Chinese Spy Networks in Britain and United States

Posted on May 29, 2018May 29, 2018 by Denise Simon

The agents are thought to have handed over secrets while still in service for France’s external DGSE intelligence agency, similar to Britain’s MI6 and America’s CIA, Ms Parly told CNews television. The third person – believed to be the wife – has been indicted for “concealment of treasonable crimes” and placed under “judicial control”, meaning judges keep close tabs on her pending trial. More here.

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France has confirmed the arrest of two French intelligence officers who are accused of spying for the Chinese government. It appears that the two officers were captured and charged in December. However, their arrests were not publicized at the time, because French counterintelligence officials wanted to avoid alerting more members of a possible spy ring, which some say may include up to five French citizens. It was only last Friday, a day after French media published leaked reports of the arrests, that the French government spoke publicly about the case.

France’s Minister of the Armed Forces, Florence Parly, told France’s CNews television on Friday that two French intelligence officers were “accused of extremely serious acts of treason” against the French state. The two officers had been charged with delivering classified information to a foreign power”, she said. Parly added that the spouse of one of the officers was also being investigated for participating in acts of espionage on behalf of a foreign country. When asked to identify the country that the two officers are accused of spying for, the minister refused to respond. But the Agence France Presse news agency cited an anonymous “security source”, who said that the two intelligence officers were being suspected of spying for China and that they had been captured following a sting operation by French counterintelligence officers.

French television station TFI1 said on Friday that both spy suspects are officers in the General Directorate of External Security (DGSE), France’s primary external intelligence agency. The station added that at least one of the two suspects was stationed at the embassy of France in Beijing when French counterintelligence became aware of the alleged espionage. According to some reports, the two suspects had retired from the DGSE by the time they were arrested, but committed their alleged espionage while still in the service of the spy agency. French government officials have refused to provide information about the length of the alleged espionage or the nature of the classified information believed to have been compromised. Additionally, no information is available about whether the two alleged spies were working in cooperation with each other. The BBC asked China last week about the arrests in France, but the Chinese Ministry of Foreign Affairs said it was not aware of the incident.

*** As a reminder, the United States has it’s own Chinese spy network. Jerry Chun Shing Lee was charged with aiding China dismantle a U.S. informant network in China in exchange for money. He has plead not guilty.

a man smiling for the camera © Provided by South China Morning Post Publishers Limited

It was this past February that FBI Director Chris Wray provided testimony to the Senate Intelligence Committee that Chinese spies have fully infiltrated U.S. universities. Additionally, China continues to gain access and in many cases successfully, of U.S. technologies and intellectual properties through telecommunications companies, academia and most especially with joint business adventures.

China has launched an ‘all society’ approach to gain access to intellectual property and some universities are pushing back on the warnings put forth by Director Wray as there are an estimated 400,000 Chinese students studying in the United States, many attending cash strapped colleges.

US Warships Challenge Chinese Islands: FONOP

Posted on May 29, 2018May 29, 2018 by Denise Simon

USS Higgins

The US Navy sent two warships to a disputed archipelago in the South China Sea on May 28 in its latest symbolic protest against China’s claims there.

Reuters first reported that the USS Higgins and the USS Antietam ventured within 12 miles of the Paracel Islands in a demonstration the Pentagon calls a “freedom of navigation operation” or FONOP. The move signals US rejection of China’s claims of political control in the South China Sea.

The objective of their sail-by was a speck of land called “Woody Island,” where China has developed airstrips and port facilities in recent years as part of a broader strategy of establishing bases in these islands to demonstrate and exercise its political claims. This spring, China landed strategic bombers capable of carrying nuclear weapons on the island, a symbolic display of its deterrent power, and satellite imagery showed the arrival of surface-to-air missiles this month.

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The Vietnamese government protested China’s move as a violation of its sovereign claim to the islands—exactly the language used by China to protest US actions today after sending its own warships to warn away the Americans.

** See more here.

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The island is one of many that lay behind the “nine dash line,” a diplomatic term of art for China’s political vision for the South China Sea, which is at the center of a web of claims by nearby nations:

In March, the US sent a destroyer on a FONOP to the Spratly Islands. In response, China increased its naval activity there, including a parade of warships that was also captured by Planet satellites. Tensions in the South China Sea have been simmering for years, but are now complicated by China’s role in North Korean nuclear talks and growing trade disputes with the Trump administration.

*** Meanwhile in April of 2018:

Surveillance photos suggest it has already broken its promise to not land military aircraft on its artificial islands. And there are claims the facilities have begun jamming US forces.

Philippines news service The Inquirer has obtained an aerial surveillance photo taken back in January which appears to show two Chinese Xian Y-7 twin engine aircraft on the recently constructed artificial island of Mischief Reef — also known as Panganiban Reef.

These are military combat transport aircraft, built to rapidly deploy special forces troops and munitions to a battlefield.

The news comes amid reports that electronic warfare equipment recently installed on the islands were last week directed at disrupting the passage of the United States Navy’s aircraft carrier, the USS Roosevelt.

FAIT ACCOMPLI?

Mischief Reef is within the internationally recognised 370km exclusive economic zone (EEZ) that applies to the Philippines. It is one of seven artificial islands arbitrarily constructed within the disputed Spratly Islands cluster. Three of these have large, 3km long military-grade runways.

China refuses to accept the UN economic zone standard, established after World War II to reduce international tensions, as well as an adverse ruling in 2016 by an international court of arbitration on the matter.

Instead, it insists it holds sovereign territorial rights over the whole 3.5 million-square-kilometre South China Sea, right up to 20km of the coasts of bordering nations including Taiwan, Vietnam, Borneo and Malaysia.

“If they could land transports now, in the future they might want to land more provocative and destabilising types of assets such as fighter jets and bombers,” research fellow Collin Koh at Singapore’s Rajaratnam School of International Studies’ Maritime Security Program, told The Inquirer.

ELECTRONIC MISCHIEF

The Wall Street Journal reports US intelligence officers have identified radar and communications jamming equipment being installed on Beijing’s artificial South China Sea island fortresses.

Such electronic warfare devices are designed to block an opponent’s radar from ‘seeing’ what is going on, and prevent ships and aircraft from communicating with each other and the outside world.

Now, a US Navy pilot appears to have confirmed that these facilities are active.

Serving aboard the USS Roosevelt aircraft carrier which passed through the South China Sea to visit the Philippines last week, he implied the immense warship and its aircraft had been targeted by these disruptive devices.

“The mere fact that some of your equipment is not working is already an indication that someone is trying to jam you.” the pilot told the Philippines’ GMA News Online.

“And so we have an answer to that,” the naval officer cryptically told the journalist invited aboard for a tour of the ship.

DELVE DEEPER: How does China’s military compare with the US?

The USS Roosevelt had passed through the disputed waterway at the same time as a major Chinese naval parade was being staged on behalf of its new President-for-life, Xi Jinping.

The pilot reportedly flew one of the US Navy’s EA-18G Growler aircraft — a modified Super Hornet intended to provide electronic warfare support for accompanying ships and aircraft.

“This is not something that the US will look kindly on or think they can overlook.” military analyst Omar Lamrani at geopolitical think-tank Stratfor told Business Insider .

Lamrani said that even though electronic jamming was nothing like shooting a weapon, such activity was provocative and “could lead to an escalatory pattern that could be negative for both sides.” More here.

China Annexed the DPRK, C’mon Admit it, China is an Adversary

Posted on May 25, 2018May 25, 2018 by Denise Simon

Primer: The Fiscal 2019 NDAA includes impose a ban on technology products from Chinese firms such as ZTE and Huawei. Yet, North Korea has it courtesy of China.

And:

The Financial Crimes Enforcement Network (FinCEN) is issued this advisory to further alert financial institutions to North Korean schemes being used to evade U.S. and United Nations (UN) sanctions, launder funds, and finance the North Korean regime’s weapons of mass destruction (WMD) and ballistic

missile programs.

Private companies in China are not private at all. The Chinese state holds at least some stock and often a larger voting block. Private Chinese companies invests all over the world including Venezuela, United States, Britain as well as regions such as Latin America and Africa.

You can bet most of those companies in North Korea are actually owned by the Chinese State.

China does bad things and yet no world leader publicly states that fact nor declares China is an adversary while China has declared the United States as an adversary. President Xi, the now eternal ruler quotes a dynasty cliche ‘Tǒngzhì yīqiè zài yángguāng xià’, translation is rule everything under the sun.

So now we have ZTE: ZTE, once the scourge of U.S. authorities for its violations of Iran sanctions, has become a key source of evidence about North Korea’s use of the American financial system to launder money, said the people, who gave details about the confidential investigations on the condition of anonymity. Federal investigators have been poring through data supplied by ZTE to find links to companies that North Korea has used to tap into the U.S. banking system, the people said.

Using evidence from ZTE, prosecutors on June 14 filed a case seeking $1.9 million held in six U.S. bank accounts in the name of China’s Mingzheng International Trading Limited. Prosecutors allege that Mingzheng is a front company for a covert Chinese branch of North Korea’s state-run Foreign Trade Bank. Between October and November 2015, Mingzheng was a counterparty to 20 illicit wire transfers in violation of the International Emergency Economic Powers Act, according to prosecutors.

On Aug. 22, prosecutors in Washington filed a lawsuit seeking more than $4 million in funds tied to China’s Dandong Chengtai Trading Limited and a network of companies owned by Chi Yupeng, a Chinese national with close ties to North Korea’s military. That same day, the Treasury Department added Dandong Chengtai Trading and several of its business affiliates, as well as Mingzheng, to the sanctions list. More here.

During the negotiations for the talks between Kim Jung Un and President Trump, ZTE was thrown in the mix. Why? China made some demands during recent trade talks. It was just announced that Trump imposed a $1.5 billion fine on ZTE and relayed that to President Xi. More negotiations and the final fine was $1.3 billion and alter the Board members of ZTE, which means that China state cannot have any management or vote. China will skirt that too. How so?

AEI explained it for us and quite well.

One of the substantial challenges in curtailing North Korea’s nuclear program is preventing Chinese companies from doing business with their pals in Pyongyang. Usually, Chinese companies in North Korea operate through networks of shell companies to avoid falling afoul of US and international sanctions. And most of these companies are small in scope and can easily rebrand themselves if caught. Enter Zhongxing Telecommunications Equipment (ZTE), not a small, expendable subsidiary, but instead a large PRC state-owned enterprise (SOE) with over 74,000 employees.

ZTE has transferred US technology to North Korea, supplying the Kim regime with US telecommunications tech that strengthens its defense capabilities by allowing it indirect access to US semiconductors (dual use technology for communications). For that and other transgressions — including violating US Iran sanctions — ZTE paid a monster fine and entered into an agreement with the US to cease and desist. It was caught violating that agreement and banned from business with the United States as a result.

But President Trump offered China’s state-owned ZTE a lifeline via a May 13 tweet. Apparently, all that it took was for Chinese President Xi to dangle access for US agriculture exports to China in exchange for allowing ZTE to continue to do business with American firms. For what it’s worth, the president denied intending to lift the sales ban, but then followed up to describe a punishment that includes lifting the sales ban.

What’s Donald Trump’s message to Beijing (and Pyongyang and Tehran)? Companies that matter to China’s top leadership can violate US sanctions with impunity. All it takes is the will to blackmail the US and large Chinese SOEs will have carte blanche to supply the rogue regimes of the world.

Remember, Chinese SOEs that do business with North Korea are not motivated merely by profit. Instead, they are motivated by policy directives that originate in the Chinese Communist Party. Historically, China’s position on North Korea has been fairly opaque, yet its continued trade with the regime indicates Beijing has an interest in its wellbeing, in direct opposition to US interests and overall security in Asia.

At the end of the day, President Trump says he wants to cripple North Korea’s nuclear program. If North Korean dictator Kim Jong Un won’t denuclearize voluntarily, the US will have to rely on “maximum pressure,” including aggressive sanctions. Forgiving ZTE for violating US law is yet another example of the US shooting itself in the foot in dealing with North Korea. And probably not the last.

Meanwhile, as North Korea blew up the tunnels leading to the already destroyed nuclear test site, no one has asked where are those nuclear weapons now? No one has mentioned other possible military dimension sites or missile locations. Just as a reminder:

President Trump Withdraws from North Korea Nuclear Summit

Posted on May 24, 2018May 24, 2018 by Denise Simon

A letter from President Donald Trump to North Korean dictator Kim Jong Un canceling their planned meeting. There are several things in play. China, Iran and Russia and North Korea are watching all U.S. positions and it began with the Pompeo demands announced of Iran since exiting the JCPOA, nuclear deal. Iran has not only responded with several nasty grams but Iran is putting threats towards Europe on many of their demands to stay in the deal.

National Security Counsel chair John Bolton is also being blamed by North Korea for the breakdowns due to the reference of the Libya model. That is an excuse as the Libya model for removing the nuclear program was far in advance of the removal of Maummar Gaddafi and his eventual death.

Further, there is the matter of China injecting itself into the preparations and talks between North Korea and the United States. North Korea follows all advise and leads from President Xi. Now, where are those pesky nuclear weapons in North Korea since the nuclear test site collapsed and was further blown up in a gesture move for selected outside media?

There is also the issue of the other locations of interest in North Korea that the United States is well aware of that proves China has aided and assisted in the military sites and nuclear program as had Iran and Russia. China does not want to be confronted with that proof.

Further, there is the matter of the ‘nuclear umbrella’. Japan, South Korea, and the United States Nuclear Umbrella

In this book, Terence Roehrig provides a detailed and comprehensive look at the nuclear umbrella in northeast Asia in the broader context of deterrence theory and U.S. strategy. He examines the role of the nuclear umbrella in Japanese and South Korean defense planning and security calculations, including the likelihood that either will develop its own nuclear weapons. Roehrig argues that the nuclear umbrella is most important as a political signal demonstrating commitment to the defense of allies and as a tool to prevent further nuclear proliferation in the region. While the role of the nuclear umbrella is often discussed in military terms, this book provides an important glimpse into the political dimensions of the nuclear security guarantee. As the security environment in East Asia changes with the growth of North Korea’s capabilities and China’s military modernization, as well as Donald Trump’s early pronouncements that cast doubt on traditional commitments to allies, the credibility and resolve of U.S. alliances will take on renewed importance for the region and the world.

The U.S. nuclear umbrella in the region is not focused on North Korea but also incorporates planning against potential Chinese aggression. Nullifying or weakening the umbrella over the Peninsula, some would argue, might leave South Korea open to potential Chinese coercion and send the wrong signal at a time when China is seem by some as trying to pressure Taiwan and reassert its influence in the region.

SecState Pompeo’s Note-taking During Hearing

Posted on May 23, 2018May 23, 2018 by Denise Simon

This was a Congressional Budget Session for the State Department Fiscal year 2019.

The Latest: Pompeo hopeful N. Korea talks will take place

The Congressman Gregory Meeks got on his high horse about the commitment to diplomatic security. Meeks in his last comment proved to be an ass. Check out that little 3 minute snippet here.

Now, we can’t know if this is a ‘to-do’ list for himself or those of his staff but an Associated Press photographer captured an interesting photo.

So, let’s go down the list shall we?

#7 Meet IG.:There are several that have been published recently with regard to the State Department. They include: Operation Inherent Resolve and Operation Pacific Eagle, a Fraud Alert and Operation Freedom’s Sentinel. (The Freedom’s Sentinel is a quarterly report) Click here to see those IG reports.

#8 Jim Donovan: Last year, Donovan was on the short list to be Deputy Treasury Secretary and withdrew his name. He is a managing director and partner at Goldman Sachs and has close ties to Jeb Bush and Mitt Romney.

#9 Call Lavrov: Well we should all know him, he is the Minister of Foreign Affairs of Russia. Now this is an interesting call because Lavrov is on his way to visit the DPRK, you know lil Kim Jung Un and Lavrov has is nurturing a relationship with Zohrab Mnatsakanyan, the Foreign Minister of Armenia. Or how about telling Lavrov, ‘he dude, this meddling thing and propaganda gig against the U.S. comes with consequences‘.

#10 Mexico Ambassador: This could have a couple of options. a) Our National Guard on the border b) The U.S ambassador to Mexico resigned in March and we presently don’t have one. Under consideration is Edward Whitacre Jr., a former CEO at General Motors and AT&T. Whitacre has also worked previously with Carlos Slim, Mexico’s richest man.

This brings us to #11 Carlos Slim: Could this be some kind of NAFTA issue or regarding The Economic Coordinating Council in Mexico?

#12 Robert Reilly: Reilly has a long history at the State Department and in global media. He is a conservative and a senior policy fellow at the America Foreign Policy Council, The Claremont Institute. He was part of the Information Strategy Office at the Pentagon as well as a senior advisor on Operation Iraqi Freedom.

#13 Need help…no idea

#14 Diversity Data….hummm

Could bad math have us skipping to #20? Sam Feist: Well, perhaps Pompeo has a whole truck load of stuff to discuss with Sam. He is the Senior Vice President, Washington Bureau Chief for CNN.

#21 Help….no idea

#22 PC on Iran: After the Deal to a New Deal? Europe vs. U.S. on sanctions maybe?

Meanwhile: Pompeo says Singapore is “still” a go, cites “the preparations for our historic meeting with North Korea, still scheduled for June 12. We have a generational opportunity to solve a major national security challenge.” “We are clear-eyed about the regime’s history. It’s time to solve this once and for all. A bad deal is not an option. The American people are counting on us to get this right. If the right deal is not on the table, we will respectfully walk away.”

Pompeo assumed a similarly hard line on resuming talks with Iran, promising to “apply unprecedented financial pressure” and suggesting that economic sanctions are just one of several measures the United States will use against the regime in Tehran. To achieve a new nuclear deal, he added, Iran “simply needs to change its behavior.”

He did not back off the Trump administration’s threat to apply sanctions to European companies that do business with Iran, saying companies must wind down operations in Iran or else face penalties, and promised lawmakers that “we will come back to you seeking further authority” for additional measures to squeeze Tehran.

But the hearing turned combative as Democrats challenged Pompeo for presenting Congress with a State Department budget that maintains deep cuts to diplomatic and developmental activities — a budget that Rep. Eliot L. Engel (N.Y.), the ranking Democrat on the foreign affairs panel, called “insulting” and predicted that Congress would reject. More here.