Xi Jinping has been winning lately, successfully rebuffing US efforts to portray China as a danger to the global system. An envoy sent to France immediately rekindled all these fears.

China moved quickly to quell a firestorm that erupted in Europe after Ambassador Lu Shaye questioned the independent of ex-Soviet countries during an interview on a local radio station.

The Chinese Embassy in Paris issued a statement on Monday night saying that Lu’s comments were “an expression personal points of views” and shouldn’t have been “over-interpreted”. It also reaffirmed its respect for the sovereignties of ex-Soviet countries, stating that their position was “consistent, clear, and consistent.”

The damage was already done. These remarks echoed Vladimir Putin’s views on Ukraine and the other countries that were once part of the Soviet Union. This undermined Xi’s efforts to portray China in a neutral light to help end the conflict that began in February 2020.

In a tweet, Lithuania’s foreign minister Gabrielius Landsbergis cited Lu’s comments to explain “why Baltic states do not trust China to ‘broker peace in Ukraine’.” Estonia and Latvia – nations that suffered under the Soviet Union’s harsh rule for decades – summoned Chinese diplomatic staff in their capitals to provide an explanation.

Ja Ian Chong is an associate professor of Political Science at the National University of Singapore. He said that Lu’s remarks, and the strong reaction they sparked in Europe were an “own goal”.

Chong said that the incident was a reflection of tensions within China’s foreign policy. “They want an image that is both open and strong.”

This incident has heightened investor concerns about geopolitical risk, given that Chinese stock market traders were already concerned about China-US relations. The MSCI China Index dropped as much as 2.6% Tuesday. This would have been the longest decline since October.

Vey-Sern Ling is the managing director of Union Bancaire Privee. She said that there are “a number of negative geopolitical sounds” on the market, including Lu’s remarks and Biden’s apparent plan to issue an executive order restricting American investment in certain areas of China’s economic system.

Xi launches charm offensive to repair China’s tarnished image

Lu’s errant comments appeared to be a setback for Xi as he tries to revamp China’s global image after three years of being isolated due to Covid-19.

In March, just a few days after Xi announced a vague plan for peace in Ukraine, and shortly before he met with Putin in Moscow his government brokered a diplomatic rapprochement between Iran and Saudi Arabia. This gave Beijing credibility as a possible mediator in conflicts beyond its borders.

Xi then hosted the leaders from France and Brazil who both made remarks that angered the US. Brazilian President Luiz inacio Lula da So called for stronger economic ties with China, and a reduced role for the dollar in international trade. French President Emmanuel Macron stated that Europe had to forge its own way independent of the US.

QuickTake: Also, Why China’s Diplomats Scoff at the ‘Wolf Warrior Label’

After Lu’s remarks, Macron reiterated that he was with the countries concerned, and Josep Borrell (the top diplomat of the European Union) called them “unacceptable.”

This episode shows China’s struggle with balancing more assertive diplomacy and the need to project a soft power, especially as its reputation has declined. According to a Pew Research Center survey conducted last year, four fifths of respondents from the US, Japan and South Korea had an unfavorable opinion of China.

While China appears to have recognized the problem and has been trying to be more diplomatic in recent times, diplomats are still prone to making outbursts. Lu caused controversy by accusing Canada in the past of “white supremacy,” during the saga of the detention and release of a Huawei Technologies Co. executive.

The episode will not hurt China in the long run amongst the Global South. This is a term that refers to the developing nations of Asia, Africa and Latin America.

China initiated a discussion about BRICS growth when it held the bloc’s presidency last year. This was part of a larger effort to offer an alternative to US leadership. Anil Sooklal is South Africa’s ambassador for BRICS. He said that since then, 19 countries have expressed interest in joining the group just before its annual summit in South Africa, in June.

Neil Thomas, a fellow with the Asia Society Policy Institute’s Center for China Analysis, stated that this incident could also be forgotten quickly in smaller European nations.

He said that “many European leaders will accept Beijing’s retractions of Ambassador Lu’s remarks and continue to pursue economic and diplomatic relations with China. This is especially true for smaller and poorer EU countries who value their commercial exchanges with China.”

China’s diplomatic efforts are likely to continue in the months ahead. People familiar with the plans say that German Chancellor Olaf Scholz will invite Chinese Premier Li Qiang to Berlin for talks in June. Scholz is expected to make Beijing a partner in tackling challenges such as peace efforts. China has not confirmed the trip.

Brazil’s Lula seeks even closer ties with China as a slap to the US

Beijing’s reaction has been to criticize the media, in addition to the embassy statement that distanced China from Lu Lu’s remarks. Mao Ning, a spokeswoman for the Foreign Ministry, blamed the media in a Monday regular briefing. She said that the media was trying to “sow rift between China and other countries.”

Lu’s comment was also well received by social media users who linked the issue with Taiwan. China recently argued that taking Taiwan would not violate international law, because the island hasn’t been recognized as a nation.

One Chinese user commented on social media about Lu’s remarks: “If you are powerful enough, you can create international law.” “Haven’t Western politicians uttered enough nonsense about Taiwan?”