China Traces A New Line Through Europe

China Traces A New Line Through Europe

Chinese President Xi Jinping will arrive in Rome tomorrow ready to plant a flag in the heart of Europe. Italy is expected to break with most other advanced economies by formally signing onto Beijing's $1.3 trillion global Belt and Road (BRI) infrastructure initiative.


Announced in 2013, BRI aims to boost China's trade and international clout through massive new investments in roads, railways, and ports across the world. Italy's decision to sign on to the initiative – the centerpiece of Beijing's plans to overtake the US as the dominant global economic power of the 21st century – is controversial.

Brussels and Washington don't like it at all, because they fear that if Italy takes loans from China it could end up in a dangerous web of debt that exposes it to pressure from Beijing. After all, Italy is already Europe's second most indebted country, and unlike much smaller economies like Greece, a systemic crisis there could unravel the entire Eurozone.

Within Rome too there is some disagreement: Deputy Prime Minister Luigi Di Maio, of the centrist 5Star Movement, is all for closer relations with Beijing, but the far-right Interior Minister Matteo Salvini is more skeptical.

Still, Chinese cash solves a pressing problem for their populist governing coalition. Clashes with Brussels over budget parameters have forced Messrs. Di Maio and Salvini to backtrack on their campaign promises to cut taxes and boost social spending. Delivering new infrastructure with Chinese money could be a big political winner, especially after a high-profile bridge collapse last year.

More broadly, Europe is already having trouble finding consensus on how to approach China's tech investments, 5G equipment suppliers, and infrastructure investments. The smaller economies of Central and Eastern Europe welcome the cash, while most of the larger economies are concerned about the financial and security implications of Chinese capital. EU members are scheduled to meet on Friday to discuss a common approach to Chinese investment into the bloc. To which we say, in bocca al lupo!

The bottom line: The decision of the bloc's fourth largest economy to embrace Beijing has just opened up a major new fault line within Europe.

Microsoft announced earlier this year the launch of a new United Nations representation office to deepen their support for the UN's mission and work. Many of the big challenges facing society can only be addressed effectively through multi-stakeholder action. Whether it's public health, environmental sustainability, cybersecurity, terrorist content online or the UN's Sustainable Development Goals, Microsoft has found that progress requires two elements - international cooperation among governments and inclusive initiatives that bring in civil society and private sector organizations to collaborate on solutions. Microsoft provided an update on their mission, activities for the 75th UN General Assembly, and the team. To read the announcement from Microsoft's Vice President of UN Affairs, John Frank, visit Microsoft On The Issues.

News broke across the United States on Friday evening that Supreme Court Justice Ruth Bader Ginsburg had died, ending her long and distinguished career as a jurist. Tributes poured in quickly from men and women on both sides of the political spectrum. But just as quickly, her death has sharply raised the stakes for the upcoming US elections for president and the Senate, as well as the longer-term ideological balance of the nation's top court.

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Jon Lieber, Managing Director of the United States for the Eurasia Group, shares his insights on the biggest development in US politics this week:

So, the scriptwriters for 2020 have thrown as a real curveball, introducing the most explosive element in US politics, just six weeks before the election. The tragic death of Ruth Bader Ginsburg, who will be remembered as a trailblazing jurist, but also a reliably liberal vote on a court that was divided along ideological lines with a five-four conservative majority. This has the potential to upend the presidential election. And likely will motivate turnout on both sides. But also, importantly for president, Trump could remind some Romney voting ex-Republicans who were leaning towards Biden why they were Republicans in the first place. Which means that it has the potential to push some persuadable voters back towards the president.

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(Some) Thais fed up with royals: In their largest show of force to date, around 18,000 young Thai activists took to the streets of Bangkok on Saturday to rally against the government and demand sweeping changes to the country's powerful monarchy. The protesters installed a gold plaque declaring that Thailand belongs to the Thai people, not the king — a brazen act of defiance in a country where many view the sovereign as a god and offenses against the royal family are punishable by up to 15 years in prison. Activists also got the royal guards to accept a letter addressed to King Vajiralongkorn with their proposed reforms. We're watching to see if the Thai government — made up mostly of the same generals who took over in a 2014 coup and then stage-managed last year's election to stay in power — continues to exercise restraint against the activists. So far, some protest leaders have been detained but they are growing bolder in their defiance of the military and the royal family, the two institutions that have dominated Thai politics for decades. Prime Minister and former army chief Prayuth Chan-ocha is in a tough spot: many young and liberal Thais will hate him if he cracks down hard on the peaceful protesters, but not doing so would make him look weak in the eyes of his power base of older, more conservative Thais who still venerate the monarchy and are fine with the military calling the shots in politics.

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32: Peruvian President Martín Vizcarra survived an impeachment vote on Friday after only 32 out of 130 lawmakers supported his removal for allegedly trying to block an investigation into misuse of public funds. Vizcarra was in peril just a week ago, but the case for impeachment lost steam after the president was backed by the military and influential opposition leaders who insist the country needs stability to fight COVID-19.

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