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10:00 AM ET, Monday, July 31, 2023

The Cipher Brief curates open source information from around the world that impacts national security. Here's a look at today's headlines, broken down by region of the world:  

In the Americas

ANALYSIS- Strategic Competition in the Arctic Heats up Between US- Russia-China. The Wall Street Journal is out with a lengthy analysis of Russian and Chinese activities in the arctic region, and the range of US options to respond to new arctic security challenges.  Highlighting a recent joint Russian-Chinese maritime exercise that saw warships transit through arctic regions and into US waters, the piece offers an in-depth look at the state of play, and balance of power in the arctic.  Citing China’s rapid development and militarization of the South China Sea, analysts say that the US is working diligently to ensure that they are not caught off guard by similar measures in the artic, and say that increased patrols using ships, unmanned maritime vehicles, aircraft and satellites are designed to send a message to Russian and China that the US is paying close attention to their activities in the region.  Senator Roger Wicker (R-MS), the ranking Republican on the Senate Armed Services Committee says that Xi Jinping and Vladimir Putin have made clear that the arctic region is critical to both countries strategic interests and that it is “imperative” that the US keep Russia and China from dominating the arctic.  Wall Street Journal 

Kenya Signals Willingness to Lead Multinational Force to Haiti.  Kenya’s Foreign Minister Alfred Mutua said Saturday that the country is ready to lead a multinational force into Haiti to help quell the staggering rise in violence between police and gangs within the country. In an official statement, Mutua said “At the request of Friends of Haiti Group of Nations, Kenya has accepted to positively consider leading a Multi-National Force to Haiti, Kenya's commitment is to deploy a contingent of 1,000 police officers to help train and assist Haitian police to restore normalcy in the country and protect strategic installations”. Earlier in July, U.N. Secretary General Antonio Guterres appealed to the Security Council and other major countries to act fast to create the conditions where a multinational force could enter Haiti. So far, it is estimated that the escalation in violence committed by Haiti’s armed gangs is estimated to have displaced tens of thousands of people in the country. Reuters

Dominican Republic Shows Support for Moroccan Claim Over Western Sahara. According to the Moroccan Foreign Ministry, the Dominican Republic has shown support for Morocco’s claim over Western Sahara. This comes as a number of nations slowly begin to show support for the country’s claim over the territory, which the Algerian-backed Polisario Front claims as independent territory and wants to establish an independent state.  Reuters

Western Europe

Poland Says Some Wagner Fighters Move Closer to Polish BorderPolish Prime Minister Mateusz Morawiecki on Saturday said that a group of one hundred Wagner Group fighters have moved closer to the Belarusian city of Grodno near the Polish border.  Since the Russian invasion of Ukraine in February of 2022, Poland has voiced concerns that the conflict might spillover into its territory. Morawiecki said at a press conference “The situation is getting increasingly dangerous ... Most likely they (the Wagner personnel) will be disguised as the Belarusian border guard and help illegal migrants get to Polish territory (and) destabilize Poland.” He additionally called the alleged Wagner movements “a step toward a further hybrid attack on Polish territory,” referring to alleged attempts by Minsk to manipulate the flow of migrants through the area to pressure the EU over economic sanctions.  Morawiecki did not say where he got his information.  A day after Morawiecki’s statement, some Wagner soldiers reportedly arrived at a training ground outside the city of Brest, several miles from the Polish border.  ReutersCNN 

Beijing Looks to France to Improve Relations with EU.  Chinese Vice Premier He Lifeng told French Finance Minister Bruno Le Maire Saturday that China hopes France can “stabilize the tone” of EU-China relations. This comes as European leaders have been debating how to “de-risk” but also cooperate with the Chinese Economy. In contrast with his discussions with U.S. officials, he additionally told Le Maire that China is willing to deepen cooperation with France in areas such as finance and technological innovation. Le Maire said that the three challenges France and China should work together on are the green transition, reorganization of value chains, and technological revolution. “It is essential to think about the expansion and deepening of economic and financial cooperation between France and China … We would like to welcome major new investments from China to French territory,” La Maire said. After his discussions with He, Le Maire said that important advances had been made in the French-Chinese relations in many different areas and that He said that China appreciated France’s decision to extend Huawei 5G licenses in some cities. Reuters

Joining China's Belt and Road was a Bad Decision, Italian Defense Minister Says.  Italian Defense Minister Guido Crosetto said in an interview Sunday that Italy had made an “improvised and atrocious” decision when it joined China’s Belt and Road initiative (BRI) four years ago as it has done little to boost Italian exports. The BRI envisions rebuilding the Silk Road trade network to connect China, the rest of Asia, and Europe through large spending on connecting infrastructure. Crosetto further told his interviewers that the decision to join BRI multiplied Chinese exports into Italy but did not reciprocate the same benefits to Italian exports to China. Critics of the BRI see it as a tool for China to spread its political and economic influence throughout the world. After meeting with U.S. President Joe Biden last Thursday, Italian Prime Minister Giorgia Meloni said that her government was still deliberating on the BRI and announced a trip to Beijing in the near future. She reiterated her view that it is a “paradox” that while Italy is a member of BRI, it is not the G7 country with the largest trade with China as it shows that it is possible to have a good economic relationship with China without BRI.  Reuters

French Minister Says Paris Opposed Total Decoupling from China.  During his visit to China, French Finance Minister Bruno Le Maire said Saturday that France is “totally opposed to the idea of decoupling [with China]. Decoupling is an illusion”. This statement cast serious doubts that Western countries could ever break economically with China in the interest of national security or in an effort to avoid overreliance on a single trading partner. Le Maire further said that “there is no possibility of having any kind of decoupling between American, European and Chinese economies. Le Maire’s statements mirror those made by European Commission President Ursula von der Leyen in April where she said that decoupling from China was neither viable or in the interest of Europe. However, Le Maire also said that he saw virtue in “de-risking” economic supply chains. U.S. Treasury Secretary Janet Yellen additionally voiced similar views in her visit to Beijing earlier this month by saying that any decoupling between the U.S. and Chinese economies would be “virtually impossible."  Deutsche Welle

Central and Eastern Europe

Ukrainian Chief of Staff says Kyiv to Initiate Talks with U.S. on Security Guarantees.  Ukraine is set to begin consultations with the U.S. this week on security guarantees for Kyiv as it awaits NATO membership, Andriy Yermak, chief of staff for Ukrainian President Volodymyr Zelensky, said Sunday.  Yermak said that the security guarantees for Ukraine, promised by the G7 countries, would be in effect until the nation obtains membership with NATO, and “will be concrete, long-term obligations ensuring Ukraine’s capacity to defeat and restrain Russian aggression in the future,” adding that the guarantees will be “clearly drafted formats and mechanisms of support.”  In a Telegram post, Yermak also reported that officials from several nations were in preparation for a gathering in Saudi Arabia for talks on Zelensky’s peace plan, centered on the departure of all Russian soldiers from Ukrainian territory.  Yermak said the plan would be discussed in three phases leading up to the Saudi talks.  South China Morning Post Reuters 

Kyiv's Forces Consolidating Positions in Southeastern Ukraine.  Kyiv has claimed modest gains in both the southern and eastern fronts of Ukraine.  On the southern front, military leaders said that Kyiv’s forces remain on the offensive in the areas surrounding Melitopol and Berdiansk.  Ukrainian forces have also reportedly made successful gains in the outskirts of Robotyno in the Zaporizhzhia region and in the outskirts of the village of Verbove.  According to Ukraine’s Military Media Center, Russian forces have focused troops in southern Ukraine on holding the land corridor to Crimea.  Ukrainian serviceman Yevhen Kozhyrnov stated on Saturday that in the Bakhmut area, the Ukrainian military has pushed Russian forces back almost to the village of Klishchiivka.  CNN

Ukraine Reportedly Using North Korean Rockets.  Ukrainian soldiers were reportedly observed using North Korean rockets to attack Russian forces over the weekend. Ukrainian officials stated that the rockets, which were shown to reporters from the Financial Times, were seized by a “friendly” country before being delivered to Ukraine. The North Korean weapons used by Ukrainian troops include Soviet-era Grad multiple-launch rocket systems and were spotted near the eastern city of Bakhmut. The Ukrainian Defense Ministry has suggested that the arms were captured from Russian forces.  The U.S. has accused Moscow of offering to send food to Pyongyang in exchange for weapons, which both countries have denied.  Financial Times Reuters 

Former Russian President Threatens use of Nukes if Ukrainian Counter-Offensive Succeeds.  Former Russian President Dmitry Medvedev stated on Sunday that Moscow would have to use nuclear weapons if Ukraine’s counter-offensive was a success. Medvedev, the deputy chairman of Russia’s Security Council, appeared to be referring to Russia’s nuclear doctrine which states that nuclear weapons can be used in response to aggression which threatens the security of the Russian state.  Russian President Vladimir Putin announced on Saturday that there are no serious battlefield changes.  Medvedev has been accused of engaging in such nuclear saber-rattling in order to dissuade Western support for Ukraine.  Reuters

Russia Says it Destroyed Three Ukrainian Drones in Moscow.  Russia’s Defense Ministry says that it had brought down three Ukrainian drones early on Sunday in the latest attack on Moscow. The drones did reportedly damage a high rise building in the Moskva-citi business district. Russian state media reported that the building that was damaged was home to three Russian government ministries. No casualties were reported from the attack. Ukrainian President Volodymyr Zelensky stated in his daily address that “Ukraine is getting stronger, and the war is gradually returning to Russia’s territory, to its symbolic centers and military bases''. Lieutenant-General Valeriy Kondratiuk, former head of Ukraine’s military and foreign intelligence service, says the buildings that the drones struck actually contained offices of Russia’s GRU military intelligence service. The attack comes after a drone strike on Monday hit two non-residential buildings, including one near the Russian Ministry of Defense headquarters.  Reuters CNN New York Times Financial Times

Two Dead in Russian Missile Strike in Zaporizhzhia.  A Russian missile strike in the southern Ukrainian city of Zaporizhzhia killed two people on Saturday.  Local officials said another person was injured in the attack.  Along with the dead and injured, the blast wave also destroyed windows in 13 high rise buildings, an educational institution, and a supermarket.  Reuters

Putin Pledges Grain Shipments for Six African Nations, Leaders Urge End of War. In a display of munificence at this week’s summit with African leaders in St. Petersburg, Russian President Vladimir Putin pledged to ship 25,000-50,000 tons of grain to six African nations impacted by the war with Ukraine. In the coming months, Moscow will send the grain to Somalia, Eritrea, Zimbabwe, Burkina Faso, Mali, and the Central African Republic. UN Secretary-General Antonio Guterres responded critically, saying that a "handful of donations to some countries" would not fix the food crisis created by Russia’s withdrawal from the Black Sea Grain Deal. African leaders have continued to urge Putin to end the war in Ukraine. South African President Cyril Ramaphosa told Putin, “We didn’t come here to ask for some gifts . . . of course, we understand that you, out of generosity, have decided to donate grain to some African countries that are facing certain difficulties, but this is not our main goal here." Deutsche Welle Wall Street Journal 

Prigozhin Says Wagner Group Not Currently Recruiting.  Wagner Group head Yevgeny Prigozhin on Monday said that his mercenary group is not currently recruiting fighters but is likely to resume doing so in the future.  He said that Wagner will not conduct new recruitment “as long as we don’t experience a shortage in personnel.”  He added that some Wagner fighters “unfortunately” moved to other Russian “power structures,” apparently referring to the deal that ended the Wagner mutiny, which included the option for Wagner fighters who did not take part in the uprising to sign contracts with the Russian Defense Ministry.  Prigozhin said he hopes these fighters eventually return to the Wagner Group.  Prigozhin’s comments come after some Wagner fighters moved to Belarus, under the deal, and started training the Belarusian military.  His comments also come amid indications that Wagner will expand its presence in Africa.  Reuters

Asia and Oceania

US Coast Guard Will Soon Have New Maritime Authorities in Papua New Guinea Waters.  US Coast Guard vessels patrolling waters around Papua New Guinea (PNG) will soon have authority to board and search foreign vessels suspected of illegal activity, without officials from PNG present.  The move comes amid a new defense and security deal between PNG and the US.  The US is seeking to boost its presence in the region to enhance maritime security.  Chinese naval vessels regularly transit the narrow strait between PNG and Australia, and large Chinese fishing fleets are known to operate in the area. Although the US has maritime security arrangements with dozens of Pacific nations, the deal between the US and PNG is the first such arrangement that gives the US unilateral authority to search and board vessels without having a host country official on board.  South China Morning Post

North Korea's Kim Vows to Boost Cooperation with China.  North Korean leader Kim Jong Un met with a Chinese delegation led by Communist Party Politburo member Li Hongzhong on Friday. The Chinese delegation visited Pyongyang to celebrate the 70th anniversary of the end of the Korean war and has been the first to do so since the end of the COVID-19 pandemic. The meeting took place shortly after Russian officials met with Kim on Thursday at a military parade in the capital of Pyongyang.  Reuters

EU Set to Bolster Security Cooperation With Philippines.  European Commission President Ursula von der Leyen on Monday said that the EU is ready to strengthen maritime security cooperation with the Philippines.  Speaking in a meeting with Philippine President Ferdinand Marcos Jr in Manila, she said that the bloc is prepared to upgrade information sharing, conduct joint maritime threat assessments, and bolster the capacity of the Philippine coast guard.  Von der Leyen also reaffirmed the EU’s support for the 2016 international arbitration ruling that invalidated China’s claims to disputed waters in the South China Sea.  Beijing does not recognize the ruling.  Von der Leyen’s comments came amid heightened U.S.-China tensions, which the Philippines plays a key role in, acting as a regional fulcrum between the two major powers due to its strategic location.  Reuters The Cipher Brief 

Suicide Bombing at Pakistan Political Rally Kills 44.   A suicide bomber attacked a political rally in northwestern Pakistan, killing at least 44 people and wounding almost 200 others.  There was no immediate claim of responsibility.  The political rally was attended by supporters for hardline Pakistani cleric and political party leader Maulana Fazlur Rehman.  Rehman is the leader of Jamiat Ulema Islam, a party that generally supports regional Islamists.  Party officials stated that Rehman was not present during the attack, but officials were announcing the arrival of Abdul Rasheed, one of the leaders of the party, when the suicide bombing took place.  Maulana Ziaullah, local chief of Rehman’s party, was among the dead.  Pakistani Prime Minister Shehbaz Sharif and Pakistani President Arif Alvi have condemned the attack and have asked officials to provide assistance for the families of the wounded and dead.  Associated Press Wall Street Journal

Middle East and Northern Africa

Saudi Arabia to Host Ukraine Peace Talks.  Saudi Arabia is reportedly set to host talks on the Ukraine war between senior officials from over 30 countries.  The talks are expected to be held in the Saudi port city of Jeddah between August 5 through August 6.  The goal of the dialogue will be to create a framework of shared principles that will help resolve the war.  Some of the invitees include Mexico, Indonesia, Egypt, Chile, and Zambia.  The UK, South Africa, Poland, and the EU have confirmed that they will attend. It is believed that the U.S. will participate in the talks and will be sending U.S. National Security Advisor Jake Sullivan. The White House has not commented on the talks. Russia will not be taking part in the talks, though Kremlin spokesman Dmitry Peskov said Moscow will “follow” the dialogue, saying that “any attempt to promote a peaceful settlement deserves a positive evaluation.”  However, he reiterated accusations that Ukraine is not open to negotiations.  Reports on the talks come amid efforts by both sides in the Ukraine war to garner support from major developing countries, many of whom have stayed neutral on the war.  Wall Street Journal Deutsche Welle Reuters

Biden Moves Forward With Efforts to Mediate Israeli-Saudi Agreement.  The Biden administration is moving forward with efforts to stabilize the Middle East by brokering normalization between Saudi Arabia and Israel.  The effort for rapprochement comes despite Riyadh’s demands for a deal, including a civilian nuclear program, a mutual security alliance with the U.S., and concessions to Palestinians.  The Biden administration has been focused on this issue, seen in national security advisor Jake Sullivan’s recent trip to Saudi Arabia to test the waters for an accord.  A White House statement said that Sullivan traveled to the kingdom “to discuss bilateral and regional matters, including initiatives to advance a common vision for a more peaceful, secure, prosperous, and stable Middle East region interconnected with the world.”  Washington has many stakes in the region, and seeks to draw Saudi Arabia away from its collaboration with Russia, stop the kingdom from creating stronger ties with China, prevent it from raising gasoline prices, collaborate with it against Iran, and convince it to end the war with Yemen.  New York Times Bloomberg

We’re talking with Norm Roule to get his perspective and the full context of what it’s really going to take for a deal to happen.  Watch for that later today on TCB.  

Sub Saharan Africa

Niger Military Junta Accuses France of Planning to Free Ousted President.  The military junta that seized power in Niger has accused France of planning strikes and military action to free the detained president Mohamed Bazoum and restore his toppled government.  One of the coup leaders, Colonel Amadou Abdramane, made the claim in an address on state television, saying that the ousted government authorized the strikes through Bazoum’s foreign minister, Hassoumi Massoudou, who says he is acting prime minister.  The French government did not confirm or deny the accusations, but said that it only recognizes Bazoum as the legitimate authority in Niger.  The junta previously warned France and other powers against any foreign intervention to extract Bazoum, saying it would cause bloodshed and chaos. The African Union, UN, and several Western and West African countries have denounced the military takeover.  Chadian President Mahamat Idriss Deby reportedly visited Niger over the weekend to try and mediate a “peaceful solution.”  Reuters

West African Nations Threaten Military Action Unless Niger Coup Is Undone.  Several West African nations have imposed sanctions and threatened to use force on Niger if the coup does not end and leaders of it do not reinstate President Mohammed Bazoum. Protests have formed in Niger, with supporters of the military junta burning French flags and attacking the French embassy. An emergency summit was held last week in Nigeria in response to the coup, with the ECOWAS bloc and others promising reprisals if the situation is not resolved.  France 24 New York Times Reuters 

Pro-Junta Protesters in Niger Condemn France, Paris Denounces Violence.  Thousands of pro-coup demonstrators in Niger surrounded the French Embassy in the capital of Niamey on Sunday to protest France’s influence in the former colony, and security forces were observed using tear gas to disperse the crowds as people reportedly attempted to a set a fire. Despite Russia’s calls for the release of President Mohamed Bazoum, protestors chanted support for President Vladimir Putin, shouting “down with France” and “long live Putin.” Paris denounced the violence against its diplomatic mission and vowed to retaliate strongly to any assault on its citizens, armed forces, businesses, or interests. The office of President Emmanuel Macron said that "the President will not tolerate any attack against France and its interests,” and the Ministry of Foreign Affairs demanded Niger officials shield the French mission from violence. On Saturday, France announced that it was suspending all development aid to the nation. CNN Reuters

Sudan Extends Airspace Closure. In a statement released on Monday, the Khartoum International Airport announced that the Sudanese civil aviation authority were extending the airspace closure until August 15, with an exception for humanitarian aid and evacuation flights. The airspace has been closed since April to regular traffic since the military conflict erupted in April.  Reuters

Cyber and Tech

U.S. Continues Intense Examination of Military, Infrastructure Systems for Chinese Malware.  U.S. cybersecurity experts are probing power grids, communications systems, and water processing facilities that service military bases at home and around the globe for signs of malware covertly inserted by Chinese hackers into sensitive networks, according to the New York Times.  Groups linked to China’s People’s Liberation Army (PLA) are suspected of having placed malicious code in a variety of military systems in order to disrupt U.S. military operations if a conflict over Taiwan erupts in the future.  A congressional official described the malware as a “ticking time bomb” that could complicate U.S. military operations by disrupting deployments and resupply operations.  The concern over concealed malware in critical networks extends beyond defense facilities to neighboring civilian communities served by the same infrastructure.  U.S. and IT industry experts have said that the threat is not confined to the telecommunications systems that Microsoft warned in May had been penetrated by malware in Guam and elsewhere in the U.S.  The experts say investigations indicate Chinese intrusions are more widespread, but have not determined the full scope of malware implants because they are so well hidden.  Adam R. Hodge, the acting spokesman for the National Security Council (NSC), told the New York Times that the Biden administration is regularly conducting interagency threat discussions, with a focus on efforts “to protect water systems, pipelines, rail and aviation systems.”  The White House Situation Room meetings reportedly involve senior officials from the NSC, Pentagon, Department of Homeland Security, and intelligence community agencies. NSA Deputy Director George Barnes told an intelligence summit in July that the Volt Typhoon attacks on the impacted systems in Guam and elsewhere gave a clear indication of the sophistication of Chinese cyber intrusion operations.  Rather than manipulate software flaws, China, Barnes said, had discovered ways to exploit system administrator credentials.  Possessing those access authorities, Chinese hackers can move freely through systems and insert malware.  Barnes told the summit that in times past, Chinese cyber operations were “very noisy” and basic.  However, he added, “they have continued to bring resources, sophistication and mass to their game. So the sophistication continues to increase.”  New York Times

Ivanti Confirms Second Vulnerability After Initial Compromise of Norwegian Systems.  A second vulnerability impacting Ivanti management software has been uncovered, according to the company.  The latest zero-day vulnerability is distinct from a flaw hackers exploited to disrupt 12 Norwegian government agencies last Monday.  Ivanti’s advisory explains that the vulnerability enables hackers to launch multiple actions against targeted systems and can be used together with the first software gap to bypass administrator access authentication.  CISA published a warning following the Ivanti advisory and urged clients to patch their devices immediately to protect against both vulnerabilities.  The Record

Wired Examines AI’s Potential for U.S. Military Dominance on World Stage.  U.S. defense officials are being encouraged to capitalize on the advantages of artificial intelligence to “create a pretty insurmountable data advantage,” according to Alexandr Wang, CEO of Scale AI.  Wang told a House subcommittee on cyber and innovation that the Pentagon’s military hardware holdings – “the largest fleet…in the world” – could translate into a dominant advantage “when it comes to military use of artificial intelligence.”  Wang added in his testimony that another U.S. key advantage is that the country is home to the world’s leading AI chipmakers and “is the place of choice for the world’s most talented AI scientists.”  The emergence of generative AI as a groundbreaking technology, much of it driven by U.S. companies, is another potential benefit to military applications.  Wired notes that attitudes about AI use in the military – once wary and reluctant – are changing especially in the wake of Russia’s invasion of Ukraine and the ways Ukraine is employing AI in its military forces.  Ukrainian forces, for example, are analyzing aerial images using neural deep learning algorithms.  At the same time, it is reported that Russia is examining AI for autonomous systems.  While the current early state of AI has not resulted in U.S. commitment to fully autonomous weapons, expanding use of AI itself will lead to applications where human involvement is reduced.  Retired Adm. John Richardson, who served as chief of naval operations from 2015-2018, told Wired that AI will have a similar impact on military power as did the industrial revolution and the atomic age.  Richardson noted that victory in the past two world wars went to the nations that made best use of the technological innovations of their day.  He also pointed out the indispensable place of human oversight and interaction in the management of technology in military systems.  Wired

Anonymous Sudan Claims Responsibility for Major Disruption of Kenyan Online ServicesKey government online services in Kenya have been affected by a “huge” cyberattack that has disrupted operations for nearly one week.  Anonymous Sudan, an affiliate of the Russian Killnet hacking group, has claimed responsibility for the attack. The central impact has been on the eCitizen portal, which is the public access point to more than 5,000 government services.  Among the operations disrupted are passport applications, e-visas for visiting foreigners, drivers licenses, and national health records.  Train reservation systems and electricity payment services also have been affected.  Some private sector operations have also reported interruptions.  Kenyan Digital Economy Minister Eliud Owalo emphasized that no data have been accessed or lost despite a hacking group claim to have stolen passport data.  Kenyan government officials say they have blocked the source of the attack even as intermittent interruptions slow online speeds and access.  Anonymous Sudan posted a warning on a Telegram channel of an impending attack last Tuesday.  The group defended its attack by claiming "Kenya has been attempting to meddle in Sudanese affairs and released statements doubting the sovereignty of our government."  BBC

Chinese Local Governments Pursue Big Tech Cooperation AgreementsFollowing the lead of China’s central government and Communist Party authorities, local Chinese government officials are promoting cooperation with big tech companies across the country.  Several Chinese cities this year have concluded deals with Internet firms following Beijing’s lifting of its campaign to control “irrational expansion of capital.”  Hangzhou has signed an agreement with Qihoo 360 to reinforce the city’s cybersecurity.  The company announced that it will set up a regional headquarters in the city.  Hangzhou also recently created a partnership with NetEase, a mobile gaming giant based in the city, covering AI and e-sports.  Meanwhile, In Beijing, Communist Party chief Yin Li has promised the city’s support in a meeting with leaders of JD.com e-commerce, Kuaishou Technology, and Xiaomi smartphone firms. Earlier, Beijing mayor Yin Yong offered assurances in a meeting with outgoing Alibaba chairman and CEO Daniel Zhang Yong and Xiaomi founder and CEO Lei Jun, stating that the “private economy plays an important role in boosting the high-quality development of the capital city”.  Tianjin and Shenzhen each signed a deal with the Baidu internet search giant in May and July, respectively, to assist local enterprises and traditional industries with generative AI technology.  Tianjin will employ Baidu’s Ernie Bot service in areas ranging from finance and logistics to electronics, new energy, and port operation sectors.  South China Morning Post

Read deeply-experienced, expert-driven national security news, analysis and opinion inThe Cipher Brief

Morning Report for Monday, July 31, 2023

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10:00 AM ET, Monday, July 31, 2023

The Cipher Brief curates open source information from around the world that impacts national security. Here's a look at today's headlines, broken down by region of the world:  

In the Americas

ANALYSIS- Strategic Competition in the Arctic Heats up Between US- Russia-China. The Wall Street Journal is out with a lengthy analysis of Russian and Chinese activities in the arctic region, and the range of US options to respond to new arctic security challenges.  Highlighting a recent joint Russian-Chinese maritime exercise that saw warships transit through arctic regions and into US waters, the piece offers an in-depth look at the state of play, and balance of power in the arctic.  Citing China’s rapid development and militarization of the South China Sea, analysts say that the US is working diligently to ensure that they are not caught off guard by similar measures in the artic, and say that increased patrols using ships, unmanned maritime vehicles, aircraft and satellites are designed to send a message to Russian and China that the US is paying close attention to their activities in the region.  Senator Roger Wicker (R-MS), the ranking Republican on the Senate Armed Services Committee says that Xi Jinping and Vladimir Putin have made clear that the arctic region is critical to both countries strategic interests and that it is “imperative” that the US keep Russia and China from dominating the arctic.  Wall Street Journal 

Kenya Signals Willingness to Lead Multinational Force to Haiti.  Kenya’s Foreign Minister Alfred Mutua said Saturday that the country is ready to lead a multinational force into Haiti to help quell the staggering rise in violence between police and gangs within the country. In an official statement, Mutua said “At the request of Friends of Haiti Group of Nations, Kenya has accepted to positively consider leading a Multi-National Force to Haiti, Kenya's commitment is to deploy a contingent of 1,000 police officers to help train and assist Haitian police to restore normalcy in the country and protect strategic installations”. Earlier in July, U.N. Secretary General Antonio Guterres appealed to the Security Council and other major countries to act fast to create the conditions where a multinational force could enter Haiti. So far, it is estimated that the escalation in violence committed by Haiti’s armed gangs is estimated to have displaced tens of thousands of people in the country. Reuters

Dominican Republic Shows Support for Moroccan Claim Over Western Sahara. According to the Moroccan Foreign Ministry, the Dominican Republic has shown support for Morocco’s claim over Western Sahara. This comes as a number of nations slowly begin to show support for the country’s claim over the territory, which the Algerian-backed Polisario Front claims as independent territory and wants to establish an independent state.  Reuters

Western Europe

Poland Says Some Wagner Fighters Move Closer to Polish BorderPolish Prime Minister Mateusz Morawiecki on Saturday said that a group of one hundred Wagner Group fighters have moved closer to the Belarusian city of Grodno near the Polish border.  Since the Russian invasion of Ukraine in February of 2022, Poland has voiced concerns that the conflict might spillover into its territory. Morawiecki said at a press conference “The situation is getting increasingly dangerous ... Most likely they (the Wagner personnel) will be disguised as the Belarusian border guard and help illegal migrants get to Polish territory (and) destabilize Poland.” He additionally called the alleged Wagner movements “a step toward a further hybrid attack on Polish territory,” referring to alleged attempts by Minsk to manipulate the flow of migrants through the area to pressure the EU over economic sanctions.  Morawiecki did not say where he got his information.  A day after Morawiecki’s statement, some Wagner soldiers reportedly arrived at a training ground outside the city of Brest, several miles from the Polish border.  ReutersCNN 

Beijing Looks to France to Improve Relations with EU.  Chinese Vice Premier He Lifeng told French Finance Minister Bruno Le Maire Saturday that China hopes France can “stabilize the tone” of EU-China relations. This comes as European leaders have been debating how to “de-risk” but also cooperate with the Chinese Economy. In contrast with his discussions with U.S. officials, he additionally told Le Maire that China is willing to deepen cooperation with France in areas such as finance and technological innovation. Le Maire said that the three challenges France and China should work together on are the green transition, reorganization of value chains, and technological revolution. “It is essential to think about the expansion and deepening of economic and financial cooperation between France and China … We would like to welcome major new investments from China to French territory,” La Maire said. After his discussions with He, Le Maire said that important advances had been made in the French-Chinese relations in many different areas and that He said that China appreciated France’s decision to extend Huawei 5G licenses in some cities. Reuters

Joining China's Belt and Road was a Bad Decision, Italian Defense Minister Says.  Italian Defense Minister Guido Crosetto said in an interview Sunday that Italy had made an “improvised and atrocious” decision when it joined China’s Belt and Road initiative (BRI) four years ago as it has done little to boost Italian exports. The BRI envisions rebuilding the Silk Road trade network to connect China, the rest of Asia, and Europe through large spending on connecting infrastructure. Crosetto further told his interviewers that the decision to join BRI multiplied Chinese exports into Italy but did not reciprocate the same benefits to Italian exports to China. Critics of the BRI see it as a tool for China to spread its political and economic influence throughout the world. After meeting with U.S. President Joe Biden last Thursday, Italian Prime Minister Giorgia Meloni said that her government was still deliberating on the BRI and announced a trip to Beijing in the near future. She reiterated her view that it is a “paradox” that while Italy is a member of BRI, it is not the G7 country with the largest trade with China as it shows that it is possible to have a good economic relationship with China without BRI.  Reuters

French Minister Says Paris Opposed Total Decoupling from China.  During his visit to China, French Finance Minister Bruno Le Maire said Saturday that France is “totally opposed to the idea of decoupling [with China]. Decoupling is an illusion”. This statement cast serious doubts that Western countries could ever break economically with China in the interest of national security or in an effort to avoid overreliance on a single trading partner. Le Maire further said that “there is no possibility of having any kind of decoupling between American, European and Chinese economies. Le Maire’s statements mirror those made by European Commission President Ursula von der Leyen in April where she said that decoupling from China was neither viable or in the interest of Europe. However, Le Maire also said that he saw virtue in “de-risking” economic supply chains. U.S. Treasury Secretary Janet Yellen additionally voiced similar views in her visit to Beijing earlier this month by saying that any decoupling between the U.S. and Chinese economies would be “virtually impossible."  Deutsche Welle

Central and Eastern Europe

Ukrainian Chief of Staff says Kyiv to Initiate Talks with U.S. on Security Guarantees.  Ukraine is set to begin consultations with the U.S. this week on security guarantees for Kyiv as it awaits NATO membership, Andriy Yermak, chief of staff for Ukrainian President Volodymyr Zelensky, said Sunday.  Yermak said that the security guarantees for Ukraine, promised by the G7 countries, would be in effect until the nation obtains membership with NATO, and “will be concrete, long-term obligations ensuring Ukraine’s capacity to defeat and restrain Russian aggression in the future,” adding that the guarantees will be “clearly drafted formats and mechanisms of support.”  In a Telegram post, Yermak also reported that officials from several nations were in preparation for a gathering in Saudi Arabia for talks on Zelensky’s peace plan, centered on the departure of all Russian soldiers from Ukrainian territory.  Yermak said the plan would be discussed in three phases leading up to the Saudi talks.  South China Morning Post Reuters 

Kyiv's Forces Consolidating Positions in Southeastern Ukraine.  Kyiv has claimed modest gains in both the southern and eastern fronts of Ukraine.  On the southern front, military leaders said that Kyiv’s forces remain on the offensive in the areas surrounding Melitopol and Berdiansk.  Ukrainian forces have also reportedly made successful gains in the outskirts of Robotyno in the Zaporizhzhia region and in the outskirts of the village of Verbove.  According to Ukraine’s Military Media Center, Russian forces have focused troops in southern Ukraine on holding the land corridor to Crimea.  Ukrainian serviceman Yevhen Kozhyrnov stated on Saturday that in the Bakhmut area, the Ukrainian military has pushed Russian forces back almost to the village of Klishchiivka.  CNN

Ukraine Reportedly Using North Korean Rockets.  Ukrainian soldiers were reportedly observed using North Korean rockets to attack Russian forces over the weekend. Ukrainian officials stated that the rockets, which were shown to reporters from the Financial Times, were seized by a “friendly” country before being delivered to Ukraine. The North Korean weapons used by Ukrainian troops include Soviet-era Grad multiple-launch rocket systems and were spotted near the eastern city of Bakhmut. The Ukrainian Defense Ministry has suggested that the arms were captured from Russian forces.  The U.S. has accused Moscow of offering to send food to Pyongyang in exchange for weapons, which both countries have denied.  Financial Times Reuters 

Former Russian President Threatens use of Nukes if Ukrainian Counter-Offensive Succeeds.  Former Russian President Dmitry Medvedev stated on Sunday that Moscow would have to use nuclear weapons if Ukraine’s counter-offensive was a success. Medvedev, the deputy chairman of Russia’s Security Council, appeared to be referring to Russia’s nuclear doctrine which states that nuclear weapons can be used in response to aggression which threatens the security of the Russian state.  Russian President Vladimir Putin announced on Saturday that there are no serious battlefield changes.  Medvedev has been accused of engaging in such nuclear saber-rattling in order to dissuade Western support for Ukraine.  Reuters

Russia Says it Destroyed Three Ukrainian Drones in Moscow.  Russia’s Defense Ministry says that it had brought down three Ukrainian drones early on Sunday in the latest attack on Moscow. The drones did reportedly damage a high rise building in the Moskva-citi business district. Russian state media reported that the building that was damaged was home to three Russian government ministries. No casualties were reported from the attack. Ukrainian President Volodymyr Zelensky stated in his daily address that “Ukraine is getting stronger, and the war is gradually returning to Russia’s territory, to its symbolic centers and military bases''. Lieutenant-General Valeriy Kondratiuk, former head of Ukraine’s military and foreign intelligence service, says the buildings that the drones struck actually contained offices of Russia’s GRU military intelligence service. The attack comes after a drone strike on Monday hit two non-residential buildings, including one near the Russian Ministry of Defense headquarters.  Reuters CNN New York Times Financial Times

Two Dead in Russian Missile Strike in Zaporizhzhia.  A Russian missile strike in the southern Ukrainian city of Zaporizhzhia killed two people on Saturday.  Local officials said another person was injured in the attack.  Along with the dead and injured, the blast wave also destroyed windows in 13 high rise buildings, an educational institution, and a supermarket.  Reuters

Putin Pledges Grain Shipments for Six African Nations, Leaders Urge End of War. In a display of munificence at this week’s summit with African leaders in St. Petersburg, Russian President Vladimir Putin pledged to ship 25,000-50,000 tons of grain to six African nations impacted by the war with Ukraine. In the coming months, Moscow will send the grain to Somalia, Eritrea, Zimbabwe, Burkina Faso, Mali, and the Central African Republic. UN Secretary-General Antonio Guterres responded critically, saying that a "handful of donations to some countries" would not fix the food crisis created by Russia’s withdrawal from the Black Sea Grain Deal. African leaders have continued to urge Putin to end the war in Ukraine. South African President Cyril Ramaphosa told Putin, “We didn’t come here to ask for some gifts . . . of course, we understand that you, out of generosity, have decided to donate grain to some African countries that are facing certain difficulties, but this is not our main goal here." Deutsche Welle Wall Street Journal 

Prigozhin Says Wagner Group Not Currently Recruiting.  Wagner Group head Yevgeny Prigozhin on Monday said that his mercenary group is not currently recruiting fighters but is likely to resume doing so in the future.  He said that Wagner will not conduct new recruitment “as long as we don’t experience a shortage in personnel.”  He added that some Wagner fighters “unfortunately” moved to other Russian “power structures,” apparently referring to the deal that ended the Wagner mutiny, which included the option for Wagner fighters who did not take part in the uprising to sign contracts with the Russian Defense Ministry.  Prigozhin said he hopes these fighters eventually return to the Wagner Group.  Prigozhin’s comments come after some Wagner fighters moved to Belarus, under the deal, and started training the Belarusian military.  His comments also come amid indications that Wagner will expand its presence in Africa.  Reuters

Asia and Oceania

US Coast Guard Will Soon Have New Maritime Authorities in Papua New Guinea Waters.  US Coast Guard vessels patrolling waters around Papua New Guinea (PNG) will soon have authority to board and search foreign vessels suspected of illegal activity, without officials from PNG present.  The move comes amid a new defense and security deal between PNG and the US.  The US is seeking to boost its presence in the region to enhance maritime security.  Chinese naval vessels regularly transit the narrow strait between PNG and Australia, and large Chinese fishing fleets are known to operate in the area. Although the US has maritime security arrangements with dozens of Pacific nations, the deal between the US and PNG is the first such arrangement that gives the US unilateral authority to search and board vessels without having a host country official on board.  South China Morning Post

North Korea's Kim Vows to Boost Cooperation with China.  North Korean leader Kim Jong Un met with a Chinese delegation led by Communist Party Politburo member Li Hongzhong on Friday. The Chinese delegation visited Pyongyang to celebrate the 70th anniversary of the end of the Korean war and has been the first to do so since the end of the COVID-19 pandemic. The meeting took place shortly after Russian officials met with Kim on Thursday at a military parade in the capital of Pyongyang.  Reuters

EU Set to Bolster Security Cooperation With Philippines.  European Commission President Ursula von der Leyen on Monday said that the EU is ready to strengthen maritime security cooperation with the Philippines.  Speaking in a meeting with Philippine President Ferdinand Marcos Jr in Manila, she said that the bloc is prepared to upgrade information sharing, conduct joint maritime threat assessments, and bolster the capacity of the Philippine coast guard.  Von der Leyen also reaffirmed the EU’s support for the 2016 international arbitration ruling that invalidated China’s claims to disputed waters in the South China Sea.  Beijing does not recognize the ruling.  Von der Leyen’s comments came amid heightened U.S.-China tensions, which the Philippines plays a key role in, acting as a regional fulcrum between the two major powers due to its strategic location.  Reuters The Cipher Brief 

Suicide Bombing at Pakistan Political Rally Kills 44.   A suicide bomber attacked a political rally in northwestern Pakistan, killing at least 44 people and wounding almost 200 others.  There was no immediate claim of responsibility.  The political rally was attended by supporters for hardline Pakistani cleric and political party leader Maulana Fazlur Rehman.  Rehman is the leader of Jamiat Ulema Islam, a party that generally supports regional Islamists.  Party officials stated that Rehman was not present during the attack, but officials were announcing the arrival of Abdul Rasheed, one of the leaders of the party, when the suicide bombing took place.  Maulana Ziaullah, local chief of Rehman’s party, was among the dead.  Pakistani Prime Minister Shehbaz Sharif and Pakistani President Arif Alvi have condemned the attack and have asked officials to provide assistance for the families of the wounded and dead.  Associated Press Wall Street Journal

Middle East and Northern Africa

Saudi Arabia to Host Ukraine Peace Talks.  Saudi Arabia is reportedly set to host talks on the Ukraine war between senior officials from over 30 countries.  The talks are expected to be held in the Saudi port city of Jeddah between August 5 through August 6.  The goal of the dialogue will be to create a framework of shared principles that will help resolve the war.  Some of the invitees include Mexico, Indonesia, Egypt, Chile, and Zambia.  The UK, South Africa, Poland, and the EU have confirmed that they will attend. It is believed that the U.S. will participate in the talks and will be sending U.S. National Security Advisor Jake Sullivan. The White House has not commented on the talks. Russia will not be taking part in the talks, though Kremlin spokesman Dmitry Peskov said Moscow will “follow” the dialogue, saying that “any attempt to promote a peaceful settlement deserves a positive evaluation.”  However, he reiterated accusations that Ukraine is not open to negotiations.  Reports on the talks come amid efforts by both sides in the Ukraine war to garner support from major developing countries, many of whom have stayed neutral on the war.  Wall Street Journal Deutsche Welle Reuters

Biden Moves Forward With Efforts to Mediate Israeli-Saudi Agreement.  The Biden administration is moving forward with efforts to stabilize the Middle East by brokering normalization between Saudi Arabia and Israel.  The effort for rapprochement comes despite Riyadh’s demands for a deal, including a civilian nuclear program, a mutual security alliance with the U.S., and concessions to Palestinians.  The Biden administration has been focused on this issue, seen in national security advisor Jake Sullivan’s recent trip to Saudi Arabia to test the waters for an accord.  A White House statement said that Sullivan traveled to the kingdom “to discuss bilateral and regional matters, including initiatives to advance a common vision for a more peaceful, secure, prosperous, and stable Middle East region interconnected with the world.”  Washington has many stakes in the region, and seeks to draw Saudi Arabia away from its collaboration with Russia, stop the kingdom from creating stronger ties with China, prevent it from raising gasoline prices, collaborate with it against Iran, and convince it to end the war with Yemen.  New York Times Bloomberg

We’re talking with Norm Roule to get his perspective and the full context of what it’s really going to take for a deal to happen.  Watch for that later today on TCB.  

Sub Saharan Africa

Niger Military Junta Accuses France of Planning to Free Ousted President.  The military junta that seized power in Niger has accused France of planning strikes and military action to free the detained president Mohamed Bazoum and restore his toppled government.  One of the coup leaders, Colonel Amadou Abdramane, made the claim in an address on state television, saying that the ousted government authorized the strikes through Bazoum’s foreign minister, Hassoumi Massoudou, who says he is acting prime minister.  The French government did not confirm or deny the accusations, but said that it only recognizes Bazoum as the legitimate authority in Niger.  The junta previously warned France and other powers against any foreign intervention to extract Bazoum, saying it would cause bloodshed and chaos. The African Union, UN, and several Western and West African countries have denounced the military takeover.  Chadian President Mahamat Idriss Deby reportedly visited Niger over the weekend to try and mediate a “peaceful solution.”  Reuters

West African Nations Threaten Military Action Unless Niger Coup Is Undone.  Several West African nations have imposed sanctions and threatened to use force on Niger if the coup does not end and leaders of it do not reinstate President Mohammed Bazoum. Protests have formed in Niger, with supporters of the military junta burning French flags and attacking the French embassy. An emergency summit was held last week in Nigeria in response to the coup, with the ECOWAS bloc and others promising reprisals if the situation is not resolved.  France 24 New York Times Reuters 

Pro-Junta Protesters in Niger Condemn France, Paris Denounces Violence.  Thousands of pro-coup demonstrators in Niger surrounded the French Embassy in the capital of Niamey on Sunday to protest France’s influence in the former colony, and security forces were observed using tear gas to disperse the crowds as people reportedly attempted to a set a fire. Despite Russia’s calls for the release of President Mohamed Bazoum, protestors chanted support for President Vladimir Putin, shouting “down with France” and “long live Putin.” Paris denounced the violence against its diplomatic mission and vowed to retaliate strongly to any assault on its citizens, armed forces, businesses, or interests. The office of President Emmanuel Macron said that "the President will not tolerate any attack against France and its interests,” and the Ministry of Foreign Affairs demanded Niger officials shield the French mission from violence. On Saturday, France announced that it was suspending all development aid to the nation. CNN Reuters

Sudan Extends Airspace Closure. In a statement released on Monday, the Khartoum International Airport announced that the Sudanese civil aviation authority were extending the airspace closure until August 15, with an exception for humanitarian aid and evacuation flights. The airspace has been closed since April to regular traffic since the military conflict erupted in April.  Reuters

Cyber and Tech

U.S. Continues Intense Examination of Military, Infrastructure Systems for Chinese Malware.  U.S. cybersecurity experts are probing power grids, communications systems, and water processing facilities that service military bases at home and around the globe for signs of malware covertly inserted by Chinese hackers into sensitive networks, according to the New York Times.  Groups linked to China’s People’s Liberation Army (PLA) are suspected of having placed malicious code in a variety of military systems in order to disrupt U.S. military operations if a conflict over Taiwan erupts in the future.  A congressional official described the malware as a “ticking time bomb” that could complicate U.S. military operations by disrupting deployments and resupply operations.  The concern over concealed malware in critical networks extends beyond defense facilities to neighboring civilian communities served by the same infrastructure.  U.S. and IT industry experts have said that the threat is not confined to the telecommunications systems that Microsoft warned in May had been penetrated by malware in Guam and elsewhere in the U.S.  The experts say investigations indicate Chinese intrusions are more widespread, but have not determined the full scope of malware implants because they are so well hidden.  Adam R. Hodge, the acting spokesman for the National Security Council (NSC), told the New York Times that the Biden administration is regularly conducting interagency threat discussions, with a focus on efforts “to protect water systems, pipelines, rail and aviation systems.”  The White House Situation Room meetings reportedly involve senior officials from the NSC, Pentagon, Department of Homeland Security, and intelligence community agencies. NSA Deputy Director George Barnes told an intelligence summit in July that the Volt Typhoon attacks on the impacted systems in Guam and elsewhere gave a clear indication of the sophistication of Chinese cyber intrusion operations.  Rather than manipulate software flaws, China, Barnes said, had discovered ways to exploit system administrator credentials.  Possessing those access authorities, Chinese hackers can move freely through systems and insert malware.  Barnes told the summit that in times past, Chinese cyber operations were “very noisy” and basic.  However, he added, “they have continued to bring resources, sophistication and mass to their game. So the sophistication continues to increase.”  New York Times

Ivanti Confirms Second Vulnerability After Initial Compromise of Norwegian Systems.  A second vulnerability impacting Ivanti management software has been uncovered, according to the company.  The latest zero-day vulnerability is distinct from a flaw hackers exploited to disrupt 12 Norwegian government agencies last Monday.  Ivanti’s advisory explains that the vulnerability enables hackers to launch multiple actions against targeted systems and can be used together with the first software gap to bypass administrator access authentication.  CISA published a warning following the Ivanti advisory and urged clients to patch their devices immediately to protect against both vulnerabilities.  The Record

Wired Examines AI’s Potential for U.S. Military Dominance on World Stage.  U.S. defense officials are being encouraged to capitalize on the advantages of artificial intelligence to “create a pretty insurmountable data advantage,” according to Alexandr Wang, CEO of Scale AI.  Wang told a House subcommittee on cyber and innovation that the Pentagon’s military hardware holdings – “the largest fleet…in the world” – could translate into a dominant advantage “when it comes to military use of artificial intelligence.”  Wang added in his testimony that another U.S. key advantage is that the country is home to the world’s leading AI chipmakers and “is the place of choice for the world’s most talented AI scientists.”  The emergence of generative AI as a groundbreaking technology, much of it driven by U.S. companies, is another potential benefit to military applications.  Wired notes that attitudes about AI use in the military – once wary and reluctant – are changing especially in the wake of Russia’s invasion of Ukraine and the ways Ukraine is employing AI in its military forces.  Ukrainian forces, for example, are analyzing aerial images using neural deep learning algorithms.  At the same time, it is reported that Russia is examining AI for autonomous systems.  While the current early state of AI has not resulted in U.S. commitment to fully autonomous weapons, expanding use of AI itself will lead to applications where human involvement is reduced.  Retired Adm. John Richardson, who served as chief of naval operations from 2015-2018, told Wired that AI will have a similar impact on military power as did the industrial revolution and the atomic age.  Richardson noted that victory in the past two world wars went to the nations that made best use of the technological innovations of their day.  He also pointed out the indispensable place of human oversight and interaction in the management of technology in military systems.  Wired

Anonymous Sudan Claims Responsibility for Major Disruption of Kenyan Online ServicesKey government online services in Kenya have been affected by a “huge” cyberattack that has disrupted operations for nearly one week.  Anonymous Sudan, an affiliate of the Russian Killnet hacking group, has claimed responsibility for the attack. The central impact has been on the eCitizen portal, which is the public access point to more than 5,000 government services.  Among the operations disrupted are passport applications, e-visas for visiting foreigners, drivers licenses, and national health records.  Train reservation systems and electricity payment services also have been affected.  Some private sector operations have also reported interruptions.  Kenyan Digital Economy Minister Eliud Owalo emphasized that no data have been accessed or lost despite a hacking group claim to have stolen passport data.  Kenyan government officials say they have blocked the source of the attack even as intermittent interruptions slow online speeds and access.  Anonymous Sudan posted a warning on a Telegram channel of an impending attack last Tuesday.  The group defended its attack by claiming "Kenya has been attempting to meddle in Sudanese affairs and released statements doubting the sovereignty of our government."  BBC

Chinese Local Governments Pursue Big Tech Cooperation AgreementsFollowing the lead of China’s central government and Communist Party authorities, local Chinese government officials are promoting cooperation with big tech companies across the country.  Several Chinese cities this year have concluded deals with Internet firms following Beijing’s lifting of its campaign to control “irrational expansion of capital.”  Hangzhou has signed an agreement with Qihoo 360 to reinforce the city’s cybersecurity.  The company announced that it will set up a regional headquarters in the city.  Hangzhou also recently created a partnership with NetEase, a mobile gaming giant based in the city, covering AI and e-sports.  Meanwhile, In Beijing, Communist Party chief Yin Li has promised the city’s support in a meeting with leaders of JD.com e-commerce, Kuaishou Technology, and Xiaomi smartphone firms. Earlier, Beijing mayor Yin Yong offered assurances in a meeting with outgoing Alibaba chairman and CEO Daniel Zhang Yong and Xiaomi founder and CEO Lei Jun, stating that the “private economy plays an important role in boosting the high-quality development of the capital city”.  Tianjin and Shenzhen each signed a deal with the Baidu internet search giant in May and July, respectively, to assist local enterprises and traditional industries with generative AI technology.  Tianjin will employ Baidu’s Ernie Bot service in areas ranging from finance and logistics to electronics, new energy, and port operation sectors.  South China Morning Post

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