Report for Friday, May 30, 2025
8:27 America/EST Friday, May 30
THE TOP HEADLINES
Report for Friday, May 30, 2025
- U.S. State Department overhaul will gut workforce, push 'Western values.’
- Russia Appears to Launch New Offensive in Ukraine Amid Peace Talks
- North Korea’s Surging Military Aid to Russia Detailed in Report
- Saudi Arabia warned Iran to reach deal with U.S. or risk Israeli strike
- Nvidia’s Huang warns that Chinese AI rivals have ‘evolved,’ are now ‘formidable’.
THE AMERICAS
America Let Its Military-Industrial Might Wither. China’s Is Booming.For years, U.S. administrations have grappled with China’s dual challenge: a growing military and a booming economy. In a potential conflict, Washington risks being outpaced by Beijing’s vast and modernized industrial base. Modern warfare depends largely on mass production, as demonstrated by Russia’s invasion of Ukraine. Yet, unlike in World War II, when America’s factories dominated the global output, the U.S. no longer has that capacity. China, now the world’s top manufacturer of everything from chemicals to advanced machinery, has scaled its military production. Its shipbuilding capacity alone outpaces the U.S., producing more commercial ships annually than the U.S. has in decades. China’s air force and navy are rapidly modernizing, with many civilian manufacturers easily convertible to military use. In a conflict, China’s larger, more flexible industrial base, automated production, vast workforce, and control of rare earth materials and processing plants give it a significant advantage, while Washington struggles with dwindling capacity and labor shortages. Wall Street Journal
U.S. State Department overhaul will gut workforce, push 'Western values.’ The Trump administration on May 29 formally notified Congress of a major State Department overhaul that will cut thousands of jobs, reframe the human rights bureau on “Western values,” and shift the refugee bureau’s focus to repatriating migrants. Announced by Secretary of State Marco Rubio, the reorganization will streamline, merge, or eliminate over 300 of the department’s 734 bureaus and offices, cutting about 3,448 U.S.-based positions. The Bureau of Democracy, Human Rights, and Labor will now emphasize “traditional Western conceptions of core freedoms,” while the Bureau of Population, Refugees, and Migration will prioritize returning migrants to their countries of origin. The shake-up follows the dismantling of USAID and includes the elimination of offices for climate change and war crimes monitoring. ReutersAssociated PressCBS News
Treasury’s Bessent says Washington-Beijing trade talks "a bit stalled.”Treasury Secretary Scott Bessent said Thursday that President Donald Trump and Chinese leader Xi Jinping may need to speak directly to resolve issues in trade negotiations. Bessent, who helped broker a temporary 90-day tariff reduction deal in Switzerland, said talks with China are “a bit stalled” and predicted further discussions in the coming weeks. In a Fox News interview, he stressed that, due to the complexity of the talks, both leaders might need to personally intervene to move the negotiations forward. Bessent expressed confidence in the leaders' relationship, suggesting that Xi would respond positively when Trump outlines his preferences. This development comes after China welcomed a U.S. Court of International Trade ruling that blocked many of Trump’s tariffs, which a federal appeals court stayed the following day. Axios CNBCReuters
State Department asserts US will not tolerate Chinese 'exploitation' of universities, theft of research. Washington will not tolerate the Chinese Communist Party’s (CCP) exploitation of American universities or theft of U.S. intellectual property, State Department spokesperson Tammy Bruce asserted on Thursday. At a briefing, Bruce spoke about a new plan to “aggressively” revoke visas of students linked to the CCP or studying critical fields, though she did not specify how many students might be affected or how threats would be assessed. Secretary of State Marco Rubio introduced the crackdown, accusing the CCP of using U.S. academic institutions to boost military power, gather intelligence, and suppress dissent. The visa revocations follow the Trump administration’s order to halt new appointments for student and exchange visitor visas globally. Bruce advised applicants to keep checking the visa system for updates but gave no timeline for resuming appointments. ReutersTimes of IndiaAssociated Press
U.S. appeals court stays ruling that blocked Trump's tariffs. A federal appeals court has temporarily halted a ruling that would have invalidated most of President Trump’s tariffs, intensifying the legal and economic uncertainty caused by the Court of International Trade’s decision. The trade court had determined that Trump lacked the authority under the 1977 International Emergency Economic Powers Act to impose broad reciprocal and retaliatory tariffs. The administration immediately appealed and hinted at taking the case directly to the Supreme Court if lower courts didn’t act swiftly. On Thursday, the U.S. Court of Appeals for the Federal Circuit issued a stay on the trade court’s decision, pending motions from both parties. The plaintiffs must file a response by June 5, and the government’s reply is due June 9. Trump criticized the trade court’s ruling as "wrong" and "political," while Oregon’s Attorney General stressed that the appeals court’s order was procedural and not a ruling on the case’s merits. Axios Bloomberg New York TimesReutersPolitico
Musk's real DOGE legacy will be decided by courts long after his departure. Elon Musk’s tenure as the face of the Department of Government Efficiency (DOGE) is ending, but his impact—and legal woes—persist. His aggressive cuts, designed to trim $2 trillion in government spending, disrupted federal agencies, sparked mass layoffs, drew multiple lawsuits, and fueled intense controversy. Despite Musk’s boasts of savings and reform, the initiative has so far realized $175 billion, far short of its target. His time at DOGE has left him with a bruised reputation, with many viewing him as having wielded unchecked power over the executive branch. A lawsuit from over a dozen Democratic state attorneys general, accusing Musk and DOGE of illegally influencing government operations, is proceeding. Although the tech billionaire is stepping down, his legacy will be shaped by the courts, which may curb DOGE’s reach. Meanwhile, the White House plans a $9.4 billion rescissions package to enshrine some of the cuts Musk identified. Axios
Hegseth says DOGE can now review unclassified Pentagon contracts. The Pentagon has announced that the Department of Government Efficiency (DOGE) will now review nearly all unclassified defense contracts before they are awarded. Defense Secretary Pete Hegseth’s directive, issued Wednesday, grants DOGE the authority to examine contract requirements, solicitations, and cost estimates, though this excludes overseas contracts, those under $1 million, and operations outside the U.S. Initially, the focus will be on contracts for communications, utilities, advisory services, and professional support. However, DOGE’s authority to modify or cancel awards remains unclear. The move has sparked criticism for adding complexity to the Defense Department’s already slow acquisition process. Hegseth claims DOGE has saved over $10 billion at the Pentagon through contract cancellations and spending reductions, while critics argue that the office exaggerates savings and slashes spending for ideological reasons. The Pentagon’s shift toward relying on in-house expertise and reducing civilian contracts, amid workforce cuts, risks overburdening remaining staff. Defense NewsDefenseScoop
Pentagon ends new radar effort meant for Guam missile defense. Earlier this year, the Pentagon, under then-Deputy Secretary of Defense Kathleen Hicks, halted development of the AN/TPY-6 radar, meant to bolster Guam’s air and missile defenses. According to a Government Accountability Office (GAO) report, the radar will remain as an experimental asset for potential future use. The decision, made near the end of the Biden administration, is not binding for the Trump administration. The Pentagon’s broader Guam Defense System is progressing, integrating technologies like the Navy’s Aegis, the Army’s Patriot and Integrated Battle Command System (IBCS), and new systems such as LTAMDS and Indirect Fire Protection Capability. The Missile Defense Agency (MDA) plans to accelerate command-and-control integration, aiming for full capability by 2029 and complete radar integration by 2033. New radars with advanced GaN technology will enhance tracking of hypersonic threats, with the first deployment to the Army’s THAAD system, based in Guam’s Task Force Talon. Defense News
Lockheed eyes better stealth, unmanned option for F-35. Lockheed Martin is planning major upgrades to its F-35, incorporating sixth-generation technologies to make the fighter more stealthy, advanced, and possibly pilot-optional. CEO Jim Taiclet said these upgrades, drawing from Lockheed’s Next-Generation Air Dominance (NGAD) concepts, could be ready in two to three years. The upgrades include improved stealth coatings, refined body design, better electronic warfare, advanced networking, and new weapons. Lockheed claims these enhancements could deliver 80% of NGAD’s capabilities at half the cost. The company aims to ensure the F-35 integrates smoothly into future combat systems, including drones and sixth-generation aircraft. Taiclet also updated on the F-35’s Technology Refresh 3 (TR3) upgrades, which involve better processing power, memory, displays, and an enhanced distributed aperture system. While hardware and software are complete, integrating new sensors has delayed full combat capability until late 2025. Lockheed’s goal is to make the F-35 a versatile centerpiece of future air superiority. Defense News
Targeting Chinese Students Threatens the Bottom Line at American Universities. The Trump administration’s plan to “aggressively” revoke visas for Chinese students has sparked concerns about major impacts on U.S. universities and innovation. The move, combined with new restrictions on student visas and social media screening, threatens a key source of revenue and talent for American schools. Chinese students, who pay full tuition and dominate STEM fields, contribute $14.3 billion annually to the U.S. economy, making up 5% of U.S. services exports. Experts warn this crackdown will undermine Washington’s competitiveness, mirroring damage seen from past immigration restrictions. Critics, including U.S. scientists and Chinese student groups, dispute claims that Chinese STEM students return home to bolster Beijing’s tech dominance, noting most stay in the U.S. long-term. However, with rising U.S.-China tensions, scrutiny of these students continues to escalate, placing academic collaboration and innovation at risk. Wall Street Journal
ICE officials removed as demands surge for more immigrant arrests. The Trump administration is ousting two senior immigration officials as the White House pushes for a sharp increase in migrant arrests. Immigration and Customs Enforcement (ICE) confirmed that Kenneth Genalo, head of enforcement and removal, will retire, and Robert Hammer, head of investigations, will be reassigned. While ICE didn’t cite White House pressure, sources say that the Trump administration aims to arrest at least 3,000 migrants per day, far above previous quotas. Senior White House advisor Stephen Miller reportedly pressured ICE officials to increase arrests and threatened to fire underperforming regional leaders. Miller and Homeland Security Secretary Kristi Noem are driving the push for intensified immigration enforcement, reflecting Trump’s pledge to deport a million unauthorized immigrants. ICE plans for Marcos Charles and Derek Gordon to assume the vacated leadership roles. Trump’s administration has seen lower deportation numbers compared to his predecessor’s. ReutersAxios CBS News
Trump Administration Publishes List of Sanctuary Cities and Counties to Target. The White House has named counties and cities in over 30 states, including New York, Los Angeles, Chicago, and Seattle, as sanctuary jurisdictions it plans to target for not cooperating with federal immigration laws. Sanctuary cities limit cooperation with immigration enforcement, making President Trump’s push for mass deportations harder. The administration’s plan includes withholding federal funding and pursuing lawsuits, though legal challenges have already begun. In April, a federal judge blocked attempts to cut funds to California jurisdictions under executive orders, criticizing the lack of clarity in defining sanctuaries. DHS Secretary Kristi Noem claimed the administration is exposing politicians who defy federal law and protect undocumented immigrants. The list of targeted jurisdictions spans blue-leaning states and cities, including parts of New York, New England, the West Coast, and beyond. Over 50 government leaders and organizations have vowed to continue resisting Trump’s immigration policies, arguing they violate constitutional rights. Wall Street Journal
Cartel involvement suspected after bodies of 5 missing musicians discovered near Texas border. Five musicians from the regional Mexican band Grupo Fugitivo, who disappeared on Sunday, were found dead in the city of Reynosa, near the Texas border. Tamaulipas prosecutors said the men were kidnapped while traveling to a venue, and nine suspects linked to a Gulf Cartel faction have been arrested. The Gulf Cartel has been declared a "global terrorist organisation" by the Trump administration. The motive for the killings is unclear, though local media reported that the bodies were burned. The tragedy has sparked protests and public outcry in Tamaulipas, a region plagued by cartel violence. The musicians’ deaths follow a similar case in 2018 in which two other regional musicians were murdered. Associated PressBBC
Argentina arrests 12 suspects linked to Tren de Aragua gang. Argentina’s security minister on Thursday announced the arrest of 12 members of the Tren de Aragua gang, a Venezuelan group that both Argentina and the U.S. consider a terrorist organization. The gang is accused of attacking shops and causing fatalities using firearms and explosives. Despite Venezuelan claims that the gang was dismantled by raids in 2023, Washington declared it a global terrorist threat in February, citing risks to national security, foreign policy, and economic interests. Reuters
THE UKRAINE UPDATE
Russia Appears to Launch New Offensive in Ukraine Amid Peace Talks. Russia has launched a major new offensive in Ukraine, intensifying drone and missile attacks and advancing on the battlefield at the fastest pace this year. Moscow’s forces are pressing into Donetsk and opening a northern front near Sumy, while Ukraine struggles to reinforce its positions. The Kremlin remains vague, framing the campaign as a “buffer zone” operation, even as peace talks resume in Istanbul. Despite some gains, analysts see little chance of a decisive Russian breakthrough this summer. President Donald Trump, distancing himself from Russian President Vladimir Putin, has threatened new sanctions, while Kyiv and its European allies grow more skeptical of Russian peace intentions. Ukraine demands a cease-fire as a prerequisite for further talks. Meanwhile, Russia’s improved drone capabilities and large-scale strikes on Ukrainian cities are stretching Ukraine’s air defenses and causing rising civilian casualties. Analysts suggest that Russia is using military pressure to strengthen its diplomatic hand. New York Times
How the West is helping Russia to fund its war on Ukraine. Despite sanctions, Russia continues to earn hundreds of billions from fossil fuel exports—more than triple the $309 billion in aid Ukraine has received since the 2022 invasion. By Thursday, Russia had made more than $973 billion in revenue from fossil fuel exports since the start of the full-scale invasion, including more than $250 billion from the sanctioning countries, according to the Centre for Research on Energy and Clean Air (CREA). Oil and gas make up over 60% of Russia’s exports and a third of its state revenue. European Union nations remain top buyers, with ongoing imports via Turkey, and loopholes like third-country refining enable indirect trade. Experts and campaigners argue that weak enforcement, fears of energy price hikes, and political hesitancy are undermining efforts to curb Russia’s income. LNG exports, “laundromat refineries,” and Russia’s shadow tanker fleet evade restrictions. Critics argue that stronger sanctions enforcement and reducing LNG imports could hurt Russia more than Europe. The West is, in effect, funding both sides of the war. BBC
Russia Accuses Serbia of Backstabbing by Helping Arm Ukraine. Russia has accused Serbia of covertly supplying weapons to Ukraine through intermediary countries, such as Poland, the Czech Republic, and several in Africa, despite their historic alliance. Russia’s Foreign Intelligence Service claimed Serbia provided Ukraine with large quantities of shells and ammunition using falsified end-user certificates. President Aleksandar Vucic responded by defending Serbia’s arms export controls and reaffirmed his commitment to balancing ties with both Russia and Ukraine. The accusations, unusually sharp from Moscow, may indicate fraying ties as Serbia seeks EU membership while depending on Russian gas. Vucic recently met both Vladimir Putin and Volodymyr Zelensky and reiterated Serbia’s neutral stance. Bloomberg
Zelensky accuses Russia of 'another deception' by holding back peace memorandum. Ukrainian President Volodymyr Zelensky accused Russia on Thursday of stalling peace efforts by failing to deliver a promised memorandum outlining its settlement proposal ahead of potential new talks in Istanbul. In a video address, Zelensky said neither Ukraine nor its partners, including Turkey and the U.S., had received the document, calling it “yet another Russian deception.” Meanwhile, Russian Foreign Minister Sergei Lavrov claimed a draft was ready and proposed a second round of talks for Monday. The Kremlin insisted Ukraine hadn’t responded, while Kyiv’s officials suggested Moscow was afraid to share the document because it likely contained unrealistic demands. The White House indicated President Trump supported continuing negotiations. Despite Russia’s insistence on progress, Zelensky warned that Moscow was undermining the talks' credibility and called on allies to increase pressure on the Kremlin.Reuters
Trump envoy says Russian concern over NATO enlargement is fair. U.S. Special Envoy for Ukraine and Russia Keith Kellogg told ABC News on Thursday that Russia’s concerns over NATO’s eastward expansion are “fair,” and confirmed that the U.S. does not support Ukraine's membership in the alliance. He explained that Ukraine’s NATO membership is not currently on the table and noted that several member states also oppose it. Kellogg added that Russia’s concerns extend beyond Ukraine to countries like Georgia and Moldova. He also outlined plans to merge draft peace memorandums from Ukraine and Russia during talks in Turkey on Monday, with national security advisers from the U.S., U.K., France, and Germany participating. While critical of Russian strikes on Ukrainian cities, Kellogg said President Trump is frustrated with President Vladimir Putin’s “unreasonableness.” He described the war as “on an industrial scale,” estimating a combined 1.2 million dead and wounded on both sides.Reuters
Erdogan says Russia's proposal for Istanbul talks heightens hope for peace. Turkish President Recep Tayyip Erdogan expressed optimism on Thursday about renewed peace efforts between Russia and Ukraine, following Russia’s proposal to hold new talks in Istanbul on Monday. Erdogan said the move had raised hopes for a resolution, emphasizing that diplomacy and dialogue were essential to achieving lasting peace. Turkey, a NATO member maintaining ties with both sides, previously hosted peace talks in 2022 and again in May 2025. Turkish Foreign Minister Hakan Fidan recently met with Russian President Vladimir Putin and is set to meet Ukrainian President Volodymyr Zelensky. Reuters
At UN, US says Russia's Putin should take Ukraine ceasefire deal. At a United Nations Security Council meeting on Thursday, the U.S. urged Russia to accept a proposed 30-day ceasefire in Ukraine, calling it “Russia’s best possible outcome.” Acting Deputy U.S. Ambassador John Kelley warned that if Russia rejects the deal, Washington may withdraw from mediation and consider new sanctions. Ukraine has accepted the ceasefire terms, pending Russia’s response. The U.S. is awaiting a Russian ceasefire term sheet following a recent call between President Donald Trump and President Vladimir Putin. Russia claims it has drafted a proposal but hasn’t shared it. Reuters
China cut drone sales to the West but supplies them to Russia, Ukraine says. Ukrainian President Volodymyr Zelensky accused China on Thursday of halting drone sales to Ukraine and other European countries while continuing to supply Russia, including through production lines inside Russian territory staffed by Chinese representatives. The drones in question, notably the DJI Mavic, are widely used in combat for surveillance and strikes. Zelensky highlighted China’s export restrictions on key drone components to the West, which align with European assessments. Despite China’s denial of supplying lethal weapons and insistence on neutrality, the U.S. and European Union have sanctioned Chinese firms aiding Russia’s drone industry. To counter Russia’s drone advantage, Ukraine has launched its "Drone Line" project and is seeking financing to produce up to 500 drones daily. Bloomberg
North Korea’s Surging Military Aid to Russia Detailed in Report.A new report by the Multilateral Sanctions Monitoring Team reveals that North Korea has supplied Russia with at least 100 ballistic missiles, over 11,000 troops, and millions of artillery and rocket rounds in violation of United Nations sanctions. These transfers have enabled Russia to intensify missile strikes on Ukrainian civilian infrastructure, including in Kyiv and Zaporizhzhia. In exchange, Russia has provided Pyongyang with military aid, including missile performance data, air defense systems, and electronic warfare gear, enhancing North Korea’s missile accuracy. The report, supported by 11 countries including the U.S. and South Korea, highlights growing military cooperation between the two sanctioned regimes, which plan to deepen their partnership despite international law. Wall Street JournalReutersYonhap News AgencyBloomberg
Russia’s deadly drone industry upgraded with Iran’s help, report says. A new report by C4ADS (Center for Advanced Defense Studies), a Washington-based nonprofit focused on global security threats, reveals how Iran has helped Russia rapidly expand its domestic drone production. Since 2022, Iran has transferred UAV technology enabling Russia to manufacture Shahed-136 drones—rebranded as Geran-2—at a facility in Tatarstan. These drones are now used in nightly mass attacks on Ukrainian cities, with upgraded variants like the faster Geran-3 also in production. The partnership relies on covert payment systems, including gold transfers and UAE-based financial channels, to bypass sanctions. Russia now produces 300–350 drones daily, outpacing Ukraine. The report underscores the growing military alliance between Russia and Iran, and how actors adapt to evade international sanctions. Washington Post
Africans are building Putin’s suicide drones. Russia has been recruiting hundreds of young African women, some under 18, under false pretenses to work in its weapons factories, specifically assembling Iranian-designed suicide drones used against Ukraine. Lured by the “Alabuga Start” program, marketed as a work-study opportunity in hospitality or catering, the women instead end up in military production facilities in Russia’s Alabuga Special Economic Zone, a sanctioned hub for drone manufacturing. The preference for young women appears rooted in control, with Alabuga’s CEO reportedly calling African men “too aggressive.” Many women are unaware of the true nature of the work due to secrecy and misleading ads. Despite Ukrainian protests, some African governments have supported or ignored the scheme, prioritizing employment over ethics. Only Burkina Faso has taken steps to stop recruitment. The situation raises serious concerns of human trafficking, and Ukrainian officials warn that African civilians may become targets in future strikes. The Economist
Ukrainian drones damage hospital, homes in Russia's Kursk, official says. Ukrainian drones struck Russia’s Kursk region overnight on Friday, damaging a hospital and apartment buildings, and injuring at least one person, according to local officials. The attack came amid ongoing fighting in Ukraine’s Sumy region, where Russian forces are trying to create a buffer zone and have seized several villages. Intense battles continue along the border, with shifting control in some areas. Meanwhile, Russia’s Defense Ministry claims additional gains in eastern Ukraine, though Kyiv has not confirmed these losses. Reuters
No sign of preparations to restart Zaporizhzhia, IAEA official says. An official from the International Atomic Energy Agency (IAEA) stated on Thursday that there are no signs Russia is preparing to restart the Zaporizhzhia nuclear power plant in Ukraine, despite Ukrainian concerns. All six reactors remain shut down amid the ongoing war. Ukraine has protested reports that Russia is building power lines to connect the occupied plant to its own grid, calling it a violation of sovereignty. Restarting even one reactor would require significant improvements in water and power supply, especially after the Kakhovka reservoir was destroyed. The IAEA emphasized that restarting operations remains impossible without a ceasefire and major infrastructure restoration. Reuters
Explosion kills Russian veteran who led airstrikes on Ukraine port city. Zaur Gurtsiev, a decorated Russian veteran who led devastating airstrikes on the Ukrainian port city of Mariupol, was killed in an explosion in Stavropol, southern Russia. Gurtsiev, 34, had served as deputy mayor and was part of Russia’s “Time of Heroes” elite veteran program. The cause of the blast is unknown, but authorities are investigating possible Ukrainian involvement. His death follows a series of similar high-profile killings of Russian military leaders since the 2022 invasion of Ukraine. Kyiv has at times claimed responsibility for such attacks, labeling them legitimate. Gurtsiev played a key role in the brutal 2022 siege of Mariupol, which killed around 8,000 civilians, including in a deadly airstrike on a theater sheltering noncombatants. CBS News
Russian attacks against Ukraine kill 7, injure 39 over past day. Russian attacks across Ukraine in the past day killed seven people and injured 39 others, regional officials said Friday. Ukraine's Air Force reported intercepting 26 of 90 drones launched by Russia, with others either downed by electronic warfare or disappearing from radars as decoys. In Kharkiv, drone strikes injured three elderly women and damaged 39 trolleybuses. Attacks in Kharkiv Oblast’s Vasyliv Khutir injured nine more people, including two children. In Zaporizhzhia Oblast, two people were killed and five injured near Polohy and Vasylivka. One person was killed in Kostiantynivka in Donetsk Oblast, Governor Vadym Filashkin said. Ten other people suffered injuries in the region over the past day.Additional casualties were reported in Donetsk, Dnipropetrovsk, and Kherson oblasts, with Kherson suffering four deaths and 11 injuries. Kyiv Independent
ISW Russian Offensive Campaign Update for Thursday, May 29. Russian officials are controlling the pace and structure of peace negotiations with Ukraine while obscuring their own delays and falsely accusing Ukraine of stalling the process. Russia is pressuring Ukraine into concessions regarding the timing, location, and nature of talks. By avoiding fixed deadlines, Russian forces are deliberately prolonging the war to gain leverage. Meanwhile, in contrast, Ukraine has deployed the AI-powered GOGOL-M drone, which is capable of autonomous missions without relying on GPS.
Battlefield update: Russian forces gained in Kharkiv, Kupyansk, Lyman, and Pokrovsk, while Ukraine advanced near Kurakhove. Institute for the Study of War
EUROPE
EU must assert independence with arms spending and Ukraine's accession, says von der Leyen. European Commission President Ursula von der Leyen called for a more independent Europe through increased defense spending and the accession of Ukraine and other countries into the European Union. Speaking while accepting the Charlemagne Prize on Thursday, she likened the current moment to 1989, urging Europe to “throw off our shackles” and shape a new international order. She outlined four priorities: bolstering defense, stimulating innovation, expanding the EU, and strengthening democracy. Von der Leyen emphasized that unity and independence are essential for Europe to reduce external dependencies and assert global influence. Politico EU
In riposte to Vance, Germany's Merz says Europe stands for freedom. At the Charlemagne Prize ceremony in Aachen on Thursday, German Chancellor Friedrich Merz declared that Europe is prepared to defend its values of freedom and democracy, responding directly to recent criticism from U.S. Vice President JD Vance. Merz emphasized Europe’s historic commitment to these ideals and rejected escalating tariff tensions with the U.S., stressing cooperation over conflict. Vance had earlier accused Europe of facing internal threats and retreating on free speech, prompting Merz’s pointed rebuttal. Merz also warned against the U.S.'s new visa bans tied to alleged censorship of Americans. Highlighting unity, he cited support for Ukraine and recent trade and defense collaboration with Britain. Reuters
Britain is wide open to Russian undersea sabotage. Britain’s undersea infrastructure—gas pipelines, power lines, and data cables—is dangerously vulnerable to Russian sabotage, experts warn ahead of a strategic defense review. Former officials and analysts highlight the Langeled pipeline from Norway as the UK’s biggest energy security risk; an attack could lead to rationing and severe economic disruption. Although naval patrols have increased, former ministers like Grant Shapps argue that complacency remains. If multiple pipelines are hit, the UK could face a national gas supply emergency, possibly leading to rolling blackouts and lengthy efforts to reconnect gas supplies. Experts emphasize the importance of both short-term infrastructure protection and long-term diversification away from fossil fuels. Politico EU
How Russian fortunes stranded by US sanctions rocked Liechtenstein. Liechtenstein is facing a major financial and political crisis as U.S. sanctions targeting Russian oligarchs have led to the abandonment of hundreds of Russian-linked trusts in the country. Since the invasion of Ukraine, the U.S. Treasury has sanctioned several individuals and trusts tied to Kremlin allies, prompting directors to quit over 475 trusts, effectively freezing vast assets like yachts and real estate. The Liechtenstein government, now under pressure from Washington, is scrambling to manage the fallout, attempting to appoint new managers or liquidate the deserted trusts. This disruption strikes at the core of the nation’s $930 billion financial sector, where trusts are a vital pillar. With 20,000 trusts still active in the microstate, down from 80,000, regulators are tightening oversight and seeking international cooperation to prevent sanctioned individuals from reclaiming assets. The episode underscores the depth of Russia’s financial entanglements in Europe and the challenges even reformed financial havens like Liechtenstein face in enforcing sanctions. Reuters
Second Georgian opposition politician detained, his party says. Georgia’s main opposition group, the Coalition for Change, reported the detention of one of its leaders, Nika Melia, on Thursday, marking the second arrest of an opposition figure in just over a week. Melia, a critic of the ruling Georgian Dream party’s pro-Russian shift, is accused of abusive behavior toward law enforcement. Another opposition leader, Zurab Japaridze, was jailed last week after refusing to attend a parliamentary inquiry. The opposition claims last November’s election was rigged, and protests erupted after Georgian Dream suspended European Union membership talks until 2028, despite strong public support for accession. Reuters
THE MIDDLE EAST
Saudi Arabia warned Iran to reach deal with U.S. or risk Israeli strike. Sources have revealed that in April, Saudi Arabia’s defense minister, Prince Khalid bin Salman, delivered a message from King Salman to Iranian officials in Tehran, urging them to seriously consider U.S. President Donald Trump’s offer to negotiate a nuclear deal. The message warned that failing to reach a deal could provoke an Israeli military strike and further destabilize the region. Prince Khalid, the son of 89-year-old King Salman bin Abdulaziz, stressed the urgency, saying Trump’s patience for negotiations was limited. Iran’s leaders expressed interest in a deal to ease sanctions but were wary of Trump’s unpredictable demands. The meeting marked a rare high-level Saudi visit to Iran, signaling the kingdom’s growing diplomatic role amid the Islamic Republic’s weakened position and regional setbacks. Prince Khalid also reassured Tehran that Saudi Arabia would not allow U.S. or Israeli forces to use its territory for military action against Iran. Despite ongoing tensions, both sides expressed a desire to avoid war. ReutersTimes of IsraelJerusalem Post
Gulf leaders told Trump they oppose strikes on Iran's nuclear program. During President Donald Trump’s recent visit to the Gulf, leaders of Saudi Arabia, the United Arab Emirates, and Qatar urged him not to support military strikes on Iran’s nuclear facilities and instead to continue pursuing a diplomatic solution. The Gulf leaders, who once opposed the 2015 Iran nuclear deal, now favor negotiations to avoid retaliation against their countries, which host U.S. military bases. They expressed concern about possible Israeli action against Iran and emphasized that their region would bear the brunt of any conflict. Trump acknowledged cautioning Israeli Prime Minister Benjamin Netanyahu against a strike and said a new agreement with Iran could be signed soon. Meanwhile, Gulf states, particularly Saudi Arabia and the UAE, have been easing tensions with Iran and prioritizing regional stability and economic growth. Axios
Israel Fears Being Boxed In by Trump’s Iran Talks. Israel faces a strategic dilemma as it watches the U.S. under President Donald Trump pursue a potential nuclear deal with Iran that may not prevent Tehran from enriching uranium. Israeli officials fear the deal could undercut their ability to take military action against Iran’s nuclear program. While Trump has cautioned Prime Minister Netanyahu against military strikes that could derail negotiations, Israel is skeptical that the U.S. will stick to its demand for “zero enrichment.” Iran insists on retaining enrichment rights, while Israel views that as unacceptable. With Iran advancing its uranium enrichment and hardening its nuclear facilities, some Israeli voices argue for a preemptive strike—though this would risk alienating the U.S. Without American support, such action would be less effective and risk provoking major retaliation. The Trump administration hopes to finalize a framework that satisfies Israel’s security concerns, but tensions persist amid strained U.S.-Israeli relations and past instances of Israel acting unilaterally against nuclear threats. Wall Street Journal
US says that Israel accepts Gaza ceasefire plan; Hamas is cool to it. The U.S. announced Thursday that Israel has accepted a proposed ceasefire deal for Gaza, though Hamas remains skeptical, stating the plan lacks firm commitments to end the war or withdraw Israeli troops. The deal, introduced by U.S. envoy Steve Witkoff, includes a 60-day ceasefire and expanded humanitarian aid. Hamas is still reviewing the proposal, while deep disagreements persist, especially over disarmament and Israeli withdrawal. Meanwhile, the U.S.-backed Gaza Humanitarian Foundation has expanded its aid operation to a third site, although it has been criticized as insufficient. With rising international pressure, especially from Europe, the U.S. hopes the deal can lead to a longer-term resolution to the conflict. ReutersAssociated PressBloomberg
Witnesses in Gaza describe more chaos at food distribution sites. Aid distribution in Gaza descended into chaos again on Thursday as desperate Palestinians swarmed centers run by the new Israeli- and U.S.-backed Gaza Humanitarian Foundation (GHF). Gunfire, crowd stampedes, and reports of injuries marked the latest attempt to provide food to a population nearing famine after nearly three months of an Israeli blockade. Witnesses said Israeli troops fired to disperse crowds once supplies ran out, though GHF denied any shootings. The U.N. and humanitarian groups have refused to support the GHF system, accusing Israel of using food to control population movement and sideline established aid agencies. Many people described theft, disorder, and long treks for minimal aid. Some injured individuals were treated for gunshot wounds, and at least one death has been reported. The Israeli military blames Hamas for stealing aid and obstructing humanitarian efforts, while Israel plans to expand GHF centers amid growing criticism that the system cannot meet the urgent needs of Gaza’s 2.3 million people. Associated Press
Italy offers to treat child who survived Israeli strike that killed his nine siblings. Italy has offered to treat 11-year-old Adam Al-Najjar, a Palestinian boy seriously injured in an Israeli strike on May 25 that killed his nine siblings. The Italian government responded to an emotional appeal from the boy’s uncle, who said Adam suffered severe burns, head trauma, and a broken hand, and that Gaza’s Nasser Hospital is unequipped to care for him. Adam’s father, also badly injured, is being treated at the same hospital, where his mother works. ReutersLa Repubblica
Long-shuttered US ambassador’s residence in Damascus is reopened as Washington mends ties with Syria. In a major diplomatic shift, the U.S. raised its flag at the long-closed ambassador’s residence in Damascus, signaling renewed ties with Syria under its new president, Ahmad al-Sharaa. U.S. Ambassador to Turkey and newly appointed Syria envoy, Tom Barrack, inaugurated the residence and met with al-Sharaa, attending the signing of a $5 billion energy deal involving U.S., Qatari, and Turkish firms. The project will rebuild Syria’s electricity grid, aiming to supply over 50% of the nation’s power. Though Washington has not formally reopened its embassy, Barrack’s visit and Trump's earlier meeting with al-Sharaa reflect a growing U.S. openness to the new leadership. Sanctions are being lifted, marking a dramatic policy reversal. Associated PressEuronewsTimes of Israel
ASIA & OCEANIA
Left-wing ‘brawler’ on verge of South Korea presidency. Lee Jae-myung, the left-leaning South Korean opposition leader and Democratic Party candidate, is poised to win the June 3 presidential election following the impeachment of conservative President Yoon Suk Yeol. Once a combative populist, Lee has shifted toward the political center, now presenting himself as a unifier focused on economic revitalization and pragmatic foreign policy. While once critical of the U.S.-South Korea alliance and conciliatory toward China and North Korea, he now affirms the alliance's importance and vows to stabilize relations with Washington, continuing trilateral cooperation with Japan and the U.S. Still, skepticism remains in Washington over his long-term intentions. Lee rejects redeploying U.S. nuclear weapons and favors re-engaging with Pyongyang, though North Korea’s alignment with Russia complicates prospects for diplomacy. His populist appeal, legal troubles, and confrontational style divide voters—yet his toughness may resonate in a politically fractured nation facing rising regional tensions and domestic instability. Financial TimesReuters
US leaving open the possibility of a troop drawdown in South Korea.The U.S. is considering reducing its 28,500 troops stationed in South Korea, according to senior defense officials accompanying Defense Secretary Pete Hegseth to Singapore. This reassessment is part of the Trump administration’s broader strategy to optimize military deployments across the Indo-Pacific, ensuring a robust deterrent against Beijing’s potential aggression toward Taiwan and regional allies. While no decision has been finalized, any adjustments to the troop footprint would be aimed at countering both North Korean and Chinese threats. Hegseth, attending his first Shangri-La Dialogue as defense secretary, will not meet his South Korean counterpart, who is absent due to elections. This development comes amid discussions on how best to deploy American military assets to strengthen regional security and balance against growing Chinese influence. Associated Press
Macron to launch Singapore security conference with Pentagon’s Hegseth in attendance. French President Emmanuel Macron and U.S. Defense Secretary Pete Hegseth are in Singapore for the Shangri-La Dialogue, a security forum focusing on issues such as China’s growing assertiveness, the global impact of Russia’s war on Ukraine, and recent conflicts in Asia. Macron will deliver a keynote highlighting tensions, including the Trump administration’s heavy tariffs on Asian allies and uncertainty over U.S. commitments to Taiwan’s defense. Hegseth, in his first visit to the forum, emphasized Washington’s goal of deterring China, particularly regarding Taipei. Beijing has sent a lower-level delegation. The U.S. continues to promote a “free and open Indo-Pacific,” while France pursues a rules-based order and seeks cooperation with both superpowers. Macron and Singapore’s Prime Minister Lawrence Wong highlighted regional desires for inclusive partnerships. The forum also addresses Myanmar’s humanitarian crisis, recent violence on the Thai-Cambodian border, and heightened tensions between India and Pakistan. Associated Press Bloomberg RFI France 24
China's biotech boom leaves U.S. playing catch-up. China has surpassed the U.S. in clinical trials and drug development, signaling its rise as a global life sciences leader. Fueled by a decade-long national strategy and less regulation, China now lists over 7,100 clinical trials compared to the U.S.’s 6,000, with major lab expansions in Beijing and Shanghai. Biotech experts warn that U.S. cuts to NIH and university research under the Trump administration may worsen the gap, while China’s growing licensing agreements, patents, and investments from companies like Pfizer and GSK bolster its competitive edge. This shift threatens American innovation hubs like Boston and North Carolina. Former FDA chief Scott Gottlieb and biotech entrepreneur Cyriac Roeding argue that the U.S. must streamline clinical trials, secure startup funding, and leverage AI to retain leadership. Rising U.S.-China tensions and trade barriers could push the Asian giant to double down on biotech innovation, further accelerating its progress. Axios
Trump aims to exceed first term's weapons sales to Taiwan, officials say. The White House plans to increase U.S. weapons sales to Taiwan beyond the levels of President Trump’s first term to strengthen the island’s defenses against China’s mounting military pressure, two U.S. officials revealed. Washington aims to support the island’s efforts to boost defense spending to 3% of GDP, despite opposition from Taiwan’s parliament. The first Trump administration approved $18.3 billion in arms sales, compared to $8.4 billion under Biden. Critics fear Trump may not be fully committed to Taiwan, given his comments suggesting Taipei should pay for U.S. protection, and accusations about semiconductor business practices. China adamantly opposes U.S. arms sales to the self-governing state, warning against creating tensions in the Taiwan Strait. New U.S. arms packages are expected to focus on missiles, munitions, and drones. U.S. officials have pressed Taiwanese opposition parties not to block increased defense spending, arguing it is vital for survival amid China’s escalating military activities and sovereignty claims. Reuters Bloomberg
Thai, Cambodian armies agree to seek peaceful solutions at disputed border after deadly clash. Thailand and Cambodia’s army chiefs agreed Thursday to withdraw troops and seek peaceful solutions following a deadly border clash. The incident occurred when Cambodian soldiers on patrol were reportedly fired upon by Thai troops. The Thai army claimed that Cambodian soldiers had entered a disputed area and opened fire first. A ceasefire was called after 10 minutes, and both sides have since stepped back. Thai and Cambodian leaders expressed hope for peaceful resolution, but Cambodia reinforced the border. Thailand’s Prime Minister Paetongtarn Shinawatra and Cambodian Prime Minister Hun Manet emphasized the importance of avoiding further conflict. The dispute stems from longstanding territorial disagreements, including over the Preah Vihear promontory, which the International Court of Justice awarded to Phnom Penh in 2013. Associated Press
AFRICA
Congo ex-president Kabila makes first public appearance in rebel-held Goma. Former Congolese President Joseph Kabila made his first public appearance in two years on Thursday in rebel-held Goma, eastern Congo, meeting with religious leaders to discuss peace efforts amid ongoing conflict. Kabila, who has lived in South Africa since 2023, is wanted in Congo for alleged crimes against humanity and ties to the Rwanda-backed M23 rebels—accusations his camp denies. His return complicates U.S.-brokered peace efforts between Congo and Rwanda, which aim to include major mineral investment deals. Congo's government accuses Kabila of aligning with rebels, while Kabila’s team claims he seeks to understand local security issues. ReutersAssociated Press
CYBER, TECH & MARKETS
Nvidia’s Huang warns that Chinese AI rivals have ‘evolved,’ are now ‘formidable’. Nvidia CEO Jensen Huang has acknowledged that Chinese AI companies, including Huawei, are quickly closing the gap with U.S. technology, filling the void left by American export restrictions and evolving to become “quite formidable.” Nvidia’s estimated $8 billion loss in Chinese sales this quarter underscores the market’s significance. Huang warned that Chinese competitors are advancing rapidly, with Huawei’s latest AI chip rivaling Nvidia’s H200. Under U.S. rules, Nvidia can’t sell even its downgraded H20 chip to China, and further degradation isn’t feasible. Huang stressed the importance of the Chinese market, noting its vast pool of AI researchers and developers, and expressed a desire for them to use American technology. He also commented on Washington’s decision to revoke Chinese student visas, emphasizing the importance of immigration for U.S. innovation. Bloomberg The Guardian
China’s DeepSeek unveils upscaled model, ratcheting up competition with OpenAI. Chinese AI startup DeepSeek has released R1-0528, an update to its viral R1 reasoning model, significantly enhancing its depth of reasoning and inference capabilities. The update narrows the performance gap with OpenAI’s o3 models and Google’s Gemini 2.5 Pro. Since R1’s debut in January, DeepSeek has disrupted the AI industry, showcasing that high-performing models can be developed at lower costs, challenging the idea that vast computing resources are essential. The R1-0528 update reportedly reduces hallucinations by 45–50% and improves creativity, code generation, and role-playing. DeepSeek also used its R1-0528’s reasoning process to enhance Alibaba’s Qwen 3 model, boosting its performance by over 10%. In response, competitors like Google and OpenAI have adjusted pricing and offerings. Despite R1-0528 being described as a minor upgrade, DeepSeek is expected to launch a major successor, R2, in the near future. Reuters CNBCSouth China Morning PostTech Crunch
China-linked hackers exploit Google Calendar in cyberattacks on governments. China-based hacking group APT41, also known as Brass Typhoon and RedGolf, has been linked to a new cyber-espionage campaign using Google Calendar to target government entities. The attack, first discovered by Google in October, involved spearphishing emails directing victims to malware-laden ZIP files disguised with insect images. Once opened, the malware, dubbed ToughProgress, deployed three stealthy payloads operating entirely in memory to avoid detection. Uniquely, ToughProgress used Google Calendar for command-and-control, embedding encrypted data and instructions into calendar events to communicate with the attackers. APT41, a prolific state-backed group, has previously been charged by the U.S. for breaching over 100 global entities and linked to espionage operations in Southeast Asia and a Taiwanese research institute. By exploiting trusted cloud services like Google Calendar, APT41’s tactics highlight growing cybersecurity challenges in identifying and mitigating state-sponsored attacks. The RecordCybersecurity DiveThe Hacker News
Southeast Asian provider of ‘infrastructure laundering’ for scams is sanctioned by US.The U.S. government has imposed sanctions on Funnull Technology Inc., a Philippines-based web infrastructure provider, for supporting the majority of cryptocurrency investment scam websites reported to the FBI. Funnull allegedly facilitates these scams, known as "pig butchering," by providing internet infrastructure to cybercriminals. U.S. victims have reported losses exceeding $200 million. The FBI and cybersecurity experts describe Funnull as a key player in “infrastructure laundering,” purchasing U.S. hosting services and reselling them to fraudsters. Liu Lizhi, a Chinese national labeled as Funnull's administrator, has also been sanctioned. The scam ecosystem is tied to organized crime in Southeast Asia and continues to expand globally. The RecordU.S. Department of the TreasuryReuters
REPORT INFO
Brad Christian, Executive Editor
Ethan Masucol, Assistant Editor
Brian Bonner, Senior Contributor
Elaine Shannon, Senior Contributor
Ken Hughes, Tech & Cyber Contributor
Katharine Campbell, Writer
Read deeply experienced, expert-driven national security news, analysis, and opinion in The Cipher Brief