EU and China both need help

European leaders take their trade complaints to China [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 world’s largest single market, the European Union stands shoulder to shoulder with the US and China on trade matters. That makes the 27-nation bloc an attractive partner for Beijing at a time when it’s trying to encourage international investment to bolster its economy amid intense competition with Washington. It’s a fact not lost on the EU’s leaders as they travel to China for the first face-to-face summit in four years. As Alberto Nardelli reports, European Commission President Ursula von der Leyen and European Council President Charles Michel will [bring a tough message]( — that time is running out for Beijing to address grievances from market access to industry subsidies before the EU is forced to react. Tomorrow’s meeting with President Xi Jinping and Premier Li Qiang will likely hear complaints over an EU probe into electric vehicles produced in China and its “de-risking” plans to reduce dependencies in strategic industries like electronics and defense. The EU is attempting to forge a middle path in China ties distinct from Washington. Indeed, polling out today for the European Council on Foreign Relations found a majority of Europeans say it’s possible to have good relations with both China and the US. But while the EU flexes its muscle abroad, there’s a mounting sense of economic and political drift at home. The same ECFR poll found that 46% of Europeans believe China, not Europe or the US, will be the world leader in EV production in a decade. Meanwhile, almost three-quarters of EU citizens think their standard of living will drop in the next year, with more than a third experiencing difficulties paying bills, according to the latest Eurobarometer survey. It said the bloc is enduring a “permacrisis.” For an embattled Europe, navigating China ties is but one challenge among many. — [Alan Crawford]( An Aion Hyper HT vehicle at the Guangzhou Auto Show on Nov. 17. Photographer: Qilai Shen/Bloomberg Global Must Reads Israel rebuffed mounting pressure to halt the military campaign in the southern Gaza Strip, vowing to press on until it eradicates Hamas. While Israel has said it’s taking increased precautions to protect the lives of civilians, the Hamas-run health ministry said yesterday [the number of Palestinians killed]( since Israel’s counteroffensive began rose to more than 16,000. The kings, presidents and prime ministers have departed the COP28 summit so now it’s time for hundreds of seasoned climate diplomats to [get down to negotiating a text]( that everyone can accept. The tussle over whether the final agreement should commit to “phase down” or “phase out” fossil fuels is prominent, but key concerns of poorer countries include finance and adaptation. Moscow’s monthly income from oil exports is greater now than before the invasion of Ukraine, highlighting the failure of Western sanctions to curb its war chest. The punitive measures [have fostered a lucrative business]( for scores of difficult-to-trace traders and shipping companies, and the final destination of the profits from selling their Russian fuel is a mystery. WATCH: A “shadow fleet” of aging tankers is keeping Russian oil flowing. Source: Bloomberg Joe Biden said he may not have decided to run for a second term if Donald Trump wasn’t seeking to return to the White House, describing his predecessor as a grave threat to American democracy. The president, 81, has sought to [parry voter concerns]( about his age by saying he’s motivated to defeat Trump again and prevent him from holding power. Civil liberties in Senegal have deteriorated to such an extent that it now ranks alongside countries run by military juntas, according to an advocacy group that monitors rights globally. The decline comes after President Macky Sall’s administration [sought to stifle dissent]( ahead of elections in February, CIVICUS said, with opposition leader Ousmane Sonko likely barred from running after a series of criminal charges. Russian President Vladimir Putin arrived in the United Arab Emirates to start a [rare foreign trip]( that will also include a visit to Saudi Arabia, with bolstering cooperation among oil producers a top priority. Treasury Secretary Janet Yellen said US lawmakers hold Ukraine’s fate in their hands as they block $61 billion in fresh [funding requested by the Biden administration]( to resist the Russian invasion. Brazil’s Luiz Inacio Lula da Silva will skip Javier Milei’s inauguration in Argentina, a [sign that relations between the neighboring leaders]( are off to a frosty start. Washington Dispatch House Republicans today may consider a resolution to censure Representative Jamaal Bowman, a New York Democrat, over a fire alarm he pulled on Capitol Hill during talks to avoid a government shutdown in September. Then-Speaker Kevin McCarthy demanded an Ethics Committee investigation after the alarm went off in the Cannon House Office Building and prompted an evacuation. Representative Lisa McClain, a Michigan Republican who introduced the resolution, said on X: “Nobody is above the law, congressmen included.” She was among the Republicans who voted to expel party colleague George Santos last week. Bowman, who pleaded guilty to a misdemeanor, paid a fine and apologized to the police, called the proceeding politically motivated. He told reporters after the episode that he’d been trying to open a door. “It was a mistake. That’s all it was,” he said. Back in New York, Bowman faces a primary challenge from Westchester County Executive George Latimer. One thing to watch today: The fourth Republican presidential primary debate will take place at the University of Alabama in Tuscaloosa. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day Recent incidents near the coast of Yemen. Source: Bloomberg Fresh attacks on vessels in the Red Sea are raising insurance premiums for ships in the region and menacing commerce in a conduit for 12% of world trade. War-risk premiums for some vessels have been climbing since shortly [after the outbreak of the Israel-Hamas war]( on Oct. 7, sources say. And Finally Almost half a century ago, Manuel Lavao planted some of Europe’s first avocado orchards in 1978 in La Axarquía, a sun-soaked stretch of southern Spain, helping to usher in decades of growth for the continent’s exotic fruit sector. Now, water levels at the nearby La Viñuela reservoir have hit record lows and he’s pulling up his trees by the thousands — [like farmers around the globe]( forced to rethink their choice of crops by climate change. Water levels at La Viñuela recently fell to 7.57% of capacity. Photographer: Monica Gumm/Bloomberg Businessweek More from Bloomberg - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - 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 - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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