The European Central Bank intensified its challenge to Visa and Mastercard, laying out the technology standards that will underpin the digital euro, a project officials aim to roll out by 2029. The move marks a significant step in Europe’s push to build a homegrown payments infrastructure and reduce dependence on U.S. card networks.
The framework, published as policymakers debate the future of retail payments, is expected to shape how banks, fintechs and merchants connect to the ECB-backed system. It also raises the stakes for global payments companies that have long dominated electronic transactions across the euro area.
In China, DeepSeek unveiled a preview of its much-anticipated V4 model, adding momentum to the country’s increasingly competitive artificial-intelligence sector. At the same time, Beijing signaled tighter political oversight of the industry, saying domestic technology companies will need government approval before receiving U.S. capital.
The twin moves highlight the balancing act facing Chinese policymakers: encouraging technological self-sufficiency while tightening control over foreign financing.
China has also opted to hold back on additional fiscal stimulus, judging that the economy has remained resilient despite the global energy shock. The country’s trade reached a record $6.6 trillion in the 12 months through March 2026, producing a $1.18 trillion surplus, a sign that exports continue to anchor growth.
In another step toward market liberalization, Beijing has begun allowing foreign investors to trade Chinese bond futures, broadening access to one of the world’s largest fixed-income markets even as it curbs some cross-border capital channels.
Chinese electric-vehicle makers BYD and Geely are deepening their push into Europe as higher fuel costs reshape consumer demand. Rising oil prices linked to the conflict around Iran are improving the relative economics of EV adoption, giving low-cost Chinese manufacturers an opening in markets long dominated by European brands.
In Spain, the government proposed a windfall tax on energy companies to capture some of the gains from rising prices, as the war in Iran continues to ripple through European fuel markets.
Markets were subdued as investors weighed the implications of Europe’s payments overhaul, China’s mixed policy signals and persistent energy risk. European and Asian stocks swung between modest gains and losses, while U.S. futures pointed to a flat open. Brent crude held steady at $104 a barrel.
The day’s developments underscored a wider shift in the global economy: Europe is trying to reclaim control of its payments system, while China is attempting to open its markets on its own terms.
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