Tuesday, June 13, 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
U.S. Set to Announce New $325 Million Ukraine Military Aid Package. The U.S. is reportedly set to provide a new $325 million military aid package to Ukraine, according to VOA citing U.S. defense officials. The package is expected to include Stryker and Bradley armored vehicles to replace those damaged and destroyed in ongoing Ukrainian offensive operations. The aid is also set to include additional HIMARS and NASAMS ammunition. The aid will come from the Presidential Drawdown Authority, which pulls from U.S. stockpiles, and comes after reports of Ukraine losing over a dozen Bradly infantry fighting vehicles in recent days. VOANews
Biden to Meet With Outgoing NATO Chief Stoltenberg. President Joe Biden is meeting outgoing NATO Secretary-General Jens Stoltenberg in Washington on Tuesday as the search for the NATO chief’s successor intensifies. Stoltenberg is the longest running NATO Secretary-General since 1984 and has had his tenure extended three times since he took office in 2014. He is scheduled to leave office in October of this year. Biden is expected to consult with Stoltenberg about the position as his preference about his successor carries tremendous weight. Whoever follows Stoltenberg will face the challenge of maintaining the security of roughly 1 billion people in 31 member countries at a time of increasing instability within Europe and worldwide. There are several contenders for the position from across the alliance and there is still a chance that Stoltenberg’s tenure will be extended again. The issue is expected to be settled sometime in July when NATO’s leaders meet for a summit in Vilnius, Lithuania. VOANews
Government Agencies Use of Commercial Data Revealed in New Report. Americans’ personal data that is available for sale, or commercially available information (CAI), has reached a “type and level of sensitivity” that rivals data gathered from more targeted, intrusive surveillance techniques, like wiretaps and cyber espionage. This conclusion came from a recently released report, commissioned by U.S. Director of National Intelligence Avril Haines, on how U.S. spy agencies use commercially available data sets, which include information ranging from demographic information to data from smartphone devices, social media platforms, automobiles and location trackers. The report warns that this data increasingly poses risks to individuals as virtually anyone can purchase this data, due to loose market regulations and the lack of comprehensive privacy legislation, and because the data is often hard to “anonymize,” since personal identities can be inferred from data like geolocation information. The report added that there is a lack of awareness of which federal intelligence agencies are buying and using this data, pointing to the need for stronger oversight and transparency on the matter, as well as the need for regulations on the sale of CAI in general. Wall Street Journal
Blinken Says Biden Administration Using Diplomacy to Curb China’s Global Spy Efforts. U.S. Secretary of State Antony Blinken said Monday that the Biden administration has taken steps to curb China’s efforts to expand its military and intelligence presence overseas. His comment came after U.S. officials confirmed China has an intelligence unit in Cuba, which includes a spy base that has existed since at least 2019. Blinken said China’s operation in Cuba is one of a number of Chinese efforts to “expand their overseas logistics basing collection infrastructure” to “project and sustain military power at a greater distance.” To address China’s spying, Blinken explained that the Biden administration has relied on diplomacy, saying that it has “engaged governments that are considering hosting PRC bases at high levels” and has “exchanged information” with them. He added that the administration believes this diplomatic outreach has “slowed down” China’s spying efforts. Al Jazeera Reuters
NSC Spokesman Kirby Defends Handling of Reports of Chinese Spy Operations in Cuba. National Security Council spokesperson John Kirby said that the White House was as “forthcoming” as it could have been when a Wall Street Journal report on Chinese spying activity in Cuba was released last week, adding that the U.S. intelligence community had to “expeditiously” declassify information about the alleged activity in response. On Saturday the administration released information that said China had been operating a base used for espionage since 2019. Kirby also said that his acknowledgement of the base on Monday to provide “clarifying information” and rejected the notion that the administration had walked back his previous remarks on Friday that initial reporting was “not accurate.” He did not say how the reports were inaccurate, but criticized the sources that provided the information to the Wall Street Journal, saying “Clearly, there’s a source or sources out there that think it’s somehow beneficial to put this kind of information into the public stream. And it’s absolutely not.”. Kirby added that tensions over the matter are not expected to disrupt Blinken’s planned visit to China this week or the Biden administration’s wider efforts to maintain open lines of communication with Beijing. He also said Washington has shared concerns with Havana about Chinese intelligence operations in Cuba. Both China and Cuba deny allegations about the alleged spy base. Politico Reuters South China Morning Post The White House
US Lists Companies Linked to Chinese Military Pilot Training, Other Threatening Actions. The Biden administration added 43 entities to the U.S. Commerce Department’s Entity List for engaging in activities that threaten U.S. national security. Most targeted entities were added to the list for helping train Chinese military pilots and helping China acquire U.S.-origin items to support its military modernization and development. These companies include security and aviation company Frontier Service Group Ltd. – which was previously run by Erik Prince, the founder of security firm Blackwater – and The Test Flying Academy of South Africa. Nine Chinese and Pakistani companies were also added to the list for supporting Pakistan’s ballistic missile and other weapons programs, and two other entities were added for their involvement in alleged human rights abuses in China’s Xinjiang region. Reuters
CISA Director Easterly Warns of Chinese Cyberattacks on U.S. Critical Infrastructure. CISA Director Jen Easterly on Monday warned that the U.S. should prepare for Chinese cyberattacks disrupting U.S. critical infrastructure in the event of a conflict with China. Speaking at the Aspen Institute in Washington, Easterly said Chinese sabotage of U.S. infrastructure is the “real threat” Americans should prepare for as Beijing is investing heavily in cyber capabilities that can inflict physical damage. Her comments followed a similar warning by the U.S. intelligence community on this threat, as well as after alleged Chinese hacking group Volt Typhoon was found to have stealthily positioned itself to target U.S. infrastructure. Reuters The Cipher Brief
Contingency Planning for Taiwan Evacuations of US Citizens Underway. The Messenger has a new report that says the US has begun contingency planning around scenarios that could involve evacuating US citizens from Taiwan in the event of a conflict with China. The report cites a senior US intelligence official who spoke on the condition of anonymity who says that planning has been underway for roughly 6 months but has intensified in recent months. Another source says that the Ukraine war has caused a reevaluation of evacuation planning in Taiwan. The State Department declined a request for comment on the story while a Pentagon official said that the US military does not view conflict in the Taiwan Strait as imminent. The Messenger
Iranian President Begins Tour of Latin America with Venezuela. Iranian President Ebrahim Raisi began his tour of Latin America on Monday with a first stop in Venezuela, where he met President Nicolás Maduro. The two signed agreements to expand cooperation in petrochemicals, and Raisi said they seek to raise bilateral trade between their countries from $3 billion to $20 billion. The trip comes a year after Maduro visited Raisi in Iran. In a suggestion of animosity towards the United States, Raisi asserted that Iran and Venezuela have “common interests,” and pointedly, “common enemies” who “do not want the two countries… to be independent,” possibly in reference to U.S. sanctions imposed on Caracas and Tehran. Raisi’s tour of Latin America, which includes visits to Nicaragua and Cuba, comes during a period of heightened tensions with the U.S. Associated Press Reuters
Western Europe
F-16 Training for Ukrainian Pilots Could Begin This Summer, Dutch Defense Minister Says. Dutch Defense Minister Kajsa Ollongren told Reuters that Ukraine’s NATO allies in the “fighter jet coalition” are aiming to start training Ukrainian pilots on F-16 fighter jets as soon as this summer. Ollongren said that the training program is set to be fully operational within six months and that Denmark, where there are F-16 flight simulators, is a potential host for the program. F-16s will not make it to Ukraine in the short-term, and certainly won’t be delivered to support its counteroffensive, but Ollongren said the jets will be sent to Kyiv eventually, which will be “very important to the future” as it will allowUkraine to “be able to defend itself to deter Russia” from repeated attacks. Reuters
NATO Defense Ministers, Arms Makers to Discuss Ammunition for Ukraine. NATO defense ministers are meeting with the heads of 25 major defense manufactures on Thursday to discuss Ukraine’s ammunition needs. A NATO spokesperson stated that the meeting “will have a specific focus on battle-decisive munitions.” So far, the EU has taken the lead on ammunition procurement for Ukraine, while NATO has focused on non-lethal equipment and political messaging backing Kyiv. Separately, NATO is also looking at establishing a Defense Production Action Plan to better assess member countries’ current defense needs, as the alliance’s military support for Ukraine has depleted NATO members’ stockpiles. Kyiv Independent
Sweden Extradites Turkish Citizen Ahead of NATO Membership Talks in Ankara.
Turkish, Swedish and NATO officials are meeting in Turkey’s capital of Ankara on Tuesday to discuss Sweden’s application to join NATO. The meeting will be held a day after Stockholm decided to extradite a Turkish citizen residing in Sweden who is under investigation for posting manipulated images of Erdogan, which is punishable under Turkish laws. The man served a prison sentence in Turkey for drug crimes and then legally moved to Sweden. He reportedly maintains the “real reason” behind his extradition is because of his links to the Kurdistan Workers’ Party (PKK). Turkey has withheld approval for Sweden’s NATO membership bid over concerns that Stockholm harbors members of groups that Ankara deems terrorist organizations, including PKK. Sweden says it has addressed Turkey’s security concerns with a new terrorism law, but Ankara says more should be done. Bloomberg France 24
Ukraine War Offers Lessons for Future NATO Multi-role Helicopter Design. NATO members and helicopter manufacturers are looking at lessons from the Ukraine war to inform future designs of military rotary wing aircraft. Experts say the conflict in Ukraine, which has refocused defense planners on the importance of conventional ground warfare, has also shown that how equipment such as helicopters are used is critically important. Russia and Ukraine both use Soviet era Mi-8 helicopters, but while Russia uses the aircraft during the day at high altitudes, Ukraine uses them at night or dawn at low altitudes with natural coverage to make them harder to target and, therefore, more effective. Several NATO members are in the early phases of a new multi-role military helicopter design program with an expected completion date of 2035. DefenseNews
Central and Eastern Europe
Ukraine Says Seven Villages Liberated in Counteroffensive. Ukraine on Monday said that it has recaptured seven towns along the frontline since starting its counteroffensive last week. Ukrainian President Volodymyr Zelensky said, “The battles are fierce, but we have movement and that is crucial.” Ukrainian Deputy Defense Minister Hanna Maliar reported that Ukrainian forces on Monday liberated the villages of Levadne and Novodarivka west of the Mokri Yaly river, as well Lobkove near Zaporizhzhia city. She added that in total, Ukrainian forces have recaptured a total area of 90 square kilometers (35 square miles). Oleksandr Syrskyi, the head of Ukraine’s ground troops, added that Ukrainian forces are “moving forward” outside of Bakhmut and that Russian troops are “losing positions on the flanks.” Russia’s defense ministry on Monday repeated past assertions that it has repelled offensives in the Donetsk and Zaporizhzhia regions, saying that it destroyed eight Ukrainian drones and an Ukrainian ammunition depot in the latest attacks. The counteroffensive has so far made marginal gains and has been short of a major breakthrough, though analysts say it is still early to assess the success of the counteroffensive. New York Times Reuters
Russian Missiles Strike Zelensky’s Hometown of Kryvyi Rih, Kills 11. A Russian cruise missile assault on the central Ukrainian city of Kryvyi Rih killed at least 11 people and wounded at least 25 others early on Tuesday. According to Ukrainian authorities, the missiles struck a five-story residential building and destroyed a warehouse. Serhiy Lysak, governor of the Dnipropetrovsk region, reported that four people were killed in the apartment and six in the warehouse. President Volodymyr Zelensky, who was born in Kryvyi Rih, denounced the attack, calling the weapons “terrorist missiles” and condemning the “Russian killers” who “continue their war against residential buildings, ordinary cities and people.” Russia also launched missiles at Kyiv, but they were all reportedly intercepted by the capital’s air defenses. Ukrainian military officials said that Ukrainian defenses shot down one out of four Iranian-built drones and 10 out of 14 cruise missiles launched by Russia at Ukraine overnight. Russia has not yet commented on the reported strikes. Al Jazeera Associated Press Reuters
Ukraine Counteroffensive Challenged by Improved Russian Weapons, Tactics. Analysts are warning that Ukrainian forces may face tougher challenges in its counteroffensive as the Russian military has learned from mistakes it made early in the Ukraine war and improved its weapons and skills. Russia has heavily fortified its defenses along the 1,000 kilometer front line, improved its electronic warfare, and modified its Soviet-era heavy bombs into precision-guided gliding munitions. The improved Russian tactics in addition to increased troop numbers and improved weaponry could provide a challenge for Ukraine to gain any decisive victory, likely leading to a long battle of attrition. General Mark Milley, Chairman of the Joint Chiefs of Staff, said in an interview that although the Ukrainian military is well prepared, the conflict “will be a back-and-forth fight for a considerable length of time.” So far, the Ukrainian military has only made marginal gains against the multilayered Russian defenses. Yet despite these small gains and a fortified enemy, fundamental Russian weaknesses remain. Russian troops continue to suffer from low morale, there is a lack of coordination between units, and there are shortages of ammunition. Also, infighting between the Russian military and the Wagner Group shows dysfunction even at the highest levels. Associated Press
IAEA Chief to Meet Zelensky on Kakhovka Dam Collapse Impact on Zaporizhzhia Nuclear Plant. IAEA Director General Rafael Grossi said on Monday that he is on his way to meet with Ukrainian President Volodymyr Zelensky to present an assistance plan to address the impact of the Kakhovka Dam breach on the Zaporizhzhia nuclear power plant. There are mounting concerns that the dam’s collapse will disrupt the plant’s operations, since the water from the Kakhovka reservoir is used for cooling and power at the plant. Grossi said there is no immediate threat to water supplies at the plant, but he needs to assess the situation at the facility since there are discrepancies between Ukrainian readings of the reservoir’s water levels and readings taken at the Russian-occupied plant. Kyiv Independent New York Times
Ukraine Rejects Russian Account of MH17 Downing as ‘Rambling Conspiracy Theory.’ Ukrainian lawyers at the International Court of Justice have rejected the Russian account of the 2014 downing of Malaysian Airlines Flight MH17 in eastern Ukraine. Ukraine argues that Moscow violated a U.N anti-terrorism treaty by equipping and funding pro-Russian separatists who shot down MH17. Last week, in hearings, Russia said that Ukraine’s case was based on “nonsense” and offered several alternative explanations. A Ukrainian lawyer rebutted by telling the court that it had been “subjected to a rambling conspiracy theory” that is “better relegated to the darkest corners of the internet”. The International Court of Justice case was originally filed in 2017, long before Russia's 2022 invasion of Ukraine, and is expected to be ruled on before the end of this year. Reuters
Asia and Oceania
U.S. Warns North Korea Could Send More Arms to Russia. A State Department spokesperson on Monday warned that North Korea may be planning to transfer more weapons to Russia following reports by North Korean state media that the country’s leader Kim Jong Un is vowing to increase cooperation with Moscow. The spokesperson added that despite denials from Pyongyang, the US has confirmed that in November of 2022 North Korea delivered infantry rockets and missiles to Russia’s Wagner Group. In March, Washington said it possessed data showing that Moscow sought to obtain more weapons from North Korea in exchange for food. In the same month, the US sanctioned a Slovakian man who reportedly tried to sell more than 24 kinds of North Korean munitions and weapons to Russia. In light of Pyongyang’s past behavior and Kim Jong Un’s latest rhetoric, the spokesperson said that the US is “concerned” about further North Korean arms shipments to Moscow. Reuters
China’s PLA Interrupts Taiwan’s Tsai’s Radio Call. Taiwanese President Tsai Ing-wen made a radio call to a Taiwanese air force captain on Friday, but at one point received an interesting answer — a warning from China’s People’s Liberation Army. Tsai had made the call during a trip to a military base, and during her conversation with the air force captain, she was answered by a message that said, “This is the Chinese air force, you have already intruded into our airspace and seriously violated our sovereignty.” The PLA radio broadcast was quickly cut off, and Tsai continued her conversation with the air force captain. Taiwan’s air force explained Monday that the PLA did not hack into Tsai’s radio channel, but that their warning was broadcast using an aircraft emergency frequency that was picked up on another radio channel monitored by Taiwan’s air force defense and missile command. Analysts add that the warning appeared to be directed at a non-Taiwanese aircraft. However, despite the reassurance that the disruption was an apparent coincidence, experts say Taiwan must investigate the incident to ensure Tsai and other top Taiwanese officials’ travel and communications plans are not being leaked. South China Morning Post
Xi’s Rhetoric Increasingly Points to Conflict With West. Chinese President Xi Jinping’s rhetoric in recent months has increasingly pushed China to prepare for escalating tensions and conflict with the West. He has called for China’s national security officials to be “prepared for worst-case and extreme scenarios” and told economic leaders to ensure the country’s economy can maintain “normal operation… under extreme circumstances.” Analysts say the warnings escalating the risk of conflict are likely meant to push China to double down on efforts to lessen dependence on foreign markets and technology. They add that the “extreme” rhetoric also coincides with increasing tensions over Taiwan. Experts note that this rhetoric contradicts simultaneous efforts by Beijing to manage relations with Washington and attract foreign investors, underscoring contradictions in Chinese policy. Wall Street Journal
China’s Xi Meets Honduran President. Chinese President Xi Jinping met with Honduran President Xiomara Castro, who is in China for a state visit following her country’s decision to switch diplomatic recognition from Taiwan to Beijing. The Chinese foreign ministry said the two leaders witnessed the signing of 17 bilateral agreements on trade, investment, agriculture, science and technology, culture and education. Xi praised Castro’s “historic decisiveness” and “strong political will” to fulfill the switch in allegiance, adding that China will “support the economic and social development” of Honduras while stressing the “one-China principle” as the foundation for bilateral ties. Castro said she appreciates China’s support through the Belt and Road Initiative and pledged to promote strong ties between Beijing and fellow Latin American and Caribbean countries. South China Morning Post
U.S. National Security Advisor Sullivan Arrives in India. U.S. National Security Advisor Jake Sullivan arrived in New Delhi on Tuesday for a two-day visit to India. He is expected to help finalize a technology deal that will allow General Electric to build jet engines in India, which would mark a major leap forward in Indian-U.S. defense cooperation and is aimed to help India build its domestic defense industry to lessen dependence on Russian weapons and military equipment. Sullivan’s trip comes ahead of a visit by Indian Prime Minister Narendra Modi to the U.S. next week. Reuters
Palestinian President Visits China. Palestinian President Mahmoud Abbas arrived in China on Tuesday for a state visit following Beijing’s offer to help mediate Israeli-Palestinian peace talks, as part of its diplomatic push in the Middle East. It is Abbas’s fifth official visit to China. He is expected to meet with Chinese President Xi Jinping and Premier Li Qiang during his trip. Al Jazeera
New Zealand National Broadcaster Investigating Media Coverage of Ukraine War. Radio New Zealand (RNZ) has launched an investigation and put a staff member on leave after it found several news stories on its website had been edited to present “a false account of events” concerning Russia’s invasion of Ukraine. So far, RNZ has found and corrected 16 stories on its website dating back to April 2022 for “inappropriate editing.” The broadcaster said these stories had been edited to present pro-Russian interpretations of some events in Ukraine as fact. For example, one edited story read that in 2014, “a pro-Russian elected government was toppled during Ukraine’s violent Maidan colour revolution” and inaccurately claimed that “Russia annexed Crimea after a referendum, as the new pro-Western government suppressed ethnic Russians in eastern and southern Ukraine.” Pro-Russian President Viktor Yanukovich was toppled in 2014 after protests calling for stronger ties with the EU, in which dozens of protesters were killed. And the referendum on Crimea was seen by Ukraine and Western governments as a sham. These edits have been changed and the RNZ is continuing to audit articles on its website. Reuters
Middle East and Northern Africa
Syria Helicopter Accident Injures 22 U.S. Troops. The U.S. military said Tuesday that 22 American troops were wounded in a helicopter accident in northeastern Syria on Sunday. U.S. Central Command said that no enemy fire was involved in the accident and that the incident is under investigation. It added that 10 service members were evacuated to “higher care facilities” while the rest of the troops are being treated for injuries “of various degrees.” Neither US Central Command, which oversees American service members in the Middle East, nor the Syrian Kurdish forces responded to requests for comments about the incident. Reuters Associated Press
Saudi Arabia-China Business Summit Yields Deals Totaling $10 Billion. Saudi Arabia concluded the 10th Arab-China Business Conference in Riyadh on Monday with resulting investment deals worth $10 billion. The largest deal was a joint venture between Chinese electric car maker Human Horizons and Saudi Arabia’s investment ministry worth $5.6 billion, which will focus on “automotive research, development, manufacturing and sales.” Other deals were reached with Chinese technology, renewable energy, agriculture, real estate, metals, tourism and healthcare firms. The deals are aimed at supporting Saudi Arabia’s Vision 2030 strategy to lessen dependence on oil and are set to support Chinese companies facing domestic competition. Al Jazeera South China Morning Post
Austrian Man Detained in Afghanistan. The Austrian Foreign Ministry said Tuesday that an Austrian man is being held in Afghanistan after he traveled there in May. The ministry said he had been arrested and is “actively seeking a solution” on the matter. The Austrian daily Der Standard reports that the man is a far-right extremist and that he has been in custody for a few weeks, following the publication of an article he wrote titled “On Vacation with the Taliban." Associated Press
Sub Saharan Africa
Militia Attack on Congo Camp for Displaced People Kills 45. The United Nations peacekeeping mission in the Democratic Republic of the Congo reports that 45 people were killed and 10 injured early on Monday when a militia group, the Cooperative for the Development of the Congo (CODECO), attacked a camp for displaced people in the country’s Ituri province. The UN mission in Congo, MONUSCO, has cooperated with local officials to increase security in the area. The armed group CODECO claims to defend Lendu farmers in conflict with Hema herders. The UN says the group has killed hundreds and displaced thousands in the Ituri province, which has around 1.7 million internally displaced people. Al Jazeera Reuters
Cyber and Tech
UN Secretary General Supports International AI Oversight Agency. The UN secretary general has offered support to the concept of an international oversight authority for AI R&D along the lines of the International Atomic Energy Agency (IAEA). Regarding the oversight agency, Guterres noted that "only member states can create it, not the Secretariat of the United Nations." Antonio Guterres also announced plans to work on a “high-level AI advisory body” by the end of the year to offer recommendations on how AI governance arrangements can be conducted with human rights, the rule of law, and the common good in mind. He acknowledged the “alarm bells” that are being sounded everywhere over generative AI and said that given the source of the cautions – AI developers — "we must take those warnings seriously." Guterres also supported the proposal by British Prime Minister Rishi Sunak to hold an AI summit in London, but called for “serious work” to precede it. He said he plans to appoint a scientific advisory board of AI experts and chief scientists from UN agencies. Reuters VOANews
UK Prime Minister Reiterates National Goals for AI at London Tech Conference. In the wake of his recent visit to Washington, Prime Minister Rishi Sunak shared his AI ambitions for the UK with the London Tech Week conference, saying, "I want to make the UK not just the intellectual home, but the geographical home of global AI safety regulation." He told the tech industry leaders that the possibilities for artificial intelligence are “extraordinary” while noting that both the risks for privacy and job displacement of the new technology must be addressed. Finance Minister Jeremy Hunt also spoke at the conference, noting that AI likely will shape economies and society for the rest of the century. He echoed Sunak’s goals for Britain’s role in artificial intelligence, saying "I would like this country to be a force for good in making sure these are set in a way that means that technology can really benefit everyone." Reuters
U.S. To Extend Chip Export Exemptions Allowing South Korean, Taiwan Growth in China. A Commerce Department official last week indicated that the Biden administration will extend exemptions to South Korean and Taiwanese chip manufacturers that will allow them to continue expansion of their operations in China. Speaking at an industry gathering last week, Alan Estevez, undersecretary of commerce for industry and security, said that the U.S. intends to extend exemptions from U.S. export controls on chip and chip making equipment sales to China. The exemptions were being monitored closely by companies and foreign governments as a deadline for them to expire in October approached. Industry executives noted that an extension of the exemptions reflects the U.S. government’s understanding that isolating China is difficult “in a highly integrated global industry.” The U.S. last October provided one-year exemptions to certain companies, including South Korea’s Samsung and Taiwan Semiconductor Manufacturing. Wall Street Journal
Former Samsung Executive’s Information Theft Intended To Replicate Chip Plant in China. A former Samsung Electronics executive, a Korean national, has been arrested for the theft of company information on advanced chipmaking manufacturing that he intended to use to replicate a chip making plant in China. South Korean prosecutors noted that the scope of the alleged crime was “incomparable” with a “simple semiconductor tech leak” as it involved the recreation of an entire chip-making facility. If the plan had been realized, authorities said, “it would have caused irrecoverable losses to the [Korean] semiconductor industry.” The former executive under arrest, who was not named, also served in the past as a vice president for SK Hynix, another South Korean chip manufacturer. After leaving those firms, he established chip manufacturing companies in China and Singapore with the backing of Chinese and Taiwanese investors. He is reported to have hired about 200 employees from Samsung and SK Hynix for his company in Chengdu who allegedly were tasked with stealing trade secrets from their former employers. The executive’s plan was to then build a semiconductor factory a short distance from Samsung’s memory chip plant in Xian in western China. Monday’s indictment included six other people, including the employee of a Samsung subcontractor and five employees of the executive’s Chinese chip making company. Financial Times Associated Press Reuters
U.S. Platforms Limit Hong Kong Online Content as Government Tightens Rules. In the face of tightening government controls over platforms for online protest and dissent, Western tech companies are limiting or withdrawing services from Hong Kong. In recent months, Google, OpenAI, and Microsoft are among the firms placing restrictions on access to their AI chatbots. The companies have not commented publicly on the limitations, but observers say the firms are wary of violating Chinese security rules through chatbot content that may cross boundaries set for criticism of the government. An example is a Hong Kong Justice Department effort to block online circulation of a pro-democracy song that has appeared on YouTube and features lyrics the government claims favor secession. George Chen, former head of public policy for Greater China at Facebook parent Meta Platforms, said that the proposed censorship of the pro-democracy song demonstrates that “this time it is about the song, next time it could be something else.” Commenting on the overall environment, Heatherm Huan, an executive with the Hong Kong tech company, Measurable AI, commented “we don’t have the Great Firewall yet, but companies aren’t offering their services.” Wall Street Journal
DoD Hypersonic Cruise Vehicle Being Readied for Test Flight Next Year. The Pentagon’s Defense Innovation Unit (DIU) investment in an experimental hypersonic cruise vehicle could pay dividends as early as next summer. Lt. Col. Nicholas Estep, manager of the high-cadence testing capabilities (HyCat) program, said the DIU is refining details such as flight conditions and location for the first autonomous flight of the aircraft next year. The Dart AE hypersonic vehicle, a scramjet-powered technology demonstrator capable of Mach 7 speeds, is being developed by Australia’s Hypersonix Launch Systems firm under a DIU prototype contract. The DIU HyCat program focuses on commercial development of reusable, low-cost test vehicles to help manage demands on DoD resources. DIU is considering a second program phase, HyCat 2, that would identify companies to develop payloads and capabilities for test vehicles, including alternative navigation and advanced communications. DIU’s technical director for space, Barry Kirkendall, said the immediate focus of the program is to secure contractors who can produce test options at low cost and featuring proven technology. Space C4ISRNet
U.S. Quantum Official Specifies Goals for Renewed Quantum Act Before Congress. Charles Tahan, director of the White House’s National Quantum Coordination Office, outlined new funding goals for quantum technology development in testimony last week to a House S&T committee hearing to reauthorize the National Quantum Initiative Act (QIA). The act is scheduled to expire in October at the end of the current fiscal year. A renewal of the QIA, Tahan said, should place priority on major federal investments to advance R&D initiatives in quantum information sciences. “First and foremost,” he said, “our goal has to be to continue to move fast…we need to keep our open scientific engine of discovery going, but we need to do it in a smart way.” Specifically, Tahan endorsed development of a quantum satellite program and sustaining core research initiatives, especially the creation of a viable, operable quantum computer. Tahan also argued that the QIA should include an annual $200 million outlay for the Department of Energy to start a post-exascale high-performance computing program to incorporate quantum into supercomputer architectures. Referring to applications, Tahan said that national security is increasingly interwoven with quantum technology, particularly at the cybersecurity level. He also outlined the potential for medical bioimaging that could flow from more advanced quantum information science and technology systems. Tahan highlighted the growth of partnerships with academia and industry partners, noting that research institutions should have access to sophisticated quantum mechanics and computing teaching materials to reinforce the domestic workforce. NextGov
Switzerland Reports Ransomware Breach, DDoS Attacks on Government Systems. Switzerland has reported multiple cyberattacks ranging from ransomware breaches to distributed denial-of-service (DDoS) disruptions. Swiss authorities last week said that a ransomware breach of Xplain systems, an outside technology provider to various government departments including the military, resulted in a threat actor claim that private data was stolen. The data haul was subsequently published after the ransom demand was rejected, and Swiss government researchers are examining the contents for validity and impact. Separately, the government reported on Monday that various Federal Administration websites, as well as online services, have been disrupted by DDoS attacks reportedly launched by NoName, a pro-Russian hacktivist group that has targeted NATO-aligned countries and entities since early 2022. BleepingComputer
UK Communications Regulator Loses Confidential Data to MOVEit Breach. Another breach of the MOVEit file transfer tool led to the theft of data from Ofcom, the British communications regulator. Ofcom announced on Monday that “a limited amount of information” on companies monitored by the regulator, along with personal data of Ofcom employees, was extracted during the attack. According to an Ofcom spokesperson, the organization took quick steps to halt MOVEit services and to notify Ofcom-regulated companies. The company clarified that data was downloaded from the MOVEit server, rather than from Ofcom systems directly. TheRecord Reuters
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