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    Why Beijing Stands to Gain from Elon Musk’s Visit

    Tesla’s C.E.O. appears to have landed a deal that moves the company closer to bringing fully autonomous driving to a giant market. But Beijing is keen to exploit the visit for its own purposes.Elon Musk meeting with Premier Li Qiang, China’s second-highest official, on a weekend visit to Beijing that boosted Tesla stock.Wang Ye/Xinhua, via Associated PressWhy Elon Musk went to China Just days after Secretary of State Antony Blinken traveled to Beijing and warned China about unfair trade practices, Elon Musk landed in the Chinese capital. The Tesla boss’s meeting with China’s No. 2 official may have paid off: Musk reportedly cleared two obstacles to introducing a fully autonomous driving system in the world’s biggest car market.The split screen again reveals the gap between Western diplomacy and corporate imperatives. Tesla has to stay committed to China even as it faces big headwinds — a conundrum that other multinationals also face, and one that Beijing is eager to exploit.Musk is betting big on self-driving, and China is key. Tesla last week reported its worst quarter in two years as a price war hurts profit. Tesla shares have plummeted (though they’ve rebounded in recent days, and are up more than 8 percent in premarket trading) amid plans for big layoffs.Musk has tried to reassure the market by pushing ahead with a low-cost model. Fully autonomous driving is also crucial. Musk told analysts last week that if investors don’t believe Tesla would “solve” the technological challenge that is autonomous driving, “I think they should not be an investor in the company.”The carmaker faces challenges in its second biggest market. Heavily subsidized Chinese rivals are eating into sales, led by the Warren Buffett-backed BYD, which is vying with Tesla for the crown of world’s biggest E.V. maker.Teslas are banned from many Chinese government sites because of concern about what data the American company collects. President Biden’s move to declare Chinese E.V.s a security threat probably won’t have made it any easier for Tesla in China.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    China’s First Quarter Results Show Growth Propelled by Its Factories

    China’s big bet on manufacturing helped to counteract its housing slowdown in the first three months of the year, but other countries are worried about a flood of Chinese goods.The Chinese economy grew more than expected in the first three months of the year, new data shows, as China built more factories and exported huge amounts of goods to counter a severe real estate crisis and sluggish spending at home.To stimulate growth, China, the world’s second-largest economy, turned to a familiar tactic: investing heavily in its manufacturing sector, including a binge of new factories that have helped to propel sales around the world of solar panels, electric cars and other products. But China’s bet on exports has worried many foreign countries and companies. They fear that a flood of Chinese shipments to distant markets may undermine their manufacturing industries and lead to layoffs.On Tuesday, China’s National Bureau of Statistics said the economy grew 1.6 percent in the first quarter over the previous three months. When projected out for the entire year, the first-quarter data indicates that China’s economy was growing at an annual rate of about 6.6 percent.“The national economy made a good start,” said Sheng Laiyun, deputy director of the statistics bureau, while cautioning that “the foundation for stable and sound economic growth is not solid yet.”Retail sales increased at a modest pace of 4.7 percent compared with the first three months of last year, and were particularly weak in March. We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Is China’s Era of High Growth Over?

    Beijing unveiled an annual economic target in line with last year’s, as it looks to refocus on strategically important sectors.With troubles brewing at home, China has set the same growth target as last year, reflecting its continuing economic challenges.Lintao Zhang/Getty ImagesChina’s real growth agenda China announced an official growth target of about 5 percent on Tuesday that’s already looking hard to pull off. The world’s second-biggest economy is facing headwinds, from a consumer slowdown to weak investor confidence and a trade war with the West.But the growth target only tells part of the story of how Beijing is rethinking economic policy.Left out of the pronouncements: a stimulus package. Investors watch the annual gathering of the National People’s Congress, the country’s rubber-stamp parliament, and a parallel meeting of China’s top policy body, for clues on the government’s priorities. Spending is set to remain at roughly last year’s level, suggesting that there’s no big-bang boost on the horizon.That’s not great news for Western brands that have ridden a surge in Chinese consumer spending to big growth in recent years. Apple reportedly has seen its Chinese iPhones sales plummet this year.The growth target matches last year’s too, when the post-lockdown economy grew 5.2 percent. (Some analysts say the real growth rate is much lower.) Global investors need to accept that slow growth is the new norm, says Yu Jie, a senior fellow on China at Chatham House, a think tank. “Beijing wants to draw a line under the past economic model which focused on infrastructure and property,” she told DealBook.Beijing’s real focus is reshaping the economy. The government knows that it faces a raft of challenges, but China’s leader, Xi Jinping, is trying to move away from debt-fueled sectors like property and move toward strategically important industries. The terms it uses are “high-quality development” and “new productive forces,” which includes electric vehicles, climate tech, life sciences, and artificial intelligence. The latest measures to achieve that: Premier Li Qiang, China’s second-highest official, said on Tuesday that the government would increase spending for science and technology research by 10 percent.More state-led investment is the priority, rather than “other kinds of more politically painful reforms,” George Magnus, a research associate at Oxford University’s China Center and a former chief economist at UBS, told DealBook.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    China Sets Economic Growth Target of About 5%

    Premier Li Qiang targets growth of about 5 percent this year but signals continued reluctance to use deficit spending for economic stimulus.China’s top leaders on Tuesday set an ambitious target for economic growth but they signaled only modest stimulus measures, not the aggressive support for China’s domestic economy that many analysts believe is necessary to halt a steep slide in the housing market and ease consumer malaise and investor wariness.Premier Li Qiang, the country’s No. 2 official after Xi Jinping, said in his report to the annual session of the legislature that the government would seek economic growth of “around 5 percent.” That is the same target that China’s leadership set for last year, when official statistics ended up showing that the country’s gross domestic product grew 5.2 percent.The country’s program for state spending showed little change. Mr. Li said that the central government’s deficit would be set at 3 percent of economic output, but that the government was ready to issue another $140 billion worth of bonds to pay for unspecified projects of national importance. The more the government borrows, the more it can spend on initiatives that could boost the economy.China had also set the deficit at 3 percent early last year, before raising it in October to 3.8 percent when the government approved $140 billion in additional bonds to pay for disaster relief and prevention measures after severe summer flooding.Conspicuously missing from the premier’s agenda for this year was a move to shore up the country’s social safety net or introduce other policies, like vouchers or coupons, that would directly address Chinese consumers’ very weak confidence and unwillingness to spend money.“There’s a lot of positive noises for the economy, but not a lot of concrete proposals for how to resolve the country’s growth difficulties,” said Neil Thomas, a fellow at the Center for China Analysis of the Asia Society.

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    China consumer confidence index
    Source: China National Bureau of StatisticsBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Artificial Intelligence, Ukraine, China — The Big Buzz at Davos

    C.E.O.s and world leaders gather in the Swiss Alps this year as war, trade risks and disruptive new technologies loom large.The topics on the mind of attendees at this year’s World Economic Forum in Davos, Switzerland, include artificial intelligence, the war in Gaza and the future of Ukraine.Denis Balibouse/ReutersThe meetings behind the meeting Thousands of global leaders have once again descended on snowy Davos, Switzerland, for the World Economic Forum’s annual meeting. The theme of this year’s event: “rebuilding trust.”But there are the public meetings, and then there are the real ones behind closed doors that the attendees are talking about most. These include discussions touching on U.S.-China tensions, the war in Gaza, artificial intelligence and the future of Ukraine.There is a kind of game that some C.E.O.s play with one another: How many public panels are you on, or how many times have you been in the Congress Center, the main hub for the forum’s big presentations? If the answer is zero, you’ve won. Top U.S. officials are set to appear on the main stage, including Secretary of State Antony Blinken and Jake Sullivan, the national security adviser. But speculation abounds about whom they’re seeing behind the scenes.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    Your Monday Briefing: China’s Saudi-Iran Deal

    Also, Xi Jinping loyalists stack China’s leadership and Australia revives an Aboriginal alcohol ban.An Iranian newspaper with a photo of the top diplomats from China, Iran and Saudi Arabia.Majid Asgaripour/West Asia News Agency, via ReutersChina brokers a Middle East dealSaudi Arabia and Iran announced that they had agreed to re-establish diplomatic ties on Friday after years of fighting proxy conflicts. The deal, facilitated by China, highlights Beijing’s growing importance in the Middle East — and, some say, the U.S.’s waning influence there.Saudi Arabia and Iran said that they would patch up a seven-year split by reactivating a lapsed security cooperation pact, and that each would reopen an embassy in the other country. But differences run deep, and it remained unclear how far the rapprochement would actually go.China’s involvement was a surprise and signaled Xi Jinping’s ambitions as a global statesman amid a shift in longstanding alliances and rivalries. “This is among the topsiest and turviest of developments anyone could have imagined,” wrote Peter Baker, our chief White House correspondent.Some Gulf Arab officials say that they can no longer rely on the U.S. to guarantee their security and that China is ready to offer weapons, technology and investment with no strings attached. And Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler, is trying to prove that the kingdom is not just an American “client state.”But other analysts cautioned that Prince Mohammed was simply taking a pragmatic approach. While the U.S. remains the kingdom’s dominant security partner, they say, Washington could not have brokered a deal, given its deeply strained relations with Iran.Iran’s gains: The deal could be a relief for the country, which is facing domestic unrest and an economy waylaid by harsh sanctions.Saudi Arabia’s gains: The pact could help quiet the regional tensions that have inflamed costly wars, like the one in Yemen, which have deterred potential investors.Israel’s fears: Its hopes for an anti-Iranian coalition with Saudi Arabia may be dashed.Saudi nuclear fears: Officials have repeatedly expressed fear over Iran’s nuclear program, saying that they would be the foremost target for any attack. In exchange for normalizing relations with Israel, the kingdom wants security assurances from the U.S. and help developing a civilian nuclear program.Xi Jinping solidified his status as China’s most powerful leader in decades.Noel Celis/Agence France-Presse — Getty ImagesChina’s new leadershipXi Jinping swept into an unprecedented third term as China’s president on Friday. The unanimous vote cemented his dominance, as Xi steels China for an era of superpower rivalry and seeks to revive a battered economy.The meeting of the National People’s Congress, which ends today, will also elevate new leaders for the first time in five years — many of them Xi’s loyalists. His new No. 2, Li Qiang, faces the challenge of reviving economic growth after three years of Covid-19 restrictions. Li oversaw the bruising lockdown in Shanghai last year and will probably extend a hand to a wary private sector.On Friday, the National People’s Congress also approved a series of regulatory changes that reflect Xi’s efforts to centralize Communist Party control.Some changes are aimed at stabilizing the financial sector and growing the power of the central bank amid a rolling real estate crisis. Others seek to boost tech and scientific innovation to compete with the West. And China will centralize how its data — which it views as the backbone of its economy in the future — is managed.“I’m a Vietnam veteran, and I couldn’t even buy a beer,” said Geoff Shaw, left.Tamati Smith for The New York TimesAn Aboriginal alcohol banAustralian authorities have reinstated a ban that prevented people living in most Aboriginal communities from buying takeaway alcohol. The move has reignited debates about race and control.The ban was in place from 2007 until last July, when the Northern Territory let it expire, calling it racist. But little had been done in the intervening years to address the communities’ severe underlying disadvantages. Once alcohol flowed again, there was an explosion of crime.Opponents believe that the ban, imposed by a largely white leadership, replicates the effects of colonialism and distracts from practical issues. Others argue that the benefits — like reducing domestic violence and other harms — could outweigh the discriminatory effects while long-term solutions are developed.Context: The debate has flared up again as Australia begins to discuss constitutionally enshrining an Indigenous body that would advise on policies.THE LATEST NEWSThe War in UkraineWestern analysts say that Russian forces now control most of Bakhmut. Ukraine insists that it holds the city, but its grip is tenuous.Pregnant Russians are heading to Argentina, which gives citizenship to anyone born there — and grants their parents a right to permanent residency and a fast track to a passport.Ukraine’s farmers face risks in the spring planting season: The fields are studded with unexploded bombs.Around the WorldSome human rights groups compared migrant workers’ conditions in Qatar to modern slavery.Olya Morvan for The New York TimesQatar pressed a U.N. agency not to investigate labor abuses in the run-up to the World Cup.The U.S. is racing to contain fallout from the collapse of Silicon Valley Bank, which is the largest U.S. bank to fail since the 2008 crisis.Turkey is trying to identify more than a thousand earthquake victims who remain unaccounted for.A South African corruption watchdog cleared President Cyril Ramaphosa in the theft of $580,000 stashed in his sofa.Other Big StoriesThe BBC is in turmoil after a sports host was taken off the air for criticizing a U.K. immigration proposal.Australia’s strict immigration policy, which includes a system of indefinite mandatory detention, is of questionable legality.At least eight people died when small boats capsized off California, in what authorities said was a human-smuggling operation gone awry.The Oscars are about to start. Follow our live coverage.A Morning ReadIn Luanda, Angola’s capital, dancers celebrated Carnival last month. Gulshan Khan for The New York TimesOnce a cultural highlight, the Carnival celebration in Angola’s capital seems to barely register these days. But a competition could restore its glory, as groups of young dancers compete for prize money.ARTS AND IDEASThe race to turn water into fuelTrucks transporting iron ore in Western Australia.Giacomo d’Orlando for The New York TimesHundreds of billions of dollars are being invested in a high-tech gamble to make hydrogen clean, cheap and widely available. Producers hope to find customers in Australia’s huge mining industry, which currently relies on fossil fuels.“Green hydrogen” is made by using renewable electricity to split water molecules. (Currently, most hydrogen is made by using natural gas.) Because burning hydrogen emits only water vapor, green hydrogen avoids carbon dioxide emissions from beginning to end.Green hydrogen’s biggest impact could be in steel production, which emits more carbon dioxide than all the world’s cars. Three of the world’s four biggest ore miners operate dozens of mines in Australia’s Outback, where 10 million new solar panels and as many as 1,743 wind turbines will go toward making green hydrogen. This month, a steel company there will open the world’s biggest electrolyzer factory, producing machines that split water molecules apart to isolate the hydrogen.Critics say green hydrogen projects divert investment from surer emissions-reduction technologies. But if the rosiest projections hold, green hydrogen in heavy industry could reduce global carbon emissions by at least 5 percent.PLAY, WATCH, EATWhat to CookChristopher Simpson for The New York TimesIn this vegetarian take on shawarma, the usual spiced lamb, chicken or turkey is replaced with cauliflower florets.What to WatchIn “Stonewalling,” a young Chinese woman struggles with pregnancy, informal work and the pandemic. (I saw it and highly recommend it!)What to Listen toCheck out new songs on our weekly playlist.Exercise“Gymtimidation” is real. Don’t let that stop you from working out.The News QuizHow well did you follow last week’s headlines?Now Time to PlayPlay the Mini Crossword, and here’s a clue: Public uprisings (five letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. “Sin Eater: The Crimes of Anthony Pellicano,” a Times documentary about a Hollywood fixer, premiered. Watch the trailer.Start your week with this narrated long read about Germany’s military. And here’s Friday’s edition of “The Daily,” on protests in Israel.We’d like your feedback! Please email thoughts and suggestions to briefing@nytimes.com. More