AI: Machine Detection of Missile/Nuclear Launches, no Google

Posted on June 5, 2018June 5, 2018 by Denise Simon

Primer: The U.S. holds an enviable lead in pushing artificial-intelligence technology out of labs and into real-world applications. Thank companies like Alphabet (GOOGL), Facebook (FB) and Apple (AAPL) for that.

But China’s government and technology elites aim to overtake the U.S. in AI by 2030 — or so they proclaimed in July at a Beijing political gathering.

Good luck with that.

Yes, China has many strengths as it sets out for worldwide dominance in AI technology. Its internet giants Baidu (BIDU), Alibaba Group Holdings (BABA) and Tencent Holdings (TCEHY) are also pouring money into AI research and hiring top scientists.

China’s huge population will generate massive raw data to train AI systems in how to make predictions. So there’s good reason to think China will make breakthroughs in developing computer algorithms — the software programs that aim to replicate the human ability to learn, reason and make decisions.

China also has a major weakness: a semiconductor industry that still lags the U.S. in making high-end electronic processors. Chinese companies buy AI chips mainly from Nvidia (NVDA), based in Santa Clara, Calif. Intel (INTC), the dominant supplier of brainy chips for personal computers, is pushing fast into AI. More here.

Google Employees Quit Over Controversial Pentagon Contract Some employees even quit.

Due to Google employees signing a petition for the Pentagon’s Project Maven, the AI project which is a drone contract. Project Maven is known as Algorithmic Warfare Cross-Functional Team. Google at the time of the contract beat out other bidders including Microsoft, Amazon and IBM. More here on Google.

Google will abandon Project Maven, your project of ... photo

WASHINGTON (Reuters) – The U.S. military is increasing spending on a secret research effort to use artificial intelligence to help anticipate the launch of a nuclear-capable missile, as well as track and target mobile launchers in North Korea and elsewhere.

The effort has gone largely unreported, and the few publicly available details about it are buried under a layer of near impenetrable jargon in the latest Pentagon budget. But U.S. officials familiar with the research told Reuters there are multiple classified programs now under way to explore how to develop AI-driven systems to better protect the United States against a potential nuclear missile strike.

If the research is successful, such computer systems would be able to think for themselves, scouring huge amounts of data, including satellite imagery, with a speed and accuracy beyond the capability of humans, to look for signs of preparations for a missile launch, according to more than half a dozen sources. The sources included U.S. officials, who spoke on condition of anonymity because the research is classified.

Forewarned, the U.S. government would be able to pursue diplomatic options or, in the case of an imminent attack, the military would have more time to try to destroy the missiles before they were launched, or try to intercept them.

“We should be doing everything in our power to find that missile before they launch it and make it increasingly harder to get it off (the ground),” one of the officials said.

The Trump administration has proposed more than tripling funding in next year’s budget to $83 million for just one of the AI-driven missile programs, according to several U.S. officials and budget documents. The boost in funding has not been previously reported.

While the amount is still relatively small, it is one indicator of the growing importance of the research on AI-powered anti-missile systems at a time when the United States faces a more militarily assertive Russia and a significant nuclear weapons threat from long-time foe North Korea.

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“What AI and machine learning allows you to do is find the needle in the haystack,” said Bob Work, a champion of AI technology who was deputy defense secretary until last July, without referring to any individual projects.

One person familiar with the programs said it includes a pilot project focused on North Korea. Washington is increasingly concerned about Pyongyang’s development of mobile missiles that can be hidden in tunnels, forests and caves. The existence of a North Korea-focused project has not been previously reported.

While that project has been kept secret, the military has been clear about its interest in AI. The Pentagon, for example, has disclosed it is using AI to identify objects from video gathered in its drone program, as part of a publicly touted effort launched last year called “Project Maven.”

Still, some U.S. officials say AI spending overall on military programs remains woefully inadequate.

AI ARMS RACE

The Pentagon is in a race against China and Russia to infuse more AI into its war machine, to create more sophisticated autonomous systems that are able to learn by themselves to carry out specific tasks. The Pentagon research on using AI to identify potential missile threats and track mobile launchers is in its infancy and is just one part of that overall effort.

There are scant details on the AI missile research, but one U.S. official told Reuters that an early prototype of a system to track mobile missile launchers was already being tested within the U.S. military.

This project involves military and private researchers in the Washington D.C. area. It is pivoting off technological advances developed by commercial firms financed by In-Q-Tel, the intelligence community’s venture capital fund, officials said.

In order to carry out the research, the project is tapping into the intelligence community’s commercial cloud service, searching for patterns and anomalies in data, including from sophisticated radar that can see through storms and penetrate foliage.

Budget documents reviewed by Reuters noted plans to expand the focus of the mobile missile launcher program to “the remainder of the (Pentagon) 4+1 problem sets.” The Pentagon typically uses the 4+1 terminology to refer to China, Russia, Iran, North Korea and terrorist groups.

TURNING TURTLES INTO RIFLES

Both supporters and critics of using AI to hunt missiles agree that it carries major risks. It could accelerate decision-making in a nuclear crisis. It could increase the chances of computer-generated errors. It might also provoke an AI arms race with Russia and China that could upset the global nuclear balance.

U.S. Air Force General John Hyten, the top commander of U.S. nuclear forces, said once AI-driven systems become fully operational, the Pentagon will need to think about creating safeguards to ensure humans – not machines – control the pace of nuclear decision-making, the “escalation ladder” in Pentagon speak.

“(Artificial intelligence) could force you onto that ladder if you don’t put the safeguards in,” Hyten, head of the U.S. Strategic Command, said in an interview. “Once you’re on it, then everything starts moving.”

Experts at the Rand Corporation, a public policy research body, and elsewhere say there is a high probability that countries like China and Russia could try to trick an AI missile-hunting system, learning to hide their missiles from identification.

There is some evidence to suggest they could be successful.

An experiment by M.I.T. students showed how easy it was to dupe an advanced Google image classifier, in which a computer identifies objects. In that case, students fooled the system into concluding a plastic turtle was actually a rifle. here

Dr. Steven Walker, director of the Defense Advanced Research Projects Agency (DARPA), a pioneer in AI that initially funded what became the Internet, said the Pentagon still needs humans to review AI systems’ conclusions.

“Because these systems can be fooled,” Walker said in an interview.

DARPA is working on a project to make AI-driven systems capable of better explaining themselves to human analysts, something the agency believes will be critical for high stakes national security programs.

‘WE CAN’T BE WRONG’

Among those working to improve the effectiveness of AI is William “Buzz” Roberts, director for automation, AI and augmentation at the National Geospatial Agency. Roberts works on the front lines of the U.S. government’s efforts to develop AI to help analyze satellite imagery, a crucial source of data for missile hunters.

Last year, NGA said it used AI to scan and analyze 12 million images. So far, Roberts said, NGA researchers have made progress in getting AI to help identify the presence or absence of a target of interest, although he declined to discuss individual programs.

In trying to assess potential national security threats, the NGA researchers work under a different kind of pressure from their counterparts in the private sector.

“We can’t be wrong … A lot of the commercial advancements in AI, machine learning, computer vision – If they’re half right, they’re good,” said Roberts.

Although some officials believe elements of the AI missile program could become viable in the early 2020s, others in the U.S. government and the U.S. Congress fear research efforts are too limited.

“The Russians and the Chinese are definitely pursuing these sorts of things,” Representative Mac Thornberry, the House Armed Services Committee’s chairman, told Reuters. “Probably with greater effort in some ways than we have.”

Fed Gov Spent $76 Billion in 2017 for Cyber Security, Fail v Success

Posted on June 1, 2018June 1, 2018 by Denise Simon

Go here for the Forum Part One

Go here for the Forum Part Two

Fascinating speakers from private industry, state government and the Federal government describe where we are, the history on cyber threats and how fast, meaning hour by hour the speed at which real hacks, intrusions or compromise happen.

David Hoge of NSA’s Threat Security Operations Center for non-classified hosts worldwide describes the global reach of NSA including the FBI, DHS and the Department of Defense.

NSA Built Own 'Google-Like' Search Engine To Share ... photo

When the Federal government spent $76 billion in 2017 and we are in much the same condition, Hoge stays awake at night.

With North Korea in the constant news, FireEye published a report in 2017 known as APT37 (Reaper): The Overlooked North Korea Actor. North Korea is hardly the worst actor. Others include Russia, China, Iran and proxies.

Targeting: With North Korea primarily South Korea – though also Japan, Vietnam and the Middle East – in various industry verticals, including chemicals, electronics, manufacturing, aerospace, automotive, and healthcare.
Initial Infection Tactics: Social engineering tactics tailored specifically to desired targets, strategic web compromises typical of targeted cyber espionage operations, and the use of torrent file-sharing sites to distribute malware more indiscriminately.
Exploited Vulnerabilities: Frequent exploitation of vulnerabilities in Hangul Word Processor (HWP), as well as Adobe Flash. The group has demonstrated access to zero-day vulnerabilities (CVE-2018-0802), and the ability to incorporate them into operations.
Command and Control Infrastructure: Compromised servers, messaging platforms, and cloud service providers to avoid detection. The group has shown increasing sophistication by improving their operational security over time.
Malware: A diverse suite of malware for initial intrusion and exfiltration. Along with custom malware used for espionage purposes, APT37 also has access to destructive malware.

More information on this threat actor is found in our report, APT37 (Reaper): The Overlooked North Korean Actor.

** NSA 'building quantum computer to crack security codes ... photo

Beyond NSA, DHS as with other agencies have cyber divisions. The DHS cyber strategy is found here. The fact sheet has 5 pillars:

DHS CYBERSECURITY GOALS

Goal 1: Assess Evolving

Cybersecurity Risks.

We will understand the evolving

national cybersecurity risk posture

to inform and prioritize risk management activities.

Goal 2: Protect Federal Government

Information Systems.

We will reduce vulnerabilities of federal agencies to ensure they achieve

an adequate level of cybersecurity.

Goal 3: Protect Critical

Infrastructure.

We will partner with key stakeholders

to ensure that national cybersecurity

risks are adequately managed.

Goal 4: Prevent and Disrupt Criminal

Use of Cyberspace.

We will reduce cyber threats by

countering transnational criminal

organizations and sophisticated cyber

criminals.

Goal 5: Respond Effectively to Cyber

Incidents.

We will minimize consequences from

potentially significant cyber incidents

through coordinated community-wide

response efforts.

Goal 6: Strengthen the Security and

Reliability of the Cyber Ecosystem.

We will support policies and activities

that enable improved global cybersecurity risk management.

Goal 7: Improve Management of

DHS Cybersecurity Activities.

We will execute our departmental

cybersecurity efforts in an integrated

and prioritized way.

NPPD’s vision is a safe, secure, and resilient infrastructure where the American way of life can thrive. NPPD leads the national effort to protect and enhance the resilience of the nation’s physical and cyber infrastructure.

*** Going forward as devices are invented and added to the internet and rogue nations along with criminal actors, the industry is forecasted to expand with experts and costs.

Research reveals in its new report that organizations are expected to increase spending on IT security by almost 9% by 2018 to safeguard their cyberspaces, leading to big growth rates in the global markets for cyber security.

The cyber security market comprises companies that provide products and services to improve security measures for IT assets, data and privacy across different domains such as IT, telecom and industrial sectors.

The global cyber security market should reach $85.3 billion and $187.1 billion in 2016 and 2021, respectively, reflecting a five-year compound annual growth rate (CAGR) of 17.0%. The American market, the largest segment, should grow from $39.5 billion in 2016 to $78.0 billion by 2021, demonstrating a five-year CAGR of 14.6%. The Asia-Pacific region is expected to grow the fastest among all major regions at a five-year CAGR of 21.4%, due to stringent government policies to mitigate cyber threats, and a booming IT industry.

Factors such as the growing complexity and frequency of threats, increasing severity of cyber security, stringent government regulations and compliance requirements, ubiquity of online communication, digital data and social media cumulatively should drive the market. Moreover, organizations are expected to increase IT spending on security solutions and services, as well. Rising adoption of technologies such as Internet of things, evolution of big data and cloud computing, increasing smartphone penetration and the developing market for mobile and web platforms should provide ample opportunities for vendors.

By solution type, the banking and financial segment generated the most revenue in 2015 at $22.2 billion. However, the defense and intelligence segment should generate revenues of $50.7 billion in 2021 to lead all segments. The healthcare sector should experience substantial growth with an anticipated 16.2% five-year CAGR.

Network security, which had the highest market revenue in 2015 based on solution type, should remain dominant through the analysis period. Substantial growth is anticipated in the cloud security market, as the segment is expected to have a 27.2% five-year CAGR, owing to increasing adoption of cloud-based services across different applications.

“IT security is a priority in the prevailing highly competitive environment,” says BCC Research analyst Basudeo Singh. “About $100 billion will be spent globally on information security in 2018, as compared with $76.7 billion in 2015.”

List of Issues for Talks Between Trump and Kim Jung Un

Posted on May 30, 2018May 30, 2018 by Denise Simon

North Korea is holding up to 120,000 political prisoners in “horrific conditions” in camps across the country, according to estimates from a newly released State Department report.

The department on Tuesday issued its annual International Religious Freedom Report for 2017, which covers 200 countries and territories, documenting religious freedom and human rights abuses.

The findings on North Korea come as the Trump administration is working to engage the isolated regime. The White House says the administration continues to “actively prepare” for a possible summit with Kim Jong Un.

The report, though, addressed the brutal conditions festering inside Kim’s kingdom. It revealed 1,304 cases of alleged religious freedom violations in the country last year, while detailing the harsh treatment of political and religious prisoners — and persecution of Christians.

Secretary of States Mike Pompeo is meeting with 4 Star General and head of the military intelligence, Kim Yong Chol is a longtime spy chief and vice chairman of the ruling Workers’ Party was responsible for hacking Sony. More here.

North Korea Releases 3 US Citizens Ahead of Trump-Kim ... photo

Then North Korea has 2 satellites in orbit and more planned in 2018-2019.

“The Unha launcher can put maybe 100 kilograms [220 lbs.] into a pretty low orbit, maybe 400 or 500 kilometers [250 to 310 miles]” above the Earth’s surface, Wright said. “By increasing the thrust, it allows North Korea to lift satellites to higher altitudes, or to carry a greater payload to longer distances if it is a ballistic missile.”

Wright noted that the earlier, Nodong engine was essentially a scaled-up version of the one in the Scud, the Soviet missile that Iraq often used during the Gulf War of the 1990s. Whereas the Nodong used Scud-level propellants instead of ones used in more modern rockets, Wright noted that the color of the flame coming from the new engine in photos of the test suggest that this missile uses more advanced propellants that can generate higher thrust. [Top 10 Space Weapons]

“The surprise has been why North Korea has stuck with Scud propellants for so long,” Wright said. “There have been reports for 15 years now that North Korea had bought some submarine-launched missiles from the Soviet Union after it collapsed that used more advanced propellants, yet in all this time, we didn’t see them launch missiles with anything but Scud propellant.

In 2016, At United States Strategic Command, controllers likely had a high-workload evening as STRATCOM monitored the launch of a Russian Soyuz rocket from the Plesetsk Cosmodrome just eight minutes prior to North Korea’s launch, as is typical for launches from Russia’s military launch site. The ascending Unha rocket was tracked using the Space-Based Infrared System in Geostationary Orbit, capable of detecting the infrared signature of ascending rockets from ground level all the way into orbit. This allows the U.S. military to track the vehicle’s trajectory in real time before relying on ground-based radars to track any objects that entered orbit. More here .

Ah but there is but one more issue at least. Yes, North Korea imploded their nuclear test site at Punggye-ri. But…there are 4 more locations.

nk map amanda photo

The most important is Yongbyon, while the other locations appear to have slight or no activity.

Further, North Korea maintains a rather advanced air defense system, listed among the top in the world.

However, while North Korean technology is relatively primitive—the nation’s air defenses are coordinated.

“They do have an old Soviet computerized anti-aircraft command and control system. Most of the radars are old, but they did receive some newer Iranian phased array radars,” Kashin said. “This is what I know, the anti-aircraft units are extensively using underground shelters for cover—not easy to destroy.”

Thus, while generally primitive, North Korean defenses might be a tougher nut to crack than many might expect. Moreover, while their technology is old, North Korea’s philosophy of self-reliance means it can produce most of its own military hardware. More here.

North Korea has a fairly robust chemical and biological weapons program. The 46 page report is found here.

Lastly but hardly finally is the cyber weapons produced and applied by North Korea.

Most recently is: May 29, 2018, The Department of Homeland Security (DHS) and the Federal Bureau of Investigation (FBI) released a joint Technical Alert (TA) that identifies two families of malware—referred to as Joanap and Brambul—used by the North Korean government. The U.S. Government refers to malicious cyber activity by the North Korean government as HIDDEN COBRA.

In conjunction with the release of this TA, NCCIC has released a Malware Analysis Report (MAR) that provides analysis on samples of Joanap and Brambul malware.

NCCIC encourages users and administrators to review TA18-149A: HIDDEN COBRA – Joanap Backdoor Trojan and Brambul Server Message Block Worm and MAR-10135536-3 – RAT/Worm.

While there has been recent discussions about applying the Libya model to North Korea for removing nuclear weapons, you can bet Kim Jung Un is going to demand the Pakistan model.

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.

photo

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: