up Clash for Two Ex-Prosecutors With a History]( Hungry teachers | Fed up with abysmal pay and working conditions, Venezuelan public school teachers have been taking part in [massive demonstrations]( to demand higher salaries and more government spending on education, [Andreina Itriago Acosta]( writes. The protests have emerged as a threat to President Nicolás Maduro, who’s likely to seek reelection next year. Source: Bloomberg Bloomberg TV starting Monday March 13 will relaunch Balance of Power at 5pm to 6pm ET weekdays with Washington correspondents [Annmarie Hordern]( and [Joe Mathieu](. You can watch and listen on Bloomberg channels and online [here](. News to Note - Turkish President Recep Tayyip Erdogan will officially kick off the [toughest]( election campaign of his career today, with the broadest-ever opposition alliance standing between him and a third decade in power. - North Korean leader Kim Jong Un presided over [live-fire drills](, where his military launched several suspected short-range ballistic missiles, after his sister threatened the US with consequences if it goes ahead with joint exercises with South Korea. - India and Australia vowed to [strengthen]( security cooperation as Prime Minister Narendra Modi turned on the charm to welcome his counterpart Anthony Albanese to the South Asian country for a first official visit. - Peru’s recently ousted President Pedro Castillo was given three years of pre-trial [detention]( for allegedly working to rig public works contracts while in office, accusations he denies. - A Malaysian court charged former Prime Minister Muhyiddin Yassin today with [corruption](, a development he has described as “an organized political persecution.” Pop quiz (no cheating!) Which South American country has become an unlikely haven for Russians fleeing their homeland? Send your answers to balancepower@bloomberg.net. And finally ... India’s Supreme Court is set to start hearing petitions from LGBTQ couples next week seeking the [right to marry](. As [Kai Schultz]( and [Muneeza Naqvi]( explain, it’s a remarkably swift move in a country that only decriminalized homosexuality in 2018. A positive judgement would more than double the number of people globally with marriage equality rights, eventually cementing inheritance, adoption and other protections for all 1.4 billion Indians. Supporters of the LGBTQ community celebrate the Supreme Court decision to strike down a colonial-era ban on sex between men in Mumbai in 2018. Photographer: Indranil Mukherjee/AFP/Getty Images Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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