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Good morning and welcome back to FirstFT Asia. In today’s newsletter:
China’s global propaganda push
How Trump’s honeymoon turned sour so quickly
Martin Wolf argues why the US will lose against China
We start today with China’s international propaganda campaign against the US trade war, featuring slick videos portraying itself as standing up against American “bullying” on behalf of the rest of the world.
‘Never Kneel Down’: That’s the title of the latest video posted yesterday by China’s ministry of foreign affairs on social media. It warns countries not to make deals with the US, which “slaps its allies in the face”. The video reflects concerns in Beijing that President Donald Trump is using tariffs to force other countries to join 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 said.
The propaganda videos contrast dark scenes of Wall Street chaos and angry American protesters with a bright and futuristic China.
Charm offensive: The propaganda push comes after Xi toured Vietnam, Malaysia and Cambodia this month to strengthen ties as part of what analysts have described as China’s trade war charm offensive that also includes Europe and Latin America. Beijing wants “to try and shore up its support in western and non-western capitals to prevent Trump forming an anti-China trade bloc”, said Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis. Read the full story.
More trade war news: Wall Street economists forecast that GDP shrank in the first quarter after the US trade deficit in goods surged to a record high in March.
China’s European auto ambitions: Chinese carmakers expanding into Europe are being forced to readjust their short-term ambitions as EU tariff roadblocks have slowed product launches and made their electric vehicles less affordable.
Here’s what else we’re keeping tabs on today:
Economic data: Australia reports CPI inflation figures, China publishes March PMI and Japan releases industrial production data. First-quarter GDP data is due from Taiwan, the US and the EU.
Monetary policy: The Bank of Thailand is expected to cut its policy rate amid slower economic growth. (Bangkok Post)
Results: Earning season continues with Samsung, Hong Kong Exchanges & Clearing, Barclays, Microsoft and Volkswagen reporting.
Vietnam: Today is the 50th anniversary of the end of the Vietnam war, with commemorations planned across the country.
Five more top stories
1. Mark Carney has won Canada’s election after a campaign dominated by the country’s relationship with the US under Trump. Carney’s Liberal party was on track to win the largest number of seats and the right to form a minority government. Read more about the pivotal vote.
2. Trump is set to announce another step back from his trade war and unveil more tariff relief for some of the world’s biggest carmakers. The president will use a visit to the US industrial heartlands on Tuesday evening (local time) to announce that he is sparing the manufacturers from some of his steepest duties and offer those that make their vehicles in the US small rebates to offset the cost of the levies.
More US news: The White House lashed out at what it called a “hostile and political act by Amazon” after a report alleged the tech giant was planning to display price increases caused by Trump’s tariffs on its products.
Trump’s first 100 days: These 10 charts map the tumultuous start of his second term.
3. China’s copper stockpiles are set to run out in just a few months, as the market suffers “one of the greatest tightening shocks” in its history on fears of US tariffs, according to senior executives at commodities trading house Mercuria. Kostas Bintas, the company’s head of metals and mining, said the US was for the “first time” competing with China for supplies of copper, which was likely to supercharge prices.
A blow to nickel producers: Miners in Indonesia are warning of lower profits and output cuts after the government increased the royalties it levies on one of the country’s biggest export industries.
4. Starbucks’ profits fell by half in its latest quarter amid mounting costs of the coffeehouse chain’s turnaround effort. Under chief executive Brian Niccol, who took charge in September, has sought to reduce customers’ wait times, simplify menus and restore the welcoming feel that was lost as more business moved online during the Covid-19 pandemic. Here’s the latest on Starbucks’ revival campaign.
5. Spain’s electricity grid operator has ruled out a cyber attack as the cause of this week’s huge power outage as authorities rushed to get transport networks and infrastructure running again. As recriminations flew, Spanish Prime Minister Pedro Sánchez vowed private sector energy companies would be held accountable for any shortcomings.
News in-depth
Trump launched his second presidency in January riding the political high of his 2024 election victory with a promise to deliver a new “golden age” to Americans. But 100 days later, after a blizzard of actions to gut the federal government and remake the global economy through sweeping tariffs, Trump is back to being the unpopular and polarising president that he was during most of his first term in office. Here’s how his honeymoon turned sour so quickly.
We’re also reading and listening to . . .
Sinking feeling: Iran suffers from some of the worst land subsidence in the world, threatening heritage sites and spurring suggestions to move the capital.
‘Core’ GDP: Against an uncertain policy outlook, we need to utilise durable economic statistics that tell the real story, writes Harvard professor Jason Furman.
Tech Tonic 🎧: John Thornhill explores the Israel Defense Forces’ use of AI in the war against Hamas and what the country’s defence tech ecosystem tells us about the future of warfare.
Chart of the day
Martin Wolf’s latest column argues that the US will lose its trade war against China, which has powerful cards to play in the dispute. Many significant powers already do more of their trade with China than with the US, including Australia, Brazil, India, Indonesia, Japan and South Korea.
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Take a break from the news
Ahead of the FT Weekend Festival’s US edition on May 10, our DC bureau shares its selection of the restaurants, museums, running routes — and more — to make your visit to Washington a memorable one.
