Stories by Gabe Lipton of GZERO Media

China traces a new line through Europe as Italy backs Belt and Road

Chinese President Xi Jinping at the National People's Congress in Beijing. Photo: Andrea Verdelli/Getty Images

Chinese President Xi Jinping will arrive in Rome tomorrow ready to plant a flag in the heart of Europe.

What to watch: 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.

Trump's next battles on trade

Trump (R) announces a trade truce last July with European Commission President Jean-Claude Juncker. Photo: Win McNamee/Getty Images

The U.S. and China may be on the verge of resolving — or at least cooling — a heavyweight trade fight that's already seen them slap tariffs on $360 billion worth of each other's goods. If all goes according to plan, a deal will be in place ahead of a summit later this month between President Trump and Chinese President Xi Jinping.

The big picture: That won't spell the end of the Trump administration's aggressive bid to remake the global trading order. Emboldened by their apparent successes in renegotiating NAFTA as well as the China trade relationship, Mr. Trump and his hardline trade czar Robert Lighthizer are now going to train their sights on a whole slew of other countries where they think they can win terms more favorable to U.S. industry.

India and Pakistan exchange strikes, raise fears of nuclear showdown

India and Pakistan are caught in a dangerous cycle of escalatory violence.

The latest: Pakistan claims to have shot down two Indian fighter aircraft and captured two pilots on Wednesday. This comes after Indian fighter jets screamed across the disputed border with Pakistan earlier in the week and dropped bombs there for the first time since the two countries were at war in 1971. That mission was a direct response to a Pakistan-based terrorist group's recent killing of 40 Indian police officers on the Indian side of the border.

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