The Chinese company at the center of Biden’s crane concerns denies it’s a threat to U.S. national security

Chinese shipping cranes are fast becoming the latest item to get caught up in Washington and Beijing’s fractious relationship. U.S. officials have been talking about the security threat posed by Chinese-made cranes at U.S. ports for months. Then, last month, the U.S. announced an initiative to bolster cybersecurity at the country’s ports.

Now, the company at the heart of the controversy—China’s Shanghai Zhenhua Heavy Industries, also known as ZPMC—is denying that it poses a security threat. ZPMC said it “strictly adheres to laws and regulations of relevant countries and regions,” in a statement released on Sunday.

ZPMC accounts for over 70% of the global market in shipping cranes. There are over 200 Chinese-made cranes at U.S. ports, accounting for “nearly 80%” of the total, according to the U.S. Coast Guard.

These cranes help move goods through maritime ports. The cranes can often be controlled remotely, which U.S. officials fear could be an avenue for hackers to disrupt the economy. A recent congressional probe claimed to find over a dozen cellular modems on cranes that could be remotely accessed, the Wall Street Journal reports.

ZPMC, in Sunday’s statement, said that recent reports “can easily mislead the public without sufficient factual review.”

Keep reading

Suspicious tech found in Chinese-made cargo cranes, fueling spying worries: Congress probe

An investigation by the US Congress into Chinese-built cargo cranes has found suspicious technology that could potentially be used to disrupt or spy on American commercial activities, according to a report.

The House Homeland Security Committee said that it has discovered cellular modems that were installed in cranes and which can be remotely accessed by hostile powers, according to The Wall Street Journal.

The committee’s discovery has fueled concerns in the Biden administration that cranes built by a Chinese firm, Shanghai Zhenhua Heavy Industries (ZPMC), could potentially be used to spy on US ports.

More than 12 cellular modems were found in Chinese-made cranes that were relied upon in several US ports, according to the Journal.

While some of the modems were used for operational functions such as monitoring and tracking maintenance remotely, others were installed despite the fact that the ports in which they were being used hadn’t requested them.

China “is looking for every opportunity to collect valuable intelligence and position themselves to exploit vulnerabilities by systematically burrowing into America’s critical infrastructure, including in the maritime sector,” Rep. Mark Green (R-Tenn.), who chairs the House Homeland Security Committee, said.

Keep reading

China wants to rid itself of Western tech by 2027 — outlines domestic alternatives in ‘Document 79’

The WSJ reports that China is on an extensive push to drive out Western tech companies from the country and replace them with domestic alternatives. China reportedly started its domestic expansion in 2022 with a highly secretive “Document 79,” an initiative focused on deleting Western tech companies from the country. Since then, China’s new plan has been in full effect — domestic alternatives have replaced most Western software providers.

When initiated two years ago, Document 79 was a super sensitive document that only high-ranking officials were purportedly shown. Security was so paramount that copies of the document were not allowed to be made. The initiative set out by Document 79 is to replace foreign software in China’s IT systems by 2027, with state-owned firms required to provide quarterly updates on their progress in replacing foreign software with domestic alternatives.

Two years later, the fruits of Document 79 are now apparent. Microsoft, HP Enterprise, and Cisco’s market share in China has fallen drastically in the past several years. In 2018,  HP Enterprise had a 14.1% market share in China, but in 2023, that has fallen to just 4%. Cisco’s market share has halved in the past five years down to just 8%. Microsoft’s Chinese sales today account for just 1.5% of the company’s overall sales.

Most government institutions in China are now buying domestic technology over Western solutions, even if the Western solutions are superior due to Document 79. This includes everything from software to hardware solutions. Chinese customers who were buying IBM-powered rack-mount servers five years ago are now requesting Chinese-made rack-mount servers utilizing Huawei chips.

Keep reading

Chinese Rocket’s Moon Collision in 2022 Carried Mystery Object, Experts Say

The surface of the Moon is littered with defunct hardware from past missions that are now buried amongst the lunar regolith. A recent crash site left a distinct and curious mark, creating two impact craters of equal size. Scientists examining the collision believe that there may have been an undisclosed object that crashed on the Moon, the origins of which will remain a mystery.

On March 4, 2022, a wayward rocket booster slammed onto the Moon’s surface. Prior to impact, it was believed to belong to a SpaceX Falcon 9 rocket that was left in high orbit in 2015, but further investigation revealed that it was actually a booster launched by China in 2014 as part of its lunar exploration program. That said, the space mystery continued as the booster created two craters upon impact, causing scientists to question what exactly crashed on the Moon that day.

A group of researchers from the University of Arizona had been tracking the object’s trajectory for seven years prior to its unfortunate crash, as well as its impact site on the Moon. In a paper published Thursday in The Planetary Science Journal, researchers analyzed the rocket’s light reflection signature and its movement through space. Based on the observed characteristics, the researchers propose it was indeed a booster from China’s Chang’e 5-T1 mission, but one carrying a mystery payload that also met its demise on the lunar surface.

Keep reading

600-MILLION-CAMERA ‘SKYNET’ BASIS FOR NEW LUNAR SPY SYSTEM AS CHINA PURSUES SURVEILLANCE STATE BEYOND EARTH

With the world’s largest mass surveillance network already under its belt, China is now looking to establish its omnipresence off-world, with plans to extend its sophisticated “Skynet” spy network to the Moon.

The China National Space Administration (CNSA), China’s equivalent to America’s NASA, in collaboration with the Chinese Academy of Sciences and the China Aerospace Science and Technology Corporation, recently disclosed their intentions to build a massive lunar surveillance network in the Chinese journal Acta Optica Sinica

According to Chinese media, the People’s Republic of China (PRC) aims to secure its planned lunar base with an omnipresent optical surveillance system, drawing directly from the extensive experience and technical prowess honed through Skynet, also known as Tianwang.

“The construction and operation of the optical surveillance system for the (International) Lunar Research Station can draw on the successful experience … of China’s Skynet project,” CNSA said in its report. 

Paradoxically named for the highly advanced artificial intelligence (AI) system that becomes self-aware and tries to exterminate humanity through an army of robots and machines in the Terminator movie franchise, “Skynet” refers to an interconnected facial recognition system operated by the Chinese government. 

The Chinese Communist Party’s (CCP) flagship newspaper, the Global Times, reports Skynet’s facial recognition software has a 99.8% accuracy rate and can scan the entire population of China, 1.4 billion people, in under a second. However, these claims cannot be independently verified. 

According to the PRC, the name “Skynet” originates from an ancient Chinese proverb describing the omnipresence of justice and not from the fictional AI killing machine. “There is forever a net in the sky, with [a] large mesh but letting nothing through,” the proverb reads. 

And in fairness, the U.S. National Security Agency (NSA) also has its own “SKYNET,” a classified program that uses machine learning to extract information on possible terror suspects using GSM cellular data. 

However, the term “Skynet” is often colloquially used to describe the smothering system of mass surveillance used by the Chinese government to monitor its citizens. 

Keep reading

Biden To Give $850 Million to a Chinese-Owned Battery Company

Last summer, the Biden administration announced an $850 million conditional loan to a company called KORE Power to build a battery production plant in Arizona. The purpose was to decrease the United States’ reliance on China’s batteries, but KORE Power has enlisted its co-owner, a Chinese battery maker, to help build the taxpayer-funded facility, according to court filings.

The Biden administration touted the project as a way to “strengthen the domestic battery supply chain” and combat China’s grip on the global market. KORE, with its Idaho headquarters and small staff of around 150 employees, seemed to have the perfect all-American background for the job.

But that backstory conflicts with court documents and corporate disclosure filings, obtained by the Washington Free Beacon, which outline the company’s extensive roots in China.

The records reveal that KORE is 14 percent co-owned by Do-Fluoride New Materials (DFD), a Chinese battery manufacturer led by Chinese Communist Party official Li Shijiang. One of KORE’s directors is Li Shijiang’s daughter, Li Lingyun, who also serves as vice chair of DFD and as vice president of China’s state-supervised Patent Protection Association.

The KORE loan is the latest example of how the Biden administration’s green energy funding is benefiting China due to the country’s dominance in the global market. Last year, the Department of Energy was forced to cancel a $200 million grant to the battery maker Microvast, after the Free Beacon reported that the company operated primarily from China.

In a court filing in November, KORE disclosed that DFD New Energy, a China-based subsidiary of Do-Fluoride New Materials, will help it build the Arizona battery plant.

“The facility is under construction at present and DFD New Energy will assist in the buildout,” said KORE’s CEO Lindsay Gorrill.

The Department of Energy confirmed to the Free Beacon that DFD will help KORE build the Arizona facility by providing intellectual property, research and development, and engineering capabilities. The department said it conducted “extensive due diligence” of the arrangement, adding that KORE has been working to reduce its Chinese ownership, with the goal of eventually becoming completely independent of Chinese technology.

“The partnership with DFD provides KORE with access to proven IP and an experienced team—experience that does not currently exist at [that] scale [in] the United States, but through this partnership will be transferred to American workers and to an American company,” said the Department of Energy.

Some links between KORE and DFD have previously been reported. In June, the Department of Energy’s loan director, Jigar Shah, said the Idaho company would rely on “technology from a Chinese company, DFD, to manufacture battery cells in Arizona.” Shah’s comments were reported by the Daily Caller, which also noted DFD’s connections to the Chinese Communist Party.

In October, the inspector general for the Department of Energy told Congress that KORE’s use of technology from DFD “clearly does not support the legislation’s goals of U.S. technology development since this project deploys Chinese intellectual property.”

But the extent of the relationship between the two companies—including DFD’s ownership stake in KORE and its involvement in building the Arizona plant—has not previously been reported.

Keep reading

What the Ukraine War, Taiwan, and Gaza Have in Common

In confronting all three foreign policy dilemmas, Washington needs to incorporate an understanding and acknowledgment of the things the United States has done that contributed to them.

Washington is grappling with seemingly intractable foreign policy dilemmas involving the Russian war in Ukraine, percolating tensions across the Taiwan Strait, and the conflict in Gaza between Israel and Hamas. In each case, the United States has failed or refused to wholly confront its own share of responsibility for creating the problem. This has profound implications for establishing a stable peace in these three hotspots.

In the case of Ukraine, much ink has been spilled in the debate over the extent to which NATO expansion in the decades after the Cold War fueled Putin’s decision to launch the war. Washington’s response to the invasion has largely treated that debate as irrelevant. Instead, it has essentially adopted the premise that Putin never got over the collapse of the Soviet Union and always intended to reincorporate Ukraine into Russia forcefully. This perspective has largely ignored evidence and historical logic that the invasion was not inevitable and was contingent on external variables, including U.S. actions.

In his seminal 2021 essay “On the Historical Unity of Russian and Ukrainians,” Putin wrote that after the Soviet collapse, Moscow “recognized the new geopolitical realities and not only recognized but, indeed, did a lot for Ukraine to establish itself as an independent country.” This was because “many people in Russia and Ukraine sincerely believed and assumed that our close cultural, spiritual, and economic ties would certainly last. . . . However, events—at first gradually and then more rapidly—started to move in a different direction.” These “events” included Ukrainian political developments that led to closer ties between Kiev and the West. “Step by step,” Putin wrote, “Ukraine was dragged into a dangerous geopolitical game aimed at turning Ukraine into a barrier between Europe and Russia.” But the West deflected Moscow’s concerns about this trajectory.

In his recent interview with American journalist Tucker Carlson, Putin reiterated this narrative. He said Russia had “agreed, voluntarily and proactively, to the collapse of the Soviet Union” because it “believed that this would be understood . . . as an invitation for cooperation and associateship” with the West. This could have taken the form of “a new security system” that would include the United States, European countries, and Russia—rather than the enlargement of NATO, which (according to Putin) Washington promised would extend “not one inch” to the east. Instead, there were “five waves of expansion,” and “in 2008 suddenly the doors or gates to NATO were open” to Ukraine. However, Moscow “never agreed to NATO’s expansion, and we never agreed that Ukraine would be in NATO.” Putin went on to blame the subsequent war on what he characterized as the U.S.-backed, anti-Russian “Maidan Revolution” in Ukraine in 2014, the West’s embrace of Kiev at Russia’s expense, and Washington’s persistent disregard of Moscow’s security concerns.

It is easy to dismiss Putin’s narrative as self-serving, disingenuous propaganda. He is indeed a monstrous figure, as the recent death of imprisoned Russian dissident Alexei Navalny demonstrates. But that does not address—instead, it evades—the historical question of whether U.S. policies toward NATO expansion in general and Ukraine’s candidacy in particular contributed to Putin’s ultimate decision to invade Ukraine. 

Keep reading

Think the US exit from Afghanistan was bad? Look what’s brewing in the Pacific

You think America’s tail-between-its-legs departure from Afghanistan was bad? Something even worse is coming in the Pacific, albeit more quietly.

U.S. defenses in the Asia-Pacific center on a defense line running from Japan to Philippines to Taiwan and on to Borneo. The so-called First Island Chain.

Try defending against China along the first island chain without a secure “rear area” in the Central Pacific. And suppose it’s the Chinese in the rear.

American control of the Central Pacific depends on three treaties – known as Compacts of Free Association (COFA) – with three nations: Palau, Federated States of Micronesia, and Republic of Marshall Islands. These nations and their huge maritime territory comprise most of an “east-west corridor” from Hawaii to the western edge of the Pacific that is essential for U.S. control and military operations in the region.

Keep reading

Air Force To Totally Revamp Its Structure To Compete With China

To counter the growing threat especially from China, the Air Force is undergoing major changes in how it operates and is organized. Dubbed “Reopitmization for Great Power Competition,” details of the initiative will be unveiled Monday at the Air and Space Forces Warfare Symposium in Denver by Air Force Secretary Frank Kendall and other senior leaders, an Air Force official told The War Zone.

The changes will run the gamut from how the Air Force organizes its operational units to how it acquires new weapons systems, Andrew Hunter, Assistant Secretary of the Air Force for Acquisition, Technology and Logistics, suggested on Friday.

“We’re driving towards…the ability to do integration across our organizational stovepipes in the acquisition community but also on the operational community across the department to a much higher degree,” said Hunter, speaking at an Atlantic Council event.

Keep reading

The Sprawling Radio Network That China’s Firewall Can’t Stop

Locked inside the crowded Chinese prison, blind lawyer Chen Guancheng hid his most treasured possession from the guards – inside a single serve milk box.

A pocket-size shortwave radio.

For three years, Mr. Chen looked forward to the hours after curfew. With a blanket wrapped over his head and the radio’s metal antenna parallel to his body, he lay still as the vibrating device under his ear brought to life a world outside the prison’s walls. Petitioners, protesters, human rights abuses, a grassroots movement to cut ties with the Chinese Communist Party (CCP)—in that tiny murmuring voice, he saw them all. He was free.

Over the decade since Mr. Chen escaped to the United States, the pool of Western broadcasters for information-hungry Chinese like him has shrunk considerably.

Radio powerhouses—BBC, Deutsche Welle, Voice of America—have either cut back on their China service or moved programs online. Meanwhile, the “Great Firewall,” the regime’s censorship apparatus aimed at isolating China digitally, seems only to grow taller by the day.

Bucking the trend is a largely volunteer-run radio network called Sound of Hope, whose 10 p.m. and midnight segments kept Mr. Chen informed about current affairs in China during his years in prison.

The company now boasts one of the largest shortwave broadcasting networks around China, with about 120 stations beaming signals to China 24/7.

Allen Zeng, Sound of Hope’s co-founder and CEO, sees shortwave as the answer to the regime’s information blackout.

Keep reading