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  • FCC bans new Chinese-made drones, citing security risks

    WASHINGTON — The Federal Communications Commission on Monday said it would ban new foreign-made drones, a move that will keep new Chinese-made drones such as those from DJI and Autel out of the U.S. market.

    The announcement came a year after Congress passed a defense bill that raised national security concerns about Chinese-made drones, which have become a dominant player in the U.S., widely used in farming, mapping, law enforcement and filmmaking.

    The bill called for stopping the two Chinese companies from selling new drones in the U.S. if a review found they posed a risk to American national security. The deadline for the review was Dec. 23.

    The FCC said Monday the review found that all drones and critical components produced in foreign countries, not just by the two Chinese companies, posed “unacceptable risks to the national security of the United States and to the safety and security of U.S. persons.” But it said specific drones or components would be exempt if the Pentagon or Department of Homeland Security determined they did not pose such risks.

    The FCC cited upcoming major events, such as the 2026 World Cup, America250 celebrations and the 2028 Summer Olympics in Los Angeles, as reasons to address potential drone threats posed by “criminals, hostile foreign actors, and terrorists.”

    Michael Robbins, president and chief executive officer of AUVSI, the Association for Uncrewed Vehicle Systems International, said in a statement that the industry group welcomes the decision. He said it’s time for the U.S. not only to reduce its dependence on China but build its own drones.

    “Recent history underscores why the United States must increase domestic drone production and secure its supply chains,” Robbins said, citing Beijing’s willingness to restrict critical supplies such as rare earth magnets to serve its strategic interests.

    DJI said it was disappointed by the FCC decision. “While DJI was not singled out, no information has been released regarding what information was used by the Executive Branch in reaching its determination,” it said in a statement.

    “Concerns about DJI’s data security have not been grounded in evidence and instead reflect protectionism, contrary to the principles of an open market,” the company said.

    In Texas, Gene Robinson has a fleet of nine DJI drones that he uses for law enforcement training and forensic analyses. He said the new restrictions would hurt him and many others who have come to rely on the Chinese drones because of their versatility, high performance and affordable prices.

    But he said he understands the decision and lamented that the U.S. had outsourced the manufacturing to China. “Now, we are paying the price,” Robinson said. “To get back to where we had the independence, there will be some growing pains. We need to suck it up, and let’s not have it happen again.”

    Also in Texas, Arthur Erickson, chief executive officer and co-founder of the drone-making company Hylio, said the departure of DJI would provide much-needed room for American companies like his to grow. New investments are pouring in to help him ramp up production of spray drones, which farmers use to fertilize their fields, and it will bring down prices, Erickson said.

    But he also called it “crazy” and “unexpected” that the FCC should expand the scope to all foreign-made drones and drone components. “The way it’s written is a blanket statement,” Erickson said. “There’s a global allied supply chain. I hope they will clarify that.”

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  • World shares are mixed and Japan’s yen slips after AI stocks push higher on Wall Street

    World shares were mixed on Monday after a rebound in AI-related stocks like Nvidia spurred a late-in-the-week rally on Wall Street.

    Germany’s DAX edged 0.1% higher to 24,315.90, while the CAC 40 in Paris slipped 0.2% to 8,135.23. Britain’s FTSE 100 shed 0.3% to 9,864.71.

    The future for the S&P 500 was up 0.4% while that for the Dow Jones Industrial Average gained 0.2%.

    In Asian trading, Tokyo’s Nikkei 225 gained 1.8% to 50,402.39, helped by hefty gains for computer chip makers and other companies benefiting from the boom for artificial intelligence.

    Semiconductor maker Tokyo Electron jumped 6.3% while chip testing equipment maker Advantest gained 4.5%.

    Financial companies and exporters also saw gains after the Bank of Japan raised its key policy rate on Friday to its highest level in 30 years. Instead of causing the Japanese yen to strengthen as might be expected, it has fallen.

    Early Monday, the dollar bought 157.45 yen, down from 157.60 late Friday. Heavy selling of the yen for dollars caused a top Finance Ministry official in charge of foreign exchange issues, Atsushi Mimura, to warn that regulators would act to curb any excessive fluctuations in the currency.

    Hong Kong’s Hang Seng picked up 0.4% to 25,901.77. The Shanghai Composite index advanced 0.7% to 3,917.36.

    China’s central bank left its 1-year and 5-year loan prime rates unchanged, as expected.

    Elsewhere in Asia, South Korea’s Kospi added 2.1% to 4,105.93 and Taiwan’s Taiex was 1.6% higher, helped by a 2.5% gain for chip maker TSMC.

    In Australia, the S&P/ASX 200 picked up 0.9% to 8,699.90.

    “Asian equity markets are stepping onto the floor with a constructive bias, taking their cue from Friday’s solid rebound in U.S. stocks and the growing belief that the final stretch of the year still belongs to the bulls,” Stephen Innes of SPI Asset Management said in a commentary.

    On Friday, the S&P 500 rose 0.9%, edging 0.1% higher for the week. The Dow Jones Industrial Average rose 0.4%, while the Nasdaq composite index advanced 1.3%, nothing a 0.5% gain for the week.

    Nvidia was the biggest force driving the market higher, with a 3.9% gain. Broadcom jumped 3.2%.

    The technology sector has been fueling Wall Street throughout the year as companies with outsized values like Nvidia exert more pressure on markets. But, those pricey stock values have come under more scrutiny from investors wondering whether they are justifiable.

    Oracle rose 6.6% on news that it, along with two other investors, had signed agreements to form a new TikTok U.S. joint ventur e. Oracle, Silver Lake and MGX each get a 15% share in the popular social video platform, ensuring that it can continue operating in the U.S.

    Homebuilders fell following a report showing that home sales slowed from a year earlier for the first time since May. KB Home fell 8.5%.

    A survey from the University of Michigan showed that consumer sentiment in December improved slightly from November, but is deeply diminished from a year earlier.

    Consumer confidence has been weakening throughout the year as persistent inflation squeezes consumers. The job market is also slowing while retail sales weaken. Businesses and consumers are also worrying about the continued impact of a wide-ranging U.S.-led trade war that has targeted key partners including China and Canada.

    Inflation is still above the Federal Reserve’s 2% target. The central bank cut its benchmark interest rate at its most recent meeting. It has been concerned about the slowing job market hurting the economy. But cutting interest rates could add more fuel to inflation, which could also stunt economic growth.

    The Fed has maintained a cautious stance about interest rate policy heading into 2026 and Wall Street is mostly betting that it will hold steady on rates at its next meeting in January.

    In other dealings early Monday, U.S. benchmark crude oil gained 57 cents to $57.09 per barrel. Brent crude, the international standard, was up 58 cents at $61.05 per barrel.

    The euro climbed to $1.1726 from $1.1720.

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  • US official: Coast Guard pursues another tanker helping Venezuela skirt sanctions

    The pursuit of the tanker, which was confirmed by a U.S. official briefed on the operation, comes after the U.S. administration announced Saturday it had seized a tanker for the second time in less than two weeks.

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    Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

    By AAMER MADHANI – Associated Press

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  • Colorado gov accuses Trump of playing ‘political games’ on disaster requests

    DENVER — Colorado Gov. Jared Polis accused President Donald Trump of playing “political games” Sunday after the Trump administration denied disaster declaration requests following wildfires and flooding in the state earlier this year.

    Polis’ office said he received late Saturday two denial letters from the Federal Emergency Management Agency. The letters follow requests for major disaster declarations following wildfires and mudslides in August and what Polis had described as “historic flooding” across southwest Colorado in October.

    Polis and Colorado’s U.S. senators, fellow Democrats Michael Bennet and John Hickenlooper, decried the denials. Polis said the state would appeal.

    “Coloradans impacted by the Elk and Lee fires and the flooding in Southwestern Colorado deserve better than the political games President Trump is playing,” he said in a statement.

    Abigail Jackson, a White House spokesperson, said Trump responds to each request for federal disaster assistance “with great care and consideration, ensuring American tax dollars are used appropriately and efficiently by the states to supplement — not substitute, their obligation to respond to and recover from disasters.”

    Jackson said there is “no politicization” to Trump’s decisions on disaster aid.

    Trump has raised the idea of “phasing out” FEMA, saying he wants states to take more responsibility. States already take the lead in disasters, but federal assistance comes into play when the needs exceed what they can manage on their own.

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  • The Kennedy Center starts work to add Trump’s name onto the building

    WASHINGTON — The Kennedy Center started the work of adding Donald Trump’s name to the building on Friday, a day after the president’s handpicked board voted to do so.

    Several blue tarps were hung in front of the institution early Friday to block views of the work being done by workers on scaffolding. A large letter D, and later “The Donald,” were seen at the entrance to the center originally named for John F. Kennedy, a Democratic president.

    The board of trustees voted to add Trump’s name, making it the The Donald J. Trump and The John F. Kennedy Memorial Center for the Performing Arts. Trump, a Republican, is chairman of the board.

    Critics of the vote, including Democratic members of Congress who are ex-officio board members, as well as some historians, insist that only Congress can change the name.

    “The Kennedy Center was named by law. To change the name would require a revision of that 1964 law,” Ray Smock, a former House historian, said in an email. “The Kennedy Center board is not a lawmaking entity. Congress makes laws.”

    Congress named the performing arts center as a living memorial to Kennedy in 1964, the year after he was assassinated. The law explicitly prohibits the board of trustees from making the center into a memorial to anyone else, and from putting another person’s name on the exterior of the building.

    Some Kennedy family members oppose the renaming.

    The Kennedy Center is the latest building in Washington to have Trump’s name added to it. He recently had his name added to the building for the U.S. Institute of Peace.

    The Kennedy Center did not immediately respond to an emailed request for comment Friday.

    ——

    Associated Press National Writer Hillel Italie in New York contributed to this report.

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  • Kansas tribe ends nearly $30 million deal with ICE

    A Kansas tribe said it has walked away from a nearly $30 million federal contract to come up with preliminary designs for immigrant detention centers after facing a wave of online criticism.

    The Prairie Band Potawatomi Nation ‘s announcement Wednesday night came just over a week after the economic development leaders who brokered the deal with U.S. Immigration and Customs Enforcement were fired.

    With some Native Americans swept up and detained in recent ICE raids, the deal was derided online as “disgusting” and “cruel.” Many in Indian Country also questioned how a tribe whose own ancestors were uprooted two centuries ago from the Great Lakes region and corralled on a reservation south of Topeka could participate in the Trump administration’s mass deportation efforts.

    Tribal Chairman Joseph “Zeke” Rupnick nodded to the historic issues last week in a video address that called reservations “the government’s first attempts at detention centers.” In an update Wednesday, he announced that he was “happy to share that our Nation has successfully exited all third-party related interests affiliated with ICE.”

    The Prairie Band Potawatomi has a range of businesses that provide health care management staffing, general contracting and even interior design. And Rupnick said in his latest address that tribal officials plan to meet in January about how to ensure “economic interests do not come into conflict with our values in the future.”

    A tribal offshoot hired by ICE — KPB Services LLC — was established in April in Holton, Kansas, by Ernest C. Woodward Jr., a former naval officer who markets himself as a “go-to” adviser for tribes and affiliated companies seeking to land federal contracts.

    The Prairie Band Potawatomi Nation said in 2017 that Woodward’s firm advised it on its acquisition of another government contractor, Mill Creek LLC, which specializes in outfitting federal buildings and the military with office furniture and medical equipment.

    Woodward also is listed as the chief operating officer of the Florida branch of Prairie Band Construction Inc., which was registered in September.

    Attempts to locate Woodward were unsuccessful. A spokesperson for KPB said Woodward is no longer with the LLC but she declined to say whether he was terminated. Woodward did not respond to an email sent to another consulting firm he’s affiliated with, Virginia-based Chinkapin Partners LLC.

    A spokesperson for the Prairie Band Potawatomi Nation said the tribe divested from KPB. While that company still has the contract, “Prairie Band no longer has a stake,” the spokesperson said.

    The spokesperson said Woodward is no longer with the tribe’s limited liability corporation, but she declined to say whether he was terminated.

    The ICE contract initially was awarded in October for $19 million for unspecified “due diligence and concept designs” for processing centers and detention centers throughout the U.S., according to a one-sentence description of the work on the federal government’s real-time contracting database. It was modified a month later to increase the payout ceiling to $29.9 million.

    Sole-source contracts above $30 million require additional justification under federal contracting rules.

    Tribal leaders and the U.S. Department of Homeland Security haven’t responded to detailed questions about why the firm was selected for such a big contract without having to compete for the work as federal contracting normally requires. It’s also unclear what the Tribal Council knew about the contract.

    “That process of internal auditing is really just beginning,” the tribal spokesperson said.

    —-

    Hollingsworth reported from Mission, Kansas, and Goodman from Miami.

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  • Senate confirms Jared Isaacman as NASA administrator in do-over after Musk feud

    WASHINGTON — The Senate on Wednesday confirmed billionaire entrepreneur Jared Isaacman to be NASA administrator on Wednesday, placing him atop the agency after a monthslong saga where President Donald Trump revoked his nomination as part of a feud with tech billionaire Elon Musk.

    Isaacman, who has promised to bring a business-minded approach to the space agency, was confirmed in a bipartisan vote, 67-30.

    He will take over after an unusual confirmation process upended by the Republican president’s oscillating and at times tumultuous relationship with prominent tech leaders who backed his campaign, most notably Musk, the Tesla CEO who is a close ally of Isaacman.

    Trump picked Isaacman last year but withdrew the nomination in May after feuding with Musk over the administration’s policies on issues such as electric vehicles and the performance of Musk’s Department of Government Efficiency.

    Musk was the largest contributor of donations to Trump’s 2024 campaign and after the administration took office, he assembled a team for DOGE that blitzed through the federal government’s departments, contracts and critical infrastructure. The monthslong operation led to major cuts to federal contracts focused on foreign aid, global health and mass layoffs of federal workers.

    But the effort did not lead to significant reductions in the federal budget deficit, the stated goal. Musk also feuded with some senior Cabinet officials and, eventually, Trump himself. Musk is also CEO of the space flight company SpaceX and has ambitions for humans to colonize space.

    Trump nominated Isaacman for the job again in November. Transportation Secretary Sean Duffy had been serving as NASA’s interim administrator until a permanent head was in place.

    Isaacman is the founder of Shift4 Payments, a payment processing and technology solutions company based in Pennsylvania. He is also the co-founder of Draken International, a Florida-based aerospace company. He has done business with Musk’s Starlink and other ventures tied to the fellow billionaire.

    During Isaacman’s second confirmation hearing in December, Sen. Gary Peters, D-Mich., pressed Isaacman to “explain what happened to make President Trump reconsider the decision to pull your nomination and what assurances you may have provided with Elon Musk and SpaceX would not create a significant conflict of interest in this role.”

    Isaacman replied that he “wouldn’t even want to begin to speculate why the president nominated and then renominated me.” He said he pledged to be free of conflicts of interest in his role. In a June letter, Isaacman had promised to resign from his private sector posts should he be confirmed as NASA administrator.

    Republicans have welcomed some of Isaacman’s proposals and some new senators strongly advocated for his confirmation. But many Democrats balked at Isaacman and Trump’s plans, including the proposed costs of some projects and overall priorities for the agency.

    “For nearly 70 years, the United States has been at the forefront of space exploration. President Trump knows how critical it is to reinvigorate NASA as we aim to reach new heights in the greatest frontier ever known, and that’s why he chose exactly the right man for the job,” Sen. Tim Sheehy, an aerial firefighter, former Navy SEAL and close ally of Isaacman, said in a statement.

    Sheehy, R-Mont. added that he was confident Isaacman “will work tirelessly to ensure America wins the 21st century space race.”

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  • Postal service plans to open last-mile delivery network to more shippers in money-raising move

    The U.S. Postal Service said Wednesday it intends to open its “last-mile” delivery network, the most expensive part of the shipping process, to large and small shippers, expanding beyond current arrangements with giants such as Amazon and UPS.

    The goal is to diversify and boost revenue through the postal carriers’ final leg of delivery to millions of individual homes and businesses.

    The postal service expects to accept bids in late January or early February from other shippers, which will propose their own mix of volume, price and delivery timing. The agency will award contracts later in 2026, based on where it can provide same- and next-day delivery service at a profit.

    “As part of our universal service obligation, we deliver to more than 170 million addresses at least six days a week, so we are the natural leader in last-mile delivery,” said David Steiner, the postmaster general and CEO. “We want to make this valuable service available to a wide range of customers that see the worth of last mile access -other logistics companies and retailers large and small.”

    Steiner has said the 250-year-old postal service should expand its revenue base by capitalizing on its long-standing legal obligation to deliver to every address, as well as recent modernization investments in package processing and delivery capacity.

    The agency reported net losses of $9 billion this budget year, a slight improvement from the previous year’s $9.5 billion. The postal service is an independent and mostly self-supporting federal agency.

    Under the new plan, shippers would have access to more than 18,000 postal service “delivery distribution units,” entry points throughout the network where mail and packages are sorted for delivery to a local area.

    Steiner called the concept a “compelling value proposition for many shippers who we know are wrestling with the need to deliver to their customer as quickly and reliably as possible,” predicting it will ultimately help lower their costs.

    The postal service said it still plans to gauge interest in the concept and fine-tune the details.

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  • China exploits US-funded research on nuclear technology, a congressional report says

    WASHINGTON — China is exploiting partnerships with U.S. researchers funded by the Department of Energy to provide the Chinese military with access to sensitive nuclear technology and other innovations with economic and national security applications, according to a congressional report published Wednesday.

    The authors of the report say the U.S. must do more to protect high-tech research and ensure that the results of taxpayer-funded work don’t end up benefiting Beijing. They recommended several changes to better protect scientific research in the U.S., including new policies for the Department of Energy to use when deciding whether to fund work that involves Chinese partnerships.

    The investigation is part of a congressional push to raise a firewall blocking U.S. research from boosting China’s military buildup when the two countries are locked in a tech and arms rivalry that will shape the future global order.

    Investigators from the House Select Committee on the Chinese Communist Party and the House Committee on Education and the Workforce identified more than 4,300 academic papers published between June 2023 and June of this year that involved collaborations between DOE-funded scientists and Chinese researchers. About half of the papers involved Chinese researchers affiliated with China’s military or industrial base.

    Particularly concerning, investigators found that federal funds went to research collaborations with Chinese state-owned laboratories and universities that work directly for China’s military, including some listed in a Pentagon database of Chinese military companies with operations in the U.S. The report also detailed collaborations between U.S. researchers and groups blamed for cyberattacks as well as human rights abuses in China.

    The Energy Department routinely funds advanced research into nuclear energy and the development and disposal of nuclear weaponry, along with a long list of other high-tech fields like quantum computing, materials science and physics. It doles out hundreds of millions of dollars each year for research. The department oversees 17 national laboratories that have led the development in many technologies.

    The report followed a number of congressional investigations into federally funded research involving Chinese scientists and researchers. Last year, a report released by Republicans found that partnerships between U.S. and Chinese universities over the past decade had allowed hundreds of millions of dollars in federal funding to help Beijing develop critical technology that could help strengthen its military. Another investigation this year revealed that the Pentagon in a recent two-year period funded hundreds of projects in collaboration with Chinese entities linked to China’s defense industry.

    The Energy Department has failed for decades to take steps to ensure the research it funds doesn’t benefit China, the report’s authors found. They made several recommendations to tighten the rules, including a new standardized approach to assessing the national security risks of research, as well as requirements that the department share information about research ties with China with other U.S. government agencies to make it easier to spot problems.

    “These longstanding policy failures and inaction have left taxpayer-funded research vulnerable to exploitation by China’s defense research and industrial base and state-directed technology transfer activities,” the authors concluded.

    The Department of Energy did not immediately respond to questions about the report and its recommendations. A message seeking comment was left with the Chinese Embassy in Washington.

    Rep. John Moolenaar, a Michigan Republican who chairs the select committee, said in a statement that the “investigation reveals a deeply alarming problem: The Department of Energy failed to ensure the security of its research and it put American taxpayers on the hook for funding the military rise of our nation’s foremost adversary.”

    Moolenaar this year introduced legislation aimed at preventing research funding in science and technology and defense from going to collaborations or partnerships with “foreign adversary-controlled” entities that pose a national security risk.

    The legislation cleared the House but failed to advance to become part of the annual sweeping defense policy bill. It was met with strong opposition from scientists and researchers, who argued that the measures were too broad and could chill collaboration and undermine America’s competitive edge in science and technology.

    In an October letter, a group of more than 750 faculty members and senior staffers from American universities told congressional leaders overseeing the armed services that the U.S. is in a global competition for talent. They called for “very careful and targeted measures for risk management” to address security concerns.

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  • Militant groups are experimenting with AI, and the risks are expected to grow

    WASHINGTON — As the rest of the world rushes to harness the power of artificial intelligence, militant groups also are experimenting with the technology, even if they aren’t sure exactly what to do with it.

    For extremist organizations, AI could be a powerful tool for recruiting new members, churning out realistic deepfake images and refining their cyberattacks, national security experts and spy agencies have warned.

    Someone posting on a pro-Islamic State group website last month urged other IS supporters to make AI part of their operations. “One of the best things about AI is how easy it is to use,” the user wrote in English.

    “Some intelligence agencies worry that AI will contribute (to) recruiting,” the user continued. “So make their nightmares into reality.”

    IS, which had seized territory in Iraq and Syria years ago but is now a decentralized alliance of militant groups that share a violent ideology, realized years ago that social media could be a potent tool for recruitment and disinformation, so it’s not surprising that the group is testing out AI, national security experts say.

    For loose-knit, poorly resourced extremist groups — or even an individual bad actor with a web connection — AI can be used to pump out propaganda or deepfakes at scale, widening their reach and expanding their influence.

    “For any adversary, AI really makes it much easier to do things,” said John Laliberte, a former vulnerability researcher at the National Security Agency who is now CEO of cybersecurity firm ClearVector. “With AI, even a small group that doesn’t have a lot of money is still able to make an impact.”

    Militant groups began using AI as soon as programs like ChatGPT became widely accessible. In the years since, they have increasingly used generative AI programs to create realistic-looking photos and video.

    When strapped to social media algorithms, this fake content can help recruit new believers, confuse or frighten enemies and spread propaganda at a scale unimaginable just a few years ago.

    Such groups spread fake images two years ago of the Israel-Hamas war depicting bloodied, abandoned babies in bombed-out buildings. The images spurred outrage and polarization while obscuring the war’s actual horrors. Violent groups in the Middle East used the photos to recruit new members, as did antisemitic hate groups in the U.S. and elsewhere.

    Something similar happened last year after an attack claimed by an IS affiliate killed nearly 140 people at a concert venue in Russia. In the days after the shooting, AI-crafted propaganda videos circulated widely on discussion boards and social media, seeking new recruits.

    IS also has created deepfake audio recordings of its own leaders reciting scripture and used AI to quickly translate messages into multiple languages, according to researchers at SITE Intelligence Group, a firm that tracks extremist activities and has investigated IS’ evolving use of AI.

    Such groups lag behind China, Russia or Iran and still view the more sophisticated uses of AI as “aspirational,” according to Marcus Fowler, a former CIA agent who is now CEO at Darktrace Federal, a cybersecurity firm that works with the federal government.

    But the risks are too high to ignore and are likely to grow as the use of cheap, powerful AI expands, he said.

    Hackers are already using synthetic audio and video for phishing campaigns, in which they try to impersonate a senior business or government leader to gain access to sensitive networks. They also can use AI to write malicious code or automate some aspects of cyberattacks.

    More concerning is the possibility that militant groups may try to use AI to help produce biological or chemical weapons, making up for a lack of technical expertise. That risk was included in the Department of Homeland Security’s updated Homeland Threat Assessment, released earlier this year.

    “ISIS got on Twitter early and found ways to use social media to their advantage,” Fowler said. “They are always looking for the next thing to add to their arsenal.”

    Lawmakers have floated several proposals, saying there’s an urgent need to act.

    Sen. Mark Warner of Virginia, the top Democrat on the Senate Intelligence Committee, said, for instance, that the U.S. must make it easier for AI developers to share information about how their products are being used by bad actors, whether they are extremists, criminal hackers or foreign spies.

    “It has been obvious since late 2022, with the public release of ChatGPT, that the same fascination and experimentation with generative AI the public has had would also apply to a range of malign actors,” Warner said.

    During a recent hearing on extremist threats, House lawmakers learned that IS and al-Qaida have held training workshops to help supporters learn to use AI.

    Legislation that passed the U.S. House last month would require homeland security officials to assess the AI risks posed by such groups each year.

    Guarding against the malicious use of AI is no different from preparing for more conventional attacks, said Rep. August Pfluger, R-Texas, the bill’s sponsor.

    “Our policies and capabilities must keep pace with the threats of tomorrow,” he said.

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  • Belarus frees Nobel Prize winner, opposition figure as US lifts sanctions

    VILNIUS, Lithuania — Belarus freed Nobel Peace Prize laureate Ales Bialiatski, key opposition figure Maria Kolesnikova and dozens of other political prisoners on Saturday, capping two days of talks with Washington aimed at improving ties and getting crippling U.S. sanctions lifted on a key Belarusian agricultural export.

    President Alexander Lukashenko pardoned 123 prisoners, Belarus’ state news agency, Belta, reported. In exchange, the U.S. said it was lifting sanctions on the Eastern European country’s potash sector,

    A close ally of Russia, Minsk has faced Western isolation and sanctions for years. Lukashenko has ruled the nation of 9.5 million with an iron fist for more than three decades, and the country has been repeatedly sanctioned by the West for its crackdown on human rights and for allowing Moscow to use its territory during the 2022 invasion of Ukraine.

    John Coale, the U.S. special envoy for Belarus who met with Lukashenko in Minsk on Friday and Saturday, described the talks to reporters as “very productive” and said normalizing relations between the two countries was “our goal,” Belta reported.

    “We’re lifting sanctions, releasing prisoners. We’re constantly talking to each other,” Coale said, adding that the relationship between the U.S. and Belarus was moving from “baby steps to more confident steps” as they increased dialogue, the Belarusian news agency reported.

    Belarus has released hundreds of prisoners since July 2024. Among the 123 freed Saturday were a U.S. citizen, six citizens of U.S. allied countries, and five Ukrainian citizens, a U.S. official told The Associated Press in an email. The official, who spoke on condition of anonymity to discuss private diplomatic negotiations, described the release as “a significant milestone in U.S.-Belarus engagement” and “yet another diplomatic victory” for U.S. President Donald Trump.

    The official said Trump’s engagement so far “has led to the release of over 200 political prisoners in Belarus, including six unjustly detained U.S. citizens and over 60 citizens of U.S. Allies and partners.”

    Pavel Sapelka, an advocate with the Viasna rights group, confirmed to the AP that Bialiatski and Kolesnikova were among those released.

    Bialiatski, a human rights advocate who founded Viasna, was in jail when he was awarded the Nobel Peace Prize in 2022 along with the prominent Russian rights group Memorial and Ukraine’s Center for Civil Liberties. He was later convicted of smuggling and financing actions that violated public order — charges that were widely denounced as politically motivated — and sentenced to 10 years in 2023.

    Bialiatski told the AP by phone Saturday that his release after 1,613 days behind bars came as a surprise — in the morning, he was still in an overcrowded prison cell.

    “It feels like I jumped out of icy water into a normal, warm room, so I have to adapt. After isolation, I need to get information about what’s going on,” said Bialiatski, who seemed energetic but pale and emaciated in post-release videos and photos.

    He vowed to continue his work, stressing that “more than a thousand political prisoners in Belarus remain behind bars simply because they chose freedom. And, of course, I am their voice.”

    Kolesnikova, meanwhile, was a key figure in the mass protests that rocked Belarus in 2020 and is a close ally of an opposition leader in exile, Sviatlana Tsikhanouskaya.

    Known for her close-cropped hair and trademark gesture of forming a heart with her hands, Kolesnikova became an even greater symbol of resistance when Belarusian authorities tried to deport her in September 2020. Driven to the Ukrainian border, she briefly broke away from security forces at the frontier, tore up her passport and walked back into Belarus.

    The 43-year-old professional flutist was convicted in 2021 on charges including conspiracy to seize power and sentenced to 11 years in prison.

    Among the others who were released, according to Viasna, was Viktar Babaryka — an opposition figure who had sought to challenge Lukashenko in the 2020 presidential election, widely seen as rigged, before being convicted and sentenced to 14 years in prison on charges he rejected as political.

    Viasna reported that the group’s imprisoned advocates, Valiantsin Stefanovic and Uladzimir Labkovich, and prominent opposition figure Maxim Znak were also freed. But it later said it was clarifying its report about Stefanovic’s release, and Bialiatski told the AP that Stefanovic had not been freed, though he hopes he will be soon.

    Most of the freed prisoners were sent to Ukraine, Franak Viachorka, Tsikhanouskaya’s senior adviser, told the AP. Eight or nine others, including Bialiatski, were being sent to Lithuania on Saturday, and more prisoners will be taken to the Baltic country in the next few days, Viachorka said.

    Ukrainian authorities confirmed that Belarus had handed over 114 civilians, including five Ukrainian nationals. Freed Belarusian nationals “at their request” and “after being given necessary medical treatment” will be taken to Poland and Lithuania, they said.

    Lukashenko’s press secretary, Natalya Eismont, said those released were sent to Ukraine because Kyiv was to free several imprisoned Belarusian and Russian nationals as part of the deal, although Ukrainian officials haven’t confirmed the claim yet.

    When U.S. officials last met with Lukashenko in September, Washington eased some of the sanctions on Belarus while Minsk released more than 50 political prisoners.

    “The freeing of political prisoners means that Lukashenko understands the pain of Western sanctions and is seeking to ease them,” Tsikhanouskaya, the opposition leader in exile, told the AP on Saturday.

    She added: “But let’s not be naive: Lukashenko hasn’t changed his policies, his crackdown continues and he keeps on supporting Russia’s war against Ukraine. That’s why we need to be extremely cautious with any talk of sanctions relief, so that we don’t reinforce Russia’s war machine and encourage continued repressions.”

    Belarus, which previously accounted for about 20% of global potash fertilizer exports, has been forced to sharply cut them after Western sanctions targeted state producer Belaruskali and cut off transit through Lithuania’s port in Klaipeda, the country’s main export route.

    “Sanctions by the U.S., EU and their allies have significantly weakened Belarus’s potash industry, depriving the country of a key source of foreign exchange earnings and access to key markets,” Anastasiya Luzgina, an analyst at the Belarusian Economic Research Center BEROC, told the AP, noting that Minsk likely hopes this paves the way for easing the more painful European sanctions.

    The latest round of U.S.-Belarus talks also touched on Venezuela, as well as Russia’s ongoing invasion of Ukraine, Belta reported.

    Coale told reporters that Lukashenko had given “good advice” on how to address the war, saying that Lukashenko and Russian President Vladimir Putin were “longtime friends” with “the necessary level of relationship to discuss such issues.”

    The U.S. official told the AP that “continued progress in U.S.-Belarus relations” also requires steps to resolve tensions between Belarus and neighboring Lithuania, which is a member of the EU and NATO.

    The Lithuanian government this week declared a national emergency over security risks posed by meteorological balloons sent from Belarus. The balloons forced Lithuania to repeatedly shut down its main airport, stranding thousands of people.

    ___

    Associated Press writer Matthew Lee in Washington contributed to this report.

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  • TSA renews push to end collective bargaining agreement for airport security screeners

    The Transportation Security Administration is renewing Homeland Security Secretary Kristi Noem’s push to end a collective bargaining agreement with airport screening officers — the second such attempt this year, coming just a month after the longest government shutdown on record.

    The agency said Friday the move relies on a September memo from Noem — issued months after a federal judge blocked her earlier directive — that says TSA screeners “have a primary function of national security” and therefore should not engage in collective bargaining or be represented by a union.

    The American Federation of Government Employees swiftly vowed to fight the decision, calling it illegal and a violation of the preliminary injunction issued in June that halted Noem’s first attempt to terminate the contract covering 47,000 workers.

    In the September memo cited by TSA, Noem acknowledged the injunction but did not explain why she concluded it did not prohibit her from pursuing the same outcome through a new directive while the case remains pending. The injunction barred TSA from rescinding the union contract or enforcing Noem’s orders to dismiss pending grievances, but it did not state whether its restrictions would extend to future directives by Noem.

    “It definitely seems like they’re using all loopholes to try to eliminate collective bargaining rights for the transportation security officers,” Johnny Jones, secretary-treasurer of the bargaining unit for TSA workers, said Friday in a phone interview.

    TSA declined Friday to comment on the union’s assertions. An emailed request for comment was sent to Homeland Security.

    The agency said it plans to rescind the current seven-year contract in January and replace it with a new “security-focused framework.” The agreement, reached last May, was supposed to expire in 2031.

    Adam Stahl, acting TSA deputy administrator, said in a statement that airport screeners “need to be focused on their mission of keeping travelers safe.”

    “Under the leadership of Secretary Noem, we are ridding the agency of wasteful and time-consuming activities that distracted our officers from their crucial work,” Stahl said.

    The announcement also comes weeks after Noem held a news conference in which she handed out $10,000 bonus checks to TSA officers who she said went “above and beyond” during the 43-day shutdown, when thousands of airport screeners continued reporting for duty despite missing more than six weeks of pay during the lapse in funding.

    “This is how they’re going to be repaid for coming to work every single day during the government shutdown?” Jones said, calling the agency’s decision “a slap in the face to the people they’re handing checks to.”

    Noem issued her first memo in February rescinding the collective bargaining agreement. But the union sued, claiming the move was retaliation for AFGE’s resistance to the Trump administration’s actions affecting federal workers, such as firing probationary employees. A trial is currently scheduled for next year.

    In granting the preliminary injunction in June, U.S. District Judge Marsha Pechman of Seattle said the order was necessary to preserve the rights and benefits TSA workers have long held under union representation.

    Pechman wrote that AFGE had shown in its lawsuit that Noem’s directive “constitutes impermissible retaliation,” likely violated the union’s due process, and was “arbitrary and capricious” — findings that the judge said make it likely AFGE will ultimately prevail.

    AFGE represents about 800,000 federal government employees and has been pushing back as the Trump administration has laid the groundwork to weaken or eliminate protections for federal workers in an effort to shrink the bureaucracy.

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  • A Chinese whistleblower now living in the US is being hunted by Beijing with US tech

    MIDLAND, Texas — Retired Chinese official Li Chuanliang was recuperating from cancer on a Korean resort island when he got an urgent call: Don’t return to China, a friend warned. You’re now a fugitive.

    Days later, a stranger snapped a photo of Li in a cafe. Terrified South Korea would send him back, Li fled, flew to the U.S. on a tourist visa and applied for asylum. But even there — in New York, in California, deep in the Texas desert — the Chinese government continued to hunt him down with the help of surveillance technology.

    Li’s communications were monitored, his assets seized and his movements followed in police databases. More than 40 friends and relatives — including his pregnant daughter — were identified and detained, even by tracking down their cab drivers through facial recognition software. Three former associates died in detention, and for months shadowy men Li believed to be Chinese operatives stalked him across continents, interviews and documents seen by The Associated Press show.

    “They track you 24 hours a day. All your electronics, your phone — they’ll use every method to find you, your relatives, your friends, where you live,” Li said. “No matter where you are, you’re under their control.”

    The Chinese government is using an increasingly powerful tool to cement its power at home and vastly amplify it abroad: Surveillance technology, much of it originating in the U.S., an AP investigation has found.

    Within China, this technology helped identify and punish almost 900,000 officials last year alone, nearly five times more than in 2012, according to state numbers. Beijing says it is cracking down on corruption, but critics charge that such technology is used in China and elsewhere to stifle dissent and exact retribution on perceived enemies.

    Outside China, the same technology is being used to threaten wayward officials, along with dissidents and alleged criminals, under what authorities call Operations “Fox Hunt” and “Sky Net.” The U.S. has criticized these overseas operations as a “threat” and an “affront to national sovereignty.” More than 14,000 people, including some 3,000 officials, have been brought back to China from more than 120 countries through coercion, arrests and pressure on relatives, according to state information.

    “They’re actively pursuing those people who fled China. … as a way to demonstrate power, to show there’s no way you can escape,” said Yaqiu Wang, a fellow at the University of Chicago. “The chilling effect is enormously effective.”

    The technology used to control officials at home and abroad over the past decade came from Silicon Valley companies such as IBM, Oracle and Microsoft, according to a review of hundreds of leaked emails, government procurements, and internal corporate presentations obtained exclusively by AP. This technology mines texts, payments, flights, calls, and other data to identify the friends and family of officials and their assets.

    Among the agencies pursuing Li and his family is China’s economic crimes police, which hunts corruption suspects domestically and abroad. IBM said in internal slides that it sold the i2 surveillance software program to this Economic Crime Investigation Bureau, and procurement records show Oracle and Microsoft software was sold to that same division. Leaked emails show i2 software was copied by a former IBM partner, Landasoft, and sold to China’s disciplinary commissions, which investigate officials. None of the sales violated U.S. sanctions.

    IBM said in a statement that it sold its division making the i2 program in 2022, and has “robust processes” to ensure its technology is used responsibly. Oracle declined comment, and Microsoft did not respond.

    China’s State Council, Ministry of Public Security, National Supervision Commission, and Supreme People’s Court and Prosecutorate did not respond to faxed requests for comment. China’s foreign ministry told AP that Chinese authorities protect the rights of suspects, handle cases lawfully and respect foreign sovereignty.

    “We urge relevant countries to drop double standards and avoid becoming a safe haven for corrupt officials and their assets,” it said.

    Li’s story is a rare firsthand account from a former Chinese official. Beijing has accused Li of corruption totaling around $435 million, but Li says he’s being targeted for openly criticizing the Chinese government and denies criminal charges of taking bribes and embezzling state funds. A review of thousands of pages of legal, property, and corporate records, interrogation transcripts, and Li’s medical and travel files obtained exclusively by AP, as well as interviews with nine lawyers, support key parts of his story, showing distorted charges, blocked access to evidence, coercive confessions, and altered legal records.

    Li drew ire because as a former official, he knew well and exposed the inner workings of local politics, including naming names. While in the U.S., he also started what he called the Chinese Tyrannical Officials Whistleblower Center.

    “China places enormous emphasis on the political discipline of even former officials and (Communist) Party members,” said Jeremy Daum, Senior Fellow at Yale Law School’s Paul Tsai China Center. “So when one becomes a vocal critic of the country’s leadership, it doesn’t go over well.”

    At a pro-democracy gathering in California in 2020, Li said, he was tailed and questioned by a stranger who knew his identity. That November, an activist secretly working for Beijing asked Li to a meeting and added him to a dissident group chat monitored by China’s police, a 2025 FBI indictment later revealed. In June, an FBI letter identified Li as the possible victim of a crime involving an unregistered Chinese agent.

    Both the FBI and the White House did not comment on Li’s specific case. But the White House said it pursues any violations of U.S. law, and the FBI told AP it considers China’s efforts to retaliate against people in the U.S. who exercise their rights “unacceptable.”

    Li’s future in the U.S. is unclear. The Trump administration has paused all asylum applications. If he doesn’t return, he could face trial in absentia; if convicted and deported, he could face life in prison.

    “Electronic surveillance is the arteries for China to project power into the world … each step that every one of your relatives takes is being monitored and analyzed with big data,” Li said. “It’s absolutely terrifying.”

    Li, a stocky and well-built man who projects authority, rose through the ranks through the 1990s and 2000s, when China’s growing prosperity also brought corruption. Beijing formed a new “economic crime investigation bureau” and established what it called “Golden Tax,” “Golden Finance,” and “Golden Audit” systems to track businesses and officials across the country, using tech from Silicon Valley companies.

    Li worked as a state accountant in his hometown, Jixi, in far northeastern China, where he signed off on contracts to purchase American technology. “Bulwark against corruption,” the local media dubbed him.

    Li’s family prospered, investing in apartment complexes and renting out forklifts and bulldozers, raising questions over whether he used his position to enrich relatives. Li and his lawyers don’t deny conflicts of interest or civil violations, but say profits were made from legal, regular business operations and deny criminal charges of embezzlement and bribery.

    The same technology to fight corruption was also used for surveillance. Police accessed banking records, financial transactions, “Golden Tax,” “Golden Finance,” and “Golden Audit” data along with their own digital policing systems to sift through the finances of wide swaths of the population.

    Officials began deploying surveillance technology against each other. China’s former top security official was found to have wiretapped political opponents. And a former vice state security minister colluded with a businessman to leak tapes of a political competitor having sex with a mistress.

    In June 2011, Jixi gained a new leader: Xu Zhaojun, a local party boss.

    Months later, Li was named vice mayor of Jixi. He soon heard stories about Xu, his new boss.

    In January 2012, Xu splurged on an extravagant family getaway to China’s tropical Hainan Island, spending hundreds of thousands of dollars of public money on first-class tickets, lavish seafood dinners, and luxury suites, according to photos and receipts obtained by Li and seen by AP. They brought a maid, bought gold jewelry, and used the VIP airport terminal.

    At first Li stayed silent. But Xu kept spending: Luxury cars. Clothes from Louis Vuitton. A high-roller trip to Vegas, with paid escorts and expensive watches.

    Xu allegedly colluded with property developers to demolish an apartment complex, a culture center and a thriving shopping plaza for new construction, standing to earn millions in the process, documents show.  More than 100 people complained.

    But rather than investigate Xu, the Jixi authorities went after the protesters, and police said they were “strictly preventing” residents from complaining to the central government in Beijing, documents show.

    The funds Li had earmarked for Jixi’s surveillance apparatus was being turned on ordinary people. He was aghast.

    “It only became clear after I became vice mayor,” Li said. “From top to bottom, it’s all corrupt.”

    It all changed in 2012, when Xi Jinping became China’s top leader.

    Gifts of watches, cigarettes and high-end liquor were curbed. Private clubs shuttered, upscale restaurants closed. Banquets were canceled, red carpets rolled up, and thousands arrested.

    Back in Jixi, Xu ordered more seizures: Investors wanted to privatize a funeral home. When staff discussed making formal complaints, Xu had some arrested.

    Li knew the risks of reporting his boss were high. But in early 2013, Xi called on the party to catch “tigers and flies” in corruption — officials high-ranking and low.

    Li gathered evidence: photos, memos, and piles of receipts. He typed out a letter about Xu, accusing his boss and his cronies of embezzling more than $100 million. “They’re not just greedy for the money of the living, but they also eat the money of the dead,” he wrote.

    The daring gambit backfired at first.

    The party demoted Xu but didn’t arrest him. Furious, Xu sought revenge, and Li found himself and his relatives the target of state scrutiny. Li’s family was threatened, and his siblings were fired from their government jobs.

    But Li’s complaint against Xu had opened the floodgates, with accusations from others mounting. In August 2014, an official from Beijing asked Li for a meeting about Xu. They spoke well into the night.

    Within a week, Xu was arrested. He was sentenced to 14 years in prison.

    Xu is in prison and could not be reached. Chinese authorities did not respond to a request for an interview with Xu.

    Party officials asked Li if he wanted a new post. But he had lost faith in the party.

    “I saw through the nature of the system,” Li said. “So I quit.”

    In 2014 and 2015, the launch of operations Fox Hunt and Sky Net began ensnaring hundreds of former officials and their business partners abroad.

    Beijing set up big data centers to track money and relationships and established an online portal to report “fleeing party members and government officials.”

    A playbook emerged: Trawl through police databases to find transactions or property that could be deemed suspicious. Identify friends and family who could be coerced to confess. Then announce corruption charges.

    A leaked photo of the internal police software used to hunt officials suggests the moniker “Sky Net” was inspired by an American movie, “The Terminator,” about a cyborg assassin that hunts humans.

    At first, the U.S. government was open to cooperating with Beijing’s requests for information and extradition, said Holden Triplett, FBI attache in Beijing from 2014 to 2017. But soon, the U.S. realized China’s anti-corruption campaign was often about stifling dissent.

    “It was such a low level of information, not even really evidence, it was not enough for us to take any action ever,” Triplett told AP. “What they tended to focus on were things that frankly were threatening to the state and threatening to the party potentially, or somehow would make the party look bad.”

    In 2015, Washington complained that Chinese agents were flying to the U.S. and stalking targets without approval, including U.S. permanent residents. Agents brought night goggles from China, snapped photos and taped threatening messages on doors.

    Marketing documents and a leaked copy of software used against officials fleeing abroad show how American technology enabled Beijing’s playbook.

    IBM marketed i2 to Chinese police to allow them to flag officials based on the value of their assets and that of their families, according to a slideshow whose metadata identifies it as being from 2018. They customized financial software to add a function for Chinese officials to “sign off” on orders.

    i2 was also copied by an IBM Chinese reseller, Landasoft, which developed its own software that drew connections to flag “suspicious individuals,” such as relatives connected to a targeted official. A leaked copy of Landasoft software showed one button was called “associated persons management.” Another showed special functions for Valentine’s Day and other holidays, when loved ones were more likely to call.

    Landasoft systems flagged suspicious transactions and tracked suspected prostitutes or when two people of the opposite gender booked the same hotel room. Landasoft did not respond to a request for comment.

    Monitoring and threatening family was key to getting back anyone who had fled.

    “A fugitive is like a kite,” said Li Gongjing, a captain in the economic crime investigation division of the Shanghai police, in an interview with state media. “He may be abroad, but the string is in China, and he can always be found through his family.”

    After Li quit the party, auditors trawled through his finances — usual practice for departing officials. Three years later, in 2017, they declared him clean.

    The next year, Xi removed term limits, allowing him to rule for life. He used the anti-corruption campaign to sideline rivals and eliminate opposition.

    Soon, even those who were hunting other officials fell victim to the government.

    In 2018, Chinese police official Meng Hongwei was detained in Beijing, abruptly ending a two-year term as Interpol president during which the international policing organization issued hundreds of Red Notices requested by China. Red Notices alert global law enforcement to look out for a criminal suspect, upon request of a member country, but Interpol has spent years trying to prevent abuse of the system for hunting down political asylum-seekers.

    In February 2020, agents came for Li’s friend and former deputy, district chief Kong Lingbao, who had criticized Beijing’s censorship of key information in the COVID-19 pandemic. A rival secretly recorded Kong saying during a private dinner that he could no longer work for the party. Kong was summoned to the local discipline inspection office and never came out: he was being investigated for “inappropriate remarks”.

    Kong’s arrest prompted a friend to ring Li in Korea and warn him. That July, Chinese authorities opened an investigation into Li.

    A month later, Li told The Epoch Times, a dissident Chinese publication, that he had quit the party, and portrayed himself as a dissident. He says he did not know he was under investigation at the time.

    A week after the interview was published, strangers stalked Li at the unveiling of a sculpture dedicated to pro-democracy activists in Hong Kong, asking menacing questions and tailing him by car. Agents identified the address of one of his safe houses.

    In early September, the party publicly accused Li of embezzling “huge amounts” of state funds, paying money for sex and fleeing abroad. It was “only a matter of time”, authorities declared, before Li would be arrested.

    “We advise all corrupt officials who have fled abroad, including Li Chuanliang, that no matter how cunning a fox is, it cannot escape the eyes of the hunter,” it said.

    Official statements and interviews with four people familiar with Li’s case show Xi and the central government got directly involved after Li spoke out.

    Beijing tapped phones, seized assets and installed cameras outside the homes of friends and family. Some detained were denied surgery or other medical care, even those recovering from heart disease, cancer, and other illnesses. Li’s aunt was released from a hospital in a vegetative state with bruises on her head and all over her body. Even the Li family grave was dug up.

    Li’s friend, Kong, was sentenced to over a decade in prison for allegedly taking bribes. The party claimed he had watched porn and ignored his work, which they blamed for the spread of COVID in his district. Furious, Li kept speaking out.

    In December 2020, a man from Shanghai posing as a private investigator approached Zheng Cunzhu, vice chairman of the dissident China Democracy Party. The man offered $100,000 in bribes for information on Li and promised more if he obstructed Li’s bid for asylum, Zheng said in an interview and a letter.

    In February 2021, Li learned the Chinese government had asked Interpol to issue a Red Notice declaring to police worldwide that Li was a wanted man. Interpol retracted the Red Notice after Li filed a complaint.

    Li began donning masks and hats in public and carrying multiple phones, wary of surveillance. He floated from safe house to safe house with Christians across the United States.

    In October 2024, a Chinese court announced that Li was suspected of corruption totaling over 3.1 billion RMB, or roughly $435 million. The government claimed they seized 1,021 properties, 38 vehicles, and 18 companies belonging to Li and charged his relatives and associates with crimes related to Li. The lawyers who reviewed the case told AP there were serious anomalies with the charges.

    Many of the lawyers Li has tried to hire were rejected, threatened, and put under surveillance. At least three were summoned by Chinese legal authorities. They were told Li’s case was “political” and important to leaders from Beijing, and warned against speaking publicly, according to memos viewed by AP.

    “Once you get to the point that you’re criticizing the party, it’s no holds barred,” said Ryan Mitchell, a law professor at the Chinese University of Hong Kong. “Resistance is punished.”

    In a courthouse in China, Li’s friends and family faced legal proceedings tied to his corruption charges. A plainclothes officer outside stopped an AP reporter from taking photos, saying a “sensitive political case” was being heard.

    “They didn’t show any evidence. Instead, they told a story,” one of the lawyers told AP, declining to be named because they were warned against speaking to the press. “They wouldn’t even show us the accusations.”

    Authorities in Heilongjiang, where the proceedings were held, did not respond to a faxed request for comment.

    Li is now cut off from friends and family, denied legal assistance and clueless even to the details of the charges against him. So he is once again resorting to speaking out — this time on YouTube.

    Li acknowledges the situation seems hopeless. But he’s pressing on.

    “Why am I speaking up?” he said. “Today, it’s me. Tomorrow, it might be you.”

    __

    Independent investigative journalists Myf Ma in New York and Yael Grauer in Phoenix and AP journalists Serginho Roosblad in Texas, Garance Burke in San Francisco and Byron Tau in Washington contributed to this report.

    —-

    Contact AP’s global investigative team at Investigative@ap.org or https://www.ap.org/tips/.

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  • A sharp drop for Oracle keeps Wall Street in check as most US stocks rise

    NEW YORK — Most U.S. stocks are rising on Thursday, but a drop for Oracle is holding Wall Street back as investors question whether its big spending on artificial-intelligence technology will pay off.

    The S&P 500 fell 0.4% in early trading and pulled a bit further from its all-time high, which was set in October. The Dow Jones Industrial Average was up 233 points, or 0.5%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.7% lower.

    Oracle was one of the heaviest weights on the market and sank 14.5% even though it reported a better profit for the latest quarter than analysts expected. Its 14% growth in revenue came up just short of expectations.

    Doubts also remain about whether all the spending that Oracle is doing on AI technology will produce the payoff of increased profits and productivity that proponents are promising. Analysts said they were surprised by how much Oracle may spend on AI investments this fiscal year, and questions continue about how the company will pay for it.

    Such doubts are weighing on the AI industry broadly, even as many billions of dollars continue to flow in. They had helped drag the broad U.S. stock market through some sharp and scary swings last month.

    Nvidia, the chip company that’s become the poster child of the AI boom and is raking in close to $20 billion each month, fell 2.8% Thursday. It was the single heaviest weight on the S&P 500.

    Oracle Chairman Larry Ellison said it will continue to buy chips from Nvidia, but it’s now taking a policy of “chip neutrality,” where it will use “whatever chips our customers want to buy. There are going to be a lot of changes in AI technology over the next few years and we must remain agile in response to those changes.”

    Most U.S. stocks nevertheless rose, thanks in part to easing Treasury yields in the bond market. The yield on the 10-year Treasury fell to 4.10% from 4.13% on Wednesday and from 4.18% on Tuesday.

    Lower Treasury yields mean U.S. government bonds are paying less in interest, which can encourage investors to pay higher prices for stocks and other kinds of investments.

    Yields fell after a report said the number of U.S. workers applying for unemployment benefits jumped last week by more than economists expected. That’s a potential indication of rising layoffs.

    A day earlier, yields eased after the Federal Reserve cut its main interest rate for the third time this year and indicated another cut may be ahead in 2026. Wall Street loves lower interest rates because they can boost the economy and send prices for investments higher, even if they potentially make inflation worse.

    The Walt Disney Co. was among the market’s strongest gainers. It climbed 2.1% after OpenAI announced a three-year agreement that will allow it to use more than 200 Disney, Marvel, Pixar and Star Wars characters to generate short, user-prompted social videos. Disney is also investing $1 billion in OpenAI.

    Elsewhere on Wall Street, Oxford Industries tumbled 15.1% after the company behind Tommy Bahama and Lilly Pulitzer said its customers have been seeking out deals and are “highly value-driven.” CEO Tom Chubb said the start of the holiday shopping season has been weaker than the company expected, and it cut its forecast for revenue over the full year.

    Vera Bradley, meanwhile, fell 26% after reporting a larger loss than expected.

    In stock markets abroad, indexes ticked higher in Europe after falling in much of Asia.

    Japan’s Nikkei 225 index sank 0.9%, hurt by a sharp drop for SoftBank Group Corp., which is a major investor in AI.

    ___

    AP Writers Teresa Cerojano and Matt Ott contributed.

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  • Congress would target China with new restrictions in massive defense bill

    WASHINGTON (AP) — The Trump administration may have softened its language on China to maintain a fragile truce in their trade war, but Congress is charging ahead with more restrictions in a defense authorization bill that would deny Beijing investments in highly sensitive sectors and reduce U.S. reliance on Chinese biotechnology companies.

    Included in the 3,000-page bill approved Wednesday by the House is a provision to scrutinize American investments in China that could help develop technologies to boost Chinese military power. The bill, which next heads to the Senate, also would prohibit government money to be used for equipment and services from blacklisted Chinese biotechnology companies.

    In addition, the National Defense Authorization Act would boost U.S. support for the self-governing island of Taiwan that Beijing claims as its own and says it will take by force if necessary.

    “Taken together, these measures reflect a serious, strategic approach to countering the Chinese Communist Party,” said Rep. Raja Krishnamoorthi, the top Democrat on the House Select Committee on the Chinese Communist Party. He said the approach “stands in stark contrast to the White House’s recent actions.”

    Congress moves for harsher line toward China

    The compromise bill authorizing $900 billion for military programs was released two days after the White House unveiled its national security strategy. The Trump administration dropped Biden-era language that cast China as a strategic threat and said the U.S. “will rebalance America’s economic relationship with China,” an indication that President Donald Trump is more interested in a mutually advantageous economic relationship with Beijing than in long-term competition.

    The White House this week also allowed Nvidia to sell an advanced type of computer chip to China, with those more hawkish toward Beijing concerned that would help boost the country’s artificial intelligence.

    The China-related provisions in the traditionally bipartisan defense bill “make clear that, whatever the White House tone, Capitol Hill is locking in a hard-edged, long-term competition with Beijing,” said Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies, a Washington-based think tank.

    If passed, these provisions would “build a floor under U.S. competitiveness policy — on capital, biotech, and critical tech — that will be very hard for future presidents to unwind quietly,” he said.

    The Chinese embassy in Washington on Wednesday denounced the bill.

    “The bill has kept playing up the ‘China threat’ narrative, trumpeting for military support to Taiwan, abusing state power to go after Chinese economic development, limiting trade, economic and people-to-people exchanges between China and the U.S., undermining China’s sovereignty, security and development interests and disrupting efforts of the two sides in stabilizing bilateral relations,” said Liu Pengyu, the embassy spokesperson.

    “China strongly deplores and firmly opposes this,” Liu said.

    US investments in China

    U.S. policymakers and lawmakers have been working for several years toward bipartisan legislation to curb investments in China when it comes to cutting-edge technologies such as quantum computing, aerospace, semiconductors and artificial intelligence. Those efforts flopped last year when Tesla CEO Elon Musk opposed a spending bill.

    Musk has extensive business interests in China, including a Tesla gigafactory in the eastern city of Shanghai.

    The provision made it into the must-pass defense policy bill, welcomed by Rep. John Moolenaar, a Michigan Republican who chairs the House Select Committee on the Chinese Communist Party.

    “For too long, the hard-earned money of American retirees and investors has been used to build up China’s military and economy,” he said. “This legislation will help bring that to an end.”

    Biosecurity protections

    Congress last year failed to pass the BIOSECURE Act, which cited national security in preventing federal money from benefiting a number of Chinese biotechnology companies. Critics said then that it was unfair to single out specific companies, warning that the measure would delay clinical trials and hinder development of new drugs, raise costs for medications and hurt innovation.

    The provision in the NDAA no longer names companies but leaves it to the Office of Management and Budget to compile a list of “biotechnology companies of concern.” The bill also would expand Pentagon investments in biotechnology.

    Moolenaar lauded the effort for taking “defensive action to secure American pharmaceutical supply chains and genetic information from malign Chinese companies.”

    Support for Taiwan

    The defense bill also would authorize an increase in funding, to $1 billion from $300 million this year, for Taiwan-related security cooperation and direct the Pentagon to establish a joint drone and anti-drone program.

    Another provision supports Taiwan’s bid to join the International Monetary Fund, which would provide the self-governing island with financial protection from China.

    It comes amid mixed signals from Trump, who appears careful not to upset Beijing as he seeks to strike trade deals with Chinese President Xi Jinping. The Chinese leader has urged Trump to handle the Taiwan issue “with prudence,” as Beijing considers its claim over Taiwan a core interest.

    In the new national security strategy, the White House says the U.S. does not support any unilateral change to the status quo in the Taiwan Strait and stresses that the U.S. should seek to deter and prevent a large-scale military conflict.

    “But the American military cannot, and should not have to, do this alone,” the document says, urging Japan and South Korea to increase defense spending.

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  • FACT FOCUS: Trump blames Biden for the agricultural trade deficit. It’s not that simple

    As President Donald Trump announced a $12 billion farm aid package this week to help U.S. farmers hurt by tariffs, he placed responsibility for the U.S. agricultural trade deficit on former President Joe Biden.

    But in casting blame elsewhere, he is ignoring other factors, including his own role. Currently, farmers — especially those that produce soybeans and sorghum — have had a hard time selling their crops while getting hit by increasing costs after Trump raised tariffs on China earlier this year as part of a broader trade war that has contributed to the deficit.

    Experts say that it is a massive oversimplification to blame any one administration or policy.

    Here’s a closer look at the facts.

    CLAIM: There was an agricultural trade surplus during Trump’s first term that former Biden turned into an agricultural trade deficit.

    THE FACTS: This is both misleading and missing context. It is true that there was an agricultural trade surplus when Trump entered the White House in 2017, which has since become a significant deficit. However, according to experts, this can be attributed to actions taken by both administrations, as well as factors outside their control such as the COVID-19 pandemic.

    “I don’t want to let U.S. trade policy off the hook here, but it’s one element of a broader, more complicated kind of story,” said Cullen Hendrix, a senior fellow at the Peterson Institute for International Economics.

    Still, Trump held Biden solely responsible for the agricultural trade deficit at a White House roundtable Monday where he announced the farm aid package.

    “In my first term, we had an agricultural trade surplus by a lot,” the president said, misrepresenting the numbers. “We had a big surplus. We knew we were exporting American agricultural products all over the world, making a net profit and, in many cases, a very substantial profit. He came in and ruined it. Biden turned that surplus into a gaping agricultural deficit that continues to this day.”

    What the numbers show

    The yearly agricultural trade balance, which reflects the amount of those goods the U.S. has exported versus the amount it has imported, had been positive for nearly 60 years until 2019 during Trump’s first term.

    According to data from the Department of Agriculture, it stood at a surplus of approximately $16.3 billion at the end of 2016 and fell the next year, Trump’s first as president, to one of about $13.66 billion. The balance further decreased over the next two years, ultimately turning into a deficit of about $481 million. It returned to a surplus in 2020 at about $3.39 billion, which further increased in 2021 — the year Biden entered the White House. In 2022, it transitioned back to a deficit that grew to approximately $36.45 billion by the end of 2024. As of August, the latest data available, there was an agricultural trade deficit of about $36.3 billion.

    The yearslong trade war between the U.S. and China is partly to blame for the agricultural deficit, experts say. Trump fired the first shot in January 2018, with 30% tariffs on imported solar panels, which led to additional tariffs and import curbs from both sides that continued to a certain extent under Biden.

    The countries signed a Phase One trade deal in January 2020 through which China committed to buying an additional $200 billion of U.S. goods and services over the next two years. However, the Peterson Institute later found China had bought essentially none of the goods promised.

    What is the current situation?

    Trump has instituted even more tariffs on Chinese imports since returning to the White House. In response, China has retaliated with tariffs and import curbs on U.S. goods, including key farm products.

    The White House said in October, after Trump met with Chinese leader Xi Jinping in South Korea, that Beijing had promised to buy at least 12 million metric tons of U.S. soybeans by the end of the calendar year, plus 25 million metric tons a year in each of the next three years. China has purchased more than 2.8 million metric tons of soybeans since Trump announced the agreement, according to AP reporting. That’s only about one quarter of what administration officials said China had promised, but Treasury Secretary Scott Bessent has said China is on track to meet its goal by the end of February, which is two months later than the White House originally promised.

    “China’s been refusing large U.S. purchases in favor of other trade partners,” said Hendrix. “This is a lamentable, but kind of predictable, consequence of the United States engaging in this trade war and weaponizing trade policy. Our trade partners are going to seek to diversify both for self-insurance — we’re talking about food, we’re talking about survival here — and to punish the U.S. for kind of changing the rules of the game so unilaterally.”

    But there are myriad other factors that have contributed to the current deficit, experts say. For example, high purchasing power enabled by a strong U.S. dollar and a desire by U.S. consumers to buy high-value goods that aren’t produced domestically. A stronger dollar also decreases demand for U.S. exports, as this makes it more difficult for other countries to buy those products.

    In addition, Brazil and Argentina have begun exporting soy, corn and beef, competing directly with U.S. exports and lowering prices for such goods. Major world events of which the U.S. government has little or indirect control, such as the COVID-19 pandemic, climate variability and the Russia-Ukraine war, have also contributed.

    “The tariffs can exacerbate the situation, but generally the fact that you may have a deficit or a surplus is really more dependent on global prices,” said Joseph Glauber, a senior fellow at the American Enterprise Institute who served as the Department of Agriculture’s chief economist from 2008 to 2014 under Presidents George W. Bush and Barack Obama.

    Asked whether Trump blames solely Biden for the agricultural trade deficit, White House spokeswoman Anna Kelly said that “farmers suffered for years under Joe Biden,” but that Trump is committed to “helping our agriculture industry by negotiating new trade deals to open new export markets for our farmers and boosting the farm safety net for the first time in a decade.”

    ___

    Find AP Fact Checks here: https://apnews.com/APFactCheck.

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  • Asian shares are mixed as Oracle’s earnings revive AI worries, hitting technology shares

    MANILA, Philippines — Asian shares were mixed on Thursday after the U.S. stock market again approached its record high following the Federal Reserve’s cut in its main interest rate.

    U.S. futures and oil prices fell.

    The Fed’s rate cut was widely expected, but comments by Fed Chair Jerome Powell encouraged hopes for more cuts in 2026.

    However, some Asian technology companies saw sharp declines after Oracle, a bellwether in the artificial intelligence sector, reported weaker than expected earnings. Its shares sank 11.5% in aftermarket trading. The company’s spending spree in AI has some worried about its cash flow.

    “Frankly, the report was not dramatically bad, but it came to confirm concerns around heavy AI spending, financed by debt, with an unknown timeline for revenue generation,” Ipek Ozkardeskaya of Swissquote said in a commentary.

    In Tokyo, the Nikkei 225 index fell 0.9% to 50,148.82, pulled lower by a 7.7% drop in technology and telecoms giant SoftBank Group Corp., a major investor in AI.

    Local shares are under pressure from growing expectations that the Bank of Japan will raise interest rates at its meeting next week.

    Hong Kong’s Hang Seng shed earlier gains and shed 0.1% to 25,513.38 after the Hong Kong Monetary Authority followed the Fed’s lead and trimmed borrowing costs to 4.00%, their lowest rate since October 2022. The Shanghai Composite index fell 0.7% to 3,873.32.

    Sentiment was cautious ahead of China’s November credit data. New yuan loans fell sharply in October, missing forecasts and showing weaker consumer demand.

    Australia’s S&P/ASX 200 added nearly 0.2% to 8,592.00 after three days of decline, boosted by strength in gold and mining stocks. The country’s seasonally adjusted unemployment rate in November was unchanged from October at 4.3%, below the expected 4.4%

    In South Korea, the Kospi shed gains in early session, falling 0.6% to 4,110.62. Chip maker SK Hynix fell 3.8% after the country’s main stock exchange issued warnings over its meteoric rise this year.

    Taiwan’s Taiex index closed 1.3% lower, while India’s BSE Sensex rose 0.4%.

    On Wednesday, the S&P 500 climbed 0.7% to 6,886.68 and finished just shy of its all-time high, which was set in October. The Dow Jones Industrial Average jumped 1% to 48,057.75 and the Nasdaq composite rose 0.3% to 23,654.16.

    Wall Street loves lower interest rates because they can boost the economy and send prices for investments higher, even if they potentially make inflation worse.

    Wednesday’s cut to interest rates did not move markets much by itself. But some investors took heart from comments by Powell, which they said were less forceful about shutting down the possibility of future cuts than they had been anticipating.

    Powell said again on Wednesday that the central bank is in a difficult spot, because the job market is slowing while inflation is facing upward pressure. By trying to fix one of those problems with interest rates, the Fed usually worsens the other in the short term.

    Powell also said for the first time in this rate-cutting campaign that interest rates are back in a place where they’re pushing neither inflation nor the job market higher or lower. That gives the Fed time to hold and reassess what to do next with interest rates as more data comes in on the job market and on inflation.

    On Wall Street, GE Vernova flew 15.6% higher after the energy company raised its forecast for revenue by 2028, doubled its dividend and increased its program to buy back its own stock. Palantir Technologies added 3.3% while Cracker Barrel Old Country Store rose 3.5%.

    In other dealings early Thursday, U.S. benchmark crude oil slid 31 cents to $58.15 per barrel. Brent crude, the international standard, lost 34 cents to $61.87 per barrel.

    The U.S. dollar rose to 156.04 Japanese yen from 156.02 yen. The euro slipped to $1.1687 from $1.1696.

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  • Trump awards medals to the Kennedy Center honorees in an Oval Office ceremony

    WASHINGTON (AP) — President Donald Trump on Saturday presented the 2025 Kennedy Center honorees with their medals during a ceremony in the Oval Office, hailing the slate of artists he was deeply involved in choosing as “perhaps the most accomplished and renowned class” ever assembled.

    This year’s recipients are actor Sylvester Stallone, singers Gloria Gaynor and George Strait, the rock band Kiss and actor-singer Michael Crawford.

    Trump said they are a group of “incredible people” who represent the “very best in American arts and culture” and that, “I know most of them and I’ve been a fan of all of them.”

    “This is a group of icons whose work and accomplishments have inspired, uplifted and unified millions and millions of Americans,” said a tuxedo-clad Trump. “This is perhaps the most accomplished and renowned class of Kennedy Center Honorees ever assembled.”

    Trump’s takeover of the Kennedy Center

    Trump ignored the Kennedy Center and its premier awards program during his first term as president. But the Republican has instituted a series of changes since returning to office in January, most notably ousting its board of trustees and replacing them with GOP supporters who voted him in as chairman of the board.

    Trump also has criticized the center’s programming and its physical appearance, and has vowed to overhaul both.

    The president placed around each honoree’s neck a new medal that was designed, created and donated by jeweler Tiffany & Co., according to the Kennedy Center and Trump.

    It’s a gold disc etched on one side with the Kennedy Center’s image and rainbow colors. The honoree’s name appears on the reverse side with the date of the ceremony. The medallion hangs from a navy blue ribbon and replaces a large rainbow ribbon decorated with three gold plates that rested on the honoree’s shoulders and chest and had been used since the first honors program in 1978.

    Trump honors the honorees

    Strait, wearing a cowboy hat, was first to receive his medal. When the country singer started to take off the hat, Trump said, “If you want to leave it on, you can. I think we can get it through.” But Strait took it off.

    The president said Crawford was a “great star of Broadway” for his lead role in the long-running “Phantom of the Opera.” Of Gaynor, he said, “We have the disco queen, and she was indeed, and nobody did it like Gloria Gaynor.”

    Trump was effusive about his friend Stallone, calling him a “wonderful” and “spectacular” person and “one of the true, great movie stars” and “one of the great legends.”

    Kiss is an “incredible rock band,” he said.

    Songs by honorees Gaynor and Kiss played in the Rose Garden just outside the Oval Office as members of the White House press corps waited nearby for Trump to begin the ceremony.

    The president said in August that he was “about 98% involved” in choosing the 2025 honorees when he personally announced them at the Kennedy Center, the first slate chosen under his leadership. The honorees traditionally had been announced by press release.

    It was unclear how they were chosen. Before Trump, it fell to a bipartisan selection committee.

    “These are among the greatest artists, actors and performers of their generation. The greatest that we’ve seen,” Trump said. “We can hardly imagine the country music phenomena without its king of country, or American disco without its first lady, or Broadway without its phantom — and that was a phantom, let me tell you — or rock and roll without its hottest band in the world, and that’s what they are, or Hollywood without one of its greatest visionaries.”

    “Each of you has made an indelible mark on American life and together you have defined entire genres and set new standards for the performing arts,” Trump said.

    Trump also attended an annual State Department dinner for the honorees on Saturday. In years past, the honorees received their medallions there but Trump moved that to the White House.

    Trump said during pre-dinner remarks that the honorees are more than celebrities.

    “It gives me tremendous pleasure to congratulate them once again and say thank you for your incredible career,” he said. “Thank you for gracing us with this wisdom and just genius that you have.”

    Trump to host the Kennedy Center Honors

    Meanwhile, the glitzy Kennedy Center Honors program and its series of tribute speeches and performances for each recipient is set to be taped on Sunday at the performing arts center for broadcast later in December on CBS and Paramount+. Trump is to attend the program for the first time as president, accompanied by his wife, first lady Melania Trump.

    The president said in August that he had agreed to host the show. At dinner Saturday, he said he was doing so “at the request of a certain television network.” Trump predicted that the broadcast would garner its highest ratings ever as a result. No president has ever been the host.

    At the White House, Trump said he looked forward to Sunday’s celebration.

    “It’s going to be something that I believe, and I’m going to make a prediction: This will be the highest-rated show that they’ve ever done and they’ve gotten some pretty good ratings, but there’s nothing like what’s going to happen tomorrow night,” Trump said.

    The president also swiped at late-night TV show host Jimmy Kimmel, whose program was briefly suspended earlier this year by ABC following criticism of his comments related to the killing of conservative activist Charlie Kirk in September.

    Kimmel and Trump are sharp critics of each other, with the president regularly deriding Kimmel’s talent as a host. Kimmel has hosted the Primetime Emmy Awards and the Academy Award multiple times.

    Trump said he should be able to outdo Kimmel.

    “I’ve watched some of the people that host. Jimmy Kimmel was horrible,” Trump said. “If I can’t beat out Jimmy Kimmel in terms of talent, then I don’t think I should be president.”

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  • Trump says the US has seized an oil tanker off the coast of Venezuela

    WASHINGTON — President Donald Trump said Wednesday that the United States has seized an oil tanker off the coast of Venezuela amid mounting tensions with the government of Venezuelan President Nicolás Maduro.

    It’s the Trump administration’s latest push to increase pressure on Maduro, who has been charged with narcoterrorism in the United States.

    “We’ve just seized a tanker on the coast of Venezuela, a large tanker, very large, largest one ever seized, actually,” Trump told reporters at the White House.

    Trump said “other things are happening,” but did not offer additional details, saying he would speak more about it later.

    The seizure was carried led by the U.S Coast Guard led effort and supported by the Navy, according to a U.S. official was not authorized to comment publicly and spoke on the condition of anonymity.

    A day earlier, the U.S. military flew a pair of fighter jets over the Gulf of Venezuela in what appeared to be the closest that warplanes had come to the South American country’s airspace since the start of the administration’s pressure campaign.

    The U.S. has built up the largest military presence in the region in decades and launched a series of deadly strikes on alleged drug-smuggling boats in the Caribbean Sea and eastern Pacific Ocean.

    Trump has said land attacks are coming soon but has not offered any details on location.

    Among the concessions the U.S. has made to Maduro during past negotiations was approval for oil giant Chevron Corp. to resume pumping and exporting Venezuelan oil. The corporation’s activities in the South American country resulted in a financial lifeline for Maduro’s government.

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  • FACT FOCUS: Trump says tariffs can eventually replace federal income taxes. Experts disagree

    President Donald Trump has long praised tariffs as key to increasing wealth in the United States, idealizing Gilded Age policies that preceded the implementation of a modern federal income tax.

    Among the potential benefits, Trump claims, is the ability to replace revenue from federal income taxes with money the U.S. is taking in from tariffs — a concept he has touted since his 2024 presidential campaign, most recently at a Cabinet meeting Tuesday.

    But tariff revenue doesn’t even come close to where it would need to be if federal income taxes were eliminated, and experts say such a plan isn’t at all feasible.

    Here’s a closer look at the facts.

    CLAIM: The U.S. is earning enough revenue from tariffs to eventually eliminate federal income taxes.

    THE FACTS: This is false. Individual income taxes brought in trillions more dollars than tariffs did in the last fiscal year, accounting for more than 50% of total U.S. revenue, according to Treasury Department data. Tariffs made up only 3.7% of the total. In the first month of the current fiscal year, which began Oct. 1, individual income taxes accounted for 54% of total revenue. Tariffs made up 7.75%.

    Trump’s proposal wouldn’t work regardless, according to experts, given the unreliability of tariff revenue as well as the harmful effects of tariffs on economic growth and their outsize impact on lower earners.

    “It’s not possible. It’s not feasible mathematically or economically,” said Brandon DeBot, senior attorney adviser and policy director at New York University’s Tax Law Center. “And analysts from a range of different perspectives agree with that conclusion. Even the very substantial tariffs imposed this year, which are at the highest levels in the postwar era, raise nowhere near the revenue that income tax does.”

    Steve Wamhoff, federal policy director at the Institute on Taxation and Economic Policy, called the idea “nonsensical.”

    But Trump has floated it twice in the last week — first during remarks on Thanksgiving at Mar-a-Lago and then again at Tuesday’s Cabinet meeting.

    “And I believe that at some point in the not too distant future, you won’t even have income tax to pay. Because the money we’re taking in is so great, it’s so enormous, that you’re not going to have income tax to pay,” he said at the meeting, which lasted more than two hours.

    The numbers don’t add up

    In the last fiscal year, Treasury Department data shows that revenue from individual income taxes was approximately $2.66 trillion out of about $5.23 trillion in total revenue. Corporation income taxes added approximately $452 billion. Customs duties earned nearly $195 billion. That’s a difference of around $2.8 trillion.

    The current fiscal year is shaping up in a similar fashion. Individual income taxes took in about $217 billion out of approximately $404 billion in total revenue the first month, with about $15 billion in additional funds from corporation taxes. Tariffs, meanwhile, earned around $31 billion.

    Trump has boasted of additional income from investments in the U.S. by other countries and international companies. But the precise terms of these investments have yet to be fully codified and released to the public, and some numbers are under dispute or involve potentially fuzzy math.

    The modern federal income tax was created with the ratification of 16th Amendment in 1913, ending the 43-year era when Trump says the country was wealthiest. He has not expressly detailed plans to end a national income tax since retaking the White House, and he can’t do so without an act of Congress and upending the federal budget.

    “President Trump is set to raise trillions in revenue for the federal government in the coming years with his tariffs — whose costs will ultimately be paid by the foreign exporters who rely on the American economy, the world’s biggest and best consumer market,” said White House spokesman Kush Desai. He also cited “trillions in historic investment commitments to make and hire in America” that have been fueled by tariffs.

    It is actually importers — American companies — that pay tariffs. Those companies typically pass their higher costs on to their customers in the form of higher prices. Still, tariffs can hurt foreign countries by making their products pricier and harder to sell abroad. Foreign companies might have to cut prices — and sacrifice profits — to offset the tariffs and try to maintain their market share in the United States.

    A burden on lower-income households

    Even if the numbers were made to add up, replacing revenue from federal income taxes with that of tariffs — a Republican talking point since the 1990s — poses many risks. Tariffs, especially at rates needed to make up for a loss in federal income taxes, could lead to retaliation from other countries and a lack of imports. In fact, revenue could start going down the more tariffs go up. There is also a lot of uncertainty about how much revenue tariffs will actually take in, given periodic changes to Trump’s policies.

    “We would be talking about living in a completely different world than the one we live in now,” said Wamhoff. “There was a time when the government’s finances were provided through tariffs. But I believe people were getting around with a horse and buggy back then and not cars. I mean, that was a completely different time.”

    Another reality is currently playing out. Trump’s tariffs are the subject of a Supreme Court case and could be struck down if the justices decide he does not have the authority to implement them. However, the president will still have plenty of options to keep taxing imports aggressively even if the courts rule against him. For example, he can reuse tariff powers he deployed in his first term and can reach for others, including one that dates back to the Great Depression. Many companies — including Costco — aren’t waiting for a decision from the Supreme Court. Instead, they’re filing suits against the Trump administration demanding refunds on the tariffs they’ve paid.

    Experts say there is also an issue of fairness, noting that tariffs would shift the tax burden to lower-income households given their propensity to increase costs on consumer goods. Plus, they lack the flexibility of income taxes, which can be set at any desired rate, and they wouldn’t allow for incentives such as charitable donations or child tax credits.

    “Inequality is very highly skewed toward the top,” said Michael Graetz, a professor of tax law at Yale University. “We’ve got more billionaires than we’ve ever had. We’ve got more millionaires than we’ve ever had. So it’s a strange time to be reducing the tax burden on the top and increasing it on the middle. It’s a proposal that is very effective for fundraising for Republicans and it always has been.”

    The White House did not immediately respond to a request for comment.

    ___

    Find AP Fact Checks here: https://apnews.com/APFactCheck.

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