China and Mexico's Shocking Deal Leaves the US Stunned - Geopolitics [View all]

China and Mexico have reportedly struck a groundbreaking deal that has significant geopolitical and economic implications, leaving the U.S. and the global community astonished. This deal involves strategic partnerships in trade, technology, or infrastructure that could shift power dynamics in North America and beyond. For instance, Mexico's increased collaboration with China could strengthen economic ties through initiatives like enhanced manufacturing capabilities or Belt and Road-related projects.

The agreement may threaten the U.S.'s dominant influence in the region, challenge its supply chain dependencies, or complicate its trade policies. Observers speculate this deal could create a new axis of cooperation that bypasses the traditional U.S.-led economic order. The full impact remains uncertain, but it signals a shift in alliances that could reshape global trade and diplomacy.

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In today’s update, Khan covers several key developments from China.

First, there are reports of a mysterious viral outbreak in China, possibly linked to hMPV, overwhelming hospitals. Some unverified videos show crowded medical facilities and funeral homes, but concrete details are scarce. The CDC has attributed the surge to influenza, which mirrors a similar situation in 2022-2023, though the World Health Organization has not made a statement yet.

The People’s Bank of China (PBOC) is considering shifting toward market-oriented interest rate controls in 2025, signaling a departure from its previous focus on targeted lending. This aims to promote sustainable economic growth, but there are internal debates on economic policy.

The yuan has fallen past the 7.3 per dollar mark, signaling potential further depreciation. This weakens domestic demand, though it boosts exports. The PBOC may intervene to manage the decline and ensure stability.

Manufacturing activity has slowed, with PMI data showing weaker growth in the sector. This is largely due to falling exports and reduced demand, reflecting broader economic concerns and ongoing trade tensions with the U.S.

On a positive note, BYD, China’s leading electric vehicle (EV) manufacturer, reported record sales, strengthening its position globally. However, smaller EV companies are facing mounting challenges, and the EU has introduced trade barriers to protect local manufacturers from China’s competitive edge.

Khan concludes by noting China’s economic struggles but highlights its growing dominance in the EV market. He encourages viewers to support the channel for more in-depth analysis.