World
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.
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.
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.
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.”
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.
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.
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.
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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Pope Leo XIV calls this a challenge to 'human dignity' in first address to cardinals

In his first official remarks as pope, Leo XIV delivered a powerful message to the College of Cardinals on Saturday, warning that artificial intelligence (AI) presents serious new risks to human dignity. He called on the Catholic Church to step up and respond to these challenges with moral clarity and bold action.
Speaking at the New Synod Hall, the Pope said the Catholic Church has faced similar moments before.
He compared today’s rapid AI technological change to the upheaval of the 19th century industrial revolution, saying the Church must again defend workers and promote justice.
“Pope Leo XIII, with the historic Encyclical Rerum Novarum, addressed the social question in the context of the first great industrial revolution,” Pope Leo XIV said. “Today, the Church offers to all her treasure of social teaching in response to another industrial revolution and the developments of artificial intelligence.”
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Pope Leo XIV meets the College of Cardinals in the New Synod Hall at the Vatican on Saturday. (Vatican Media via AP)
Pope Leo XIV, formerly Cardinal Robert Francis Prevost, is the first American to be elected pope.
A former missionary and head of the Dicastery for Bishops, he speaks English, Spanish and Italian and was widely seen as a unifying choice after the death of Pope Francis. His decision to take the name “Leo” connects his mission with Pope Leo XIII’s focus on social justice.
Under Pope Francis, the Vatican greatly expanded its digital outreach. It restructured its media operations, launched popular social media efforts and introduced ethical guidelines for AI. The “Rome Call for AI Ethics” is a joint initiative between the Church and tech leaders promoting transparency in AI development.
Pope Leo XIV made clear that he would continue this work. In his speech, he described AI as a powerful force that could reshape labor, society and even how we see ourselves. He emphasized that people, not profit, must remain at the center.
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Pope Leo XIV meets the College of Cardinals in the New Synod Hall at the Vatican, Saturday. (Vatican Media via AP)
“These are Gospel principles through which the merciful face of the Father has been revealed and continues to be revealed in the Son made man,” he said. “Let us take up this precious legacy and continue on the journey, inspired by the same hope that is born of faith.”
He also urged Catholics to stay grounded in quiet prayer and discernment in a noisy digital world. He quoted Scripture to say that God is often heard not in thunder or spectacle, but in “the whisper of a gentle breeze” or “the sound of sheer silence.”
The Pope also reflected on the recent death of Pope Francis. He called the moment both sorrowful and filled with God’s grace. He described the transition to a new pope as a “paschal event,” a kind of spiritual turning point, and thanked his predecessor for his life of service.

Pope Leo XIV meets the College of Cardinals in the New Synod Hall at the Vatican on Saturday. (Vatican Media via AP)
“I would like us to renew together today our complete commitment to the path that the universal Church has now followed for decades in the wake of the Second Vatican Council,” he said. He also encouraged more listening, dialogue and care for the poor.
As Vatican Media reported, the Pope’s remarks “invoked a vision of a Church firmly rooted in tradition but willing to meet the future with courage,” particularly in its response to technologies that are reshaping human identity.
The Associated Press contributed to this report.
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Brussels, my love? Merz stumbles into office – can he recover?

Shock and embarrassment in Berlin! Friedrich Merz was only elected as the new German Chancellor by the Bundestag in the second round of voting. This never happened before in the history of the Federal Republic.
Is he already damaged goods before he can bring the show on the road? Can his coalition still work together in a spirit of trust? And what about his ambitious plans for Europe?
Questions for our panel in this edition from the European Parliament: Damian Boeselager, from the German Volt Party sitting with the Greens, Anna Stürgkh from Renew Europe (Austria) and Siegfried Mureșan, from the European Poeple’s Party (Romania).
The era Friedrich Merz started with a bang. The 69-year old did not receive the required majority of 316 votes in the first round. Nobody expected this!
In the three months after the snap elections that turned his Christian Democrats into the biggest force in the Bundestag, Merz has already come under sustained attacks from fellow conservatives and their media allies for giving too much away to the Social Democrats, his coalition partner.
And that was even before he entered the chancellery! The question is: who were the dissenters, Christian Democrats or Social Democrats – or both? Some called them traitors. One thing is certain: the new government will start with a serious amount of mistrust within its own ranks.
Too bad, as there are huge expectations in Berlin and Brussels that Merz revives the economy, brings Europe back on track, repairs the sputtering French-German engine, reigns in Trump and tames migration. Will it finally come to all that?
The second topic was the political thriller in Romania where the far-right Eurosceptic George Simion has won the first round of the Romanian presidential election rerun.
The rerun was necessary after the highest court of the country had annulled last December’s election due to attempted Russian manipulation. A decision that was sharply criticized by the global far right, including the Trump administration. A victory for Simion could have a serious impact on Europe, say political observers.
On May 18th, voters will face a stark choice between two radically different candidates, Simion and Nicusor Dan, the mayor of Bucharest.
Simion, the leader of the Nationalist Alliance for Romanian Unity Party, has increasingly aligned his rhetoric and position with those sympathetic to the Kremlin interest. In a recent and widely criticized statement, Simion claimed that Russia poses no threat to NATO.
His opponent is Dan, an independent candidate with a background in mathematics and a strong pro-European progressive orientation. Voters, therefore, must decide between two fundamentally different visions.
Will Romanians maintain the country’s pro-European course? Or will anti-EU forces prevail?
Finally, the panel discussed the aftermath of the big blackout that struck the Iberian peninsula and parts of France recently.
Traffic lights failed, elevators stopped, electronic payments broke down – and across cities, people stepped in to help one another. The blackout was likely triggered by technical issues, although the exact cause remains unclear.
Could it happen again elsewhere in Europe? Are we prepared for a major energy security crisis?
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