Wray’s Senate Testimony on China

Posted on July 23, 2019July 23, 2019 by Denise Simon

Two significant items that prove Chinese espionage activities in the United States: a) Chinese Talent Plan b) Corporate Party Cells

This website has published several articles regarding the Chinese propaganda operation in the U.S. public school system and up to and including the university level.

As part of the Chinese mission to steal intellectual property beyond the insertion of censorship, culture and propaganda, China has at least two other successful objectives, the talent plan and the party cells.

China’s New Talent Policy: Objectives and Opportunities ...

A 5 page summary document on the talent plan is found here.

(U) Chinese Talent Programs are a vital part of Chinese industry. Talent programs recruit experts to fill technical jobs that drive innovation and growth in China’s economy. National, provincial, and municipal talent recruitment programs provide opportunities for experts to work in industry and academic organizations supporting key areas deemed critical to China’s development. The talent programs recruit experts globally from businesses, industry, and universities with multiple incentives to work in China. Associating with these talent programs is legal and breaks no laws; however, individuals who agree to the Chinese terms must understand what is and is not legal under US law when sharing information. A simple download of intellectual property (IP) or proprietary information has the potential to become criminal activity.

(U//FOUO) The large number of foreign students, researchers, scientists, and professionals in the United States, combined with current technological capabilities, allows foreign governments to contact and recruit individuals with the hopes to acquire advanced technology without research costs. While the majority of the population are law abiding individuals, anyone has the capability to acquire information. The theft of information can come from current or former employees, business partners, consultants, contractors, temporary hires, foreign agents, suppliers, or even vendors who have access to proprietary information. Read on here.

Per the applied website:

China initiated “the Recruitment Program of Global Experts” (known as “the Thousand Talents Plan”) since the end of 2008, under which it would bring in overseas top talents to China over the next five to ten years. Relying upon National Key Innovation Projects, National Key Disciplines and National Key Laboratories, central SOEs and state-owned commercial and financial institutions, and various industrial parks( mainly the high-tech development zones), this plan called for strategic scientists or leading talents who can make breakthroughs in key technologies or can enhance China’s high-tech industries and emerging disciplines.

By the end of May 2014,more than 4180 overseas high-level talents have been introduced in “1000 Talent Plan” by 10 times. When they go (back) to China, they are playing a positive role in the scientific innovation, technological breakthrough, discipline construction, talent training and hi-tech industry development, as an important force in the construction of the innovative country.

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May Day Story: Chinese Government’s Communist ‘Party Cells ...

As for the Party cells, China, Inc. meaning all Chinese corporations/businesses are to have a department or cell within the company that is a mobilized team ensuring all business activities and employees adhere to the Communist Party mandates.

In November, at the most important Communist Party meeting, which takes place every five years, Mr. Xi called on officials to strengthen the party in “government, the military, society and schools, north, south, east and west.” The message was quick to reach party members lower down in the ranks.

Soon after Mr. Xi’s speech, party officials in the central province of Hunan issued a notice to members instructing them to write the party into legal documents for private and state-owned companies alike. The document was accidentally made public when a local state-owned newspaper published it, but it was quickly taken down.

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In July, executives from more than a dozen top European companies in China met in Beijing to discuss their concerns about the growing role of the party in their local operations, Reuters reported.

One senior executive whose company was represented at the meeting told Reuters some firms were under “political pressure” to revise terms of their joint ventures with state-owned partners to allow the party the final say over business operations and investment decisions.

The business component with the party cells is quite important to consider when there is Chinese investment in the United States. When it comes to foreign applications, the U.S. Treasury may need to alter the approval process for all things China inside the United States given the history of theft. As for schools and business, it may be a consideration for the Chinese government to put up an export bond. Consider this is all going on as China defense industry is now the top arms maker ahead of all Western military contractors and manufacturers.

Seizing el Chapo’s Money Likely Impossible

Posted on July 18, 2019July 18, 2019 by Denise Simon

Senator Ted Cruz and Sasse have co-sponsored legislation to seize the bank accounts of el Chapo Guzman to pay for the wall. While this is great in theory, some of that money should go to the victims as well.

el Chapo has been sentenced to live in prison plus 30 years and he is to forfeit his vast sums of money estimated to be as high as $12 billion. C’mon, this is likely not going to happen in total but there is a possibility to find perhaps some of it. Why?

Spain Is a Paradise (for the World's Most Powerful Drug ...

Guzman’s trial highlighted the methods Guzman Loera and his organization used to transport the cartel’s multi-ton shipments of narcotics into the United States, including fishing boats, submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Once the narcotics were in the United States, they were sold to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere. Guzman Loera then used various methods to launder billions of dollars of drug proceeds, including bulk cash smuggling from the United States to Mexico, U.S.-based insurance companies, reloadable debit cards and numerous shell companies, including a juice company and a fish flour company.

Guzman built a global empire and that included hiring expert lawyers, accountants and investors. The Federal Court of New York in 2008 proved that HSBC, JP Morgan, Wells Fargo and Bank of America were directly related to money laundering. The same court found that HSBC had laundered at least $1.1 billion from Sinaloa.

Drug cartel leaders may be uneducated in the traditional sense, but as the agents pursuing them know all too well, they are wily strategists and extremely sophisticated business people. Because their business depends on identifying and exploiting loopholes in the world’s legal and financial systems, they hire the brightest talent they can find to help them achieve their goals, and pay them extraordinarily well. Of the many money-laundering methods utilized by drug cartels, “structuring” – depositing amounts smaller than $10,000 to avoid Bank Secrecy Act (BSA) reporting regulations – is the most popular, even though it’s also the easiest form of money laundering to detect. Structuring is the most common reason Suspicious Activity Reports (SARs) are filed by banks, but it’s also the most direct way to get money into a U.S. bank account. To push the odds in their favor, drug traffickers hire a veritable army of people to deposit small amounts of cash in banks all over the country, in cities large and small. Many get caught, but to the cartels, that’s simply the cost of doing business.

One area where law enforcement and finance can help each other in the future is in identifying and recognizing evolving trends. For example, Europe is a popular place for Mexican and Colombian drug traffickers to conduct business now because there is a lack of coordination and communication between countries in the European Union that criminals are exploiting.

Recently, federal officials received word that teenagers in a small country in Central Africa called Equatorial Guinea were suddenly driving Maseratis and other expensive cars down the country’s dirt roads. Further investigation revealed that both the Sinaloa drug cartel and Colombia’s Medellin cartel are now using this small country as a trafficking gateway to Europe.

Why? Because the predominant language in Equatorial Guinea isn’t French or Portuguese – it’s Spanish. More here.

Why are the Sinaloa Cartel the World's Most Powerful ...

Once illicit money gets into the U.S. financial system, it can go anywhere, internationally and such is the issue with the Iran nuclear deal where John Kerry allowed Iran access to the American banking system. What about the Patriot Act you ask? In some cases it was finessed due to payoffs. And how about corrupt governments? Yup that too.

Facebook Primed for Illicit Funds Use/Money Laundering

Posted on July 15, 2019July 15, 2019 by Denise Simon

America’s rivals are increasingly turning to bitcoin-style cryptocurrencies after their economies were brought to their knees thanks to crippling U.S. sanctions, experts have warned.

Iran, North Korea, Russia and Venezuela are all investing in the technology in an attempt to counter American economic might – and an expert says these nations are forming alliances through the technology.

A form of digital money, cryptocurrency uses encryption to secure transactions and control the creation of new units. It uses cryptography, a form of secret coding originating from the Second World War, to process transactions securely. Its major appeal is it is untraceable.

U.S. sanctions work by placing bans on dealings and transactions with persons, nations and companies.

When ransomware is planted on state or local government systems and theft of data occurs, cities are forced to pay ransom to regain ownership and control.

Florida has paid more than $1.1 million in bitcoin to cybercriminals to recover encrypted files from two separate ransomware attacks—one against Riviera Beach and the other against Lake City.

Lake City, a city in northern Florida, agreed on Monday to pay hackers 42 Bitcoin (equivalent to $573,300 at the current value) to unlock phone and email systems following a ransomware attack that crippled its computer systems for two weeks.

For years, ransomware has been a particularly annoying cybersecurity threat. And despite reports that cybercriminals are shifting their efforts away from encrypting malware to cryptomining malware, ransomware infections continue at an alarming rate.

In one week in March 2018 alone, government-run targets in two of the biggest cities in America — Atlanta and Baltimore — were hit by ransomware. These attacks, which disrupted important city services, are far from isolated; similar ransomware attacks have targeted U.S. municipalities for years.

Stories about smaller cities falling victim to ransomware often go unreported by the national news … or anywhere at all. Nevertheless, municipalities and cities in all corners of the U.S. have seen ransomware infect their networks.

So, here comes the U.S. Treasury Secretary, Steve Mnuchin with a major concern and warning for Facebook. What about this new Libra currency that has been launched?

(Reuters) – U.S. Treasury Secretary Steve Mnuchin said on Monday that the Treasury department has serious concerns that Facebook Inc’s proposed LIBRA cryptocurrency could be misused for money laundering, adding to the growing regulatory skepticism of the company’s digital asset plans.

Secretary Mnuchin also said that the agency has warned Facebook that it must enact proper safeguards against illicit use such as money laundering.

“Treasury has been very clear to Facebook…and other providers of digital financial services that they must implement the same anti-money laundering safeguards in countering the financing of terrorism as traditional financial institutions,” Mnuchin said.

Meanwhile:

Activists and Democratic lawmakers blasted the Federal Trade Commission’s $5 billion fine against Facebook as “chump change” and lambasted the agency’s settlement as toothless.

The settlement, which was reportedly voted along party lines, gaining support from the FTC’s three Republicans while being rejected by its two Democrats, is the beginning of the end for the agency’s probe of Facebook’s alleged mishandling of more than 87 million users’ private data during the Cambridge Analytica scandal.

Although the fine sets a record in terms of the agency’s actions against Big Tech, a chorus of Democratic lawmakers, technologists and activists excoriated the FTC for not doing enough and not imposing a larger penalty.

“The sad reality is that this does not go nearly far enough. For a company that last year alone generated revenue nearly 11 times greater than the reported fine, the Federal Trade Commission should send a clear signal to Facebook and so many other tech companies that privacy is their ultimate responsibility,” Rep. Jan Schakowsky, D-Ill., who is chairwoman of the consumer protection and commerce subcommittee in the House, said in a statement. “If these reports are true, then they failed.”

Will Facebook pay the fine using Libra? Well, when it comes to the Facebook blockchain debate, Facebook declares the Swiss government will regulate it all. Really? There is a Congressional hearing in the Senate by the Banking, Housing and Urban Affairs Committee where Libra is to be explained. Frankly, isn’t PayPal a form of cryptocurrency too? Anyway, this testimony found here is regarding Facebook’s Libra Project.

Read it here.

The Other Items Complicating a China Trade Deal

Posted on July 11, 2019July 11, 2019 by Denise Simon

Beyond the traditional trade talks between the U.S. Trade Representative and envoy with Beijing, there are complicating factors that enter into the debates and it is generally dealing with military aggression and espionage. So consider the following items:

New Delhi: China has recently leased vast tracts of land along the coast of the Koh Kong province of Cambodia to turn into a seaside resort. An area of 45,000 hectares — 20 per cent of the coastline — has been leased for 40 years for a paltry annual rent of US $1 million.
A Chinese private company called Union Development Group (UDG) is undertaking the project, named the Dara Sakor Seashore Resort Long Term Project.

However, there has also been increased military cooperation between Beijing and Phnom Penh, and the US has raised concerns, with Vice-President Mike Pence writing to Cambodian PM Hun Sen that these facilities could be put to military use.

Paul Chambers, professor of international affairs at the Naresuan University in Thailand, has claimed that senior Cambodian officials privately admitted that Hun Sen was considering approving a Chinese naval base at Kiri Sakor.

Hun Sen has claimed there are no foreign troops on Cambodian soil, but China has been accused of using debt traps to get its way. And according to satellite imagery accessed by ThePrint, there is a real possibility of the resort project currently under construction turning into a Chinese military base.
BRUSSELS (Reuters) – China’s ZTE opened a cybersecurity lab in Brussels on Wednesday, aiming to boost transparency four months after bigger telecoms equipment rival Huawei [HWT.UL] did the same to allay concerns about spying.Chinese vendors of network gear are being scrutinized by the United States and some of its allies who believe the equipment could be used by Beijing to spy on customers if deployed in 5G networks, which are beginning to be built around the world.
Huawei, the world’s biggest maker of telecoms network gear, has been blacklisted by the U.S. government, meaning that U.S. companies need special approval – which they are unlikely to get – to export products to the Chinese company.
The Chinese military has deployed military personnel and armored medical vehicles to Germany for joint drills, a first for the Chinese People’s Liberation Army as it attempts to forge closer ties with Europe.

The joint exercise — Combined Aid 2019 — is focused on preparing troops with the medical service units of the Chinese and German armed forces to respond to humanitarian crises, such as mass casualty incidents and serious disease outbreaks, China’s Xinhua News Agency reported.

The exercise follows a cooperative military medical training exercise in 2016 in Chongqing, where the PLA and the German Bundeswehr practiced responding to an imaginary earthquake scenario.
Over one million Uyghurs and Muslims from other ethnic minority groups have been detained by the Chinese government and sent to “re-education” internment camps. Sources indicate that detainees are psychologically and physically abused. Uyghurs outside the camps in Xinjiang are also not free, as they are kept under constant surveillance, often using advanced technology. The Chinese government is increasingly testing this technology in Xinjiang and exporting it nationally and globally, with concerning implications for democracy and human rights.
(UPI) — China is condemning a recent U.S. decision to sell $2.2 billion worth of weapons to Taiwan, saying the “reckless” policy tampers with Chinese sovereignty.

Beijing’s foreign ministry spokesman Geng Shuang said Tuesday at a regular press briefing China opposes U.S. weapons sales to Taiwan, a country China recognizes as a breakaway province.

“The United States has recklessly interfered in Chinese domestic affairs,” Geng said. “It has undermined China’s sovereignty and security interests.”

The U.S. State Department on Monday approved two potential arms sales to Taiwan, worth $2.2 billion.

The weapons to be sold to Taiwan include 108 Abrams tanks, 250 Stinger missiles and related equipment.

On Tuesday Geng reminded reporters Beijing does not recognize Taiwanese sovereignty.

“Taiwan is an inseparable part of Chinese territory,” the foreign ministry spokesman said. “Do not underestimate the Chinese government and the people’s will to defend national sovereignty and territory.”

Geng added the United States was in “severe violation” of Beijing’s “One-China” policy.

Tensions have grown between Taiwan and China since President Tsai Ing-wen assumed office in 2016.

Tsai’s recent decision to stay in the United States for four nights during a “layover” has angered China. Beijing, under its law, bans the Taiwanese leader from making contact with U.S. politicians.

Possible Details on Iran for Trump Briefings

Posted on July 2, 2019July 2, 2019 by Denise Simon

Image result for un arms embargo iran photo/details

For context, here is the background on the UN Arms Embargo on Iran.

1. The rapidly expiring “sunset provisions” – which will lift existing restrictions on Iran’s military, missiles and nuclear programs – were a key factor in President Trump’s decision to withdraw from the flawed Joint Comprehensive Plan of Action (JCPOA) in May last year. The first of the sunset provisions, the arms embargo under U.N. Security Council Resolution (UNSCR) 2231, will expire by October 18, 2020.

In its report, JCPOA Sunset Alert, United Against Nuclear Iran (UANI) details the hazards once UNSCR 2231’s arms transfers provisions expire. Guns, howitzers, mortars, battle tanks, armored combat vehicles, combat aircraft, attack helicopters, warships and missiles or missile systems will proliferate throughout the region.

2. The European Union is skirting the Iran sanction architecture by launching INSTEX. Based in Paris, it is managed by Per Fischer a German banker and the UK is heading the supervisory board.

The channel, set up by Germany, France and the UK, is called INSTEX — short for “Instrument in Support of Trade Exchanges.”

“We’re making clear that we didn’t just talk about keeping the nuclear deal with Iran alive, but now we’re creating a possibility to conduct business transactions,” German Foreign Minister Heiko Maas told reporters Thursday after a meeting with European counterparts in Bucharest, Romania.

“This is a precondition for us to meet the obligations we entered into in order to demand from Iran that it doesn’t begin military uranium enrichment,” Maas said.

3. Zarif, Iran’s Foreign Minister has confirmed violations of stockpile limitations as well as uranium enrichment of 300kg. for low-enriched uranium. These two items are violations of the JCPOA and Europe considers this just a distraction.

4. The U.S. has sent an estimated 12 F-22 Raptor stealth fighters to Qatar, based at al Udeid Air Base to bolster defenses Iran threats. There is a B-52 bomber task force in the region. The U.S. has dispatched several army batteries that operate the Patriot Missile launchers. Much of this is due to and in preparation for the asymmetric warfare tactics in use by Iran.

5. Iran is aware they cannot match the United States militarily, so there are two other possibilities and they include attacking Israel and major cyber interruptions.

Speaking at a political conference of ultra-conservatives in Iran’s north, Mashaei said, “If the Zionist regime attacks Iran, the Zionists will have no longer than a week to live.” The semi-official Fars news agency quoted him as saying that the Islamic Republic would destroy Israel “in less than 10 days”. On the cyber front, Iran has the abilities to disrupt networks associated with power systems in the region as well as those connected to oil production and shipping. U.S. Cybercom has the authorization, by way of the NDAA to conduct what is known as TMA, traditional military activities where cyber operations are included. Last month, the NYT’s reported the U.S. did carry out cyberattacks on Iran.

6. Iran has established terror cells in Western allied countries including the United States as noted by this case reported by the FBI just last month. Additionally, Qassem Suleimani has set up terror sites in Africa prepared to strike oil fields, military installations and embassies. These operations are managed by a specialized department of the Quds Force known as Unit 400.