Trade tensions between the U.S. and China are taking a new turn with the release of a propaganda video by China’s Foreign Ministry.
Arlan Suderman, Chief Commodities Economist for StoneX, discussed the video’s purpose and its impact on global trade.
“China’s Foreign Minister released a video with bilingual subtitles, titled ‘Never Kneeled Down,’ and it was obviously a propaganda video, but its purpose seemed to be to get other countries to join it in standing up against the ‘bulling of America,’ and China is trying to get other countries to stand beside it. Because it knows it’s heard that there’s a hundred countries that want to negotiate lower tariffs, and it is expecting what I’ve said previously, that those negotiations will include clauses that help contain China.
“It does not extinguish right away here — in any sort of sense — the real profitability concerns and people’s ability to pay bills and get to the other side of this in the very short term. This is where the skepticism builds.”
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