| TWO PRC NATIONALS CHARGED WITH SPYING ON U.S. MILITARY FACILITIES In a federal court in San Francisco, two PRC nationals have been charged with spying in the U.S. on behalf of the Ministry of State Security (MSS). Yuance Chen, a U.S. permanent resident, and Liren "Ryan" Lai, who is now in China, conducted surveillance of Navy facilities, sought to recruit U.S. military personnel, and made a $10,000 dead-drop to another MSS agent. Chen took photos of a naval base in Washington and a recruiting station in California, which he transmitted to Chinese intelligence. Authorities say Lai began cultivating Chen in 2021 and helped him gather personal data on Navy recruits. "This case underscores the Chinese government's sustained and aggressive effort to infiltrate our military and undermine our national security from within," said Attorney General Pam Bondi. (Associated Press, July 1, 2025) SCO AN "ANCHOR OF STABILITY" – BEIJING The Shanghai Cooperation Organization (SCO) is an "anchor of stability" in times of international turmoil, Defense Minister Dong Jun told his counterparts in Qingdao, Shandong. At the most recent SCO meeting, which took place at the same time as the NATO summit in The Hague, China pledged to work with member states to defend international justice. Meanwhile, NATO members committed themselves to investing 5% of their respective GDP to defense every year from 2035 onward – a commitment that Beijing opposes. "NATO is increasing international tensions and slandering China's military build-up as a pretext to expand its borders and advance eastward and into the Pacific region. If NATO cares about security in Europe and the world, it should stop fueling confrontation," said a Foreign Ministry spokesman in Beijing. (MSN, June 26, 2025) [EDITOR'S NOTE: China, Russia, and Central Asian states such as Kazakhstan and Kyrgyzstan initially founded the SCO in 2001 to combat terrorism and promote economic cooperation. It now has ten member countries, including Iran, India, Pakistan and Belarus.] PRC HACKERS ACCESS RUSSIAN SYSTEMS, STEAL DEFENSE SECRETS Since Moscow invaded Ukraine in February 2022, Chinese hackers (such as the threat groups APT27 and APT31) have been digging into Russia's military data related to nuclear submarines, drone systems, and battlefield tactics. Despite the public declarations of friendship between Moscow and Beijing, PRC state-sponsored cyberattacks have breached Russian defense systems using spear-phishing emails and malware. When opened, the phishing emails – which appear to be notices from Russia's Ministry of Health – plant malware into classified internal systems. China has used the same malware strain, PlugX, which enables remote access and data exfiltration, in its espionage campaigns across Southeast Asia and the Middle East. (The Economic Times, June 20, 2025) CHINESE FIRMS EXPAND INTO BRAZIL... Facing rising tariffs and scrutiny in the U.S. and Europe, Chinese companies are aggressively expanding into Brazil. In recent months, Chinese companies have announced a total of $4.7 billion in new investments, including mining, renewables, and automotive manufacturing. Meituan, China's largest food delivery company, pledged $1 billion and aims to become Brazil's top delivery app. Mixue, the Chinese tea and dessert company that recently eclipsed McDonald's as the world’s biggest fast-food chain, plans to hire thousands and feature Brazilian ingredients in its Chinese stores. Brazil has also become a key market for fast-fashion retailer Shein, which has built three warehouses near São Paulo, while the ride-hailing app Didi is among the industry leaders in the South American country. Trade between the two countries has nearly doubled over the last decade. (New York Times, June 20, 2025) ...AS FLOOD OF CHEAP CHINESE EVS TRIGGERS BACKLASH Chinese automakers, led by BYD, are exporting vast quantities of cheap electric and plug-in hybrid vehicles into Brazil. They are front-loading shipments to exploit a temporary policy that allows tariff-free imports up to the end of July. As a result, imports of China-built vehicles are expected to rise nearly 40% this year to about 200,000 cars. Brazilian industry officials and labor unions argue that this rapid increase in Chinese imports is undermining domestic auto production and job creation and are urging the government to fast-track a planned tariff hike on EV imports from 10% to 35% to protect local industry. "Countries around the world started closing their doors to the Chinese, but Brazil didn't. China made use of that," said Aroaldo da Silva, president of IndustriALL Brasil, a confederation of labor unions. (Reuters, June 20, 2025) |
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