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Tag: national security

  • Startup investors are fueling a boom in U.S. defense tech as China standoff opens doors at home

    Startup investors are fueling a boom in U.S. defense tech as China standoff opens doors at home

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    Hadrian Automation CEO Chris Power

    Hadrian Automation

    When President Joe Biden announced an executive order last month limiting U.S. investment in critical technologies in China, the venture capital community hardly blinked.

    That’s because many U.S. startup investors have already retreated from China, after years of political mudslinging between the world’s two largest economies led to increased sanctions and trade restrictions.

    But with the door to the Chinese tech market closing, VCs are seeing new opportunities on their home turf. The U.S. government is actively promoting investments in semiconductors and broader industrial development, and investors are finding a widening talent pool invigorated to take on tough challenges in light of world events, with an explicit focus on protecting U.S. values.

    “VCs are saying, ‘Where’s the most stable places to invest? And quite frankly, where’s the talent?’” said Gilman Louie, co-founder of venture firm Alsop-Louie Partners. He’s also CEO of America’s Frontier Fund, which says in its mission statement that it’s “committed to reinvigorating our nation’s innovation and manufacturing prowess in critical frontier technology sectors.”

    “In uncertain times, when there’s unpredictability and global stress, whether you’re a U.S. investor or a foreign investor, you want to come to America to invest,” Louie said.

    Once seen as a vast market of opportunity for U.S. tech companies and investors, China is now filled with more risk than reward and is increasingly viewed as a rival in developing key technologies, including advanced artificial intelligence and quantum computing, that will drive global markets in the decades to come.

    Last year, the U.S. announced export controls aimed at limiting Beijing’s ability to produce advanced military systems, and more recently the Biden administration restricted the ability for U.S. investors to back critical tech in China.

    Meanwhile, lawmakers passed the Chips and Science Act, which promised to pump tens of billions of dollars into semiconductor manufacturing in the U.S. The goal is to reduce international dependence on chips that are key to development of electronics, cars and medical equipment and are becoming more important to national security with the rapid evolution of AI.

    Lindsay Gorman, senior fellow for emerging technologies at the German Marshall Fund’s Alliance for Securing Democracy, said she’s seen a “new crop of venture capitalists” in the last few years that prioritize U.S. tech competition with China and U.S. national security.

    “Ten, 15 years ago, these geopolitical lines were not part of the equation,” Gorman said.

    Louie added that he doesn’t “know of a single major fund out there that isn’t thinking about disruptive tech investing in the U.S., investing in defense tech, investing in microelectronics and AI in the next generation and next iteration.”

    In Torrance, California, just south of Los Angeles, Hadrian Automation is building efficient factories to help space and defense companies get parts faster and cheaper. CEO Chris Power, who started the company in 2020, said he’s seeing increased interest from large growth funds that have typically invested in software.

    “Everyone’s kind of standing up their own their own practices to support the market,” Power said. Hadrian’s early backers include Lux Capital and Peter Thiel’s Founders Fund, which have longer histories of investing in manufacturing and deep science.

    Palmer Luckey, Founder @ Oculus VR Andutil Industries, during day two of Collision 2019 at Enercare Center in Toronto, Canada.

    Stephen McCarthy | Sportsfile | Getty Images

    VC funding in aerospace and defense tech has shot up in recent years, according to data compiled by PitchBook for CNBC. In 2019, 69 companies in the sector raised a total of $1.7 billion in value. In 2021, that jumped to 119 deals worth $6.4 billion. Last year, which was the worst for tech stocks since 2008, saw a slight slippage in the space to $5.6 billion, though the number of deals was the same as 2022, according to PitchBook.

    The posterchild for U.S.-focused defense tech is Anduril Industries, co-founded in 2017 by Oculus Rift designer Palmer Luckey. The company, which ranked seventh on the latest CNBC Disruptor 50 List and has been valued at $8.4 billion by private investors, develops autonomous technology for national security and warfare.

    On Thursday, Anduril announced the acquisition of Blue Force Technologies, which develops autonomous aircraft for defense and commercial customers.

    While Anduril started with a focus on military contracts, other startups have navigated their way there.

    Not just about patriotism

    Saildrone, which makes unmanned ships, was originally focused on monitoring environmental data for fisheries and agencies like the National Oceanic and Atmospheric Administration.

    It later became clear to CEO Richard Jenkins that the company needed to expand its aperture to bring in more revenue, since the government wasn’t spending enough on science to make the business work. Bilal Zuberi, a partner at early investor Lux, asked the company if it would consider selling its products to the Navy or Coast Guard.

    Zuberi said Jenkins came to him with a key concern. He was unsure how his team would react if the environmental company they joined began selling to the defense sector. Zuberi talked about how he sees the opportunity differently. Saildrone’s technology can help prevent greater human casualty by, for example, learning of certain precise moves by the Chinese government in advance so the U.S. could send a warning signal and avoid a greater conflict.

    Jenkins decided to make the pitch to his team. He told staffers he had a “pretty firm line on not weaponizing the platforms,” and keeping the focus on data collection tools. He also said the company wasn’t foregoing its climate work.

    Saildrone didn’t lose any employees as a result of the shift.

    Saildrone autonomous boats rove the seas, collecting data about weather, ships, fish and more.

    “There was a perception that the technology industry doesn’t understand the importance of national security and what it takes to protect our democracy,” Zuberi said. “And then the military doesn’t care about the technology that we’re developing. I think that perception has somewhat been shattered.”

    Zuberi said that for industry leaders it doesn’t have to be about patriotism. They can just look at the untapped potential in defense tech.

    “It’s not like the last five years, suddenly investors woke up more patriotic than they used to be,” Zuberi said. “I think they just realized that there’s a big business opportunity here that they want to access.”

    ‘To work in defense was certainly taboo’

    Paul Kwan, managing director of venture firm General Catalyst, had a similar observation.

    “What’s changed around tech the last few years is people want to work on stuff that makes a difference and has a bigger impact on the world,” said Kwan, who has written about the firm’s “renewed” focus on “modern defense and intelligence.”

    While tech workers at companies including Google and Salesforce have made headlines in the past for protesting their employers’ defense contracts, the topic is more nuanced now in the startup world.

    “As a technologist, to work in defense was certainly taboo,” said Kyle Harrison, general partner of Contrary Capital. “I think the conversation has been more open. I think there’s still people that feel very strongly about it, for and against. But it used to be nobody really talked about it, where now people are acknowledging that it’s really difficult to protect a lot of the values that you think are important if your defense apparatus is from the ’80s.”

    Part of the movement is driven by an awareness of the Russian war in Ukraine, several VCs said, which has highlighted the role defense can play in protecting values of democracy.

    US President Joe Biden arrives to speak on rebuilding US manufacturing through the CHIPS and Science Act at the groundbreaking of the new Intel semiconductor manufacturing facility near New Albany, Ohio, on September 9, 2022.

    Saul Loeb | AFP | Getty Images

    “You have an aggressor nation, taking land and causing death and destruction to civilians,” said Raj Shah, managing partner of Shield Capital, adding that tech workers “want to do something to help and they want to have meaning in their lives. And photo-sharing apps are only so important.”

    As Lux co-founder Josh Wolfe said, “Do you want to build software that has people clicking on ads, or do you want to do things that have a lasting impact on the safety and security of the American people and helping to reduce human suffering around the world?”

    It’s not just shifting sentiment within the tech community. There’s also a growing openness from the U.S. defense community to procuring technology from newer players.

    “The government’s becoming a better customer,” said Shah, who previously served as managing partner of the Defense Department’s Defense Innovation Unit (DIU), which seeks to accelerate the use of emerging technologies. “It actually makes business sense to solve important security problems.”

    Power, the CEO of Hadrian, said the narrative of “Silicon Valley hates the government and the government hates Silicon Valley” is gone, even though he says “I don’t think it was ever true.”

    “People are viewing selling software to the government as a real market opportunity versus something that may or may not happen or would take them ten years,” Power said.

    One area where the shift in mindset has become abundantly clear in the past year or two, Power said, is in recruiting. In the past, some potential prospects expressed little interest in manufacturing, but now Power said he finds many more people who are compelled to solve these problems.

    Wolfe said that trend permeates throughout his portfolio.

    “Money follows talent,” Wolfe said. “And talent is going into hard tech.”

    Subscribe to CNBC on YouTube.

    WATCH: Chipmaking nations such as the U.S. are teaming up against China

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  • CNN Poll: Biden faces negative job ratings and concerns about his age as he gears up for 2024 | CNN Politics

    CNN Poll: Biden faces negative job ratings and concerns about his age as he gears up for 2024 | CNN Politics

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    CNN
     — 

    President Joe Biden faces continued headwinds from broadly negative job ratings overall, widespread concerns about his age and decreased confidence among Democratic-aligned voters, according to a new CNN Poll conducted by SSRS.

    There is no clear leader in a potential rematch between Biden and former President Donald Trump, who is widely ahead in the GOP primary. And nearly half of registered voters (46%) say that any Republican presidential nominee would be a better choice than Biden in 2024.

    Meanwhile, hypothetical matchups also suggest there would be no clear leader should Biden face one of the other major GOP contenders, with one notable exception: Biden runs behind former South Carolina Gov. Nikki Haley.

    Since Biden announced his reelection bid earlier this year – where he framed the 2024 contest as a fight against Republican extremism – his approval ratings have remained mired below the mid-40s, similar to Trump’s standing in 2019, and several points below Ronald Reagan, Barack Obama and Bill Clinton at this point ahead of their reelection campaigns.

    Still, Biden’s prospective opponents face challenges of their own: 44% of voters feel any Democratic candidate would be a better choice than Trump. Among the full public, both Biden’s and Trump’s favorability ratings stand at just 35%.

    Views of Biden’s performance in office and on where the country stands are deeply negative in the new poll. His job approval rating stands at just 39%, and 58% say that his policies have made economic conditions in the US worse, up 8 points since last fall. Seventy percent say things in the country are going badly, a persistent negativity that has held for much of Biden’s time in office, and 51% say government should be doing more to solve the nation’s problems.

    Perceptions of Biden personally are also broadly negative, with 58% saying they have an unfavorable impression of him. Fewer than half of Americans, 45%, say that Biden cares about people like them, with only 33% describing him as someone they’re proud to have as president. A smaller share of the public than ever now says that Biden inspires confidence (28%, down 7 percentage points from March) or that he has the stamina and sharpness to serve effectively as president (26%, down 6 points from March), with those declines driven largely by Democrats and independents.

    Roughly three-quarters of Americans say they’re seriously concerned that Biden’s age might negatively affect his current level of physical and mental competence (73%), and his ability to serve out another full term if reelected (76%), with a smaller 68% majority seriously concerned about his ability to understand the next generation’s concerns (that stands at 72% among those younger than 65, but just 57% of those 65 or older feel the same).

    A broad 67% majority of Democratic and Democratic-leaning voters now say it’s very or extremely likely that Biden will again be the party’s presidential nominee, up from 55% who felt that way in May. But 67% also say the party should nominate someone other than Biden – up from 54% in March, though still below the high of 75% who said they were seeking an alternative last summer.

    That remains largely a show of discontent with Biden rather than support for any particular rival, with an 82% majority of those who’d prefer to see someone different saying that they don’t have any specific alternative in mind. Just 1%, respectively, name either of his two most prominent declared challengers, Robert F. Kennedy, Jr. or Marianne Williamson.

    Much of the hesitation revolves around Biden’s vitality rather than his handling of the job. While strong majorities of Democratic and Democratic-leaning voters continue to say that Biden cares about people like them (81%) and to approve of his overall job performance (75%), declining shares see him as inspiring confidence (51%, down 19 percentage points since March) or having the stamina and sharpness to serve effectively as president (49%, down 14 points from March).

    Asked to name their biggest concern about a Biden candidacy in 2024, 49% directly mention his age, with his mental acuity (7%) and health (7%) also top concerns, along with his ability to handle the job (7%) and his popularity and electability (6%). Just 5% say that they have no concerns.

    “I think he’s a trustworthy, honest person. But he’s so old and not totally with it,” wrote one 28-year-old Democratic voter who was surveyed. “Still love him though. But I also wish he was more progressive. It’s complicated.”

    Others see both positives and negatives to his age. “His age is a bit worrisome, but I would like to see a good strong Democrat as a consideration,” wrote a 66-year-old Democratic-leaning independent voter. “Otherwise I and husband will stick with Biden. He has wisdom many younger do not have nor understand.”

    Asked directly about the potential effects of his age, majorities of Democratic-aligned voters say they are seriously concerned that Biden’s age might negatively affect his current level of physical and mental competence (56%), his ability to win the 2024 general election if nominated (60%), and his ability to serve another full term as president if reelected (61%). Fewer, 43%, say they’re seriously concerned that his age would negatively affect his ability to understand the concerns of the next generation of Americans, although that rises to 59% among Democratic-aligned voters younger than 45. If reelected, Biden would take office in January 2025 at age 82.

    Most Democratic-aligned voters younger than 45 say they approve of Biden’s job performance overall. But in a break from older partisans, substantial majorities also say that Biden does not inspire confidence (63%), does not have the stamina and sharpness to serve effectively (64%), and that his policies have failed to improve the economy (64%).

    In an early gauge of a hypothetical Biden-Trump rematch, CNN’s poll finds, registered voters are currently split between Trump (47%) and Biden (46%), with the demographic contours that defined the 2020 race still prominent. Biden sees majority support among voters of color (58%), college graduates (56%), voters younger than 35 (55%) and women (53%), while Trump has majority support among Whites (53%), men (53%) and voters without a college degree (53%). Independent voters break in Biden’s favor, 47% to 38%, as do suburban women (51% Biden to 44% Trump). Trump holds wide, though not unanimous, support among voters who currently disapprove of Biden’s job performance, with 13% in this group saying they’d back Biden over Trump regardless.

    Presidential elections are decided by the state-by-state votes that determine the makeup of the electoral college rather than by national preferences, and given the distribution of electoral college votes among the states, a near-even race in the nationwide ballot is more likely to tilt to the Republican candidate in the electoral college count than the Democratic one.

    Nearly 6 in 10 registered voters say that their vote in a matchup between Trump and Biden would be largely motivated by their attitudes toward the former Republican president – 30% say they’d vote for Biden mostly to express their opposition to Trump, and 29% that they’d vote for Trump mostly in an affirmative show of support. Only about one-third, by contrast, said they’d see their votes mostly as a way to cast judgment on Biden.

    The criminal cases against Trump loom large over his candidacy, with both those motivated by support and those driven by opposition to him offering strongly held views on the charges. Those who say their support for Biden is more of an anti-Trump vote are near universal in saying the charges related to his role in the January 6, 2021, attack on the US Capitol (96%) and to efforts to overturn the 2020 election (93%) are disqualifying if true, while about seven in 10 of those who say their backing for Trump is to show support for him say the former president faces so many charges largely due to political abuse of the justice system (69%).

    Despite voters’ strong opinions toward Trump, Biden fares no better against any other Republican hopefuls tested in the poll. He is about even with Ron DeSantis (47% each), Mike Pence (46% Pence, 44% Biden), Tim Scott (46% Scott, 44% Biden), Vivek Ramaswamy (46% Biden, 45% Ramaswamy), and Chris Christie (44% Christie, 42% Biden). Haley stands as the only GOP candidate to hold a lead over Biden, with 49% to Biden’s 43% in a hypothetical match between the two. That difference is driven at least in part by broader support for Haley than for other Republicans among White voters with college degrees (she holds 51% of that group, compared with 48% or less for other Republicans tested in the poll).

    As of now, Republican and Republican-leaning voters are more deeply driven to vote in 2024 (71% extremely motivated) than Democratic-aligned voters (61% extremely motivated).

    The CNN Poll was conducted by SSRS from August 25-31 among a random national sample of 1,503 adults drawn from a probability-based panel, including 1,259 registered voters and 391 Democratic and Democratic-leaning independent voters. The survey included an oversample to reach a total of 898 Republicans and Republican-leaning independents; this group has been weighted to its proper size within the population. Surveys were either conducted online or by telephone with a live interviewer. Results among the full sample have a margin of sampling error of plus or minus 3.5 points; among registered voters, the margin of sampling error is 3.6 points, and it is 6.0 for Democratic and Democratic-leaning voters.

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  • Terror suspect on the run after escaping London prison | CNN

    Terror suspect on the run after escaping London prison | CNN

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    CNN
     — 

    A serving member of the British Army awaiting trial on terror charges escaped from prison in London on Wednesday, the city’s Metropolitan Police said.

    Daniel Abed Khalife went missing from Wandsworth prison, in the southwest of the British capital, shortly before 8 a.m. UK time. He had been awaiting trial for terror offenses and alleged breaches of the Official Secrets Act.

    Khalife is a soldier accused of planting fake bombs at a military base, according to the PA Media news agency.

    “Police are issuing an urgent appeal to the public to help trace a 21-year-old man who has escaped from prison,” the Metropolitan Police said in a statement.

    “Khalife was on remand at HMP Wandsworth, awaiting trial in relation to terrorism and Official Secrets Act offences,” it continued. “From our initial enquiries, it is believed he escaped from the prison at approximately 07:50hrs.”

    According to the Met statement, Khalife was last seen wearing a white t-shirt, red and white checkered trousers and brown steel toe cap boots.

    He is of slim build, has short brown hair and is around 6ft 2ins tall.

    Police believe that he most likely remains in the London area at this time, although he may have traveled further afield.

    Commander Dominic Murphy, head of the Met’s Counter Terrorism Command, said: “We have a team of officers who are making extensive and urgent enquiries in order to locate and detain Khalife as quickly as possible.”

    “I also want to reassure the public that we have no information which indicates, nor any reason to believe, that Khalife poses a threat to the wider public, but our advice if you do see him is not to approach him and call 999 straight away,” Murphy added, referring to the UK’s emergency services phone line.

    British airports and ports are also experiencing disruption after counter-terrorism police alerted the country’s airports and ports to Khalife’s escape.

    Manchester Airport was facing delays of up to 30 minutes on Wednesday afternoon after introducing extra security checks, according to PA Media.

    Meanwhile, Port of Dover Travel posted on X, formerly known as Twitter: “Due to a police matter, there are currently enhanced checks on outbound traffic at the Port of Dover and other portals within the UK.

    “Please be advised this is currently resulting in some delays at the port.”

    UK prison escapes are a rare occurrence. Data from the British government shows that there was just one escape across England and Wales in 2021-22, none in the proceeding period, and only a handful in the years prior to that.

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  • Biden in Florida promises to rebuild, calls on Congress to provide more FEMA funding

    Biden in Florida promises to rebuild, calls on Congress to provide more FEMA funding

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    View of a damaged property after the arrival of Hurricane Idalia in Horseshoe Beach, Florida, August 31, 2023.

    Julio Cesar Chavez | Reuters

    President Joe Biden standing in front of a home damaged by a fallen tree said it was “but for the grace of God” the damage wasn’t worse.

    “No winds this strong hit this area in one hundred years,” Biden said, speaking in Live Oak, Florida. “Pray God it will be another hundred years before this happens again.”

    Biden and first lady Jill Biden traveled to Florida on Saturday to survey the damage done by Hurricane Idalia and meet with locals and recovery personnel. The president said he’s directed the Federal Emergency Management Agency (FEMA) to do “everything they can” to help rebuild.

    Idalia hit Florida’s Big Bend region on Wednesday as a Category 3 storm, leading to widespread power outages and flooding. The White House has called on Congress to provide $16 billion in stopgap funding to bolster FEMA’s disaster relief fund which the agency said will be exhausted in the first half of September if it is not replenished. Speaking Saturday in Florida, Biden once again called on Congress to act.

    “These crises are affecting more and more Americans, and every American regularly expects FEMA to show up when they are needed,” Biden said. “I’m calling on the United States Congress — Democrats and Republicans — to ensure the funding is there.”

    Biden initially said he would meet with Florida Governor Ron DeSantis, whom he’s spoken to so frequently in the wake of Idalia that the president joked Thursday, “There should be a direct dial.” In a statement Friday night, however, Jeremy Redfern, a spokesman for DeSantis, said the governor did not have plans to meet with the president, citing security difficulties.

    “In these rural communities, and so soon after impact, the security preparations alone that would go into setting up such a meeting would shut down ongoing recovery efforts,” Redfern said.

    Speaking to reporters en route to Florida, FEMA Administrator Deanne Criswell said the White House and governor’s office mutually agreed on the location for Biden’s visit earlier this week and said no security concerns were voiced at that time or before the statement from DeSantis’s office was released.

    DeSantis, who is seeking the Republican nomination for president, has been a strong critic of Biden, but the two have come together in the past. Biden met with DeSantis after Hurricane Ian last year.

    Biden in his remarks noted he has been in “frequent touch” with DeSantis throughout the storm and its aftermath, adding “the governor was on top of it.”

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  • China says drop in trade with the U.S. is ‘a direct consequence of U.S. moves’

    China says drop in trade with the U.S. is ‘a direct consequence of U.S. moves’

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    Relations between Washington and Beijing are at their lowest in decades amid disputes over trade, technology, human rights and China’s increasingly aggressive approach toward its territorial claims involving self-governing Taiwan and the South China Sea.

    Jason Lee | Reuters

    BEIJING — China’s ambassador to the U.S., Xie Feng, has blamed U.S. tariffs and export controls for a drop in trade between the two countries.

    That’s according to a speech he gave via video on Tuesday at Forbes’ U.S.-China Business Forum in New York, published online by the Chinese embassy in the U.S.

    China-U.S. trade fell by 14.5% in the first half of the year from a year ago, Xie pointed out.

    “This is a direct consequence of U.S. moves to levy Section 301 tariffs on Chinese imports, abuse unilateral sanctions and further tighten up export controls,” he said.

    “Livelihoods of many families have been affected, and businesses from both countries have born the brunt.”

    China’s trade partners

    The U.S. is China’s largest trading partner on a single country basis.

    Year-to-date, U.S.-China trade fell further in July with a 15.4% decline from the same period in 2022, China customs data showed.

    To shut out China is to close the door on opportunities, cooperation, stability and development.

    Xie Feng

    China’s ambassador to the U.S.

    Xie on Tuesday called for finding “a path for expanding mutually beneficial economic cooperation and trade between China and the United States.”

    “Going forward, we need to continue taking concrete steps, no matter how small they may look,” he said, giving examples — such as making it easier for people to travel between the two countries, and renewing an agreement to cooperate on science and technology.

    On a regional basis, the European Union and Association of Southeast Asian Nations are China’s largest trading partners. Those trade flows have also dropped this year — albeit at a more moderate pace — amid a decline in global demand.

    Xie on Tuesday pointed out China’s global dominance in trade and in industries such as electric vehicles. He noted that France, the U.K. and Japan had significantly increased their foreign investment in China in the first half of the year.

    “More efforts will be made to protect foreign investment and ensure national treatment for foreign-invested enterprises,” he said.

    U.S. Commerce Secretary visits China

    In his remarks, Xie noted U.S. Commerce Secretary Gina Raimondo’s trip to China this week. Following her meetings with Chinese government officials, the U.S. and China agreed to establish regular communication channels on commerce, export controls and protecting trade secrets.

    Raimondo told reporters said she “said no” to China’s requests to reduce export controls and “retract” the executive order on outbound investment screening.

    “We don’t negotiate on matters of national security,” she said.

    Instead of containing China, it will only curtail the right of American businesses to develop in China.

    Xie Feng

    China’s ambassador to the U.S.

    The U.S. government has cited national security concerns for its moves to restrict Chinese companies’ purchases of advanced semiconductors from U.S. businesses.

    In 2018, the Trump administration imposed tariffs on Chinese goods, to which Beijing responded with tariffs of its own.

    Xie claimed that average U.S. tariffs on Chinese products were 19%, while the Chinese tariffs on U.S. goods averaged 7.3%.

    “Is this fair? Does this truly serve U.S. interests?”

    U.S.-China relations are the worst they've been in thirty years, says attorney Dennis Unkovic

    The ambassador assumed his role in May after a period of about six months in which China had no ambassador to the U.S. 

    In August, U.S. President Joe Biden signed an executive order aimed at restricting U.S. investments into Chinese semiconductor, quantum computing and artificial intelligence companies over national security concerns. Treasury Secretary Janet Yellen is mostly responsible for determining the details, which currently remain open to public comment. 

    Xie called the executive order “a violation of the principle of free trade.”

    Read more about China from CNBC Pro

    “It is simply confusing that the United States, which repeatedly urged China to expand access for foreign investment in the past, is now imposing restrictions itself,” he said. “Instead of containing China, it will only curtail the right of American businesses to develop in China.”

    As part of Raimondo’s trip to China, the U.S. commerce secretary said she spoke with more than 100 businesses and increasingly heard from them that “China is uninvestible because it’s become too risky.”

    “My message was there’s a desire to do business, but we need predictability, due process and a level playing field,” Raimondo added in an exclusive interview with CNBC’s Eunice Yoon on Wednesday.

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  • US intel: Ukraine war caused ‘one of the most disruptive periods’ for global food security | CNN Politics

    US intel: Ukraine war caused ‘one of the most disruptive periods’ for global food security | CNN Politics

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    CNN
     — 

    Russia’s invasion of Ukraine caused deep disruptions in the global food supply, raising prices and increasing the risk of food insecurity in poorer nations in the Middle East and North Africa, America’s top spy agency said in an unclassified report released by Congress on Wednesday.

    The direct and indirect effects of the war “were major drivers of one of the most disruptive periods in decades for global food security,” the eight-page report found – in large part because Ukraine and Russia were among the world’s largest pre-war exporters of grain and other agricultural products.

    Although food security concerns have abated since the start of this year, according to the report, the future trajectory of global food prices likely will depend in part on what happens with the Black Sea Grain Initiative, which Russia ended in July. The deal, facilitated by the United Nations, had allowed Ukrainian agricultural shipments to safely exit Black Sea ports and reach the international market.

    How much acreage Ukraine is able to cultivate as the war continues to rage and the cost and availability of fertilizers will also have an impact on global food prices, the report found. Global fertilizer prices reached near-record levels in mid-2022 as global oil and natural gas prices rose.

    “The combination of high domestic food prices and historic levels of sovereign debt in many countries – largely caused by spending and recessionary effects of the COVID-19 pandemic – has weakened countries’ capacity to respond to heightened food insecurity risks,” the report said. “These factors probably will undermine the capacity of many poor countries to provide sufficient and affordable food to their population through the end of the year.”

    Droughts last year in Canada, the Middle East, South America and the United States also compounded the war-related stress on global food supplies, according to the report.

    Intelligence officials have accused Russia in the past of weaponizing food supplies by blocking Ukrainian exports, destroying infrastructure and occupying Ukrainian agricultural land.

    Citing satellite imagery and open-source reporting, the report said that Russia stole nearly 6 million tons of Ukrainian wheat harvested from occupied territories in 2022. Cargo ships used to transport the stolen grain out of Russian-occupied territories in 2022 would steer along the coast of Turkey to deliver shipments to ports in Syria, Israel, Iran, Georgia and Lebanon, the report said.

    “We cannot confirm if the buyers of the Russian cargoes were aware of the grains’ Ukrainian origin,” the report said.

    The report was mandated by the annual intelligence authorization bill and released by the House Intelligence Committee.

    “This report casts light on the war’s broader disruption to global food security and reveals how (Russian President Vladimir) Putin has intentionally used food security and the threat of starvation as a negotiating chip,” committee leaders Reps. Mike Turner and Jim Himes said in a statement. “Russia’s recent refusal to renew the Black Sea Grain Initiative will worsen this crisis, driving vulnerable nations into food shortages that could leave millions struggling to eat.”

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  • Top Chinese official tells the US commerce secretary he’s ready to improve cooperation

    Top Chinese official tells the US commerce secretary he’s ready to improve cooperation

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    BEIJING — The top Chinese official in charge of economic relations with Washington told Commerce Secretary Gina Raimondo on Tuesday he was ready to “make new positive efforts” to improve cooperation following an agreement to reduce trade tension by launching groups to discuss export controls and other commercial disputes.

    The agreement Monday was the most substantial result to date out of a string of visits by American officials to Beijing over the last three months to revive relations that are at their lowest level in decades. They express optimism about better communication, but neither side has given a sign it is ready to compromise on disputes about technology, security, human rights and other irritants.

    Vice Premier He Lifeng sounded an optimistic note, referring to “in-depth exchanges” in July with his American counterpart, Treasury Secretary Janet Yellen.

    “I’m ready to work based on that with you, to make new positive efforts to deepen our consensus and extend our cooperation,” He told Raimondo during a meeting at the Great Hall of the People in central Beijing.

    The two governments would launch an “information exchange” about U.S. controls on technology exports that irritate Beijing, though she defended the curbs as necessary for national security and gave no indication they might be relaxed.

    “I’m looking forward to finding ways that we can more effectively engage on commercial issues that impact our relationship,” Raimondo told He. She said President Joe Biden “asked me to reiterate to you our desire to have more open engagement.”

    Beijing broke off dialogue on military, climate and other issues with Washington in August 2022 in retaliation for a visit to Taiwan by then-House Speaker Nancy Pelosi. The mainland’s ruling Communist Party claims the self-ruled island democracy as part of its territory and objects to any government having official contact.

    Chinese leader Xi Jinping’s government is trying to revive investor interest in China and reassure foreign companies as part of efforts to reverse an economic slump.

    A key Chinese complaint is limits on access to processor chips and other U.S. technology on security grounds that threaten to hamper the ruling Communist Party’s ambition to develop artificial intelligence and other industries. The curbs crippled the smartphone business of Huawei Technologies Ltd., China’s first global tech brand.

    Raimondo defended the Biden administration’s strategy of “de-risking,” or encouraging more high-tech manufacturing in the United States and to develop more sources of industrial supplies to reduce disruption. Beijing has criticized that as a possible attempt to isolate China and hamper its development.

    “While we will never of course compromise in protecting our national security I want to be clear that we do not seek to decouple or to hold China’s economy back,” Raimondo told He.

    Also Tuesday, Raimondo met with the Chinese minister of culture and tourism, Hu Heping. She said they agreed to ”advance our people to people ties through increased tourism and educational and student exchange.”

    China is gradually reviving foreign tourism after lifting anti-virus controls that blocked most travel into and out of the country for three years. The number of foreign students in China fell close to zero during the COVID-19 pandemic.

    The visits take place under an agreement made by Xi and Biden during a meeting last November in Indonesia. The Chinese state press has given them positive coverage, but Beijing has given no indication it might change trade, strategic, market access and other policies that irk Washington and its Asian neighbors.

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  • Trump valet’s lawyer complains of threats after special counsel revealed Mar-a-Lago worker changed story

    Trump valet’s lawyer complains of threats after special counsel revealed Mar-a-Lago worker changed story

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    Walt Nauta, personal aide to former U.S. President Donald Trump, arrives at Alto Lee Adams Sr. U.S. Courthouse, in Fort Pierce, Florida, U.S. August 10, 2023.

    Marco Bello | Reuters

    The defense attorney for Donald Trump‘s valet Walt Nauta complained Friday that he received threats after special counsel Jack Smith revealed that a Mar-a-Lago IT director had admitted to giving false testimony in the former president’s classified documents criminal case.

    The lawyer, Stanley Woodward, had represented IT director Yuscil Taveras when his client gave that false testimony to a grand jury, according to Smith’s recent court filing.

    Only after Taveras dropped Woodward and got another lawyer did he change his story, admitting he was told to destroy security footage, Smith said in Tuesday’s filing.

    Woodward on Friday blasted Smith’s filing as a “brazen and overt effort” to influence the case’s judge and “the court of public opinion” by quoting from a sealed document Woodward had previously submitted in connection with issues surrounding his representation of Taveras.

    Woodward’s outrage toward the prosecutor was laid out in his new filing in federal court for the Southern District of Florida, after Smith raised concerns about the defense attorney’s potential conflicts of interest in the case.

    Woodward currently represents Nauta and other witnesses in the case, but he no longer represents Taveras.

    On Friday evening, Smith in a new filing responding to Woodward’s claims said that permission for public disclosure of “all information” related to a hearing in Washington on Woodward’s potential conflicts in the case “was expressly granted” on July 31 by a judge there after the special counsel requested authorization of such disclosure.

    Trump, Nauta and Mar-a-Lago maintenance worker Carlos De Oliveira are charged in federal court in Florida with crimes related to Trump’s retention of classified documents after leaving the White House. They have all pleaded not guilty.

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    Read more of CNBC’s politics coverage:

    Among other things, the defendants are accused of a scheme that aimed to erase surveillance security footage at Mar-a-Lago — Trump’s private club in Palm Beach, Florida — showing boxes of classified records being moved around there by Nauta and De Oliveira.

    Nauta’s legal fees are being paid for by Trump’s political action committee, according to public election commission filings.

    Woodward disputes the idea that he currently has a conflict of interest, and he asked Judge Aileen Cannon in his filing Friday for a week to submit a detailed rebuttal explaining his position.

    Woodward also revealed Friday that Smith’s disclosure of the Taveras situation has created blowback for the lawyer.

    “In the time since the government’s submission, defense counsel has received several threatening and/or disparaging emails and phone calls.”

    “This is the result of the Special Counsel’s callous disregard for how their unnecessary actions affect and influence the public and the lives of the individuals involved in this matter,” Woodward wrote.

    De Oliveira is accused of asking Taveras to delete the footage at Trump’s behest.

    On Tuesday, Smith filed a document raising concerns that Woodward has a conflict of interest because he might have to cross-examine his former client, Taveras.

    Smith noted that Woodward was serving as Taveras’ lawyer when the IT director testified before a Washington, D.C., grand jury in March.

    During that testimony, Taveras “repeatedly denied or claimed not to recall any contacts or conversations about the security footage at Mar-a-Lago,” Smith wrote.

    On June 20, Smith’s office notified Taveras, “through Mr. Woodward … that he was the target of a grand jury investigation in the District of Columbia into whether he committed perjury” during his testimony in March, the prosecutor wrote in the filing.

    After the chief federal district judge in Washington had a federal public defender give advice to Taveras about the potential conflict of being represented by Nauta’s attorney, Taveras told the judge “he no longer wished to be represented by Mr. Woodward,” Smith wrote.

    And “immediately after” accepting the public defender as his new lawyer, Taveras “retracted his prior false testimony,” Smith wrote.

    Taveras also “provided information that implicated Nauta, De Oliveira, and Trump in efforts to delete security camera footage, as set forth in the superseding indictment,” the prosecutor wrote.

    Smith asked Cannon, the Florida judge, to schedule a hearing on Woodward’s alleged conflict of interests with “Mr. Woodward’s clients present and independent counsel available to provide them with advice should they so desire.”

    In his filing Friday, Woodward wrote that Smith “did not, and still has not, alleged any actual conflict in defense counsel’s representation of Mr. Nauta.”

    “It has not done so for the obvious fact that no conflict would arise unless and until Trump Employee 4 [as Taveras is identified in court filings] testified against Mr. Nauta,” Woodward wrote.

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  • Far-right Israeli security minister lashes out at supermodel Bella Hadid over her criticism of him

    Far-right Israeli security minister lashes out at supermodel Bella Hadid over her criticism of him

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    TEL AVIV, Israel — Israel’s far-right national security minister lashed out at supermodel Bella Hadid on Friday for criticizing his recent fiery televised remarks about Palestinians in the occupied West Bank.

    In an interview earlier this week with Israel’s Channel 12 following two deadly Palestinian attacks against Israelis in the occupied territory, National Security Minister Itamar Ben-Gvir argued that his right to freedom of movement as a Jewish settler outweighs the same right for Palestinians.

    “My right, the right of my wife and my children to move around Judea and Samaria, is more important than freedom of movement for the Arabs,” Ben-Gvir said on TV Wednesday, using the biblical name for the West Bank. “The right to life comes before freedom of movement.”

    Addressing Mohammad Magadli, a well-known Israeli-Arab television host who was in the studio, Ben-Gvir added: “Sorry, Mohammad. But that’s the reality.”

    His statement drew widespread criticism as commentators seized on it as proof of allegations that Israel was turning into an apartheid system that seeks to maintain Jewish hegemony from the Jordan River to the Mediterranean Sea. The catchphrase “Sorry, Mohammad” became meme fodder for social media as critics posted it alongside videos of Israeli violence against Palestinians.

    Hadid, a world-famous supermodel and social media influencer whose father is Palestinian, shared an excerpt from Ben-Gvir’s interview with her 59.5 million followers on Instagram on Thursday, writing: “In no place, no time, especially in 2023 should one life be more valuable than another’s. Especially simply because of their ethnicity, culture or pure hatred.”

    She also posted a video from leading Israeli rights group B’Tselem showing Israeli soldiers in the southern West Bank city of Hebron telling a resident that Palestinians are not permitted to walk on a certain street because it is reserved for Jews. “Does this remind anyone of anything?” she wrote.

    Ben-Gvir responded angrily on Friday to Hadid’s post.

    “I invite you to Kiryat Arba, to see how we live here, how every day, Jews who have done nothing wrong to anyone in their lives are murdered here,” he wrote on X, formerly known as Twitter. Ben-Gvir lives in the settlement of Kiryat Arba near Hebron, the largest Palestinian city.

    Earlier this week, Palestinian gunmen opened fire on an Israeli car near Hebron, killing an Israeli woman and seriously wounding the driver. That attack came just days after a Palestinian shooting attack killed an Israeli father and son in the northern Palestinian town of Hawara.

    Ben-Gvir acknowledged the backlash but doubled down on his original statement. “So yes, the right of me and my fellow Jews to travel and return home safely on the roads of Judea and Samaria outweighs the right of terrorists who throw stones at us and kill us,” he wrote.

    Ben-Gvir has been convicted in the past of inciting racism and of supporting a terrorist organization. He was known as an admirer of rabbi Meir Kahane, who was banned from Parliament and whose Kach party was branded a terrorist group by the United States before he was assassinated in New York in 1990. Kach wanted to strip Arab Israelis of their citizenship, segregate Israeli public spaces, and ban marriages between Jews and non-Jews. Before joining politics, Ben-Gvir hung a portrait in his living room of a Jewish man who fatally shot 29 Palestinians in the West Bank in 1994.

    A once-marginal far-right activist, Ben-Gvir now wields significant power as the national security minister overseeing the Israeli police force in Prime Minister Benjamin Netanyahu’s government.

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  • Fact check: The first Republican presidential debate of the 2024 election | CNN Politics

    Fact check: The first Republican presidential debate of the 2024 election | CNN Politics

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    CNN
     — 

    Republican presidential candidates delivered a smattering of false and misleading claims at the first debate of the 2024 election – though none of the eight candidates on stage in Milwaukee delivered anything close to the bombardment of false statements that typically characterized the debate performances of former President Donald Trump, the Republican front-runner who skipped the Wednesday event.

    Sen. Tim Scott of South Carolina inaccurately described the state of the economy in early 2021 and repeated a long-ago-debunked false claim about the Biden-era Justice Department. Former New Jersey Gov. Chris Christie misstated the sentence attached to a gun law relevant to the investigation into the president’s son Hunter Biden. Florida Gov. Ron DeSantis misled about his handling of the Covid-19 pandemic, omitting mention of his early pandemic restrictions.

    Below is a fact check of those claims and various others from the debate, some of which left out key context. In addition, below is a brief fact check of some of Trump’s claims from a pre-taped interview he did with Tucker Carlson, which was posted online shortly before the debate aired. Trump made a variety of statements that were not true.

    DeSantis and the pandemic

    DeSantis criticized the federal government for its handling of the Covid-19 pandemic, claiming it had locked down the economy, and then said: “In Florida, we led the country out of lockdown, and we kept our state free and open.”

    Facts First: DeSantis’s claim is misleading at best. Before he became a vocal opponent of pandemic restrictions, DeSantis imposed significant restrictions on individuals, businesses and other entities in Florida in March 2020 and April 2020; some of them extended months later into 2020. He did then open up the state, with a gradual phased approach, but he did not keep it open from the start.

    DeSantis received criticism in March 2020 for what some critics perceived as a lax approach to the pandemic, which intensified as Florida beaches were packed during Spring Break. But that month and the month following, DeSantis issued a series of major restrictions. For example, DeSantis:

    • Closed Florida’s schools, first with a short-term closure in March 2020 and then, in April 2020, with a shutdown through the end of the school year. (In June 2020, he announced a plan for schools to reopen for the next school year that began in August. By October 2020, he was publicly denouncing school closures, calling them a major mistake and saying all the information hadn’t been available that March.)
    • On March 14, 2020, announced a ban on most visits to nursing homes. (He lifted the ban in September 2020.)
    • On March 17, 2020, ordered bars and nightclubs to close for 30 days and restaurants to operate at half-capacity. (He later approved a phased reopening plan that took effect in May 2020, then issued an order in September 2020 allowing these establishments to operate at full capacity.)
    • On March 17, 2020, ordered gatherings on public beaches to be limited to a maximum of 10 people staying at least six feet apart, then, three days later, ordered a shutdown of public beaches in two populous counties, Broward and Palm Beach. (He permitted those counties’ beaches to reopen by the last half of May.)
    • On March 20, 2020, prohibited “any medically unnecessary, non-urgent or non-emergency” medical procedures. (The prohibition was lifted in early May 2020.)
    • On March 23, 2020, ordered that anyone flying to Florida from an area with “substantial community spread” of the virus, “to include the New York Tri-State Area (Connecticut, New Jersey and New York),” isolate or quarantine for 14 days or the duration of their stay in Florida, whichever was shorter, or face possible jail time or a fine. Later that week, he added Louisiana to the list. (He lifted the Louisiana restriction in June 2020 and the rest in August 2020.)
    • On April 3, 2020, imposed a statewide stay-home order that temporarily required people in Florida to “limit their movements and personal interactions outside of their home to only those necessary to obtain or provide essential services or conduct essential activities.” (Beginning in May 2020, the state switched to a phased reopening plan that, for months, included major restrictions on the operations of businesses and other entities; DeSantis described it at the time as a “very slow and methodical approach” to reopening.)

    -From CNN’s Daniel Dale

    Nikki Haley, the former South Carolina governor and US ambassador to the United Nations, said: “Donald Trump added $8 trillion to our debt, and our kids are never going to forgive us for this.”

    Facts First: Haley’s figure is accurate. The total public debt stood at about $19.9 trillion on the day Trump took office in 2017 and then increased by about $7.8 trillion over Trump’s four years, to about $27.8 trillion on the day he left office in 2021.

    It’s worth noting, however, that the increase in the debt during any president’s tenure is not the fault of that president alone. A significant amount of spending under any president is the result of decisions made by their predecessors – such as the creation of Social Security, Medicare and Medicaid decades ago – and by circumstances out of a president’s control, notably including the global Covid-19 pandemic under Trump; the debt spiked in 2020 after Trump approved trillions in emergency pandemic relief spending that Congress had passed with overwhelming bipartisan support.

    Still, Trump did choose to approve that spending. And his 2017 tax cuts, unanimously opposed by congressional Democrats, were another major contributor to the debt spike.

    -From CNN’s Daniel Dale and Katie Lobosco

    North Dakota Gov. Doug Burgum claimed that Biden’s signature climate bill costs $1.2 trillion dollars and is “just subsidizing China.”

    Facts First: This claim needs context. The clean energy pieces of the Inflation Reduction Act – Democrats’ climate bill – passed with an initial price tag of nearly $370 billion. However, since that bill is made up of tax incentives, that price tag could go up depending on how many consumers take advantage of tax credits to buy electric vehicles and put solar panels on their homes, and how many businesses use the subsidies to install new utility scale wind and solar in the United States.

    Burgum’s figure comes from a Goldman Sachs report, which estimated the IRA could provide $1.2 trillion in clean energy tax incentives by 2032 – about a decade from now.

    On Burgum’s claim that Biden’s clean energy agenda will be a boon to China, the IRA was specifically written to move the manufacturing supply chain for clean energy technology like solar panels and EV batteries away from China and to the United States.

    In the year since it was passed, the IRA has spurred 83 new or expanded manufacturing facilities in the US, and close to 30,000 new clean energy manufacturing jobs, according to a tally from trade group American Clean Power.

    -From CNN’s Ella Nilsen

    With the economy as one of the main topics on the forefront of voters’ minds, Scott aimed to make a case for Republican policies, misleadingly suggesting they left the US economy in record shape before Biden took office.

    “There is no doubt that during the Trump administration, when we were dealing with the COVID virus, we spent more money,” Scott said. “But here’s what happened at the end of our time in the majority: we had low unemployment, record low unemployment, 3.5% for the majority of the population, and a 70-year low for women. African Americans, Hispanics, and Asians had an all-time low.”

    Facts First: This is false. Scott’s claims don’t accurately reflect the state of the US economy at the end of the Republican majority in the Senate. And in some cases, his exaggerations echo what Trump himself frequently touted about the economy under his leadership.

    By the time Trump left office and the Republicans lost the Senate majority in January 2021, US unemployment was not at a record low. The US unemployment rate dropped to a seasonally adjusted rate of 3.5% in September 2019, the country’s lowest in 50 years. While it hovered around that level for five months, Scott’s assertion ignores the coronavirus pandemic-induced economic destruction that followed. In April 2020, the unemployment rate spiked to 14.7% — the highest level since monthly records began in 1948. As of December 2020, the unemployment rate was at 6.7%.

    Nor was the unemployment rate for women at a 70-year low by the end of Trump’s time in office. It reached a 66-year low during certain months of 2019, at 3.4% in April and 3.6% in August, but by December 2020, unemployment for women was at 6.7%.

    The unemployment rates for African Americans, Hispanics, and Asians were also not at all-time lows at the end of 2020, but they did reach record lows during Trump’s tenure as president.

    -From CNN’s Tara Subramaniam

    Scott said that the Justice Department under President Joe Biden is targeting “parents that show up at school board meetings. They are called, under this DOJ, they’re called domestic terrorists.”

    Facts First: It is false that the Justice Department referred to parents as domestic terrorists. The claim has been debunked several times – during the uproar at school boards over Covid-19 restrictions and anti-racism curriculums; after Kevin McCarthy claimed Republicans would investigate Merrick Garland with a majority in the House; and even by a federal judge. The Justice Department never called parents terrorists for attending or wanting to attend school board meetings.

    The claim stems from a 2021 letter from The National School Boards Associations asking the Justice Department to “deal with” the uptick in threats against education officials and saying that “acts of malice, violence, and threats against public school officials” could be classified as “the equivalent to a form of domestic terrorism and hate crimes.” In response, Garland released a memo encouraging federal and local authorities to work together against the harassment campaigns levied at schools, but never endorsed the “domestic terrorism” notion.

    A federal judge even threw out a lawsuit over the accusation, ruling that Garland’s memo did little more than announce a “series of measures” that directed federal authorities to address increasing threats targeting school board members, teachers and other school employees.

    -From CNN’s Hannah Rabinowitz

    Haley, the former ambassador to the United Nations and governor of South Carolina, said the US is spending “less than three and a half percent of our defense budget” on Ukraine aid, and that in terms of financial aid relative to GDP, “11 of the European countries have given more than the US.”

    Facts First: This is partly true. Haley’s claim regarding the US aid to Ukraine compared to the total defense budget is slightly under the actual percentage, but it is accurate that 11 European countries have given more aid to Ukraine as a percentage of their total GDP than the US.

    As of August 14, the US has committed more than $43 billion in military aid to Ukraine since the beginning of the war in Ukraine, according to the Defense Department. In comparison, the Fiscal Year 2023 defense budget was $858 billion – making aid to Ukraine just over 5% of the total US defense budget.

    As of May 2023, according to a Council of Foreign Relations tracker, 11 countries were providing a higher share in aid to Ukraine relative to their GDP than the US – led by Estonia, Latvia, Lithuania, and Poland.

    -From CNN’s Haley Britzky

    Former Vice President Mike Pence said Wednesday that the Trump administration “spent funding to backfill on the military cuts of the Obama administration.”

    Facts First: This is misleading. While military spending decreased under the Obama administration, it was largely due to the 2011 Budget Control Act, which received Republican support and resulted in automatic spending cuts to the defense budget.

    Mike Pence, a senator at the time, voted in favor of the Budget Control Act.

    -From CNN’s Haley Britzky

    Christie said President Biden’s son Hunter Biden was “facing a 10-year mandatory minimum” for lying on a federal form when he purchased a gun in 2018.

    Facts First: Christie, a former federal prosecutor, clearly misstated the law. This crime can lead to a maximum prison sentence of 10 years, but it doesn’t have a 10-year mandatory minimum.

    These comments are related to the highly scrutinized Justice Department investigation into Hunter Biden, which is currently ongoing after a plea deal fell apart earlier this summer.

    As part of the now-defunct deal, Hunter Biden agreed to plead guilty to two tax misdemeanors and enter into a “diversion agreement” with prosecutors, who would drop the gun possession charge in two years if he consistently stayed out of legal trouble and passed drug tests.

    The law in question makes it a crime to purchase a firearm while using or addicted to illegal drugs. Hunter Biden has acknowledged struggling with crack cocaine addiction at the time, and admitted at a court hearing and in court papers that he violated this law by signing the form.

    The US Sentencing Commission says, “The statutory maximum penalty for the offense is ten years of imprisonment.” There isn’t a mandatory 10-year punishment, as Christie claimed.

    During his answer, Christie also criticized the Justice Department for agreeing to a deal in June where Hunter Biden could avoid prosecution on the felony gun offense. That deal was negotiated by special counsel David Weiss, who was first appointed to the Justice Department by former President Donald Trump.

    -From CNN’s Marshall Cohen

    Burgum and Scott got into a back and forth over IRS staffing with Burgum saying that the “Biden administration wanted to put 87,000 people in the IRS,” and Scott suggesting they “fire the 87,000 IRS agents.”

    Facts First: This figure needs context.

    The Inflation Reduction Act, which passed last year without any Republican votes, authorized $80 billion in new funding for the IRS to be delivered over the course of a decade.

    The 87,000 figure comes from a 2021 Treasury report that estimated the IRS could hire 86,852 full-time employees with a nearly $80 billion investment over 10 years.

    While the funding may well allow for the hiring of tens of thousands of IRS employees over time, far from all of these employees will be IRS agents conducting audits and investigations.

    Many other employees will be hired for the non-agent roles, from customer service to information technology, that make up most of the IRS workforce. And a significant number of the hires are expected to fill the vacant posts left by retirements and other attrition, not take newly created positions.

    The IRS has not said precisely how many new “agents” will be hired with the funding. But it is already clear that the total won’t approach 87,000. And it’s worth noting that the IRS may not receive all of the $80 billion after Republicans were able to claw back $20 billion of the new funding as part of a deal to address the debt ceiling made earlier this year.

    -From CNN’s Katie Lobosco

    Trump repeated a frequent claim during his interview with Carlson that streamed during the GOP debate that his retention of classified documents at Mar-a-Lago after leaving the White House was “covered” under the Presidential Records Act and that he is “allowed to do exactly that.”

    Facts First: This is false. The Presidential Records Act says the exact opposite – that the moment presidents leave office, all presidential records are to be turned over to the federal government. Keeping documents at Mar-a-Lago after his presidency concluded was in clear contravention of that law.

    According to the Presidential Records Act, “upon the conclusion of a President’s term of office, or if a President serves consecutive terms upon the conclusion of the last term, the Archivist of the United States shall assume responsibility for the custody, control, and preservation of, and access to, the Presidential records of that President.”

    The sentence makes clear that a president has no authority to keep documents after leaving the White House.

    The National Archives even released a statement refuting the notion that Trump’s retention of documents was covered by the Presidential Records Act, writing in a June news release that “the PRA requires that all records created by Presidents (and Vice-Presidents) be turned over to the National Archives and Records Administration (NARA) at the end of their administrations.”

    -From CNN’s Hannah Rabinowitz

    While discussing electric vehicles, Trump claimed that California “is in a big brownout because their grid is a disaster,” adding that the state’s ambitious electric vehicle goals won’t work with the grid in such shape.

    Facts First: Trump’s claim that California’s grid is currently in a “big brownout” and is a “disaster” isn’t true. California’s grid suffered rolling blackouts in 2020, but it has performed quite well in the face of extreme heat this summer, owing in large part to a massive influx of renewable energy including battery storage. These big batteries keep energy from wind and solar running when the wind isn’t blowing and sun isn’t shining. (Batteries are also being deployed at a rapid rate in Texas, a red state.)

    Another reason California’s grid has stayed stable this year even during extreme temperature spikes is the fact that a deluge of snow and rain this winter and spring has refilled reservoirs that generate electricity using hydropower.

    As Trump insinuated, there are real questions about how well the state’s grid will hold up as California’s drivers shift to electric vehicles by the millions by 2035 – the same year it will phase out selling new gas-powered cars. California state officials say they are preparing by adding new capacity to the grid and urging more people to charge their vehicles overnight and during times of the day when fewer people are using energy. But independent experts say the state needs to exponentially increase its clean energy while also building out huge amounts of new EV chargers to achieve its goals.

    -From CNN’s Ella Nilsen

    Trump and the border wall

    Trump claimed to Carlson, “I had the strongest border in the history of our country, and I built almost 500 miles of wall. You know, they’d like to say, ‘Oh, was it less?’ No, I built 500 miles. In fact, if you check with the authorities on the border, we built almost 500 miles of wall.”

    Facts First: This needs context. Trump and his critics are talking about different things when they use different figures for how much border wall was built during his presidency. Trump is referring to all of the wall built on the southern border during his administration, even in areas that already had some sort of barrier before. His critics are only counting the Trump-era wall that was built in parts of the border that did not have any previous barrier.

    A total of 458 miles of southern border wall was built under Trump, according to a federal report written two days after Trump left office and obtained by CNN’s Priscilla Alvarez. That is 52 miles of “primary” wall built where no barriers previously existed, plus 33 miles of “secondary” wall that was built in spots where no barriers previously existed, plus another 373 miles of primary and secondary wall that was built to replace previous barriers the federal government says had become “dilapidated and/or outdated.”

    Some of Trump’s rival candidates, such DeSantis and Christie, have used figures around 50 miles while criticizing Trump for failing to finish the wall – counting only the primary wall built where no barriers previously existed.

    While some Trump critics have scoffed at the replacement wall, the Trump-era construction was generally much more formidable than the older barriers it replaced, which were often designed to deter vehicles rather than people on foot. Washington Post reporter Nick Miroff tweeted in 2020: “As someone who has spent a lot of time lately in the shadow of the border wall, I need to puncture this notion that ‘replacement’ sections are ‘not new.’ There is really no comparison between vehicle barriers made from old rail ties and 30-foot bollards.”

    Ideally, both Trump and his opponents would be clearer about what they are talking about: Trump that he is including replacement barriers, his opponents that they are excluding those barriers.

    -From CNN’s Daniel Dale

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  • Can expensive, American-made weapons like F-16s turn the tide in Ukraine’s war against Russia?

    Can expensive, American-made weapons like F-16s turn the tide in Ukraine’s war against Russia?

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    The Ukrainian counteroffensive that launched in June against Moscow’s invasion has run into a Russian wall. 

    In the run-up to the Ukrainian push, weapons from Western allies — such as tanks, artillery and other equipment — poured into Ukraine. Despite some small gains, Ukrainian forces have yet to see a large breakthrough, leaving some to wonder what else is needed.

    “This is about as hard as it gets,” said Bradley Bowman, senior director of the Center on Military and Political Power at the Foundation for Defense of Democracies. “Think World War I with drones. … That’s a little bit what the Ukrainians are facing. And so in our microwave culture here in the United States, we want results yesterday, but that’s just not the way it works when you’re confronting a military like the Russians.”

    Land mines have been a massive problem for Kyiv’s forces. Russia has deployed large tracts of the explosive devices, including mines aimed at troops as well as mines that are designed to take out armored vehicles like tanks, slowing down any Ukrainian advance. And with Russia’s ability to lay mines with specialized artillery, keeping cleared lanes open to send forces through has been a struggle.

    “Let me be clear, this would present a significant challenge for any force that is trying to take it without the full scope of Western capabilities,” said Dmitri Alperovitch, executive chairman of Silverado Policy Accelerator and co-founder of CrowdStrike.

    Many in Kyiv have called for the introduction of Western fighter jets, such as the F-16, to beef up the beleaguered Ukrainian Air Force, which has managed to keep flying and fighting despite what on paper is an overwhelming Russian advantage in air power. These fighters would also help take the pressure off of air defense forces, which consists of older Soviet surface-to-air missile systems that are difficult to resupply, and the newly provided Patriot missile system. Just sending F-16s to Ukraine wouldn’t turn the tide overnight. It would take months, if not years, of training to get the most out of these expensive jets.

    “These weapons are not silver bullets,” said Mick Ryan, a retired major general of the Australian army and adjunct fellow at the Center for Strategic and International Studies. “There’s no such thing as a single weapon system that will provide that. It’s when you have lots of different weapons systems in the air on the ground. You have operators who are technically proficient and then you’re able to undertake the collective combined arms training, that’s when you have a really war-winning capability.”

    Watch the video above to find out if more big-ticket, U.S.-made weapons such as F-16s, the Patriot missile system and HIMARS can turn the tide in Ukraine.

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  • Missiles aren’t the only threat from North Korea. Its conventional arms are just as deadly

    Missiles aren’t the only threat from North Korea. Its conventional arms are just as deadly

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    A fire assault drill by North Korean rocket artillery units at an undisclosed location in North Korea in March 2023 in this photo released by North Korea’s Korean Central News Agency (KCNA). Around 6,000 of these units are located in range of South Korean population centers.

    KCNA | Reuters

    North Korea’s missile launches in the past month have ratcheted up tensions on the Korean Peninsula —but that’s not the only threat the reclusive state poses.

    While North Korea’s ballistic missile launches are the ones that grab headlines, the threat of conventional artillery strikes should not be ignored, warned Naoko Aoki, associate political scientist with the Rand Corporation.

    North Korea boasts the world’s fourth largest armed forces, according to the Council of Foreign Relations. In late 2022, CFR estimated North Korea had 1.3 million active military personnel, in addition to a 600,000 strong reserve force.

    Most military analysts acknowledge that North Korea’s armed forces are no match for the combined U.S. and South Korean forces, but they say that the country can still wreak immense damage on South Korea via conventional arms.

    Artillery threat

    North Korea has regularly threatened to turn Seoul into a “sea of fire” with its arsenal of weapons, and unlike most of its other threats, this one may not be pure hyperbole.

    Asked if such a threat was credible, Victor Cha, senior vice president and Korea Chair at the Center for Strategic and International Studies, replied: “They could do that if they wanted to.”

    But he warned that Pyongyang will face a strong response if it ever carried out that threat. “There would be a response [from the U.S. and South Korea] very clearly if they did that. But they could do it if they wanted to.”

    A 2020 assessment from policy think tank Rand Corp found that North Korea maintains around 6,000 artillery systems within range of South Korean population centers, including the capital of Seoul which has a population of 10 million.

    Rand estimated that if the thousands of artillery systems were deployed and used against civilian targets, they could potentially kill more than 10,000 people in an hour.

    “Even brief, narrowly tailored attacks could destroy key industrial facilities and seriously harm the South Korean economy,” the analysts pointed out.

    Separately, a 2018 Rand report illustrates that one of the world’s largest semiconductor fabrication plants — Samsung Electronics’ Pyeongtaek plant — is within range of North Korea’s long-range rocket systems, despite being about 100 kilometers from the border.

    A 2018 Rand assessment on how far various North Korean artillery systems can reach into South Korea. The longest ranged systems can reach as far as 200 kilometers from the border.

    Rand Corporation

    Display manufacturer LG Display’s largest OLED manufacturing plant is located in Paju, just nine kilometers from the border and can be reached by the North’s mid-ranged artillery.

    “This threat gives North Korea the power to coerce the South Korean government, or to retaliate against South Korean military or political actions, even without resorting to its chemical or nuclear arsenals,” the 2020 report pointed out.

    Is it credible?

    Rand’s 2020 assessment said it would be difficult for South Korean and U.S. forces to incur significant damage on North Korea’s artillery units, as these will be sheltered from counterfire in underground facilities.

    Daniel Pinkston, who lectures on international relations at Troy University in Seoul, said the constant artillery threat may be overlooked by most people, but not by military planners and senior national security officials in Seoul and Washington.

    “The missile launches have been high profile because they have been part of testing many new systems that give North Korea greater military capabilities and options,” he told CNBC.

    North Korea shows no interest in engaging in talks about its nuclear program, think tank says

    However, Pinkston disagrees with Rand’s report that such a threat can drive South Korea’s government to “do X” — or more specifically, force Seoul into a course of action.

    Should North Korea follow through on the threat to attack the South, “the gloves are off” and a response can be expected from South Korean and U.S. forces, he said, highlighting that North Korea will not do well in conventional warfare against the allied forces.

    Pinkston pointed out that North Korea is not the only one that can launch an attack at short notice. “Many people don’t seem to realize that a counterattack from the South can be launched on very short notice as well,” he added.

    North Korea’s goal, I think, is not simply to prevent an attack from the U.S. and South Korea. It is really to get the United States off the Korean Peninsula.

    Victor Cha

    Korea Chair, Center for Strategic and International Studies

    If the North were to fire on civilian targets, allied forces from the U.S. and South Korea will be able to retaliate quickly by destroying North Korea’s systems.

    “If I were the KPA, I’d want to use my munitions for military targets to suppress the counterattack, which would be very intense,” Pinkston added, referring to North Korea’s armed forces, the Korea People’s Army.

    Holistic perspective

    Why would North Korea need to develop missiles if it holds such a potent threat over South Korea — even if short-lived?

    That’s because North Korea’s missile program or its artillery forces cannot be seen in isolation, but need to be considered as part of a bigger threat, explained Cha from CSIS.

    The North Korean threat needs to be viewed in its entirety, and the full extent of the danger consists of: The conventional artillery threat over South Korea, its missile and nuclear program, as well as its cyber attack arm, he added.

    However, Cha pointed out that there have also been studies that have shown the damage inflicted by North Korean artillery is “not that effective.”

    North Korea and Russia think nuclear weapons can be a 'great equalizer' for them, says author

    “They may be able to do some damage initially, [but] that damage may be overestimated and that soon after their artillery positions become known, counter battery fire from U.S. and South Korean forces could neutralize that artillery pretty quickly.”

    As for North Korea’s missile program, it is designed to be more survivable in order to withstand a preemptive strike from the U.S, as well as to have the capability to strike the U.S., in order to create a so-called “decoupling dynamic” between Washington and Seoul.

    The ultimate objective of North Korea, Cha said, is to divide the U.S.-South Korea alliance by creating a homeland security threat, and long range artillery alone is not going to achieve that.

    Cha concluded: “North Korea’s goal, I think, is not simply to prevent an attack from the U.S. and South Korea. It is really to get the United States off the Korean Peninsula, and then have a have a nuclear advantage over South Korea. That is ultimately their goal.”

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  • China’s defense minister warns against ‘playing with fire’ on Taiwan during Russia meeting | CNN

    China’s defense minister warns against ‘playing with fire’ on Taiwan during Russia meeting | CNN

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    CNN
     — 

    China’s defense minister Li Shangfu on Tuesday warned against “playing with fire” when it comes to Taiwan in a veiled jab at the United States as he addressed a security conference in Russia.

    Speaking at the Moscow Conference on International Security, Li said attempts to “use Taiwan to contain China,” would “surely end in failure,” according to state-run news agency Xinhua.

    Li’s comments echoed previous statements by Chinese officials but the location of his speech was significant and symbolic given Moscow’s ongoing invasion of Ukraine.

    China’s ruling Communist Party claims the self-governing democracy of Taiwan and has vowed to take control of it, by force if necessary. It has repeatedly castigated American interactions with the island, with which Washington does not have official diplomatic ties, including for the sale of US arms to Taipei.

    Li, who was sanctioned by the US in 2018 for purchases of Russian weapons, joined the Moscow security conference as he began a six-day trip to Russia and its close ally Belarus.

    Senior defense officials from more than 20 “friendly states,” including Belarus, Iran and Myanmar will also attend the forum, Russian state media previously reported, citing Moscow’s defense ministry, which organizes the annual event. No Western countries were invited, state media said.

    The visit is Li’s second to Russia since assuming his role as defense chief earlier this year. It comes as Beijing has continued to bolster its security ties with Moscow, despite its unrelenting assault on Ukraine, which has triggered a humanitarian disaster with global ramifications.

    In a pre-recorded message to the same Moscow conference, Russian President Vladimir Putin accused the US of adding “fuel to the fire” of global conflicts, including through its support of Ukraine.

    China has used similar rhetoric in its own official comments about the conflict, despite maintaining that it remains a neutral party and a proponent of peace.

    Li on Tuesday also told attendees that China’s military was “a firm force in maintaining world peace,” and that Chinese leader Xi Jinping aimed to stabilize global security in “a world of chaos.”

    “We are willing to work with other militaries to strengthen mutual trust in military security strategies and practical cooperation in various specialized fields,” Li added, according to Xinhua.

    Russian state-run media Sputnik also cited Li as saying that military relations between China and Russia do not target any third party – a point Chinese officials have made in the past. The Xinhua report did not include the statement.

    Li met with his Russian counterpart Sergei Shoigu to discuss cooperation between the two countries’ militaries, Xinhua said. China and Russia regularly carry out joint exercises – including a joint naval patrol off the coast of Alaska in recent weeks.

    The Chinese defense chief also held bilateral meetings with Iran, Saudi Arabia, Kazakhstan, Vietnam and other countries’ defense departments and military leaders on the sidelines of the conference.

    Li’s comments on Taiwan come on the heels of a backlash from Beijing as Taiwan’s Vice President William Lai, a front-runner in the island’s upcoming presidential race, makes planned stopovers in the United States during travel for an official visit to Paraguay.

    China’s foreign ministry condemned the stopover on Sunday, calling Lai a “trouble maker through and through.”

    The US maintains an unofficial relationship with Taipei after formally establishing diplomatic relations with Beijing in 1979, but is bound by law to provide the democratic island with the means to defend itself.

    During a speech in New York, Lai declared Taiwan will “never back down” to threats from China.

    “No matter how great the threat of authoritarianism is to Taiwan, we absolutely will not be scared nor cower, we will uphold the values of democracy and freedom,” he said.

    China has in recent years ramped up its military intimidation of the island, including following meetings between Taiwanese leaders and US lawmakers.

    Putin’s invasion of Ukraine has also drawn increased attention to Taiwan as a potential security flashpoint in Asia.

    Despite broad differences with the geopolitical circumstances of Russia and Ukraine, the optics of a seemingly more powerful aggressor launching an attack driven by a vision of unification have heightened focus on China’s intentions toward Taiwan.

    Some analysts have suggested that China was watching Western reaction to Russian aggression in Ukraine with an eye to understanding possible responses to any potential, future moves against Taiwan.

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  • Exclusive: Georgia prosecutors have messages showing Trump’s team is behind voting system breach | CNN Politics

    Exclusive: Georgia prosecutors have messages showing Trump’s team is behind voting system breach | CNN Politics

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    CNN
     — 

    Atlanta-area prosecutors investigating efforts to overturn the 2020 election results in Georgia are in possession of text messages and emails directly connecting members of Donald Trump’s legal team to the early January 2021 voting system breach in Coffee County, sources tell CNN.

    Fulton County District Attorney Fani Willis is expected to seek charges against more than a dozen individuals when her team presents its case before a grand jury next week. Several individuals involved in the voting systems breach in Coffee County are among those who may face charges in the sprawling criminal probe.

    Investigators in the Georgia criminal probe have long suspected the breach was not an organic effort sprung from sympathetic Trump supporters in rural and heavily Republican Coffee County – a county Trump won by nearly 70% of the vote. They have gathered evidence indicating it was a top-down push by Trump’s team to access sensitive voting software, according to people familiar with the situation.

    Trump allies attempted to access voting systems after the 2020 election as part of the broader push to produce evidence that could back up the former president’s baseless claims of widespread fraud.

    While Trump’s January 2021 call to Georgia Secretary of State Brad Raffensperger and effort to put forward fake slates of electors have long been considered key pillars of Willis’ criminal probe, the voting system breach in Coffee County quietly emerged as an area of focus for investigators roughly one year ago. Since then, new evidence has slowly been uncovered about the role of Trump’s attorneys, the operatives they hired and how the breach, as well as others like it in other key states, factored into broader plans for overturning the election.

    Together, the text messages and other court documents show how Trump lawyers and a group of hired operatives sought to access Coffee County’s voting systems in the days before January 6, 2021, as the former president’s allies continued a desperate hunt for any evidence of widespread fraud they could use to delay certification of Joe Biden’s electoral victory.

     Last year, a former Trump official testified under oath to the House January 6 select committee that plans to access voting systems in Georgia were discussed in meetings at the White House, including during an Oval Office meeting on December 18, 2020,  that included Trump. 

    Six days before pro-Trump operatives gained unauthorized access to voting systems, the local elections official who allegedly helped facilitate the breach sent a “written invitation” to attorneys working for Trump, according to text messages obtained by CNN.

    Investigators have scrutinized the actions of various individuals who were involved, including Misty Hampton, a former Coffee County elections official who authored the letter of invitation referenced in text messages and other documents that have been turned over to prosecutors, multiple sources told CNN.

    They have also examined the involvement of Trump’s then attorney Rudy Giuliani – who was informed last year he was a target in the Fulton County investigation – and fellow Trump lawyer Sidney Powell as part of their probe, according to people familiar with the matter.

    A spokesperson for Willis’ office declined to comment.

    The letter of invitation was shared with attorneys and an investigator working with Giuliani at the time, the text messages obtained by CNN show.

    On January 1, 2021 – days ahead of the January 7 voting systems breach – Katherine Friess – an attorney working with Giuliani, Sidney Powell and other Trump allies shared a “written invitation” to examine voting systems in Coffee County with a group of Trump allies.

    That group included members of Sullivan Strickler, a firm hired by Trump’s attorneys to examine voting systems in the small, heavily Republican Georgia county, according to text messages obtained by CNN.

    That same day, Friess sent a “Letter of invitation to Coffee County, Georgia” to former NYPD Police Commissioner Bernie Kerik, who was working with Giuliani to find evidence that would back up their baseless claims of potential widespread voter fraud, according to court documents filed as part of an ongoing civil case.

    Friess then notified operatives who carried out the Coffee County breach and others working directly with Giuliani that Trump’s team had secured written permission, the texts show.

    CNN has not reviewed the substance of the invitation letter itself, only communications that confirm it was provided to Friess, Kerik and Sullivan Strickler employees.

    Friess could not be reached for comment.

    The messages and documents appear to link Giuliani to the Coffee County breach, while shedding light on another channel of communication between pro-Trump attorneys and the battleground state operatives who worked together to provide unauthorized individuals access to sensitive voting equipment.

    “Rudy Giuliani had nothing to do with this,” said Robert Costello, Giuliani’s attorney. “You can’t attach Rudy Giuliani to Sidney Powell’s crackpot idea.”

    “Just landed back in DC with the Mayor huge things starting to come together!” an employee from the firm Sullivan Strickler, which was hired by Sidney Powell to examine voting systems in Coffee County, wrote in a group chat with other colleagues on January 1.

    Former New York Mayor Giuliani was consistently referred to as “the Mayor,” in other texts sent by the same individual and others at the time.

    “Most immediately, we were just granted access – by written invitation! – to Coffee County’s systems. Yay!” the text reads.

    Shortly after Election Day, Hampton – still serving as the top election official for Coffee County – warned during a state election board meeting that Dominion voting machines could “very easily” be manipulated to flip votes from one candidate to another. It’s a claim that has been repeatedly debunked.

    But the Trump campaign officials took notice and reached out to Hampton that same day. “I would like to obtain as much information as possible,” a Trump campaign staffer emailed Hampton at the time, according to documents released as part of a public records request and first reported by the Washington Post.

    In early December, Hampton then delayed certification of Joe Biden’s win in Georgia by refusing to validate the recount results by a key deadline. Coffee County was the only county in Georgia that failed to certify its election results due to issues raised by Hampton at the time.

    Hampton also posted a video online claiming to expose problems with the county’s Dominion voting system. That video was used by Trump’s lawyers, including Giuliani, as part of their push to convince legislators from multiple states that there was evidence the 2020 election results were tainted by voting system issues.

    Text messages and other documents obtained by CNN show Trump allies were seeking access to Coffee County’s voting system by mid-December amid increasing demands for proof of widespread election fraud.

    Coffee County was specifically cited in draft executive orders for seizing voting machines that were presented to Trump on December 18, 2020, during a chaotic Oval Office meeting, CNN has reported. During that same meeting, Giuliani alluded to a plan to gain “voluntary access” to machines in Georgia, according to testimony from him and others before the House January 6 committee.

    Days later, Hampton shared the written invitation to access the county’s election office with a Trump lawyer, text messages obtained by CNN show. She and another location elections official, Cathy Latham, allegedly helped Trump operatives gain access to the county’s voting systems, according to documents, testimony and surveillance video produced as part of a long-running civil lawsuit focused on election security in Georgia.

    Latham, who also served as a fake elector from Georgia after the 2020 election, has come under scrutiny for her role in the Coffee County breach after surveillance video showed she allowed unauthorized outsiders to spend hours examining voting systems there.

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  • ‘Blatant economic coercion’: China slams Biden’s order limiting U.S. overseas tech investment

    ‘Blatant economic coercion’: China slams Biden’s order limiting U.S. overseas tech investment

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    China sharply rebuked President Joe Biden’s long-awaited executive order that limits U.S. investment in technology — but stopped short of issuing immediate counter measures.

    The Chinese commerce and foreign affairs ministries issued strong responses on Thursday, just hours after Biden signed off on the measure targeting “countries of concern” on the basis of national security.

    “China is strongly dissatisfied with and resolutely opposed to the U.S.’s insistence on introducing restrictions on investment in China,” the foreign ministry said in a statement, according to a CNBC translation. “This is blatant economic coercion and technological bullying.”

    The Chinese Commerce Ministry called upon the U.S. to “respect the market economy and the principles of fair competition” and to “refrain from artificially hindering global trade and creating obstacles that impede the recovery in the global economy.”

    “The message is quite clear,” Eswar Prasad, a professor in international trade at Cornell University, told CNBC Thursday.

    “Washington wants to use the national security imperative as a way of trying to limit the transfers of technology and investments related to technology to China, because there’s not just a national security angle, but also quite frankly, a commercial angle,” he added.

    An editorial photo art illustrating smart city communication networks against the urban landscape in Shanghai.

    Dong Wenjie | Moment | Getty Images

    On Wednesday, Biden signed off on the executive order that limits U.S. investment and expertise in semiconductors and microelectronics, quantum computing and certain artificial intelligence capabilities in China, Hong Kong and Macao.

    The latest order bears some similarities to a toned-down version of the initial Outbound Investment Transparency Act the Senate recently passed and omitted wording for an outright ban on investment.

    It comes amid an escalating race for global technological supremacy that has both national security and economic implications.

    “I think it is going to have a pretty broad chilling effect on technology transfers and investments by U.S. firms in China,” Prasad said.

    ‘National emergency’

    Biden warned in the executive order that certain American investments may contribute to “the development of sensitive technologies and products in countries that develop them to counter United States and allied capabilities.”

    “I find that countries of concern are engaged in comprehensive, long-term strategies that direct, facilitate, or otherwise support advancements in sensitive technologies and products that are critical to such countries’ military, intelligence, surveillance, or cyber-enabled capabilities,” said the president, who further characterized the situation as “a national emergency.”

    This is spectacularly bad timing for China.

    Eswar Prasad

    economics professor, Cornell University

    “The investment restrictions largely mirror export controls already in place, including those that ban exports to China of machinery and software used to produce advanced semiconductors,” Gabriel Wildau, a Teneo managing director focusing on China political risk, wrote in a note to clients.

    “Unprecedentedly tough restrictions that the US Commerce Department issued in October (soon to be expanded) already rendered new U.S. investment in advanced Chinese semiconductor production effectively impossible, since any such factory would need imported equipment covered by those restrictions,” he added.

    ‘Narrowly’ defined

    During a visit to Beijing in July, U.S. Treasury Secretary Janet Yellen assured her Chinese counterparts that any curbs on U.S. outbound investments would be “transparent” and “very narrowly targeted.”

    Biden’s executive order though is still some way from becoming concrete legislation.

    The U.S. Treasury has been tasked to formulate exact regulations to implement the order, including defining the boundary between prohibited transactions and those that merely require notification.

    Late Wednesday, the U.S. Treasury Department invited public comment to “seek early stakeholder participation in the rulemaking process” — including input on the sub-sets of national security technologies and related products to the areas of technology identified in Biden’s executive order.

    The Treasury Department said it anticipates excepting certain transactions, including potentially those in publicly-traded instruments and intracompany transfers from U.S. parents to subsidiaries. 

    ‘Spectacularly bad timing’

    Biden’s executive order comes at a time when a raft of economic data has underscored slowing growth momentum in the world’s second-largest economy.

    Official data Wednesday showed that China’s consumer prices fell for the first time in two years in July from a year ago, as producer prices declined on a year-on-year basis for a 10th straight month.

    “I don’t think the U.S. Treasury or the [Biden] administration planned it this way, but this is spectacularly bad timing for China,” Prasad said. “Confidence is falling, growth is stalling, China seems to be sliding into a downward spiral with deflation, low growth and lack of confidence all feeding on each other.”

    Chipmaking nations such as the U.S. are teaming up against China

    “This does very little to inspire confidence that China is going to be able to pull back on short-term growth. And this could also affect its long-term growth potential because China is very eager to move into high tech, higher value-added industries,” Prasad said.

    As part of its plan to bolster growth, China’s top leaders have recently changed their tone on private and foreign investors, while anticipating the country’s post-pandemic economic recovery to proceed in a “tortuous” manner.

    “At the moment, its domestic innovation program is not going that well. China still needs foreign technology — it needs foreign capital a lot less than foreign technology. Without foreign technology, I think it’s very difficult for China to make that leap,” he added.

    — CNBC’s Evelyn Cheng contributed to this story.

    Read more about China from CNBC Pro

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  • Biden issues an executive order restricting US investments in Chinese technology

    Biden issues an executive order restricting US investments in Chinese technology

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    WASHINGTON — In a sign of growing strains between the world’s two biggest powers, President Joe Biden signed an executive order Wednesday that would block and regulate high-tech U.S.-based investments going toward China. It covers advanced computer chips, micro electronics, quantum information technologies and artificial intelligence.

    Senior administration officials said that the effort stemmed from national security goals, rather than economic interests and that the categories it covered were narrow in scope. The order seeks to blunt China’s ability to use U.S. investments in its technology companies to upgrade its military while also preserving broader levels of trade that are vital for both nations’ economies.

    The United States and China appear to be increasingly locked in a geopolitical competition, along with their deep trade relationship as the world’s two largest economies. Biden administration officials have insisted that they have no interest in “decoupling” from China, yet the U.S. has limited the export of advanced computer chips, sought to limit investments into China and kept the expanded tariffs set up by President Donald Trump.

    Biden has suggested that China’s economy is struggling and its global ambitions have been tempered as the U.S. has reenergized its alliances with Japan, South Korea, Australia and the European Union. The administration consulted with allies and industry in shaping the executive order.

    “Worry about China, but don’t worry about China,” Biden told donors at a June fundraising event in California.

    The officials previewing the order said that China has exploited U.S. investments to support the development of weapons and modernize its military. The new limits would complement the export controls on advanced computer chips that were announced last year. The Treasury Department, which would monitor the investments, will announce a proposed rulemaking with definitions that would conform to the presidential order and go through a public comment process.

    The goals of the order would be to have investors notify the U.S. government about certain types of transactions with China as well as to place prohibitions on some investments. Officials said the order is focused on areas such as private equity, venture capital and joint partnerships in which the investments could possibly give countries of concern such as China additional knowledge and capabilities regarding their military.

    The issue is also a bipartisan priority. In July by a vote of 91-6, the Senate added as an amendment to the National Defense Authorization Act requirements to monitor and limit investments in countries of concern, including China.

    Yet reaction to Biden’s order on Wednesday showed a desire to push harder on China. Rep. Raja Krishnamoorthi, D-Ill., said the order was an “essential step forward,” but it “cannot be the final step.” Republican presidential candidate Nikki Haley, a former U.S. ambassador to the United Nations, said Biden should been more aggressive, saying, “we have to stop all U.S. investment in China’s critical technology and military companies — period.”

    Biden has called Chinese President Xi Jinping a “dictator” in the aftermath of the U.S. shooting down a spy balloon from China that floated over the United States. Taiwan’s status has been a source of tension, with Biden saying that China had become coercive regarding its independence.

    China has supported Russia after its 2022 invasion of Ukraine, though Biden has noted that the friendship has not extended to the shipment of weapons.

    U.S. officials have long signaled the coming executive order on investing in China, but it’s unclear whether financial markets will regard it as a tapered step or a continued escalation of tensions at a fragile moment.

    “The message it sends to the market may be far more decisive,” said Elaine Dezenski, a senior director at the Foundation for Defense of Democracies. “U.S. and multinational companies are already reexamining the risks of investing in China. Beijing’s so-called ‘national security’ and ‘anti-espionage’ laws that curb routine and necessary corporate due diligence and compliance were already having a chilling effect on U.S. foreign direct investment. That chilling now risks turning into a deep freeze.”

    China’s strong economic growth has stumbled coming out of pandemic lockdowns. On Wednesday, its National Bureau of Statistics reported a 0.3% decline in consumer prices in July from a year ago. That level of deflation points to a lack of consumer demand in China that could hamper growth.

    Separately, foreign direct investment into China fell 89% from a year earlier in the second quarter of this year to $4.9 billion, according to data released by the State Administration of Foreign Exchange.

    Most foreign investment is believed to be brought in by Chinese companies and disguised as foreign money to get tax breaks and other benefits, according to Chinese researchers.

    However, foreign business groups say global companies also are shifting investment plans to other economies.

    Foreign companies have lost confidence in China following tighter security controls and a lack of action on reform promises. Calls by President Xi and other leaders for more economic self-reliance have left investors uneasy about their future in the state-dominated economy.

    ___

    AP reporter Joe McDonald contributed to this report from Beijing.

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  • German man accused of spying for Russia | CNN

    German man accused of spying for Russia | CNN

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    CNN
     — 

    A German national who worked for a government agency that equips the German armed forces, has been arrested on suspicion of spying for Russia, the German Federal Public Prosecutor’s Office said in a statement Wednesday.

    The man was employed the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support– and is alleged to have passed information to the Russian intelligence service, the federal prosecutor’s office said.

    “The defendant is strongly suspected of having worked for a foreign intelligence service,” it added. “Starting in May 2023, he approached the Russian Consulate General in Bonn and the Russian Embassy in Berlin several times on his own initiative and offered cooperation.”

    “On one occasion, he passed on information he had obtained in the course of his professional activities for the purpose of forwarding it to a Russian intelligence service,” the statement said.

    The man was arrested in the western Germany city of Koblenz and as part of the investigation, his and workplace were searched. An arrest warrant was issued by a Federal Supreme Court judge on July 27, 2023, the federal prosecutor’s office said.

    “The investigation was conducted in close cooperation with the Federal Military Counter-Intelligence Service and the Federal Office for the Protection of the Constitution,” the federal prosecutor’s office said.

    The man was brought before the Federal Supreme Court investigating judge on Wednesday. The judge ordered that he be remanded in custody, the federal prosecutor’s office said.

    The Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support has almost 12,000 people working for it, including 18,000 soldiers, according to Reuters.

    In December, a German citizen who worked for the country’s foreign intelligence service was arrested on charges of spying for Russia.

    It comes after a large expulsion of Russian diplomats, many of whom are alleged to be operating as spies, from European countries last year following Russia’s invasion of Ukraine.

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  • NYT: Architect of Trump fake electors plot thought SCOTUS would ‘likely’ reject plan, but pushed ahead anyway | CNN Politics

    NYT: Architect of Trump fake electors plot thought SCOTUS would ‘likely’ reject plan, but pushed ahead anyway | CNN Politics

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    Washington
    CNN
     — 

    An internal Trump campaign memo from December 2020, made public Tuesday by The New York Times, reveals new details about how the campaign initiated its plan to subvert the Electoral College process and install fake GOP electors in multiple states after losing the 2020 presidential election.

    In the December 6, 2020, memo, pro-Trump lawyer Kenneth Chesebro laid out the plan to put forth slates of Republican electors in seven key swing states that then-President Donald Trump lost. The memo then outlines how then-Vice President Mike Pence, while presiding over the Electoral College certification on January 6, 2021, should declare “that it is his constitutional power and duty, alone, as President of the Senate, to both open and count the votes” from the GOP electors.

    Chesebro conceded in the memo that this idea was a “controversial” long shot that would “likely” be rejected by the Supreme Court – but nonetheless promoted the strategy. He wrote that despite the legal dubiousness, “letting matters play out this way would guarantee that public attention would be riveted on the evidence of electoral abuses by the Democrats and would also buy the Trump campaign more time to win litigation that would deprive Biden of electoral votes and/or add to Trump’s column.”

    The fake electors scheme has become an integral part of the recent federal indictment against Trump, which alleges the plot took shape after it became clear that efforts to convince state officials to not certify Joe Biden’s victories would be unsuccessful.

    CNN previously reported that the scheme was overseen by Trump campaign officials and led by Rudy Giuliani. Chesebro, who authored the newly released memo, is an unindicted co-conspirator in the Trump indictment and was described by prosecutors as “an attorney who assisted in devising and attempting to implement a plan to submit fraudulent slates of presidential electors to obstruct the certification proceeding.” He has not been charged with any crimes.

    According to Trump’s January 6-related indictment and previous CNN reporting, there were multiple planning calls between Trump campaign officials and GOP state operatives, and Giuliani participated in at least one call. The Trump campaign lined up supporters to fill elector slots, secured meeting rooms for the fake electors to meet on December 14, 2020, and circulated drafts of fake certificates that they later signed.

    At the time, their actions were largely dismissed as an elaborate political cosplay. But it eventually became clear that this was part of an orchestrated plan.

    “Under the plan, the submission of these fraudulent slates would create a fake controversy at the certification proceeding and position the Vice President-presiding on January 6 as President of the Senate to supplant legitimate electors with the Defendant’s fake electors and certify the Defendant as president,” the indictment states.

    Prosecutors say Chesebro told Guiliani – both identified in the indictment only as co-conspirator 5 and co-conspirator 1, respectively – that he had been told by state-level operatives that “it could appear treasonous for the AZ electors to vote on Monday if there is no pending court proceeding.”

    “I recognize that what I suggest is a bold, controversial strategy, and that there are many reasons why it might not end up being executed on Jan. 6,” Chesebro wrote in the December 6 memo, despite pushing the idea and outlining a plan in the days to come. “But as long as it is one possible option, to preserve it as a possibility it is important that the Trump-Pence electors cast their electoral votes on Dec. 14.”

    That is ultimately what ended up happening on December 14, 2020.

    Many of the fake GOP electors who signed the phony certificates that day have since come under legal scrutiny: The fake electors from Michigan are facing state-level felony charges for forgery and publishing a counterfeit record, and many of the fake electors from Georgia are targets of the 2020-related criminal probe in Fulton County.

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  • A day of legal action in Trump imbroglio previews a chaotic 2024 election year | CNN Politics

    A day of legal action in Trump imbroglio previews a chaotic 2024 election year | CNN Politics

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    CNN
     — 

    A whirl of developments in a quartet of cases in four separate cities encapsulate the vast legal quagmire swamping Donald Trump and threatening to overwhelm the entire 2024 presidential campaign.

    But Monday’s hectic lawyering was just a tame preview of next year when the ex-president and current Republican front-runner may be constantly shuttling between courtroom criminal trials and the campaign trail.

    A day of legal intrigue brought revelations, judgments, disputes and filings in cases related to Trump’s bid to overturn the 2020 election, the classified documents case, efforts to thwart Joe Biden’s win in Georgia, and even in a defamation case dating back to Trump’s personal behavior toward women in the 1990s.

    It’s already almost impossible for voters who may be asked to decide whether Trump is fit for a return to the Oval Office – or at least to carry the GOP banner into the election – to keep pace with all the competing legal twists and the scale of his plight.

    A confusing fog in which all the cases blend together could work to the former president’s advantage as he seeks a White House comeback while proclaiming he’s a victim of political persecution by the Biden administration.

    But the deeper his legal mire gets, Trump’s rivals for the GOP nomination are getting braver in suggesting that his fight against becoming a convicted felon could be a general election liability. Trump’s dominance in the GOP primary has been boosted from his criminal indictments to date. But the sheer volume of cases unfolding alongside his campaign is increasingly daunting.

    In Washington, Trump’s lawyers just beat a deadline to file a brief in a dispute over the handling of evidence ahead of a trial in the election subversion case, and accused the government of seeking to muzzle his voice as he runs for a new White House term.

    In another glimpse into the breadth of special counsel Jack Smith’s investigation that could prove troubling to the ex-president, CNN exclusively reported that Trump ally Bernie Kerik, the former New York City police commissioner, met Smith’s investigators for an interview on Monday. The discussion focused on what Trump’s former attorney and Kerik’s associate, Rudy Giuliani – otherwise known as Co-Conspirator 1 – did to try to convince the former president he actually won the 2020 election. The question will be a key one when the case finally comes to trial.

    Trump’s tough day in the courts had opened with a judge in Manhattan throwing out his defamation counter suit against E. Jean Carroll, which he did in stark language that recalled the ex-president’s loss in an earlier civil trial in which the jury found he sexually abused the writer.

    Then, in a surprise move in West Palm Beach, Florida, the Trump-appointed judge who will oversee his classified documents trial asked lawyers for co-defendant Walt Nauta to comment on the legality of prosecutors using a Washington grand jury to keep investigating. The fact the probe is still active despite several indictments is hardly a good sign for Trump. And Judge Aileen Cannon’s move revived debate over whether she was favoring the ex-president’s team following criticism of her earlier handling of a dispute over documents taken from Trump’s home in an FBI search.

    There were also new signs in Atlanta that indictments could be imminent in a probe into efforts to steal Biden’s election win in the key state, as it emerged that ex-Lt. Gov. Geoff Duncan, a Republican and CNN political contributor, has been subpoenaed to testify to a grand jury.

    All of this frenzied activity unfolding on one day represents just a snapshot of the complex legal morass now surrounding Trump. It’s just a taste of the enormous strain the ex-president is about to feel as he campaigns for a return to the Oval Office. The crush of cases will also impose increasing financial demands. Already, Trump’s leadership PAC has been diverting cash raised from small-dollar donors to pay legal fees for the former president and associates that might instead have gone toward the 2024 campaign.

    In several of the cases on Monday, there were signs of the extraordinary complications inherent in prosecuting a former president and the front-runner for the Republican nomination. Judges, for instance, are faced with decisions that would normally go unnoticed by the public in the court system but that will now attract a glaring media and political spotlight.

    And while Monday was notable for a head-spinning sequence of legal maneuvering, it did not even encompass all of the pending cases against Trump. He is also due to go on trial in March – in the middle of the GOP primary season – in a case arising from a hush money payment to an adult film star. As with his other indictments, Trump has pleaded not guilty.

    For all his capacity to operate in the eye of converging storms of scandal and controversy, Trump’s mood is becoming increasingly agitated. In recent days he has attacked Smith, the Justice Department, the judge in the election subversion case, former House Speaker Nancy Pelosi, Republican Senate leader Mitch McConnell, and even the US national women’s soccer team after they crashed out of the World Cup on penalties.

    One of Trump’s most incendiary posts on his Truth Social network was at the center of one of Monday’s legal dramas – wrangling between Smith’s prosecutors and Trump’s lawyers over the handling of evidence at the center of the forthcoming trial.

    Prosecutors cited Trump writing on his Truth Social network on Friday, “If you go after me, I’m coming after you!” in a filing that requested strict rules on how he could use evidence that will be turned over to the defense as part of the pre-trial discovery process. Trump’s lawyers had asked for an extension to Monday’s deadline, but Judge Tanya Chutkan refused, in a fresh sign of her possible willingness to schedule a swift trial, which the ex-president wants to delay until after the 2024 election.

    In its brief, the defense proposed narrower rules than those sought by prosecutors. Spats over discovery aren’t unusual early in a trial process. But Trump’s filing added insight into how his team will approach a case in which he has pleaded not guilty.

    “In a trial about First Amendment rights, the government seeks to restrict First Amendment rights,” the attorneys said in the court filing.

    When it comes to Smith’s indictment, Trump’s lawyers are arguing that he was within his rights to claim the election was stolen. Smith’s strategy is, however, apparently designed to avoid a First Amendment trap, and alleges that the criminal activity occurred not in what Trump said, but in actions like the ex-president’s pressure on local officials over the election and on former Vice President Mike Pence to delay its certification.

    The Trump team’s filing went on to claim that the case was in itself an example of political victimization of their client, underscoring the fusion between his courtroom defense and his presidential campaign.

    “Worse, it does so against its administration’s primary political opponent, during an election season in which the administration, prominent party members, and media allies have campaigned on the indictment and proliferated its false allegations,” the filing said.

    In a Monday night order, Chutkan signaled she would hold a hearing this week on the dispute and told the parties to come up with, by 3 p.m. Tuesday, two options for when such a hearing could be held this week.

    Any prolonged debate over the terms of the pre-discovery process – let alone the many other expected pre-trial motions – will play into the hands of the defense. Trump is showing every sign that part of his motivation in running for a second White House term is to reacquire executive powers that could lead to federal cases against him being frozen. The timing of the January 6, 2021, case, and any potential conviction, is therefore hugely significant with a general election looming in November 2024.

    Trump has called for the recusal of Chutkan, who was appointed by former President Barack Obama. His legal team has called for a shift of trial venue away from the diverse US capital, potentially to West Virginia, one of the Whitest and most pro-Trump states in the nation. These pre-trial gambits are unlikely to succeed. But they help to create extreme pressure on the judge and to build a case for Trump supporters that the legal process is biased against him – a narrative that could provide especially inflammatory if he is eventually convicted.

    Trump’s rhetoric about the case has raised some concerns about the possibility of witness intimidation – especially as some of his supporters who were tried for their part in the mob attack on the US Capitol on January 6, have testified that they were spurred to action by his rhetoric.

    CNN observed increased security around Chutkan on Monday. Security is also increased around the Superior Court in Fulton County, Georgia, where a decision is expected in days on whether to hit Trump with a fourth criminal indictment.

    Any normal political candidate would have seen their political ambitions crushed by even one of the cases in Trump’s bulging portfolio of legal jeopardy. It is, however, a sign of the ex-president’s extraordinary and unbroken hold on the Republican Party and its voters that he is still the runaway front-runner in the primary.

    But one of his top rivals, Florida Gov. Ron DeSantis, is slowly becoming more willing to criticize Trump publicly, after being cautious about alienating Trump supporters who feel the ex-president is the victim of a political witch hunt. DeSantis told NBC that “of course” Trump lost the 2024 election, as he blitzes early voting states New Hampshire and Iowa and makes the case that the ex-president’s legal exposure is a distraction the GOP cannot afford if it is to oust Biden from the White House after a single term. It may seem absurd that DeSantis is risking his political career by stating the obvious truth about the 2020 election, but Trump has made signing up to his false reality a test of loyalty among base voters.

    And Pence, who rejected Trump’s public pressure to thwart the certification of Biden’s election – a scheme at the center of Smith’s case – indicated over the weekend that he may testify in Trump’s trial if required to do so by law.

    The spectacle of a former vice presidential running mate testifying against the man who picked him for his ticket would be an extreme twist even in the Trump era of shattered political conventions.

    Thanks to Trump’s unfathomable and widening legal nightmare, nothing about the 2024 election is going to be anywhere near normal.

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  • US Customs and Border Protection sends resources to remote Arizona area after increase in migrant crossings | CNN

    US Customs and Border Protection sends resources to remote Arizona area after increase in migrant crossings | CNN

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    CNN
     — 

    US border officials are increasing personnel and transportation resources at Ajo, Arizona, one of the most isolated and dangerous areas on the Southwest border, to deal with a recent increase in migrants and an ongoing heat wave.

    “Border Patrol has prioritized the quick transporting of noncitizens encountered in this desert environment, which is particularly dangerous during current weather conditions, to Border Patrol facilities where individuals can receive medical care, food and water,” a spokesperson for US Customs and Border Protection said in a statement.

    An excessive heat warning is in effect for Ajo until Sunday evening. “Dangerously hot conditions” and high temperatures of 106 to 112 degrees are expected, according to the National Weather Service.

    The spike in migration at Ajo is driven by human smuggling organizations shifting the flow of migrants to some of the most dangerous terrain, including the Cabeza Prieta National Wildlife Refuge and the Organ Pipe Cactus National Monument near Ajo, according to the Border Patrol.

    Currently, the average time in custody at the Ajo station is 15 hours, with some migrants spending a portion of those hours outside waiting to be transported, according to the Border Patrol. The agency said the fenced-in outdoor space is covered by a large canopy and migrants have access to large fans, meals, water, and bathroom facilities. The outdoor area is only used for adult men, while women, children, and members of vulnerable populations are held inside the station.

    “USBP has utilized outdoor shaded areas only when necessary and for very short times while they await onward transportation to larger facilities,” said the agency’s spokesperson. “The Ajo Border Patrol Station is not equipped to hold large number of migrants due to historic trends in this area.”

    After arriving at Ajo Station, migrants are screened and then transported to other locations for immigration processing, with the closest large Border Patrol facility or shelter 2.5 hours away, according to the Border Patrol.

    The agency would not disclose the Ajo facility’s capacity to CNN, citing security concerns.

    The Tucson Border Patrol sector encountered more than 24,000 migrants in June, making it the second-busiest sector on the southern border during the month, according to Border Patrol data.

    Border Patrol officials report no deaths have occurred at Ajo station or the surrounding areas since the beginning of the heat wave and since the increase in migrant encounters.

    Across the state, Arizonans have experienced extreme heat over the past weeks, with Phoenix recording 31 consecutive days with a high temperature of 110 degrees or above. The streak of high temperatures made July the hottest month on record for the city.

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