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  • Uber is funding an e-bike trade-in program to curb battery fires | CNN Business

    Uber is funding an e-bike trade-in program to curb battery fires | CNN Business

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    CNN
     — 

    Uber is funding a new program that aims to get electric bikes with dangerous non-certified lithium-ion batteries off New York City streets.

    The company said on Wednesday it will soon allow the thousands of New York City delivery workers who use e-bikes the ability to trade-in their bikes for newer, safer models.

    The news follows a string of fires caused by lithium-ion batteries, which have been known to overheat when charging and cause massive explosions.

    Earlier this week, the New York City police department said an e-bike’s lithium-ion battery was behind a fatal two-alarm fire in Queens. The FDNY’s Chief fire marshal John Hodgens said it was the 59th fire in the city this year caused by a lithium-ion battery.

    Part of the issue is that not all lithium-ion batteries are created equal. UL-certified electric bikes and scooters come from reputable retailers and undergo extensive battery safety tests. But other online marketplaces, which some delivery workers may have turned to for more affordable options in the absence of company-provided options or subsidies, often make it hard to tell the origin of these products and the quality of their batteries.

    To get more UL-certified e-bikes on roads, Uber is now partnering with e-bike company Zoomo to offer credit to delivery workers willing to swap their existing e-bikes for ones with higher-quality batteries. It will also offer rent-to-own pricing models and priority access to repairs and services.

    Uber is also piloting a trade-in program with The Equitable Commute Project, a non-profit, to provide discounted UL-certified e-bikes in exchange for a “noncompliant device.”

    “Delivery workers should not have to choose between making a living and safety,” said Josh Gold, Uber’s senior director for public policy, in a statement. “By providing discounts and exchange opportunities for new UL certified e-bikes and certified lithium-ion batteries, the expensive price tag that too often acts as a blocker to safety should no longer have to be a concern.”

    Steve Kerber, vice president and executive director of UL’s Fire Safety Research Institute, previously told CNN the number of lithium-ion battery-based fires is growing with enormous frequency both in the United States and internationally, particularly when it comes to e-bikes and e-scooters. That’s due to an uptick in purchases of these products during the pandemic.

    “People started to get overcharged for them and turned to manufacturers which happened to have lower quality control with the battery systems,” Kerber said. “The quality manufacturers are not having issues.”

    Despite the concerns, lithium-ion batteries continue to be prevalent in today’s most popular gadgets, from smartphones and laptops to e-bikes and scooters. Some tech companies point to their abilities to charge faster, last longer and pack more power into a lighter package.

    But Dylan Khoo, an analyst at tech intelligence firm ABI Research, previously told CNN that electric bikes and scooters use batteries which can be around 50 times larger than the one in a smartphone. “So when a fire does happen, it’s much more dangerous,” Khoo said.

    All lithium-ion batteries use flammable materials, and incidents are likely the result of “thermal runaway,” a chain reaction which can lead to a fire or catastrophic explosion, according to Khoo.

    “This process can be triggered by a battery overheating, being punctured, or an electrical fault like a short circuit,” Khoo said. “In cases where fires occur spontaneously while charging, it is likely due to manufacturing defects.”

    Anyone with a lithium-ion battery should follow proper charging and battery usage guidelines, such as keeping them in a cool, dry place, and not leave it charging for too long or while you’re asleep. Batteries should also be routinely inspected to make sure there is no cracking, bulging or leaking, and people should always use the charger that came with the device or use one from a reputable supplier, according to researchers at the University of Michigan.

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  • Seagate to pay $300 million penalty for shipping Huawei hard drives in violation of US export control laws | CNN Business

    Seagate to pay $300 million penalty for shipping Huawei hard drives in violation of US export control laws | CNN Business

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    Reuters
     — 

    Seagate Technology has agreed to pay a $300 million penalty in a settlement with US authorities for shipping over $1.1 billion worth of hard disk drives to China’s Huawei in violation of US export control laws, the Department of Commerce said on Wednesday.

    Seagate

    (STX)
    sold the drives to Huawei between August 2020 and September 2021 despite an August 2020 rule that restricted sales of certain foreign items made with US technology to the company. Huawei was placed on the Entity List, a US trade blacklist, in 2019 to reduce the sale of US goods to the company amid national security and foreign policy concerns.

    The penalty represents the latest in a string of actions by Washington to keep sophisticated technology from China that may support its military, enable human rights abuses or otherwise threaten US security.

    Seagate shipped 7.4 million drives to Huawei for about a year after the 2020 rule took effect and became Huawei’s sole supplier of hard drives, the Commerce Department said.

    The other two primary suppliers of hard drives ceased shipments to Huawei after the new rule took effect in 2020, the department said. Though they were not identified, Western Digital

    (WDC)
    and Toshiba

    (TOSBF)
    were the other two, the US Senate Commerce Committee said in a 2021 report on Seagate.

    The companies did not respond to requests for comment.

    Even after “its competitors had stopped selling to them … Seagate continued sending hard disk drives to Huawei,” Matthew Axelrod, assistant secretary for export enforcement at the Commerce Department’s Bureau of Industry and Security said in a statement. “Today’s action is the consequence.”

    Axelrod said the administrative penalty was the largest in the history of the agency not tied to a criminal case.

    Seagate’s position was that its foreign-made drives were not subject to US export control regulations, essentially because they were not the direct product of US equipment.

    “While we believed we complied with all relevant export control laws at the time we made the hard disk drive sales at issue, we determined that … settling this matter was the best course of action,” Seagate CEO Dave Mosley said in a statement.

    In an order issued on Wednesday, the government said Seagate wrongly interpreted the foreign product rule to require evaluation of only the last stage of its manufacturing process rather than the entire process.

    Seagate made drives in China, Northern Ireland, Malaysia, Singapore, Thailand and the United States, the order said, and used equipment, including testing equipment, subject to the rule.

    In August, the US Department of Commerce sent the company a “proposed charging letter,” warning the company that it may have violated export control laws. The letter kicked off some eight months of negotiations.

    Seagate’s $300 million penalty is due in installments of $15 million per quarter over five years, with the first payment due in October. It also agreed to three audits of its compliance program, and is subject to a five-year suspended order denying its export privileges.

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  • Debt default could occur in early June, forecasters say, backing Yellen | CNN Politics

    Debt default could occur in early June, forecasters say, backing Yellen | CNN Politics

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    CNN
     — 

    Two new analyses are backing Treasury Secretary Janet Yellen’s forecast that the nation could default on its debt – and unleash economic chaos – as soon as early June if Congress doesn’t act.

    The projections, which are roughly in line with those issued last week by Yellen and the Congressional Budget Office, add to the pressure on House Republicans and President Joe Biden, who may have only a few weeks to hammer out their vast differences over addressing the debt ceiling. Biden is meeting with congressional leaders Tuesday to work on a deal, the first movement in months.

    A weaker-than-expected tax season, spurred in part by disaster-related filing extensions for much of California and parts of Alabama and Georgia, has increased the odds that Treasury won’t have enough funds to pay the federal government’s bills in early June, according to an updated estimate released Tuesday by the Bipartisan Policy Center.

    “The coming weeks are critical for assessing the strength of government cash flows,” said Shai Akabas, the center’s director of economic policy. “If a solution is not reached before June, policymakers may be playing daily Russian roulette with the full faith and credit of the United States, risking financial disaster for their constituents and the country.”

    The so-called X-date, when the US could default, could arrive between early June and early August, according to the center. In February, it projected the default could take place during the summer or early fall.

    Meanwhile, Moody’s Analytics last week pegged the default date at June 8, significantly earlier than its prior projection of August 18. But the X-date could hit as soon as June 1 or as late as early August, according to that analysis.

    Cumulative income tax receipts are tracking more than 30% below collections a year ago, in part because of weaker capital gains revenue as a result of last year’s stock market declines, Moody’s said.

    Tax receipts are running $150 billion below government projections for fiscal year 2023, which began in October, according to a report issued Monday by the Penn Wharton Budget Model, an independent research organization. This is due mainly to a drop in capital gains income and weakening corporate profit margins.

    In Yellen’s letter to House Speaker Kevin McCarthy last week, she said the exact date of default is impossible to pinpoint since the amount of revenue the federal government collects and the amount it spends is variable. She noted it could come as early as June 1 but could be a number of weeks later.

    Even if the Treasury Department doesn’t completely run out of funds, it could be difficult for the agency to manage its payments and stay below the debt ceiling when it only has a tiny cash balance, Akabas said. How much revenue the agency collects in the next three weeks is critical to whether the nation will default next month.

    “Treasury is skating on very thin ice in the month of June. If it’s $10, $20, $30, $40 billion below what we anticipate, that means that they’re really going to be in a crunch situation,” he said of revenue.

    Unable to keep borrowing to pay the nation’s obligations, the Treasury Department has been using cash and “extraordinary measures” to avoid default since the US hit its $31.4 trillion debt ceiling in January.

    If government collections wind up being enough to keep Treasury’s coffers flush through early June, then it’s likely the government won’t default until later in the summer. The agency will get another injection of funds from second quarter estimated tax payments, which are due June 15, and from an extraordinary measure that becomes available at the end of that month.

    Investors are growing skittish about the debt ceiling impasse and a potential default.

    Last week, the Treasury Department sold $50 billion of four-week securities scheduled to mature on June 6 at a record 5.84%, the highest yield for any Treasury Department bill auction since 2000, Akabas noted.

    “Even now, the looming deadline is raising costs to the government and therefore, to all taxpayers,” he said.

    If the government was to default for the first time, it would trigger an economic meltdown in the US and send shock waves through the global financial system.

    If the default lasts for about a week, then close to 1 million jobs would be lost, including in the financial sector, which would be hard hit by the stock market declines, according to Moody’s. Also, the unemployment rate would jump to about 5% and the economy would contract by nearly half a percent.

    But if the impasse dragged on for six weeks, then more than 7 million jobs would be lost, the unemployment rate would soar above 8% and the economy would decline by more than 4%, according to Moody’s. The effects would still be felt a decade from now.

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  • Dutch watchdog looking into alleged Tesla data breach | CNN Business

    Dutch watchdog looking into alleged Tesla data breach | CNN Business

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    Reuters
     — 

    The data protection watchdog for the Netherlands said on Friday it was aware of possible Tesla data protection breaches, but it was too early for further comment.

    Germany’s Handelsblatt reported on Thursday that Elon Musk’s Tesla had allegedly failed to adequately protect data from customers, employees and business partners, citing 100 gigabytes of confidential data leaked by a whistleblower.

    “We are aware of the Handelsblatt story and we are looking into it,” said a spokesperson for the AP data watchdog in the Netherlands, where Tesla’s European headquarters is located.

    They declined all comment on whether the agency might launch or have launched an investigation, citing policy. The Dutch agency was informed by its counterpart in the German state of Brandenberg.

    Handelsblatt said Tesla notified the Dutch authorities about the breach, but the AP spokesperson said they were not aware if the company had made any representations to the agency.

    Tesla was not immediately available for comment on Friday on the Handelsblatt report, which said customer data could be found “in abundance” in a data set labelled “Tesla Files”.

    The data protection office in Brandenburg, which is home to Tesla’s European gigafactory, described the data leak as “massive”.

    “I can’t remember such a scale,” Brandenburg data protection officer Dagmar Hartge said, adding that the case had been handed to the Dutch authorities who would be responsible if the allegations led to an enforcement action.

    The Dutch authorities has several weeks to decide whether to deal with the case as part of a European procedure, she added.

    The files include tables containing more than 100,000 names of former and current employees, including the social security number of Tesla CEO Musk, along with private email addresses, phone numbers, salaries of employees, bank details of customers and secret details from production, Handelsblatt reported.

    The breach would violate the GDPR, it said.

    If such a violation was proved, Tesla could be fined up to 4% of its annual sales, which could be 3.26 billion euros.

    German union IG Metall said the revelations were “disturbing” and called on Tesla to inform employees about all data protection violations and promote a culture in which staff could raise problems and grievances openly and without fear.

    “These revelations … fit with the picture that we have gained in just under two years,” said Dirk Schulze, IG Metall incoming district manager for Berlin, Brandenburg and Saxony.

    Handelsblatt quoted a lawyer for Tesla as saying a “disgruntled former employee” had abused their access as a service technician, adding that the company would take legal action against the individual it suspected of the leak.

    Citing the leaked files, the newspaper reported about thousands of customer complaints regarding the carmaker’s driver assistance systems with around 4,000 complaints on sudden acceleration or phantom braking.

    Last month, a Reuters report showed that groups of Tesla employees privately shared via an internal messaging system sometimes highly invasive videos and images recorded by customers’ car cameras between 2019 and 2022.

    This week, Facebook parent Meta was hit with a record 1.2 billion euro ($1.3 billion) fine by its lead European Union privacy regulator over its handling of user information and given five months to stop transferring user data to the U.S.

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  • Chinese star banker Bao Fan detained by country’s top anti-graft body, state media says | CNN Business

    Chinese star banker Bao Fan detained by country’s top anti-graft body, state media says | CNN Business

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    Hong Kong
    CNN
     — 

    One of China’s top tech bankers, who went missing in February, has been in the custody of the country’s top anti-graft watchdog since his disappearance and has had his detention extended, according to a state media report.

    The Economic Observer, a well regarded financial publication, reported that Bao Fan — founder and CEO of Hong Kong-listed China Renaissance, a boutique investment bank -— was taken away on February 7 by officials from the Central Commission for Discipline Inspection (CCDI) in an investigation into suspected corporate bribery.

    It said, citing an unnamed source, that his detention was extended on May 7 for three months.

    The mysterious disappearance of Bao has sent a chill through financial markets and China’s tech sector. Shares in China Renaissance had plunged more than 20% until they were suspended from trading in early April. The company also delayed the release of its annual results, because its auditors were unable to reach Bao.

    China Renaissance, which was responsible for a string of major Chinese tech deals since it was founded in 2005, didn’t immediately respond to a CNN request for comment.

    The CCDI is the top anti-graft body of the ruling Communist Party and is responsible for investigating corruption.

    China Renaissance had previously revealed only that Bao was “cooperating in an investigation” being carried out by certain authorities in the country. But it gave no other details.

    Bao is known as a veteran dealmaker who worked closely with top tech companies in China. He helped broker the 2015 merger between two of the country’s leading food delivery services, Meituan and Dianping. Today, the combined company’s “super app” platform is ubiquitous in China.

    His February disappearance coincided with a sweeping anti-corruption crackdown launched by the ruling Communist Party into the financial sector, which has ensnared more than a dozen senior executives at China’s biggest financial institutions.

    Analysts believe the crackdown is a new wave of leader Xi Jinping’s existing anti-graft campaign, through which he is believed to be further consolidating his power amid domestic and external challenges.

    The specific agencies handling Bao’s case include the CCDI’s international cooperation bureau and Beijing’s municipal anti-graft authorities, the Economic Observer said.

    Bao’s detention was related to another case involving Cong Lin, a former executive at his company, who had previously worked for China’s largest state owned bank for more than two decades, the newspaper added.

    Cong Lin, who became president of China Renaissance in July 2020, had previously served in a variety of executive roles at the Industrial and Commercial Bank of China, according to public company records.

    Cong has been detained by anti-corruption authorities since September for matters related to his tenure at ICBC Financial Leasing, the Economic Observer said. The details of Cong’s detention were previously reported by several Chinese media outlets.

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  • Biden will ‘at some point’ meet with China’s Xi Jinping, top White House official says | CNN Politics

    Biden will ‘at some point’ meet with China’s Xi Jinping, top White House official says | CNN Politics

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    CNN
     — 

    President Joe Biden will “at some point” meet with Chinese President Xi Jinping, according to White House national security adviser Jake Sullivan, as the two countries work to reset normal relations amid what has been an extremely tumultuous and tense year in the relationship.

    “We will, I hope, soon see American officials engaging at senior levels with their Chinese counterparts over the coming months to continue that work. And then, at some point, we will see President Biden and President Xi come back together again,” Sullivan told CNN’s Fareed Zakaria in an interview on “GPS” that aired Sunday.

    “There is nothing inconsistent with, on the one hand, competing vigorously in important domains on economics and technology, and also ensuring that that competition does not veer into conflict or confrontation. That is the firm conviction of President Biden,” Sullivan added.

    Sullivan’s remarks come as relations between the world’s two biggest economies remain strained.

    China’s defense minister on Sunday accused the United States and its allies of trying to destabilize the Indo-Pacific region – just hours after the US had accused a Chinese warship of cutting in front of an American vessel that was taking part in a joint exercise with the Canadian navy in the Taiwan Strait, forcing the American vessel to slow down to avoid a collision. The incident marked the second time in two weeks that Chinese military personnel have engaged in aggressive maneuvers in the vicinity of US military personnel near China’s border. A Chinese fighter jet conducted an “unnecessarily aggressive maneuver” during an intercept of a US spy plane in international airspace over the South China Sea last week, the US military said Tuesday.

    Tensions between Washington and Beijing soared in February after a suspected Chinese spy balloon flew over the continental US and was subsequently shot down by the American military.

    The incident prompted US Secretary of State Antony Blinken to postpone a planned trip to Beijing. While the trip has not yet been rescheduled, the State Department announced Saturday that the assistant secretary of state for East Asian and Pacific affairs is traveling to China this week “to discuss key issues in the bilateral relationship.”

    China’s foreign minister, Qin Gang said in May that a “series of erroneous words and deeds” by the United States had placed relations between the two superpowers on “cold ice,” but stabilizing ties was a “top priority.”

    Amid the US efforts to reengage with China, Sullivan met with top Chinese official Wang Yi in Vienna last month in one of the highest-level engagements between US and Chinese officials since the spy balloon incident.

    There is a desire, Sullivan said, to “put a floor under the relationship” in order to more responsibly manage the competition between them.

    “There are a number of different elements to that. But one of the key ones is that as we have intense competition, we also have intense diplomacy,” he said.

    Biden, as recently as mid-May, projected optimism that he would eventually meet with his Chinese counterpart “whether it’s soon or not.” The two leaders last met in November at the G20 summit in Bali, Indonesia, for a three-hour conversation that Biden afterward described as “open and candid.”

    Meanwhile, Sullivan also told Zakaria that the US believes the highly anticipated Ukrainian counteroffensive will result in Kyiv taking back “strategically significant territory.”

    “Exactly how much, in what places, that will be up to developments on the ground as the Ukrainians get this counteroffensive underway,” Sullivan said. “But we believe that the Ukrainians will meet with success in this counteroffensive.”

    Asked if this meant he expected some form of negotiations by the end of this year, Sullivan wouldn’t provide any sort of timetable but said that developments on the battlefield will have a “major impact” on any future negotiation.

    “But what I will say is this: President Zelensky himself has said that this war will end ultimately through diplomacy,” Sullivan said.

    The Ukrainian military has been spotted moving military hardware toward the front lines of its conflict with Russia and carrying out attacks against Russian targets that could facilitate an offensive, including recent strikes in the Russian-occupied southern port city of Berdiansk.

    A senior US official confirmed to CNN in May that Ukraine had begun conducting “shaping” operations in advance of a counteroffensive against Russian forces. Shaping involves striking targets such as weapons depots, command centers and armor and artillery systems to prepare the battlefield for advancing forces.

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  • Wagner chief rejects Russian Defense Ministry efforts to rein in his force | CNN

    Wagner chief rejects Russian Defense Ministry efforts to rein in his force | CNN

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    CNN
     — 

    The boss of the Russian private military company Wagner says he won’t sign contracts with Russia’s Defense Ministry, rejecting an attempt to bring his force in line.

    Yevgeny Prigozhin’s comments follow an announcement by the Russian Ministry of Defense Saturday that “volunteer units” and private military groups would be required to sign a contract with the ministry.

    The order – signed by Russian Defense Minister Sergei Shoigu – said the move would “give the voluntary formations the necessary legal status,” and create “unified approaches” to their work.

    The order did not name the Wagner group but the move is seen a way of controlling the influential military force.

    Prigozhin – who has publicly feuded with defense chiefs – said the move did not apply to Wagner.

    “The orders and decrees issued by (Defense Minister Sergei) Shoigu apply to employees of the Ministry of Defense and military personnel. PMC ‘Wagner’ will not sign any contracts with Shoigu,” Prigozhin said in a Telegram post.

    Wagner, he said, would “absolutely” pursue the “the interests of the Russian Federation and the Supreme Commander-in-Chief.”

    Prigozhin and Wagner have played a prominent role in the Ukraine war. In May he said his troops had capture Bakhmut in a costly and largely symbolic gain for Russia.

    The Wagner chief has previously criticized Russia’s traditional military hierarchy, blaming Russian defense chiefs for “tens of thousands” of casualties and stating that divisions could end in a “revolution.”

    He also accused Russian military leaders “sit like fat cats” in “luxury offices,” while his fighters are “dying,” and later accused the Russian Defense Ministry of trying to sabotage his troops’ withdrawal from Bakhmut, claiming the ministry laid mines along the exit routes.

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  • Ron DeSantis is campaigning on his record. Judges keep saying it’s unconstitutional | CNN Politics

    Ron DeSantis is campaigning on his record. Judges keep saying it’s unconstitutional | CNN Politics

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    CNN
     — 

    Gov. Ron DeSantis has toured the country calling Florida the place “where woke goes to die.” But it’s still alive at the company Sara Margulis runs.

    At Honeyfund, a website for engaged couples to create gift registries that can pay for their honeymoons, Margulis’ Florida employees learn about privilege and institutional racism. Margulis, the CEO and co-founder, said the training makes her staff better suited to serve couples of any background. Planning for this fall’s employee retreat is underway, with a session scheduled on DEI – or diversity, equity and inclusion, a term DeSantis often rails against.

    DeSantis tried to ban such employee training in 2022, when the Florida Republican championed what he called the Stop WOKE Act. But Honeyfund and others sued on the grounds that the law violated their free speech. A federal judge agreed and blocked it from going into effect. The DeSantis administration then appealed – one of many of the governor’s ongoing legal battles as he pursues the presidency.

    “Companies aren’t ‘going woke’ out of allegiance to Democrats. Time after time, diversity has proven to be good for the bottom line,” Margulis said. “Valuing diversity means understanding it, understanding means training and training means having to deal with this law. We were really handed a chance to make a difference for other business owners by challenging it, and we took it.”

    In his early outreach to Republican voters as a presidential candidate, DeSantis has portrayed himself as a fighter and, crucially, a winner in the cultural battles increasingly important to conservatives. If elected to the White House, he’ll take those fights to Washington, he has said.

    “I will go on offense,” DeSantis said in Iowa last month. “I will lean into all the issues that matter.”

    But back in Florida, the agenda at the centerpiece of his pitch remains unsettled. Still ongoing are more than a dozen legal battles testing the constitutionality of many of the victories DeSantis has touted on the campaign trail. Critics say DeSantis has built his governorship around enacting laws that appeal to his conservative base but that, as a Harvard-trained lawyer, he knows are unconstitutional and not likely to take effect.

    In addition to halting parts of the Stop WOKE Act, judges have also intervened to freeze implementation of other DeSantis-led laws cracking down on protesters and Big Tech. The six-week abortion ban he signed this year – which he has called the “heartbeat bill” when speaking to conservative, and especially evangelical, audiences – won’t take effect unless the state Supreme Court determines that a privacy clause in Florida’s constitution doesn’t protect access to the procedure. Disney – the most famous of DeSantis’ political adversaries – has argued in court that the governor overstepped his power when he orchestrated a takeover of the entertainment giant’s special taxing district to punish the company for speaking out against his agenda. So did Andrew Warren, the twice-elected Tampa prosecutor whom DeSantis suspended last year in another act of political retaliation.

    DeSantis has repeatedly predicted he will ultimately prevail in these challenges. Bryan Griffin, a spokesman for his campaign, called the lawsuits “the tactics of activists who seek to impose their will on people by judicial fiat.”

    “These attempts to circumvent the will of the legislature are not indicative of anything beyond the failure of the left’s ideas at the ballot box,” Griffin said in a statement. “Governor DeSantis is a proven fighter who will bring the same temerity to the presidency.”

    Recent weeks, though, have seen a handful of reminders that several pillars of his record remain fragile even as they figure prominently in his stump speeches.

    On Friday, a federal judge blocked a new Florida law that gave the DeSantis administration the power to shut down bars or restaurants that admit children to certain “adult live performances,” widely seen as a crackdown on drag shows.

    Another federal judge said Wednesday that Florida could not restrict transgender adults on Medicaid from receiving gender-affirming care. The same judge earlier this month had stepped in to allow three transgender children to receive puberty blockers while a lawsuit seeking to overturn a state ban on the treatment proceeds. In both rulings, the judge said there was “no rational basis” to prevent the care and declared “gender identity is real,” casting doubts on the future of the state’s prohibition.

    DeSantis, as a presidential candidate, has seized on conservative concerns over such treatment, particularly for minors. His efforts to halt it – including signing a law that prohibits transgender children from receiving gender-affirming treatments and punish doctors who run afoul of it – are prominently featured in his stump speeches. Speaking to North Carolina Republicans after the ruling, the governor acknowledged the legal fight, but he assured the audience: “We are going to win.”

    “It is mutilation, and it is wrong, and it has no place in our state,” he said.

    DeSantis of late has also taken credit for the GOP’s narrow US House majority, noting the highly partisan map he pushed through his state legislature, which ultimately helped Republicans net four critical seats. But those suing Florida to invalidate the state’s congressional boundaries have new reason for optimism after the US Supreme Court ordered Alabama officials to redraw its map to allow an additional Black-majority district. The DeSantis map was similarly criticized as diminishing the power of minority voters in Florida.

    “Many of the things coming from the governor are form over function,” said Cecile Scoon, president of the League of Women Voters of Florida, one of plaintiffs in the redistricting lawsuit. “They want to get to a certain result, so they find a means to do it, whether it makes logic or legal sense or not.”

    The US District Court for the Northern District of Florida has in particular stymied DeSantis’ agenda. Two judges on the bench, Mark Walker and Robert Hinkle, have repeatedly ruled against the governor, often punctuating their opinions with harsh and colorful repudiations.

    Walker, in one ruling blocking parts of the Stop WOKE Act, compared Florida’s treatment of the First Amendment under DeSantis to the “Upside Down,” the nightmare alternative dimension from the Netflix series “Stranger Things.” In another lawsuit over the law, this one filed by college professors, Walker called the law “dystopian” and wrote that DeSantis and Florida Republicans had “declared the state has unfettered authority to muzzle its professors in the name of ‘freedom.’”

    Hinkle, in January, chided DeSantis’ suspension of Warren as political, unconstitutional and executed with “not a hint of misconduct,” though he ultimately ruled he was powerless to intervene. Warren is appealing, though he suffered another defeat when the state Supreme Court on Thursday rejected a separate request to reinstate him.

    Ruling this month against the state in the two cases dealing with transgender care prohibition, Hinkle called the law “an exercise in politics, not good medicine.”

    “Nothing could have motivated this remarkable intrusion into parental prerogatives other than opposition to transgender status itself,” he wrote.

    DeSantis has shrugged off these defeats as the work of left-leaning judges. President Barack Obama nominated Walker to his district court judgeship in 2012, and Hinkle was selected by President Bill Clinton in 1996. Neither nomination drew objection from Senate Republicans at the time.

    When Walker ruled to block Florida’s anti-riot law – comparing it to past attempts to squash dissent from Civil Rights activists in the 1950s and 60s – DeSantis dismissed it as “a foreordained conclusion in front of that court.”

    “We will win that on appeal,” DeSantis said. “I guarantee we’ll win that on appeal.”

    That assurance came 21 months ago. In the meantime, the law has yet to take effect.

    Dana Thompson Dorsey, a professor of education law, was among seven Florida college professors who sued to block the Stop WOKE Act over provisions that limited how she and her colleagues could talk about race and sex with students. She called Walker’s decision halting the law a “work of art.”

    Since then, she has continued to teach critical race studies to her doctoral students at the University of South Florida, while DeSantis has taken his fight against the concept national. But despite winning injunctive relief, she remains troubled by the new environment for higher education under DeSantis.

    “There is a lot at stake and it’s not just for those of us brave enough to be plaintiffs,” she said. “The idea of telling adults what they can and cannot learn is unfathomable. The students who become our future leaders will repeat our mistakes if they don’t understand the past.”

    While legal challenges have prevented DeSantis from fully realizing his vision for Florida, the uncertainty has not always benefited opponents and the plaintiffs suing to block his agenda.

    Abortions after 15 weeks have paused in most cases in Florida while providers await a ruling on the state’s ban. Andrew Warren remains out of office. Transgender care providers are in uncertain territory – Hinkle’s limited rulings provided relief but only for those who sued the state.

    The League of Women Voters of Florida is taking the state to court over new restrictions on third-party voter registration. Fines for violating the law could cost as much as $250,000 a year and the organization has asked for a preliminary injunction to prevent its enforcement. In the meantime, the league decided it would no longer collect and turn in voter registration forms, pausing for now a practice that has been central to its civic outreach for more than 75 years.

    “That’s a very sad and horrible result, but we cannot figure out a way to protect ourselves without that major change,” Scoon said.

    DeSantis has also managed to maneuver when legal challenges have threatened to stymie his efforts, thanks to a closely aligned Republican-led legislature.

    When a lawsuit accused the governor of breaking state law when he sent two planes carrying migrants from San Antonio, Texas, to Martha’s Vineyard, Massachusetts, lawmakers helped change the law to allow him to do so. His administration recently orchestrated the transport of migrants from El Paso, Texas, to California.

    After several individuals arrested last year for voter fraud by DeSantis’ new election security force had their cases dismissed, lawmakers again tweaked the law to try to make it easier for the state to secure convictions.

    DeSantis and Florida Republicans have signaled they intend to keep fighting in court, too. The budget DeSantis signed earlier this month included $16 million for legal battles underway and the ones to come.

    “We will never surrender to the woke mob,” the governor recently told an audience in Greenville, South Carolina. “We are going to leave woke ideology in the dustbin of history where it belongs.”

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  • A lawsuit by TikTok users challenging Montana’s ban is being funded by the social media company itself | CNN Business

    A lawsuit by TikTok users challenging Montana’s ban is being funded by the social media company itself | CNN Business

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    CNN
     — 

    A high-profile lawsuit brought by TikTok users and creators last month challenging Montana’s statewide ban against the short-form video app is being funded by the social media giant itself, the company told CNN on Wednesday.

    TikTok has been covering legal fees for the group of five TikTok creators, said Jodi Seth, a TikTok spokesperson, separately from the company’s own lawsuit to block the state’s new law targeting the app over national security concerns.

    “We support our creators through various programs and have an ongoing dialogue about their presence on TikTok,” Seth said in a statement. “Throughout this process, many creators have expressed major concerns both privately and publicly about the potential impact of the Montana law on their livelihoods. We will support our creators in fighting for their constitutional rights.”

    TikTok’s involvement in the creators’ suit was first reported this week by The New York Times, weeks after the initial court case was filed. The company’s role in the litigation had not been previously known.

    The suit by the TikTok creators was the first to challenge Montana’s law banning TikTok from being offered within state lines and establishing penalties for the company and for app stores that violate the law. Legal experts have said the legislation, which is not set to take effect until January, raises constitutional issues and may well be practically unenforceable even if the law is upheld.

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  • China just played a trump card in the chip war. Are more export curbs coming? | CNN Business

    China just played a trump card in the chip war. Are more export curbs coming? | CNN Business

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    Hong Kong
    CNN
     — 

    A trade war between China and the United States over the future of semiconductors is escalating.

    Beijing hit back Monday by playing a trump card: It imposed export controls on two strategic raw materials, gallium and germanium, that are critical to the global chipmaking industry.

    “We see this as China’s second, and much bigger, counter measure to the tech war, and likely a response to the potential US tightening of [its] AI chip ban,” said Jefferies analysts. Sanctioning one of America’s biggest memory chipmakers, Micron Technology

    (MU)
    , in May was the first, they said.

    Here’s what you need to know about gallium and germanium, how they could play into the chip war and whether more countermeasures could be coming.

    Last October, the Biden administration unveiled a set of export controls banning Chinese companies from buying advanced chips and chip-making equipment without a license.

    Chips are vital for everything from smartphones and self-driving cars to advanced computing and weapons manufacturing. US officials have talked about the move as a measure to protect national security interests.

    But it didn’t stop there. For the curbs to be effective, Washington needed other key suppliers, located in the Netherlands and Japan, to join. They did.

    China eventually retaliated. In April, it launched a cybersecurity probe into Micron before banning the company from selling to Chinese companies working on key infrastructure projects. On Monday, Beijing announced the restrictions on gallium and germanium.

    Gallium is a soft, silvery metal and is easy to cut with a knife. It’s commonly used to produce compounds that are key materials in semiconductors and light-emitting diodes.

    Germanium is a hard, grayish-white and brittle metalloid that is used in the production of optical fibers that can transmit light and electronic data.

    The export controls have drawn comparisons with China’s reported attempts in early 2021 to restrict exports of rare earths, a group of 17 elements for which China controls more than half of the global supply.

    Gallium and germanium do not belong to this group of minerals. Like rare earths, they can be expensive to mine or produce.

    This is because they are usually formed as a byproduct of mining more common metals, primarily aluminum, zinc and copper, and processed in countries that produce them.

    China is the world’s leading producer of both gallium and germanium, according to the US Geological Survey. The country accounted for 98% of the global production of gallium, and 68% of the refinery production of germanium.

    “The economies of scale in China’s extensive and increasingly integrated mining and processing operations, along with state subsidies, have allowed it to export processed minerals at a cost that operators elsewhere can’t match, perpetuating the country’s market dominance for many critical commodities,” analysts from Eurasia Group said on Tuesday.

    Shares of Chinese producers of the two raw materials surged by 10% on Tuesday.

    Beyond China, Australian rare earths producers also advanced, as investors expected Beijing might extend export curbs to that group of strategically important minerals. Lynas Rare Earths

    (LYSCF)
    rose 1.5%.

    The United States is dependent on China for these the two critical elements. It imported more than 50% of the gallium and germanium it used in 2021 from the country, the US Geological Survey showed.

    Eurasia Group analysts described China’s export controls as a “warning shot.”

    “It is a shot across the bow intended to remind countries including the United States, Japan, and the Netherlands that China has retaliatory options and to thereby deter them from imposing further restrictions on Chinese access to high-end chips and tools,” Eurasia Group said in a research note.

    Chinese authorities may also intend to use its control over these niche metals as a possible bargaining chip in discussions with US Treasury Secretary Janet Yellen, who is scheduled to visit Beijing later this week.

    Jefferies analysts said the timing of the announcement was unlikely to be a casual decision.

    “It gives the US at least two days to digest and come up with a well-considered response,” they said.

    However, the move is not considered “a death blow” to the United States and its allies.

    China may be the industry leader, but there are alternative producers, as well as available substitutes for both minerals, the Eurasia Group analysts pointed out.

    The United States also imports a fifth of its gallium from the United Kingdom and Germany and buys more than 30% of its germanium from Belgium and Germany.

    That’s definitely possible, a former senior Chinese official has warned.

    The curbs announced this week are “just the start,” Wei Jianguo, a former deputy commerce minister, told the official China Daily on Wednesday, adding China has more tools in its arsenal with which to retaliate.

    “If the high-tech restrictions on China become tougher in the future, China’s countermeasures will also escalate,” he was quoted as saying.

    Analysts believe this too. Rare earths, which are not difficult to find but are complicated to process, are also critical in making semiconductors, and could be the next target.

    “If this action doesn’t change the US-China dynamics, more rare earth export controls should be expected,” Jefferies analysts said.

    However, analysts from Eurasia Group warned that restricting exports is a “double-edged sword.”

    Past attempts by China to leverage its dominance in rare earths have reduced availability and raised prices. Higher prices have spurred greater competition by making mining and processing ventures outside of China more cost-competitive, they said.

    China cut its rare earths export quota in 2010 amid tensions with the United States.

    That resulted in greater efforts by companies outside of the country to produce the metals. US data showed that China’s global market share dropped from 97% in 2010 to about 60% in 2019.

    “Imposing export restrictions risks reducing market dominance,” the Eurasia Group analysts said.

    CNN’s Hanna Ziady and Xiaofei Xu contributed to reporting.

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  • Russian aircraft harass US drones over Syria for third time this week | CNN Politics

    Russian aircraft harass US drones over Syria for third time this week | CNN Politics

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    CNN
     — 

    Russian aircraft once again harassed US MQ-9 Reaper drones over Syria Friday, the Air Force said, in a sign of increasing friction between the two countries in Middle East airspace.

    The incident marked the third time this week that US drones over Syria were intercepted by Russian aircraft.

    “Earlier today three MQ-9 drones were once again harassed by Russian fighter aircraft while flying over Syria,” commander of US Air Forces Central Lt. Gen. Alex Grynkewich said in a news release. “During the almost two hour encounter, Russian aircraft flew 18 unprofessional close passes that caused the MQ-9s to react to avoid unsafe situations.”

    “We continue to encourage Russia to return to the established norms of a professional Air Force so we can all return our focus to ensuring the enduring defeat of ISIS,” Grynkewich added.

    On Thursday, Russian fighter jets harassed a US MQ-9 Reaper drone that was conducting a mission against ISIS targets in northwest Syria. One of the Russian jets dropped flares in front of US drone in an apparent attempt to hit the drone, forcing it to take evasive maneuvers, the Air Force previously said.

    And earlier in the week, three Russian jets dropped parachute flares in front of three US drones, forcing the drones to take evasive maneuvers. One Russian jet also lit its afterburner in front of a US drone, limiting the drone operator’s ability to safely operate the aircraft.

    Russia is operating in Syria in support of Syrian President Bashar al-Assad, while the US maintains its presence as part of the anti-ISIS coalition.

    While the two countries have used a deconfliction line in Syria over the last several years to avoid unintentional mistakes or encounters that can inadvertently lead to escalation, Russian military actions have increasingly violated the deconfliction protocols, including flying too close to US military bases in Syria.

    But the US wasn’t the only target of harassment from the Russian military this week. On Thursday, a Russian SU-35 fighter jet conducted a “non-professional interaction” with two French Rafale fighter jets that were flying a mission near the Iraq-Syria border, according to the official Twitter account of the French Armed Forces.

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  • China-based hackers breached US government email accounts, Microsoft and White House say | CNN Politics

    China-based hackers breached US government email accounts, Microsoft and White House say | CNN Politics

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    CNN
     — 

    China-based hackers have breached email accounts at two-dozen organizations, including some United States government agencies, in an apparent spying campaign aimed at acquiring sensitive information, according to statements from Microsoft and the White House late Tuesday.

    The full scope of the hack is being investigated, but US officials and Microsoft have been quietly scrambling in recent weeks to assess the impact of the hack, which targeted unclassified email systems, and contain the fallout.

    The federal agency where the Chinese hackers were first detected was the State Department, a person familiar with the matter told CNN. The State Department then reported the suspicious activity to Microsoft, the person said.

    The Department of Commerce, which has sanctioned Chinese telecom firms, was also breached. The hackers accessed Commerce Secretary Gina Raimondo’s email account, one source familiar with the investigation told CNN. The Washington Post first reported on the access of the secretary’s account.

    The Chinese hackers were detected targeting a small number of federal agencies and just a handful of officials’ email accounts at each agency in a hack aimed at specific officials, multiple sources familiar with the investigation told CNN.

    “Microsoft notified the (Commerce) Department of a compromise to Microsoft’s Office 365 system, and the Department took immediate action to respond,” a department spokesperson said in a statement on Wednesday.

    The spokesperson did not immediately reply to a request for comment on the targeting of Raimondo’s email account.

    The hackers targeted email accounts at the House of Representatives, but it was unclear who was targeted and if the breach attempts were successful, two sources familiar with the matter told CNN.

    The breaches add to what is already one of the steepest cybersecurity challenges facing the Biden administration: limiting the ability of Beijing’s formidable hacking teams to access US government and corporate secrets.

    “Last month, US government safeguards identified an intrusion in Microsoft’s cloud security, which affected unclassified systems,” National Security Council spokesperson Adam Hodge said in a statement to CNN.

    “Officials immediately contacted Microsoft to find the source and vulnerability in their cloud service,” Hodge said. “We continue to hold the procurement providers of the US Government to a high security threshold.”

    The State Department “detected anomalous activity, took immediate steps to secure our systems, and will continue to closely monitor and quickly respond to any further activity,” a department spokesperson said on Wednesday.

    US Capitol Police declined to comment, referring CNN to the FBI.

    Hodge did not identify who was behind the hack, but Microsoft executives said in a blog post that the hackers were based in China and focused on espionage.

    In response to the Microsoft and White House statements, the Chinese foreign ministry on Wednesday accused Washington of conducting its own hacking operations.

    US officials have consistently labeled China as the most advanced of US adversaries in cyberspace, a domain that has repeatedly been a source of bilateral tension in recent years. The FBI has said Beijing has a larger hacking program than all other governments combined.

    China has routinely denied the allegations.

    The hacking began in mid-May, when the China-based hackers used a stolen sign-in key to burrow their way into email accounts, according to Microsoft. The tech giant has since blocked the hackers from accessing customer emails using that technique, Microsoft said late Tuesday.

    Secretary of State Antony Blinken visited China in mid-June, but it was not immediately clear if the cyber-espionage campaign was connected to that high-stakes visit.

    Some US officials credited the State Department with investing in more cyber-defense capabilities, allowing the agency to detect the suspicious activity earlier than in past advanced hacks.

    The number of US organizations, public or private, impacted by the hacking campaign is in the “single digits,” a senior US Cybersecurity and Infrastructure Security Agency official told reporters on Wednesday.

    “This appears to have been a very targeted, surgical campaign,” the official said.

    This story has been updated with additional information.

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  • 2024 GOP candidates race to meet donor and polling thresholds to make August debate stage | CNN Politics

    2024 GOP candidates race to meet donor and polling thresholds to make August debate stage | CNN Politics

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    CNN
     — 

    Donald Trump hasn’t yet committed to the first Republican presidential primary debate in August – but some of the former president’s most vocal critics within the party’s 2024 field are still working to qualify for the stage.

    The race to meet the 40,000 unique donors threshold set by the Republican National Committee as a minimum to qualify for the first debate – in addition to polling requirements and a commitment to support the eventual GOP nominee – is unfolding ahead of a showdown that could be the best chance for lower-polling candidates to break out from the pack seeking to stop Trump from winning a third straight presidential nomination.

    The threshold, which also requires at least 200 unique contributors from 20 or more states and territories, is a test of candidates’ ability to appeal to grassroots donors across a broad swath of the United States.

    Several candidates and their aides say they have already met that donor threshold, including Trump, Florida Gov. Ron DeSantis, South Carolina Sen. Tim Scott, former United Nations ambassador and former South Carolina Gov. Nikki Haley, former New Jersey Gov. Chris Christie and tech entrepreneur Vivek Ramaswamy.

    Lesser-known candidates are trying zany, rule-bending approaches to up their donation totals. North Dakota Gov. Doug Burgum is swapping $20 gift cards for $1 campaign contributions. Miami Mayor Francis Suarez’s super PAC is offering entries to a free college tuition sweepstakes in exchange for contributions to his campaign.

    But the biggest question ahead of the August 23 showdown on Fox News is whether some of Trump’s foremost critics – including former Vice President Mike Pence, former Arkansas Gov. Asa Hutchinson and former Texas Rep. Will Hurd – will qualify for the stage.

    Though they have raised substantial sums before, and Burgum has vast personal wealth to spend on the race, some candidates lack the small-dollar conservative base of donors that candidates like Trump and DeSantis have cultivated. And late entrances by Pence and Burgum further complicate their paths to the debate, which is being held in Milwaukee.

    Pence, in a Tuesday interview with CNN’s Kaitlan Collins on “The Source,” indicated that he has not yet met the donor threshold.

    “You bet we’ll be on that debate stage. We’re working every day to get to that threshold,” Pence said. “I’m sure we’re going to be there.”

    However, the paltry second-quarter fundraising haul of $1.2 million that Pence’s campaign announced Friday underscored just how far the former vice president has to go to catch his top rivals.

    Pence – who often jokes on the campaign trail that he has already debated Trump many times in private – said he is hopeful his former ticket mate decides to take the stage.

    “I intend to be on that debate stage in late August, and I look forward to squaring off,” Pence said.

    Hutchinson said Friday on “CNN This Morning” that he has not yet reached 40,000 donors but believes he will eventually hit that mark.

    “It’s just a question of how quickly we can get there, but we want to be on that debate stage,” he said.

    The former Arkansas governor has been among the most vocal critics of the RNC’s debate qualification rules, pushing back for weeks against the minimum donor threshold.

    Hutchinson said Friday that some of the inventive gambits by his fellow candidates to attract the requisite donors “illustrate how silly this whole concept is. They’re telling campaigns you’ve got to reach these limits to make sure you get 40,000 donors. You can do that by your rhetoric and getting people fired up, you can do that by gimmicks, and so we’re going to have to do what we need to do to get there.”

    Hurd does not appear yet to have met the minimum donor threshold. “Will fully intends on meeting the donor and polling thresholds,” a campaign aide said Wednesday.

    North Dakota Gov. Doug Burgum speaks to guests during a campaign stop at the Westside Conservative Breakfast Club meeting on June 9, 2023, in Ankeny, Iowa.

    Burgum, a wealthy former software executive, is offering $20 so-called “Biden economic relief cards” in the form of Visa or Mastercard gift cards to 50,000 donors who give at least $1. One solicitation Tuesday described it as a “better deal than anything you are seeing during Amazon Prime Day.”

    Burgum’s campaign on Friday announced an $11.7 million fundraising haul in the second quarter, but $10.2 miliion of that candidate’s own money.

    Perry Johnson, the little-known Michigan businessman, was at one point selling “I stand with Tucker” T-shirts backing the fired Fox News opinion host for $1.

    A super PAC backing Suarez on Thursday launched what it called “Francis Free College Tuition” – soliciting $1 contributions that would go to the candidate’s campaign to enter a sweepstakes that would offer the winner a year of paid college tuition up to $15,000.

    Suarez, unlike many other GOP candidates still racing to meet the donor threshold to qualify for the debate, has backed the RNC’s rules.

    “I do think there should a minimum criteria because time is valuable,” Suarez said Wednesday on “CNN This Morning.” “I think the Republican Party has tried to set a relatively low bar, and they’ve tried to create a diverse candidate pool so that people have options.”

    Ramaswamy’s campaign has said he already met the donor threshold – but his campaign recently launched a program to pay grassroots fundraisers 10% of the money they raise.

    Whether Christie would meet the donor threshold was a major question but one he seemed to settle on Wednesday night.

    “I am glad to be able to tell people tonight, Anderson, that last night we went past 40,000 unique donors in just 35 days,” Christie told CNN’s Anderson Cooper on “AC360.”

    Scott’s campaign on Wednesday also announced it had surpassed the 40,000 donor threshold, along with a $6.1 million second quarter fundraising haul. Scott, a prolific fundraiser as a Senate candidate, was widely considered a virtual lock to reach that minimum donor threshold.

    Another key benchmark to qualify for the debate stage is polling. Candidates must reach at least 1% in three national polls, or at least two national polls and two polls from separate early-voting states – Iowa, New Hampshire, South Carolina or Nevada.

    The RNC set criteria to determine which polls meet its standards to qualify toward the debate. The first poll to meet those RNC standards, a national survey by Morning Consult, found that Trump, DeSantis, Scott, Haley, Ramaswamy, Pence, Christie and Hutchinson had all reached the 1% minimum to count toward making the debate stage.

    Others still have zero qualifying polls toward the minimum qualifications for the first debate.

    Larry Elder, the conservative talk radio host and failed California gubernatorial nominee who is seeking the GOP’s 2024 presidential nomination, complained in an opinion piece published Wednesday by The Hill that the RNC “has rigged the rules of the game by instituting a set of criteria that is so onerous and poorly designed that only establishment-backed and billionaire candidates are guaranteed to be on stage.”

    “That’s not what our party is about: We are the party of free speech, debate and the exchange of ideas. With 16 months until the general election, Republicans should have as many voices as the stage will accommodate. Anything short of that is elitism,” Elder said.

    The third requirement to make the August debate is a pledge to support the eventual Republican nominee in the 2024 general election.

    Some candidates, including Christie, have grumbled about the pledge but indicated they will agree to it because failing to do so would leave them no real path to the sort of attention needed to win the GOP nomination.

    Trump has privately discussed skipping either one or both of the first two Republican presidential primary debates, CNN reported in May. Since then he has not publicly said he would participate in the debate.

    DeSantis on Wednesday criticized Trump in an interview with Iowa conservative radio host Howie Carr over his refusal to commit to the debate.

    “Nobody is entitled to this nomination. You have got to earn the nomination,” DeSantis said, adding that debates are “important parts of the process.”

    “I will be in Milwaukee for the first debate, and I’ll be at all the debates because the American people deserve to hear from us directly about our vision for the country, and about how we’re going to be able to defeat Joe Biden,” he said.

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  • US orders deployment of fighter jets and Navy destroyer to Middle East in response to Iranian activities | CNN Politics

    US orders deployment of fighter jets and Navy destroyer to Middle East in response to Iranian activities | CNN Politics

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    CNN
     — 

    US Defense Secretary Lloyd Austin has ordered F-35 and F-16 fighter jets deployed to the Middle East, as well as the destroyer USS Thomas Hudner, in response to Iranian activities in the Strait of Hormuz.

    “In response to a number of recent alarming events in the Strait of Hormuz, the Secretary of Defense has ordered the deployment of the destroyer USS Thomas Hudner, F-35 fighters and F-16 fighters to the US Central Command Area of Responsibility to defend US interests and safeguard freedom of navigation in the region,” Pentagon deputy press secretary Sabrina Singh said Monday.

    The deployments come after two incidents earlier this month in which Iranian Navy ships attempted to seize merchant vessels in the Strait of Hormuz and the Gulf of Oman.

    The US Navy intervened in both incidents on July 5. In one instance, in which an Iranian vessel was approaching the Richmond Voyager oil tanker, Iranian personnel opened fire on the tanker and hit the ship near the crew’s living spaces.

    “In light of this continuing threat, and in coordination with our partners and allies, the department is increasing our presence and ability to monitor the straight and surrounding waters,” Singh said. “We call upon Iran to immediately cease these destabilizing actions that threaten the free flow of commerce through this strategic waterway of which the world depends on for more than one fifth of the world’s oil supply.”

    Last week, a senior defense official said that US air and maritime forces are working together to continue monitoring the waterway, recently starting to fly A-10 attack aircraft over the Strait of Hormuz. The A-10s were deployed in late March.

    The US also bolstered its forces in the Middle East in May after destabilizing actions from Iran in the Persian Gulf.

    “[The] United States will not allow foreign or regional powers to jeopardize freedom of navigation through the Middle East waterways, including the Strait of Hormuz,” National Security Council Coordinator for Strategic Communications John Kirby said at the time.

    He added that there is “simply no justification” for Iranian actions to interfere, harass or attack merchant ships.

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  • Pentagon watchdog finds some Western weaponry sent to Ukraine was stolen before being recovered last year | CNN Politics

    Pentagon watchdog finds some Western weaponry sent to Ukraine was stolen before being recovered last year | CNN Politics

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    CNN
     — 

    Criminals, volunteer fighters and arms traffickers in Ukraine stole some Western-provided weapons and equipment intended for Ukrainian troops last year before it was recovered, according to a Defense Department inspector general report obtained by CNN.

    The plots to steal the weaponry and equipment were disrupted by Ukraine’s intelligence services and it was ultimately recovered, according to the report, titled “DoD’s Accountability of Equipment Provided to Ukraine.” CNN obtained the report via a Freedom of Information Act request. Military.com first reported the news.

    But the inspector general report noted that after Russia’s invasion of Ukraine last year, the Defense Department’s ability to track and monitor all of the US equipment pouring into Ukraine, as required by law under the Arms Export Control Act, faced “challenges” because of the limited US presence in the country.

    According to the report, which examined the period of February-September 2022, the Office of Defense Cooperation-Kyiv “was unable to conduct required [end-use monitoring] of military equipment that the United States provided to Ukraine in FY 2022.”

    “The inability of DoD personnel to visit areas where equipment provided to Ukraine was being used or stored significantly hampered ODC-Kyiv’s ability to execute” the monitoring, the report added.

    The report is dated October 6, 2022. In late October, the US resumed on-site inspections of Ukrainian weapons depots as a way to better track where the equipment was going. The department has also provided the Ukrainians with tracking systems, including scanners and software, the Pentagon’s former under secretary of defense for policy, Colin Kahl, told lawmakers in February.

    But the report underscores how difficult it was in the early days of the war for the US to track the billions of dollars worth of weapons and equipment it was sending to Ukraine.

    Republicans have criticized the Biden administration over what they view as a lack of accountability over the billions of dollars of aid going to Ukraine. House Speaker Kevin McCarthy said earlier this year that he supports Ukraine but doesn’t “support a blank check.” The same sentiment has been shared by Republican presidential candidate and Florida Gov. Ron DeSantis.

    CNN reported in April 2022 that the Biden administration was willing to take the risk of losing track of weapons supplied to Ukraine despite a lack of visibility, as they saw it as critical to Ukraine’s defeat of Russian forces.

    “We have fidelity for a short time, but when it enters the fog of war, we have almost zero,” a source briefed on US intelligence told CNN at the time. “It drops into a big black hole, and you have almost no sense of it at all after a short period of time.”

    US European Command tried to alleviate the issue last year by requesting and maintaining hand receipts from the Ukrainians, which the Ukrainians made a “good faith effort” to provide, the report says, citing EUCOM personnel. The personnel did not provide the IG with corroborating paperwork by the time the investigation concluded, however, the report notes.

    The Office of Defense Cooperation-Kyiv also asked the Ukrainian government for expenditure, loss, and damage reports for US-provided equipment, the report says, and they “made efforts to prevent illicit proliferation of defense material provided by the United States.”

    Still, criminal organizations managed to steal some weaponry and equipment provided by the US and its allies, the report says.

    In late June 2022, an organized crime group overseen by an unnamed Russian official joined a volunteer battalion using forged documents and stole weapons, including a grenade launcher and machine gun, and more than 1,000 rounds of ammunition, the report says. Ukraine’s intelligence service disrupted the plot, according to the report.

    That same month, Ukraine’s intelligence services also disrupted a plot by arms traffickers working to sell weapons and ammunition they stole from the frontlines in southern Ukraine, as well as a separate plot by Ukrainian criminals posing as aid workers who stole $17,000 worth of bulletproof vests, the report says.

    And in August 2022, Ukraine’s intelligence services discovered a group of volunteer battalion members who stole 60 rifles and almost 1,000 rounds of ammunition and stored them in a warehouse, “presumably for sale on the black market.”

    The report does not specify whether the weapons and equipment were American, but the anecdotes are outlined in a highly redacted section that deals with Ukrainian tracking of US-provided weaponry.

    The Pentagon inspector general wrote that some larger items like missiles and helicopters were easier to track through intelligence mechanisms. Smaller items, like night-vision devices, however, were harder to monitor.

    The report ultimately does not make any recommendations, noting that the Defense Department “has made some efforts to mitigate the inability to conduct in-person” monitoring.

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  • Blinken says US is ‘working to put some stability’ into relationship with China | CNN Politics

    Blinken says US is ‘working to put some stability’ into relationship with China | CNN Politics

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    CNN
     — 

    US Secretary of State Antony Blinken told CNN that the US is attempting to strengthen “lines of communication” with China to avoid conflict between the two superpowers.

    “We are working to put some stability into the relationship, to put a floor under the relationship, to make sure that the competition that we’re in doesn’t veer into conflict,” Blinken told CNN’s Fareed Zakaria in an interview that aired Sunday. A conflict, the secretary added, “would not be in our interest, their interest, or anyone else’s.”

    Blinken, who was speaking on the sidelines of the Aspen Security Forum in Colorado, made a highly anticipated trip to China last month, becoming the first secretary of state to travel to the country in five years and the most senior US official to make such a mission since President Joe Biden took office in 2021. His visit was followed by similar trips by other high-level Biden administration officials, including Treasury Secretary Janet Yellen and US climate envoy John Kerry.

    “We weren’t doing a lot of talking before. Now we are. We have different groups that are engaged, or about to engage, on discrete issues … that are problems … in the relationship where I believe we can, I think, get to a resolution,” Blinken said. “Now these are early days. The proof will be in the results.”

    After days of talks with senior Chinese officials in Beijing, Blinken touted that “progress” had been made toward steering relations back on track.

    The two global powers have been increasingly at loggerheads over a host of issues ranging from Beijing’s close ties with Moscow to American efforts to limit the sale of advanced technologies to China.

    Earlier this year, a Chinese surveillance balloon that was detected floating across the US and hovering over sensitive military sites before ultimately being shot down by an American fighter plane sent relations plunging to a new low and resulted in Blinken scrapping an earlier Beijing visit.

    “I was very clear with my Chinese counterparts,” Blinken told Zakaria, referring to his trip last month. “We will continue to do and say things that China will not like just as they’re going to continue to do and say things we won’t like.”

    “The test for us is whether we can manage our way through that, to make sure that we sustain these lines of communication, that we continue to talk, and that we work on, as I said, both dealing with the differences and seeing if we can cooperate,” the secretary said.

    CNN previously reported that one of the key issues that did not get resolved during Blinken’s trip was the restoration of military-to-military communications between US and China. Contacts between the countries’ top military officials remain frozen, and Chinese Defense Minister Li Shangfu continues to be under US sanction dating back to 2018 over the purchase of Russian weapons by China’s Equipment Development Department, which Li was in charge of at the time.

    Asked by Zakaria whether the US should lift the penalty to alleviate tensions, Blinken said, “Those sanctions don’t prevent the minister from engaging or us engaging with him,” adding that “it is a political decision, in effect, for China to decide whether or not he should be engaging.”

    China rejected a meeting between US Defense Secretary Lloyd Austin and Shangfu during a security forum in Singapore earlier this year, although the two did speak briefly.

    “We’ve made very clear that we think it’s a responsibility to have these military-to-military contacts, to have this dialogue, especially to avoid any miscalculations, any misperceptions of what we’re each doing,” Blinken said. “So, we’ll see where China comes out on this.”

    On the Ukraine front, Blinken told Zakaria that Russia has “already lost” the war “in terms of what Russia sought to achieve and what (Vladimir) Putin sought to achieve.”

    “The objective was to erase Ukraine from the map, to eliminate its independence, its sovereignty, to subsume it into Russia. That failed a long time ago,” the secretary said.

    Blinken acknowledged that Ukraine’s mission to regain territory captured by Moscow would be “a very hard fight.” He predicted that the counteroffensive against Russia would continue for “several months.”

    However, he said, along with the aid, military equipment and training Ukraine is receiving from various countries, Kyiv’s cause represents “the decisive element.”

    “Unlike the Russians, Ukrainians are fighting for their land, for their future, for their country, for their freedom,” Blinken said.

    CORRECTION: This story has been updated to reflect that Blinken’s prediction about a conflict continuing for “several months” was a reference to the Ukrainian counteroffensive.

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  • Taiwan’s TSMC to invest $2.9 billion in new plant as demand for AI chips soars | CNN Business

    Taiwan’s TSMC to invest $2.9 billion in new plant as demand for AI chips soars | CNN Business

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    Hong Kong
    CNN
     — 

    TSMC, the world’s largest chipmaker, says it plans to invest nearly 90 billion New Taiwan dollars ($2.9 billion) to build an advanced chip plant in Taiwan, as it expands production to meet booming demand for artificial intelligence (AI) products.

    Last week, CEO C.C. Wei told analysts the company plans to roughly double its capacity for advanced packaging in 2024 compared to 2023, in order to meet “strong demand” for AI chips from its customers, which include Nvidia

    (NVDA)
    and AMD.

    Advanced packaging in the semiconductor industry involves using high-tech methods to aggregate components from various wafers in order to create a more powerful computer chip.

    TSMC

    (TSM)
    said the new plant is expected to create 1,500 jobs.

    “To meet market needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park,” the company told CNN in a statement, referring to fabrication plants — the technical term for semiconductor factories.

    The science park is located in Miaoli County, south of the firm’s main facilities in Hsinchu, near Taipei.

    TSMC on Thursday reported a 23% fall in net profit for the second quarter, compared to the same period last year, as a global economic downturn took a toll on overall demand — even as customers clamored for more of its AI chips.

    Chips manufactured by TSMC for customers like Nvidia are the muscle behind generative AI, a type of artificial intelligence that can create new content, such as text and images, in response to user prompts.

    That’s the kind of AI underlying ChatGPT, Google

    (GOOGL)
    ’s Bard, Dall-E and many of the other new AI technologies.

    TSMC is considered a national treasure in Taiwan, supplying semiconductors to global tech giants including Apple

    (AAPL)
    and Qualcomm

    (QCOM)
    .

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  • US troops restricted to American base in Niger | CNN Politics

    US troops restricted to American base in Niger | CNN Politics

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    CNN
     — 

    US troops in Niger have been restricted to the American military base in Agadez, Niger, as the Biden administration works to restore democratically-elected President Mohamed Bazoum to power.

    A US military official said the approximately 1,000 troops were “retrograded” back to the base last week, shortly after Bazoum was seized by members of the presidential guard on Wednesday.

    The US has not yet formally decided if the situation constitutes a coup – a designation that would require the US to cut foreign and military assistance to the Nigerien government, which could have serious consequences for the fight against terrorism and stability in the region. There is no timeframe in which the US is required to make a coup designation.

    “We’re working really, really hard to see if we can turn this around,” said a senior State Department official on Monday. “Since the situation is not yet set and concrete, we think we should try and take that opportunity.”

    On Thursday, the chairman of the US Joint Chiefs of Staff Gen. Mark Milley spoke with his counterpart in Niger.

    “The two leaders discussed the safety of Americans and the developing situation in Niger,” Col. Dave Butler said in a statement Monday.

    US officials continue to stress that the situation is incredibly fluid, and that their focus is on diplomatic efforts, along with regional partners, to restore democratic rule in Niger.

    The US overall force posture in the country has not changed, as that would require a separate policy decision. But the Pentagon is engaging in “strategic patience as we monitor the situation and see how it resolves itself,” the military official said.

    The US has had troops in Niger for around a decade, mostly advising and training Nigerien forces on counterterrorism efforts.

    The senior State Department official said Monday that the situation on the ground is relatively calm.

    “There’s really no unrest in the city or the country. It’s really all focused on the president’s residence,” where Bazoum is detained, the official said.

    The US continues to perceive the takeover as stemming from an internal domestic dispute between Bazoum and the head of the presidential guard, Gen. Abdourahamane Tiani, who was appointed by the previous president and believed he was going to be dismissed.

    In the days since, Nigerien forces have come out in support of the putschists, though the senior State Department official said that “in subsequent conversations with some key military leaders, they’ve told us that they did not object to what was taking place because they couldn’t figure out how to get the presidential guard to stand down without risk to the life of the President and his family, because the presidential guard had surrounded the president’s residence.”

    The official said it does not appear that Tiani has been able to build consensus among the military on his actions, and that his decision to name himself as president “might have been a surprise to some of the other military leaders in country.”

    “We don’t have an understanding that he is wildly popular,” the official said.

    There are still no indications that groups like Wagner have played any role in the takeover or subsequent protests, but “of course, it is our expectation – you’ve already seen (Wagner founder and financier Yevgeny) Prigozhin speak – that they’ll try and take advantage of it,” the official said.

    “I think the coup leaders will try and take advantage of the anti-French sentiment in the region,” they added.

    While there have been public protests that appear to support the military takeover, the official said that the US believes the public would prefer a democratic government.

    “It’s our expectation that generally speaking, the public would prefer to have their democratically-elected government and not suffer these consequences. But they may not feel free to speak about it,” the official said.

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  • Blinken speaks to Russian foreign minister about WSJ reporter Evan Gershkovich and Paul Whelan | CNN Politics

    Blinken speaks to Russian foreign minister about WSJ reporter Evan Gershkovich and Paul Whelan | CNN Politics

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    CNN
     — 

    US Secretary of State Antony Blinken spoke Sunday with Russian Foreign Minister Sergey Lavrov and called for the “immediate release” of detained Americans Evan Gershkovich and Paul Whelan, according to the US State Department.

    “Secretary Blinken conveyed the United States’ grave concern over Russia’s unacceptable detention of a U.S. citizen journalist,” a readout from the department said.

    “Secretary Blinken further urged the Kremlin to immediately release wrongfully detained U.S. citizen Paul Whelan,” the readout continued, adding that the secretary and Lavrov “also discussed the importance of creating an environment that permits diplomatic missions to carry out their work.”

    Gershkovich, a Wall Street Journal reporter based in Russia, was detained last week on charges of espionage – the first time an American journalist has been detained on such accusations by Moscow since the Cold War. US officials in Moscow had not yet been granted consular access to Gershkovich as of Sunday.

    The Journal’s editor-in-chief, Emma Tucker, said Sunday that the call between Blinken and Lavrov was “hugely reassuring.”

    “We know that the US government is taking the case very seriously right up to the top,” she told CBS News.

    Whelan, meanwhile, is serving out a 16-year prison sentence for the same charges, which he strongly denies. His brother David Whelan said in an email to the press Thursday that his family was sorry to hear “that another American family will have to experience the same trauma that we have had to endure for the past 1,553 days.”

    Whelan has been designated as wrongfully detained by the US State Department, and Gershkovich is expected to receive the same designation but had not yet as of Sunday morning. Tucker said she hopes the US government will act swiftly to label Gershkovich as wrongfully detained, saying it will be anofficial recognition that the charges against the reporter are “entirely bogus.”

    The Russian Foreign Ministry said in a statement that Sunday’s phone call was initiated by the US and that Lavrov told Blinken that Gershkovich’s fate would be determined by a Russian court.

    Lavrov also blamed Washington and the Western press for politicizing the arrest.

    “It was emphasized that it is unacceptable for officials in Washington and Western media to hype up [the issue] with the clear intention of giving this case a political coloring,” the statement said.

    Gershkovich is currently being held in the notorious Lefortovo pre-detention center until May 29. He faces up to 20 years in prison on espionage charges.

    Sunday’s call was only the third time that Blinken has spoken with his Russian counterpart since the war in Ukraine began, and all of those conversations have discussed detained US citizens. The two spoke in person for the first time since the war broke out on the sidelines of the G20 foreign ministers meeting in India last month, and Blinken said he raised the issues of the war, Russia’s suspension of its participation in the New START nuclear agreement, and Whelan’s ongoing detention.

    The chairman of the House Intelligence Committee on Sunday expressed support for the Biden administration’s efforts to negotiate with Russia for Gershkovich’s release.

    “Certainly the Biden administration should continue its efforts to negotiate and to try to get the release of this journalist, but overall, people should be very cautious about staying in Russia,” Republican Rep. Mike Turner of Ohio told CNN’s Dana Bash on “State of the Union.”

    Turner noted that the US government “gave people notice that they should get out of Russia” and said he would continued to encourage people to do so. The Biden administration has echoed those assessments. While the Kremlin has asserted that Russia is safe for accredited journalists, White House press secretary Karine Jean-Pierre told CNN on Friday, “Russia is not safe for Americans.”

    Turner appeared on “State of the Union” on Sunday from southern Poland, where he said he is “meeting with those who are active in intelligence and meeting with our servicemembers who are active in the support of Ukraine.”

    Pressed by Bash on remarks by Chairman of the Joint Chiefs of Staff Gen. Mark Milley that the war in Ukraine will likely not be won this year, the Ohio lawmaker appeared to agree.

    “One thing I can tell you is that Russia is not going to win either,” he said. “This is a war that Russia is not winning, and they’re not winning it because Ukraine realizes that they’re standing up for democracy, they’re fighting for their country. And as they continue to do so, the United States’ assistance and certainly the assistance of our NATO allies and partners are making a huge turnout for the battlefield.”

    This story has been updated with additional reaction.

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  • UK blocks Microsoft takeover of Activision Blizzard | CNN Business

    UK blocks Microsoft takeover of Activision Blizzard | CNN Business

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    London
    CNN
     — 

    The UK antitrust regulator has blocked Microsoft’s $69 billion purchase of Activision Blizzard, thwarting one of the tech industry’s biggest deals over concerns it will stifle competition in cloud gaming.

    The Competition and Markets Authority said in a statement Wednesday that it was worried the deal would lead to “reduced innovation and less choice for UK gamers over the years to come.”

    The acquisition would make Microsoft

    (MSFT)
    “even stronger” in cloud gaming, a market in which it already holds a 60%-70% share globally, the regulator added.

    Activision Blizzard is one of the world’s biggest video game developers, producing games such as “Call of Duty,” “World of Warcraft,” “Diablo” and “Overwatch.” Microsoft, which sells the Xbox gaming console, offers a video game subscription service called Xbox Game Pass, as well as a cloud-based video game streaming service.

    The deal to combine the businesses has been met with growing opposition by antitrust regulators worldwide. In December, the US Federal Trade Commission sued to block the takeover over similar competition concerns. A hearing is scheduled for August. The European Union is also evaluating the transaction

    Microsoft could seek to make Activision’s games exclusive to its own platforms and then increase the cost of a Game Pass subscription, the Competition and Markets Authority said.

    “The cloud allows UK gamers to avoid buying expensive gaming consoles and PCs and gives them much more flexibility and choice as to how they play. Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities,” it added.

    “The evidence available… indicates that, absent the merger, Activision would start providing games via cloud platforms in the foreseeable future.”

    Both companies plan to appeal the decision. “Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal,” Activision Blizzard CEO Bobby Kotick said in a statement.

    Microsoft President Brad Smith added: “This decision appears to reflect a flawed understanding of the market and the way the relevant cloud technology actually works.”

    The Competition and Markets Authority, which launched an in-depth review of the blockbuster deal in September, said Microsoft’s proposed remedies to its concerns had “significant shortcomings.”

    “Their proposals… would have replaced competition with ineffective regulation in a new and dynamic market,” explained Martin Coleman, chair of the independent panel of experts conducting the investigation.

    “Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming, and this deal would strengthen that advantage, giving it the ability to undermine new and innovative competitors,” Coleman continued. “Cloud gaming needs a free, competitive market to drive innovation and choice.”

    The UK cloud gaming market is expected to be worth up to £1 billion ($1.2 billion) by 2026, around 9% of the global market, according to the Competition and Markets Authority.

    -— Josh du Lac and Brian Fung contributed reporting.

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