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Xi's European tour: Some euro, no vision

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Xi's European tour: Some euro, no vision

The opinions expressed in this article are those of the author and do not represent in any way the editorial position of Euronews.

For China to revive its fortunes, it must fundamentally change course, abandoning its version of predatory state capitalism in favour of the genuine market reforms its trade partners worldwide are calling for, Elaine Dezenski writes.

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Xi Jinping arrived in Europe earlier this week lugging some heavy economic baggage. 

With foreign direct investment into China plunging 82% to just $33 billion (€30.5bn) in 2023 — a three-decade low — one might have expected Xi’s tour to be a full-fledged charm offensive aimed at wooing back skittish European investors and businesses. 

However, the authoritarian leader’s trip was anything but charming.

Rather than candidly address the headwinds battering China’s economy and appease anxious trading partners, Xi doubled down on the same tone deaf tactics that have defined his authoritarian rule for over a decade. 

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Cosying up to the like-minded regimes in Hungary and Serbia, Xi offered limited compromises on China’s aggressive trade practices. This hardline posture underscores Xi’s fundamental inability to relate to major market economies as an equal partner respecting fair competition.

For China, the results have been disastrous. The fact that the US has now surpassed China as Germany’s largest trading partner lays bare the costs of Xi’s inflexible approach. 

Germany has been one of China’s more reliable European partners — this shift, however, shows the extent of Europe’s growing rejection of China’s hegemonic ambitions.

A bad call at a bad time

With a looming demographic crisis at home and a faltering real estate sector, China needs its top export markets — the US and Europe — more than ever. But authoritarians don’t make a habit of offering concessions or leading with a spirit of compromise. 

Xi had a prime opportunity on this European tour to chart a new course, one oriented around economic liberalisation, market reforms, supply chain transparency, and fair competition. 

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Instead, he chose the path of confrontation towards vital European trading partners while cosying up to Europe’s authoritarian eastern flank.

This represents an untimely miscalculation. By ignoring the reasonable concerns of Europe’s leading economies, Xi has squandered an opportunity to help stave off potential economic implosion at home. 

Foreign capital will continue fleeing, spooked investors won’t return, and European markets will become increasingly inaccessible so long as Beijing maintains its predatory trade practices.

Respect the rules of the market you need

The reality is that while China’s domestic market remains important, the number of foreign firms deriving profits there appears to be shrinking. 

According to a report from the McKinsey Global Institute, multinational corporations’ “share of all revenues earned in China declined from 16% to 10% from 2006 to 2020.” 

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For many, the Chinese market has become an empty promise. The European Union Chamber of Commerce in China’s latest survey shows record-low business confidence in the Chinese market. 

In fact, a record share of respondents doubted their profitability in China. In the US, as well, less than half of companies responding to an American Chamber of Commerce in China survey indicated they expect to be profitable in 2024.

Xi had an opportunity to change the tides with respect to investment in China. He could have addressed the pressing needs of his European trading partners with humility and opened the door to renewed economic cooperation. 

Unfortunately for the Chinese people, returning to robust commerce with Europe and North America’s major economies would require the flexibility and respect for market principles that Xi’s authoritarian mindset renders him incapable of delivering. 

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With foreign capital fleeing, property values falling, youth unemployment surging, and indebtedness soaring, China is in desperate need of a win for its export-driven economy.

The status quo won’t fly any more

On this trip, European Commission President Ursula von der Leyen bluntly conveyed the EU’s demands for fair economic competition with China and its willingness to robustly defend its interests against Beijing’s unfair trade practices. 

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In response, Xi bluntly denied the basis for Europe’s concerns, claiming, “The so-called ‘problem of China’s overcapacity’ does not exist, either from the perspective of comparative advantage or in light of global demand.” 

This builds on the ES’s 2019 designation of China as a “systemic rival” and should be understood in China for what it is: a clear warning that the status quo is no longer acceptable.

By doubling down on authoritarian belligerence, Xi demonstrated a lack of vision for productive European engagement. 

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For China to revive its fortunes, it must fundamentally change course, abandoning its version of predatory state capitalism in favour of the genuine market reforms its trade partners worldwide are calling for. 

By ignoring Europe’s call for change, Xi has ensured darker economic days ahead for the Chinese people.

Elaine Dezenski is senior director and head of the Center on Economic and Financial Power at the Foundation for Defense of Democracies, a non-partisan think tank based in Washington, DC.

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Video: Nowhere Feels Safe As Israel Strikes Heart of Beirut

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Video: Nowhere Feels Safe As Israel Strikes Heart of Beirut

new video loaded: Nowhere Feels Safe As Israel Strikes Heart of Beirut

When a residential building in downtown Beirut was destroyed by an Israeli airstrike, Samira Osseili fled with her family in the middle of the night. She’s now living in fear with 12 other relatives in her small apartment, knowing that another strike could come at any moment.

By Simona Foltyn, Adrian Hartrick, Michael Anthony Adams and Caroline Kim

March 26, 2026

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US troops brace for ‘hit-and-run’ guerilla attacks as 82nd Airborne deploys to Iran, military analyst warns

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US troops brace for ‘hit-and-run’ guerilla attacks as 82nd Airborne deploys to Iran, military analyst warns

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Iran could significantly increase U.S. casualties if its elite military and proxy forces shift to guerrilla-style hit-and-run attacks in the region, a leading military analyst has warned.

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Michael Eisenstadt of the Washington Institute for Near East Policy spoke as the Pentagon moved elements of the Army’s 82nd Airborne Division into the Middle East amid a new escalation in the conflict, according to reports.

“Iran has large infantry units in its military that are equivalent to the brigade combat team of the 82nd Airborne,” Eisenstadt, a former U.S. Army Reserve officer, told Fox News Digital.

“The 82nd Force is too small to cause significant harm to Iran, but it is large enough to be vulnerable to Iranian strikes, and this would enable Iran to significantly increase U.S. casualties,” he said.

HEGSETH WARNS ‘MORE CASUALTIES’ EXPECTED IN OPERATION EPIC FURY AGAINST IRAN

The 82nd Airborne Division deployment to the Middle East is intended to pressure Iran into accepting U.S. ceasefire terms, military analyst Michael Eisenstadt says. (Sarah Blake Morgan/AP Photo)

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Eisenstadt, who has worked as a U.S. government military analyst, claimed that, even if major conventional operations begin to wind down in the Middle East region, the danger may only evolve rather than disappear.

“We could see an end to major combat operations, with activity shifting to guerrilla-style hit-and-run attacks in the Gulf and other gray-zone activities by Iran,” he said.

“Think of the aftermath of the 1991 Gulf War with Iraq, in which we had to contain the Iraqis for a decade after a very successful war.”

US COULD TAKE IRAN’S MAIN OIL EXPORT HUB ‘AT A TIME OF OUR CHOOSING,’ JACK KEANE SAYS

Naval units from Iran and Russia simulate the rescue of a hijacked vessel during joint drills, Feb. 19, at the Port of Bandar Abbas in Hormozgan, Iran. (Iranian Army/Handout/Anadolu via Getty Images)

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Fox News chief national security correspondent Jennifer Griffin reported Wednesday that the U.S. has ordered the deployment of an additional 82nd Airborne forces to the region.

The contingent is expected to include Maj. Gen. Brandon R. Tegtmeier, the division commander, elements of his headquarters staff, and infantry battalions from the division’s Immediate Response Force. 

Officials also indicated that the total number of troops ultimately sent could still change.

Eisenstadt said this new deployment is intended to increase pressure on Tehran as the U.S. pushes for new ceasefire terms, set in place by President Donald Trump.

WINNING THE BATTLES, LOSING THE WAR? AMERICA MUST DEFINE THE ENDGAME IN IRAN

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President Donald Trump speaks with the media before boarding Air Force One, Monday, at Palm Beach International Airport in West Palm Beach, Fla. (Mark Schiefelbein/AP Photo)

“This deployment is intended to create leverage over Iran and pressure it to accept U.S. terms for a ceasefire agreement. It would also create military options if Iran rejects those terms,” he said.

In that scenario, he said, the 82nd could potentially operate alongside Marine expeditionary units in operations to seize and hold terrain, including Kharg Island, located roughly 20 miles off Iran’s Gulf coast.

U.S. forces struck military targets there March 13, destroying more than 90 Iranian military sites while deliberately sparing key oil infrastructure, according to multiple reports.

IRAN’S REMAINING WEAPONS: HOW TEHRAN CAN STILL DISRUPT THE STRAIT OF HORMUZ

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Satellite view of Kharg Island, located in the Persian Gulf off the coast of Iran.  (Gallo Images/Orbital Horizon/Copernicus Sentinel Data 2024)

“The brigade combat team of the 82nd could work with the 11th and 31st MEUs, or independently, to seize and hold terrain — such as Kharg Island,” Eisenstadt said.

“This would provide leverage over Iran by denying it the ability to export oil and helping end the war on terms favorable to the U.S.”

“There are risks involved though, because Iranian units on the mainland could bombard Kharg Island and inflict casualties on U.S. troops there also,” Eisenstadt said.

JACK KEANE WARNS CEASEFIRE WITH IRAN WOULD ‘PLAY RIGHT INTO THEIR HANDS’ AS TRUMP SIGNALS DEAL PROGRESS

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President Donald Trump warned on Saturday that the U.S. could strike Iranian power plants if the Strait of Hormuz is not reopened. (Aaron Schwartz/UPI/Bloomberg via Getty Images; Gallo Images/Orbital Horizon/Copernicus Sentinel Data 2025 via Getty Images)

The latest military buildup comes as the conflict that began with Operation Epic Fury on Feb. 28, has also centered on the Strait of Hormuz, with Iran restricting access.

“The 82nd deployment is intended to increase psychological pressure on Iran and support efforts to reopen the Strait of Hormuz so it can once again be used by all countries,” Eisenstadt explained.

The 82nd Airborne is one of the U.S. military’s premier rapid-response units, trained to parachute into hostile or contested territory to secure key ground and airfields.

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Portions of the division have also spent recent days at the Joint Readiness Training Center, sharpening infiltration, surveillance, combat and resupply skills, Axios reported.

“Iranian military officials have welcomed news of the dispatch of these units to the Gulf because it potentially creates options for them to impose costs on the U.S.,” Eisenstadt said.

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Escalation in the Middle East – Not Europe’s war? MEPs in the Ring

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Escalation in the Middle East – Not Europe’s war? MEPs in the Ring

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Imagine a former five-star army general in the same room as an anti-war activist? That is what we witness on this latest edition of The Ring, Euronews’ weekly debate show.

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Riho Terras, an Estonian general and centre-right MEP, went face-to-face with far-left Turkish-born German MEP Özlem Demirel on the role of the EU in the ongoing war in the Middle East.

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As the conflict enters its fourth week, EU leaders have called for “de-escalation, the protection of civilians, and restraint,” while avoiding direct involvement. But the question of whether Brussels should take a stronger stance has exposed deep divisions.

“We know from history that military means and wars never brought democracy to this region,” Demirel said, adding starkly: “Bombs fall, the stock markets rise, people die.”

Riho Terras disagreed and took a more security-focused line, defending the need for military strength in global politics. “Nobody listens to somebody who does not have military means,” he argued, stressing that diplomacy alone is insufficient without power behind it.

This episode of The Ring is anchored by Méabh Mc Mahon, produced by Luis Albertos and Amaia Echevarria, and edited by Vassilis Glynos.

Watch The Ring on Euronews TV or in the player above and send us your views by writing to thering@euronews.com

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