China’s lost opportunity

Follow Us Get the newsletter For China's diplomats, it's a badge of honor to come under attack for staunchly defending Beijing's interests to the world. State media are equally vocal in rebutting criticism of China's actions by other countries. That robust language is mostly pointed at a domestic audience. It makes the Chinese leadership sound tough and determined in the face of outside hostility. That helps President Xi Jinping harness nationalism to solidify his power at home. Still, the trolling of India in the midst of its Covid-19 catastrophe proved too much even for the Communist Party. China's top law enforcement body juxtaposed the launch of a module into space with cremation pyres in India, and the language: "China lighting a fire versus India lighting a fire." The post was subsequently deleted. But it was too late to prevent a furious backlash and came after China had made some inroads with India — a neighbor with whom it has had deadly territorial disputes. Beijing had offered vaccines and other help while the U.S. initially wavered about exporting its stockpile. While China sees benefits in "wolf warrior" diplomacy, it needs less aggressive forms of interaction too. Soft power helps in three ways: It fosters the idea that China is an adult on the global stage, able to lead on issues including climate change. It allows China to enlist countries to advocate for it in blocs including the European Union. And it can soften the unease that countries feel about Beijing's economic expansionism, along with the urge to put up barriers to investment from Chinese companies. Big countries need a combination of heft and soft power to push their agendas. Beijing seems to not yet have figured that out. — Rosalind Mathieson The launch of a rocket carrying China's Tianhe space station core module on April 29. Source: AFP/Getty Images Check out all our biggest stories on the Bloomberg Politics web page here and tell us how we're doing or what we're missing at balancepower@bloomberg.net. Top Headlines Congress's turn | President Joe Biden is hoping to win Republican support for at least some parts of his $4 trillion vision to remake the federal government's role in the U.S. economy. While GOP lawmakers won't support the "American Families Plan" that twins social spending with individual tax hikes, some back parts of the infrastructure-focused "American Jobs Plan." Biden's proposed measures may struggle to tackle the widest inequality gaps in the developed world. Under fire | Indian Prime Minister Narendra Modi's party has lost a key state election, adding to a mounting backlash over his government's handling of the world's worst Covid-19 outbreak even as he won in other states. Yesterday's vote count came a day after 12 people died when a hospital in the capital, New Delhi, ran out of oxygen despite sending out desperate calls for help — the third such incident in the past 10 days. Poll dent | Weeks of negative coverage of allegations tied to the refurbishment of U.K. Prime Minister Boris Johnson's official apartment are starting to hurt the Conservative Party in polls before regional and local elections on May 6. Three separate investigations have now been announced into who paid for the works. Scotland's youth is disproportionately in favor of independence and, as Katharine Gemmell reports, that suggests questions over the U.K. splitting are unlikely to go away. Europe rising | After a double-dip recession, Europe's economy is turning the corner from its worst crisis in the postwar period. Despite another slump in the first quarter, prospects for the region are as bright as they have been since the pandemic struck, with EU-funded multi-year stimulus plans finally taking shape. Tax backtrack | Days of bloody street clashes have forced President Ivan Duque to withdraw a plan to raise taxes on many Colombians. Duque needs to raise revenue somehow to address a surge in poverty caused by the pandemic. The decision to abandon the bill less than three weeks after it was introduced undermines chances he'll be able to pass other reforms before his term expires next year. What to Watch This Week Secretary of State Antony Blinken holds meetings in London and Kyiv this week aimed at keeping allies united against China and showing support for Ukraine in the face of Russian aggression. The European Commission proposed easing restrictions on tourism and leisure travel for those who are fully inoculated, adding to signs of a gradual return to normalcy as vaccinations gather pace. Chad's recently reinstated prime minister, Albert Pahimi Padacke, retained several of slain President Idriss Deby's allies in a cabinet expected to be in power for a transition period. Australia is reviewing whether to force a Chinese company to sell its lease on a strategically important port used by U.S. Marines, a decision that could further stoke tensions with Beijing. El Salvador's ruling party took control of the top court and replaced the attorney general in a move criticized by the U.S. and human rights groups. Thanks to the more than two dozen people who answered our quiz question and congratulations to Mark Stalker, who was the first to name China as the country whose spy agency announced measures to fight infiltration by "hostile forces" in its companies and other institutions. And finally ... Russian officials hailed Moscow's massive facial-recognition camera network as an aid to enforce quarantine restrictions, catch criminals and even allow residents to pay subway fares. Now it's being deployed to crush dissent against President Vladimir Putin, with police using the system to identify and detain dozens of people who have protested in support of jailed Kremlin foe Alexey Navalny. Opposition supporters at a rally in support of Navalny in Moscow on April 21. Photographer: Kirill Kudryavtsev/AFP/Getty Images      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 Bloomberg L.P. 731 Lexington, New York, NY, 10022