China steps up global propaganda push against US trade war

Good morning and welcome again to FirstFT Asia. In at present’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 at present with China’s worldwide propaganda marketing campaign in opposition to the US commerce battle, that includes slick movies portraying itself as standing up in opposition to American “bullying” on behalf of the remainder of the world.

‘By no means Kneel Down’: That’s the title of the newest video posted yesterday by China’s ministry of international affairs on social media. It warns international locations to not make offers with the US, which “slaps its allies within the face”. The video displays considerations in Beijing that President Donald Trump is utilizing tariffs to power different international locations to affix America in isolating China. “Bullying can be stopped . . . when the remainder of the world stands collectively in solidarity, the US is only a small stranded boat,” the video mentioned.

The propaganda movies distinction dark scenes of Wall Street chaos and angry American protesters with a vivid and futuristic China.

Attraction 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 battle appeal offensive that additionally contains Europe and Latin America. Beijing needs “to try to shore up its help in western and non-western capitals to forestall Trump forming an anti-China commerce bloc”, mentioned Neil Thomas, a fellow on the Asia Society Coverage Institute’s Middle for China Evaluation. Read the full story.

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

• China’s European auto ambitions: Chinese language carmakers increasing into Europe are being pressured 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 at present:

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

• Financial coverage: The Financial institution of Thailand is predicted to cut its policy rate amid slower financial progress. (Bangkok Publish)

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

• Vietnam: At present is the fiftieth anniversary of the top of the Vietnam battle, with commemorations deliberate throughout the nation.

5 extra prime 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 observe to win the most important variety of seats and the appropriate to kind a minority authorities. Read more about the pivotal vote.

2. Trump is ready to announce one other step again from his commerce battle and unveil extra tariff relief for some of the world’s biggest 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 supply 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 big was planning to show worth will increase attributable to 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 history on fears of US tariffs, in keeping with senior executives at commodities buying and selling home Mercuria. Kostas Bintas, the corporate’s head of metals and mining, mentioned 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 lower profits and output cuts after the federal government elevated the royalties it levies on one of many nation’s greatest export industries.

4. Starbucks’ income fell by half in its newest quarter amid mounting prices of the coffeehouse chain’s turnaround effort. Underneath chief government Brian Niccol, who took cost in September, has sought to scale back clients’ wait occasions, simplify menus and restore the welcoming really feel that was misplaced as extra enterprise moved on-line in the course of the Covid-19 pandemic. Here’s the latest on Starbucks’ revival campaign.

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

Information in-depth

Trump launched his second presidency in January using the political excessive of his 2024 election victory with a promise to ship a brand new “golden age” to People. However 100 days later, after a blizzard of actions to intestine the federal authorities and remake the worldwide financial 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. Here’s how his honeymoon turned sour so quickly.

We’re additionally studying and listening to . . . 

• Sinking feeling: Iran suffers from a few of the worst land subsidence in the world, threatening heritage websites and spurring strategies to maneuver the capital.

• ‘Core’ GDP: In opposition to an unsure coverage outlook, we have to utilise sturdy financial statistics that tell the real story, writes Harvard professor Jason Furman.

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

Chart of the day

Martin Wolf’s newest column argues that the US will lose its trade war against China, which has highly effective playing cards to play within the dispute. Many vital 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 Festival’s US edition on Could 10, our DC bureau shares its number of the eating places, museums, operating routes — and extra — to make your visit to Washington a memorable one.