FirstFT: China steps up international propaganda push in opposition to US commerce warfare

Good morning and welcome again to FirstFT Asia. In right now’s e-newsletter:

• China’s international propaganda push

• How Trump’s honeymoon turned bitter so shortly

• Martin Wolf argues why the US will lose in opposition to China

We begin right now with China’s worldwide propaganda marketing campaign in opposition to the US commerce warfare, that includes slick movies portraying itself as standing up in opposition to American “bullying” on behalf of the remainder of the world.

‘Never Kneel Down’: That’s the title of the most recent video posted yesterday by China’s ministry of international affairs on social media. It warns nations to not make offers with the US, which “slaps its allies in the face”. The video displays considerations in Beijing that President Donald Trump is utilizing tariffs to pressure different nations to affix America in isolating China. “Bullying will be stopped . . . when the rest of the world stands together in solidarity, the US is just a small stranded boat,” the video stated.

The propaganda movies distinction darkish scenes of Wall Road chaos and offended American protesters with a shiny and futuristic China.

Appeal offensive: The propaganda push comes after Xi toured Vietnam, Malaysia and Cambodia this month to strengthen ties as a part of what analysts have described as China’s commerce warfare allure offensive that additionally contains Europe and Latin America. Beijing desires “to try and shore up its support in western and non-western capitals to prevent Trump forming an anti-China trade bloc”, stated Neil Thomas, a fellow on the Asia Society Coverage Institute’s Heart for China Evaluation. Learn the total story.

• Extra commerce warfare information: Wall Road economists forecast that GDP shrank within the first quarter after the US commerce deficit in items surged to a report excessive in March.

• China’s European auto ambitions: Chinese language carmakers increasing into Europe are being compelled to readjust their short-term ambitions as EU tariff roadblocks have slowed product launches and made their electrical automobiles much less reasonably priced.

Right here’s what else we’re maintaining tabs on right now:

• Financial knowledge: Australia experiences CPI inflation figures, China publishes March PMI and Japan releases industrial manufacturing knowledge. First-quarter GDP knowledge is due from Taiwan, the US and the EU.

• Financial coverage: The Financial institution of Thailand is anticipated to reduce its coverage fee amid slower financial development. (Bangkok Put up)

• Outcomes: Incomes season continues with Samsung, Hong Kong Exchanges & Clearing, Barclays, Microsoft and Volkswagen reporting.

• Vietnam: Immediately is the fiftieth anniversary of the tip of the Vietnam warfare, with commemorations deliberate throughout the nation.

5 extra high tales

1. Mark Carney has received Canada’s election after a marketing campaign dominated by the nation’s relationship with the US below Trump. Carney’s Liberal get together was on monitor to win the most important variety of seats and the correct to kind a minority authorities. Learn extra in regards to the pivotal vote.

2. Trump is about to announce one other step again from his commerce warfare and unveil extra tariff aid for a number of the world’s largest carmakers. The president will use a go to to the US industrial heartlands on Tuesday night (native time) to announce that he’s sparing the producers from a few of his steepest duties and provide people who make their automobiles within the US small rebates to offset the price of the levies.

• Extra US information: The White Home lashed out at what it referred to as a “hostile and political act by Amazon” after a report alleged the tech large was planning to show value will increase brought on by Trump’s tariffs on its merchandise.

• Trump’s first 100 days: These 10 charts map the tumultuous begin of his second time period.

3. China’s copper stockpiles are set to expire in only a few months, because the market suffers “one of the greatest tightening shocks” in its historical past on fears of US tariffs, in line with senior executives at commodities buying and selling home Mercuria. Kostas Bintas, the corporate’s head of metals and mining, stated the US was for the “first time” competing with China for provides of copper, which was prone to supercharge costs.

• A blow to nickel producers: Miners in Indonesia are warning of decrease income and output cuts after the federal government elevated the royalties it levies on one of many nation’s largest export industries.

4. Starbucks’ income fell by half in its newest quarter amid mounting prices of the coffeehouse chain’s turnaround effort. Beneath chief govt Brian Niccol, who took cost in September, has sought to scale back prospects’ wait occasions, simplify menus and restore the welcoming really feel that was misplaced as extra enterprise moved on-line through the Covid-19 pandemic. Right here’s the most recent on Starbucks’ revival marketing campaign.

5. Spain’s electrical energy grid operator has dominated out a cyber assault as the reason for this week’s enormous energy outage as authorities rushed to get transport networks and infrastructure operating once more. As recriminations flew, Spanish Prime Minister Pedro Sánchez vowed non-public sector vitality firms could be held accountable for any shortcomings.

Information in-depth

Trump launched his second presidency in January driving the political excessive of his 2024 election victory with a promise to ship a brand new “golden age” to Individuals. However 100 days later, after a blizzard of actions to intestine the federal authorities and remake the worldwide economic system via sweeping tariffs, Trump is again to being the unpopular and polarising president that he was throughout most of his first time period in workplace. Right here’s how his honeymoon turned bitter so shortly.

We’re additionally studying and listening to . . . 

• Sinking feeling: Iran suffers from a number of the worst land subsidence on the planet, threatening heritage websites and spurring options to maneuver the capital.

• ‘Core’ GDP: Towards an unsure coverage outlook, we have to utilise sturdy financial statistics that inform the actual story, writes Harvard professor Jason Furman.

• Tech Tonic 🎧: John Thornhill explores the Israel Protection Forces’ use of AI within the warfare in opposition to Hamas and what the nation’s defence tech ecosystem tells us about the way forward for warfare.

Chart of the day

Martin Wolf’s newest column argues that the US will lose its commerce warfare in opposition to China, which has highly effective playing cards to play within the dispute. Many important powers already do extra of their commerce with China than with the US, together with Australia, Brazil, India, Indonesia, Japan and South Korea.

Take a break from the information

Forward of the FT Weekend Pageant’s US version on Might 10, our DC bureau shares its number of the eating places, museums, operating routes — and extra — to make your go to to Washington a memorable one.