10:00 AM ET, Wednesday, August 23, 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:
The Americas
US to Sanction Chinese Officials for Forced Assimilation of Tibetan Youth in Boarding Schools. The State Department on Tuesday announced that it would impose visa restrictions on unnamed Chinese officials in retaliation for the alleged forced assimilation of more than one million Tibetan children in government-backed boarding schools. Secretary of State Anthony Blinken said, “these coercive policies seek to eliminate Tibet’s distinct linguistic, cultural, and religious traditions among younger generations of Tibetans.” A Chinese spokesperson condemned the move, calling the sanctions “smears” and maintaining that unifying children in boarding schools “effectively solves the problem of ethnic minority students’ difficulty in attending school at a distance where the local people live scattered.” In February, three UN officials released a statement that said, “roughly one million Tibetan minority children in China have been separated from their families and placed into government-run boarding schools, forcing their assimilation into the dominant culture.” These new sanctions mirror Washington’s previous accusations that Beijing has also abused the ethnic Islamic Uyghur minority, who have been largely forced into detention camps in western China’s Xinjiang region. In December, the US sanctioned two Chinese officials, Wu Yingjie and Zhang Hongbo, over human rights violations in Tibet. Wall Street Journal South China Morning Post
Brazilian Police to Investigate Defense Ministry Connection to 2022 Election Hacker. A police source revealed Tuesday that the Brazilian Federal Police will begin investigating an alleged scheme by defense ministry authorities to write a report, during the 2022 presidential election campaign, to reinforce former President Jair Bolsonaro's claims that the electronic voting system was susceptible to fraud. According to the source, who spoke to Reuters, investigators will call on Bolsonaro's former defense minister, retired General Paulo Sergio Nogueira, to testify. Last week, hacker Walter Delgatti told legislators that he was asked by Bolsonaro to meddle with a voting machine to demonstrate how the nation’s voting system was vulnerable to fraud. Neither the Defense Ministry nor Nogueira has responded to requests for comment. Reuters
Western Europe
Britain Surveys UK Businesses on Outbound Investments in Critical Sectors. A UK government survey sent to “a broad range” of British companies in July is seeking information about investments in “sensitive sectors” of the Chinese economy. China is not the only country mentioned in the survey, which includes a range of countries from Australia and Bermuda to Canada, Hong Kong, Mexico and the U.S. But the survey focuses on investment flows in 17 critical and emerging areas, including advanced materials, robotics, synthetic biology, energy, civilian nuclear infrastructure, communications, and cryptography. According to the government, the questionnaire is “designed to build a collective understanding" of British stakes in sectors vital to economic and national security. The UK Department for Business and Trade (DBT) explained that the survey will inform how Britain “can best calibrate” actions “to respond effectively” to national security risks posed by outward direct investment. DBT officials have indicated that Britain will limit investments in China’s semiconductor, AI, and quantum computing sectors, similar to actions taken by the Biden administration. An email accompanying the business survey clarifies that gathering information on outbound investments is “not a precursor to legislation,” but an effort to ensure potential measures are balanced and well targeted. Politico
Central and Eastern Europe
Former Russian President Medvedev Says Russia May Annex Georgia’s Breakaway Regions. Moscow may consider annexing Georgia's breakaway regions of South Ossetia and Abkhazia, according to former Russian President and deputy chair of the Russian security council Dmitry Medvedev. In an article published by the newspaper Argumenty I Fakty on Wednesday, Medvedev wrote that “the idea of joining Russia is still popular in Abkhazia and South Ossetia … it could quite possibly be implemented if there are good reasons for that.” Following the breakdown of the Soviet Union, Georgia lost sovereignty of the regions. Russia recognized their independence in 2008 after a short-lived conflict in which Georgia attempted to retake South Ossetia by force. Medvedev added that “we will not wait if our concerns become closer to reality,” likely suggesting that possible annexation will be more likely if Georgia moves to join NATO. Politico Al Jazeera Reuters
Russia Activates Jets to Force Reconnaissance Drones Off Crimea. The Russian defense ministry said Tuesday that its air force deployed two jets to force a pair of drones close to Crimea to cease conducting reconnaissance. The ministry said “two unmanned aerial vehicles, MQ-9 Reaper and TB2 Bayraktar, conducting aerial reconnaissance over the waters of the Black Sea close to Crimean Peninsula, were detected by the airspace control means of the Russian Aerospace Forces.” The fighter jets caused the drones to “change their flight direction and leave the areas of aerial reconnaissance.” Reuters CNN
US Says it Does Not Support Ukrainian Attacks Inside Russia. A State Department spokesperson said that Washington does not support or authorize Ukrainian assaults inside Russian territory. However, the spokesperson maintained that it is Ukraine’s choice on how it should defend itself, stating further that Moscow could end the war if it wanted by withdrawing from Ukraine. The spokesperson’s comments come amid increasingly frequent drone attacks deep within Russia and follows the latest British military intelligence report on the issue which says that some of the drone attacks targeting Russian territory may be launched from within Russia. In the latest attacks, a drone strike destroyed a strategic Russian bomber at a northwestern airfield, and there were reports of drones hitting buildings and being downed in the Moscow region. Reuters Al Jazeera
Explosion Reported in Moscow Business District. Russia’s RIA news agency reports that an explosion occurred in the business district of Moscow early on Wednesday morning. A building in the district was seen with shattered windows from what appeared to be a drone attack. Another building in the district, around 3 miles from the Kremlin, was reportedly hit by a Ukrainian drone strike over the weekend. The Kremlin reported on Tuesday that Russian air defenses shot down three Ukrainian drones in the Moscow region. CNN Reuters
Ukraine Says Russian Attack on Danube River Port Destroys 13,000 Tons of Grain. Ukrainian Deputy Prime Minister Oleksandr Kubrakov said that a Russian drone attack on the Danube River port of Izmail destroyed 13,000 tons of grain on Wednesday. Kubrakov said the attack reduced the capacity of the southern port by 15%, adding that the strikes are “systematically” targeting grain and port infrastructure to “stop agricultural exports.” Moscow did not immediately comment on the attack. Reuters
Russian Attack on Ukrainian School Kills Two. Ukrainian Interior Minister Ihor Klymenko reports that a Russian attack on a school in the northeastern city of Romny killed two educational workers on Wednesday. Klymenko said three other people were wounded and two other school workers remain trapped under rubble. Regional officials said Russia launched a drone that hit the school. Reuters
Ukraine Reports Russia Shelling in Donetsk Kills Five. Ukrainian officials reported Tuesday that Russian shelling in the Donetsk region killed at least five people and wounded three others. According to Pavlo Kyrylenko, chief of the Donetsk region military administration, the shelling occurred in the Lyman district. He said that two civilians were killed and one injured in the Yampil settlement. The Donetsk regional prosecutor's office added that three people were killed and one injured in the village of Torske, and another man was wounded in the village of Zakitne. Kyrylenko reported that evacuations of the Donetsk region continue, with 492,000 people remaining in the region. CNN
Russia Says it Intercepts Norwegian Plane Over Barents Sea. Russia’s defense ministry said a Russian MiG-29 fighter jet intercepted a Norwegian military plane over the Barents Sea on Wednesday. The ministry said the Norwegian plane, a U.S.-made P-8 Poseidon maritime patrol and reconnaissance plane, was approaching the Russian border and turned around after being approached by the Russian jet. Moscow reported a similar incident over the Barents Sea on August 14. Reuters
Russian General Sergei Surovikin Russia Removed as Air Force Chief. Russia’s RIA news agency, citing an unnamed source, says that Russian General Sergei Surovikin, known as “General Armageddon” has been removed from his post. Surovikin has reportedly been replaced by Colonel-General Viktor Afzalov as acting Chief of the Russian Air Force. Surovikin had vanished from public following the attempted mutiny by Wagner Chief Yevgeny Prighozin in June, and his removal would suggest that authorities in Moscow have found fault with Surovikin’s behavior during the mutiny. Reuters Radio Free Europe
Putin Denounces Sanctions on Russia, Justifies Ukraine War at BRICS Summit. At the opening day of the BRICS summit in South Africa, Russian President Vladimir Putin, who appeared at the event remotely due to the International Criminal Court arrest warrant against him, condemned the West’s “illegitimate sanctions” on his country and warned that he could permanently sever Ukraine’s grain exports. In his pre-recorded 17-minute speech, Putin said that the Black Sea Grain Deal would not continue until restrictions on Russian food and agricultural products are eased. He also described Western powers’ efforts to financially punish Russia for the invasion as “illegitimate sanctions practice and illegal freezing of assets of sovereign states, which essentially amounts to them trampling upon all the basic norms and rules of free trade.” Putin later used a speech to the group on Wednesday to justify Russia’s war in Ukraine, arguing that Moscow’s actions aimed “to end the war that was unleashed by the West and its satellites against the people who live in the Donbas.” He said some countries’ desire to maintain their “hegemony” caused the Ukraine war. Associated Press Reuters
Asia and Oceania
Taiwan’s Tsai Visits Frontline Kinmen Island. Taiwanese President Tsai Ing-wen visited the frontline island of Kinmen, which at its closest is just over 1 mile away from Chinese-controlled territory, on Wednesday. Tsai visited a memorial park on the island to mark the 65th anniversary of the start of the second Taiwan Strait crisis in 1958, when Chinese forces bombarded Taiwan-controlled Kinmen and Matsu. Taiwan fought back with military support from the U.S., ending the crisis in stalemate. During her visit, Tsai reiterated that Taipei seeks peace and stability in the Taiwan Strait, but noted that “to maintain peace, we must first strengthen ourselves” with a firm national defense. Reuters
India’s Chandrayaan-3 Spacecraft Lands on Moon. India’s Chandrayaan-3 spacecraft landed on the moon’s south pole on Wednesday, marking a major step forward in lunar exploration and India’s pursuit of being a space power. The mission marked the first ever successful landing on the lunar south pole, which may contain water ice that could potentially be used for fuel, oxygen and drinking water for future missions. Indian Prime Minister Narendra Modi watched the landing from the BRICS summit in South Africa and called it “a victory cry of a new India.” The mission was India’s second attempt at a lunar landing and came days after Russia’s similar Luna-25 mission failed. Forbes Reuters Wall Street Journal
Xi Unexpectedly Skips BRICS Business Forum. Chinese President Xi Jinping did not appear at a BRICS Business Forum at the bloc’s summit in South Africa on Tuesday. Commerce Minister Wang Wentao attended the forum and read Xi’s speech, which attacked one country that is “obsessed with maintaining hegemony” and has sought to “cripple the emerging markets and developing countries” with policies of “containment” and “obstruction,” in a veiled reference to the U.S. It is unclear why Xi did not attend the forum, especially since he met with fellow BRICS leaders before and after the event. South China Morning Post
South Korea Holds Nationwide Air Defense Drills. South Korea on Wednesday held its first nationwide defense drills in 6 years amid increasing nuclear threats and rising tension with North Korea. The government decided to renew the drills as part of the annual Ulchi civil defense exercises, which are held alongside the bilateral Ulchi Freedom Shield drills between the U.S. and South Korea. Air-raid sirens went off and community leaders in neon yellow requested people leave the streets. According to the interior ministry, civilians in almost 500 public facilities, such as grocery stores and movie theaters, were told to evacuate, and drivers in around 200 zones nationwide were instructed to pull over to the side of the road. However, many citizens reportedly ignored the drills. South Korea has about 17,000 shelters for its population of 52 million. Reuters
Middle East and Northern Africa
Two Tankers Collide in the Suez Canal. Two ships — the Singapore-flagged liquefied natural gas carrier BW Lesmes and the Cayman Islands-flagged oil tanker Burri — briefly collided in the Suez Canal on Wednesday. The canal authority said “slight contact” was made after BW Lesmes made a sudden stop due to a technical failure and a strong current pushed Burri into it. The canal authority responded by sending tugboats which successfully towed BW Lesmes out of the waterway. Both ships are undergoing repair for slight damage. Officials say normal traffic through the canal has resumed. Reuters
Sub Saharan Africa
Wagner Group Recruiting in Africa. The Wagner group is reportedly recruiting in Africa, according to a recruitment video on Telegram channels linked to Wagner leader Yevgeny Prigozhin. In addition to recruiting fighters from Africa, Prigozhin is reportedly also calling for Russian investors to invest in the Central African Republic through a Russian cultural center in the country known as the Russian House. Associated Press
Former Central Africa Republic Government Minister Denies Involvement in War Crimes. Maxime Jeoffrey Eli Mokom Gawaka, a former government minister for the Central African Republic, denied accusations that he committed war crimes and crimes against humanity at the International Criminal Court on Tuesday. Mokom is accused of taking part in coordinating operations of a Christian group called the anti-Balaka that fought against the Muslim Seleka rebel group from 2013-2014. The fighting left thousands dead and displaced hundreds of thousands more. Mokom is facing charges of murder, extermination, deportation, torture, persecution, and enforced disappearance for his role in the conflict. Mokom has denied having any involvement in the plans. Associated Press
Beijing Urges BRICS Expansion. BRICS leaders meeting in Johannesburg, South Africa are considering rules for admitting new members to the bloc, but divisions remain. China and Russia have signaled that they want to build out the grouping into a counterweight to the West. In contrast, Brazilian President Inacio Lula da Silva said on Tuesday that the bloc should not seek to rival the U.S. or other Group of Seven economies. Observers say Brazil is likely concerned that expanding BRICS will lessen its influence in the bloc, though it has said it wants neighboring Argentina to join. Over 40 countries have expressed interest in joining BRICS and nearly two dozen have formally requested admission. The South Africa summit may produce a framework and criteria for joining by Wednesday. Reuters France24
Cyber and Tech
Chinese Tech Sector Surges Demand for ‘Hobbled’ Nvidia AI Chips. Chinese orders for even less sophisticated Nvidia chips are soaring amid concerns the U.S. might impose even tighter restrictions on semiconductor exports. According to the Financial Times, China’s leading Internet companies have placed orders for $5 billion worth of Nvidia chips, which are essential for training large AI models. Even these “deliberately hobbled” Nvidia chip models are more powerful than anything available in China previously. Nvidia chief scientist Bill Dally has noted that with AI system training requirements doubling every 6-12 months, the gap will continue to widen between chips sold on the Chinese market and the rest of the world. At the direction of the U.S., Nvidia has reduced the data transfer rate on its A100 processors, and made available to Chinese customers a new product, the A800, that meets U.S. export controls. This year a more powerful chip model for training large language models, but tailored to the Chinese market, the H800, has been made available. The lower data transfer rates of the Chinese-market chips require longer training times for AI systems, an increasingly important factor as the size of models continue to grow. Financial Times
Meta Confirms ‘Off-Switch’ for AI Algorithms To Comply with New EU Data Rules. In order to comply with the new EU Digital Services Act (DSA) that comes into effect Friday, Meta, the parent company of Facebook, Instagram, Threads, and WhatsApp, has confirmed that it will implement an “off-switch” on AI algorithms that direct commercials to platform users. The DSA requires “very large online platforms” (VLOP) and “very large online search engines'' (VLOSE) to provide EU users with an option to opt out of AI-driven personalization, which displays content based on user tracking and profiling. TikTok earlier this month announced a similar feature. Non-algorithmic feeds would offer users content that could be displayed chronologically or according to rankings by local popularity. Nick Clegg, Meta’s president of global affairs, illustrated the new service, saying, “on Facebook and Instagram, users will have the option to view Stories and Reels only from people they follow, ranked in chronological order, newest to oldest. They will also be able to view Search results based only on the words they enter, rather than personalized specifically to them based on their previous activity and personal interests.” Another facet of the DSA is that it prohibits large tech companies from targeting advertising using sensitive data such as sexual orientation and entirely prohibits targeted ads against children. TechCrunch CyberScoop
New Malware Campaign Directed Against Pentagon Procurement System. A Pentagon server has been subjected to a HiatusRAT malware attack in what has been described as a reconnaissance campaign. Previous HiatusRAT attacks focused on Latin American and European organizations with the goal of compromising VPN routers used by medium-sized firms to connect to corporate networks. But beginning in mid-June and continuing through August the reconnaissance efforts shifted to a U.S. military procurement system as well as organizations based in Taiwan. According to BleepingComputer, one of the virtual private servers attacked was a U.S. military server used for contract proposals and submissions. Analysts with Lumen Black Lotus Labs believe the website's connection with contract proposals may indicate the attackers are after public information about military requirements or trying to uncover information about organizations affiliated with the Defense Industrial Base. As Lumen notes, the threat actors’ shift in information collection and targeting preferences aligns with Chinese strategic interests. In recommending that defense contractors monitor network devices for signs of HiatusRAT malware, Lumen said its analysts "suspect the HiatusRAT cluster serves as another example of tradecraft that could be applied against the U.S. Defense Industrial Base with a sense of impunity.” BleepingComputer
Major Mississippi Hospital System Network Taken Offline After Cyberattack. One of Mississippi’s largest healthcare systems shut down several internal services in the wake of a cyberattack that began last week. The Singing River Health System operates Pascagoula Hospital, Ocean Springs Hospital, and Gulfport Hospital in addition to dozens of clinics and health centers along the Gulf Coast. The hospital detected unusual network activity on Sunday, leading to administrators taking “all systems” offline. Hospital officials said lab results may be delayed due to the shutdown and have offered the option of faxing test documents to patients. A hospital statement indicated the healthcare enterprise is developing “workaround solutions to enable a portion of our business operations to continue while we complete a thorough investigation.” Clinics for the time being cannot provide radiology exams, although hospitals can perform them, with delays. As one of the largest emergency departments in the region, Singing River Health System serves more than 100,000 patients per year. A health system spokesperson declined to say if it is dealing with a ransomware incident or if a ransom would eventually be paid. The Record
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