🔥 Beijing and Manila Open Communication Pipelines To Handle Maritime Disputes

Good Morning.

Repairs have begun on 3 damaged subsea telecommunications cables in the Red Sea, with the AAE-1 cable already back online and work continuing on the Seacom and EIG cables.

The repairs, delayed by geopolitical complications and ongoing Houthi militant attacks, highlight the vulnerability of critical subsea infrastructure in conflict zones and the challenges of maintaining global data connectivity.

— 🐈‍⬛Acoustic Kitty

THE BOTTOM LINE UP FRONT

China and the Philippines have agreed to establish a direct hotline between their presidential offices to prevent maritime clashes, according to an accord seen by the Associated Press.

The agreement includes plans for cooperation between coast guard authorities and the creation of a maritime forum for scientists and academics.

This initiative is part of broader efforts to improve communication channels and prevent potential confrontations from escalating into conflicts, marking a significant step towards depressurizing tense relations between Beijing and Manila despite their significant differences.

INTERNATIONAL SECURITY & DIPLOMACY

Counterterrorism

• Pakistan summoned an Afghan diplomat to protest a deadly terror attack on a military base in Bannu, demanding the Taliban government investigate and take action against the perpetrators.

• U.S. Central Command reports a significant increase in Islamic State attacks in Iraq and Syria, warning that the group may be attempting to reconstitute itself and potentially plan external operations.

• Iran has denied accusations of involvement in a plot to assassinate former U.S. President Donald Trump, calling the allegations "malicious" while reiterating its intent to prosecute Trump for the 2020 killing of Iranian General Qasem Soleimani.

• Syrian farmers near Aleppo are using shotguns to defend against Iranian-linked explosive-laden drones, which have become increasingly common in the region due to their simplicity and low cost.

Military & Defense

• China has suspended nuclear arms talks with the United States in response to recent U.S. weapons sales to Taiwan, citing damage to China's core interests and political mutual trust.

• Israel's undercover forces, known as "mista'arvim," have emerged as a significant player in the Gaza conflict, exemplified by a recent high-profile hostage rescue mission that showcased their ability to operate covertly in enemy territory.

• The Marine Corps has issued a request for information seeking new counter-drone technologies, including rifle-mounted jammers and detection systems, to protect individual Marines and small units from the growing threat of enemy unmanned aerial systems.

• NATO leaders have acknowledged the growing threat of hybrid warfare tactics from Russia and China, emphasizing the need for stronger collective defense measures and explicitly stating that such attacks could potentially trigger Article 5 of the alliance's treaty.

Cybersecurity

• Bipartisan senators have introduced the Healthcare Cybersecurity Act to improve collaboration between CISA and HHS, enhance cybersecurity in the healthcare sector, and create a special liaison to coordinate responses during cyberattacks.

• Recent high-profile data breaches at companies like AT&T and UnitedHealth Group have been attributed to the lack of a basic cybersecurity measure, multi-factor authentication.

• The UK government has introduced the Cyber Security and Resilience Bill to strengthen national defenses against cyberattacks, following a recent ransomware attack that severely disrupted NHS hospitals and exposed sensitive patient data.

Counterintelligence & Espionage

• A former CIA analyst and prominent North Korea expert, Sue Mi Terry, has been indicted for allegedly acting as an unregistered agent for South Korea over a decade, receiving luxury goods and money in exchange, though she denies the charges.

• Jack Teixeira, a U.S. Air National Guard member who pleaded guilty to leaking classified documents, will face an additional court-martial on military charges of obstructing justice and failing to obey a lawful order.

Transnational Organized Crime

• Interpol's Operation Jackal III, targeting West African organized crime groups across 21 countries, resulted in 300 arrests, $3M seized, and 720 bank accounts blocked, highlighting the need for international law enforcement collaboration to combat financial fraud.

• South American authorities seized over 10 tons of cocaine worth nearly $500M in 2 separate busts, discovering the drugs hidden in sugar shipments in Paraguay and banana containers in Ecuador, both bound for Europe.

• Brazilian authorities launched a large-scale operation involving nearly 2K military and civil officers in 10 low-income neighborhoods of Rio de Janeiro to combat organized crime and regain control of areas dominated by drug traffickers and militias.

SCIENCE & TECHNOLOGY

The DoE has unveiled a roadmap for its new Frontiers in AI for Science, Security, and Technology (FASST) initiative, which aims to build powerful integrated scientific AI systems across its 17 national laboratories.

The initiative focuses on four pillars: AI-ready data, frontier-scale AI computing infrastructure, safe and trustworthy AI systems, and AI applications.

FASST intends to transform scientific data repositories, develop energy-efficient AI supercomputers, and create trustworthy AI models for breakthroughs in various scientific and energy applications.

In other news…

The U.S. Commerce Department plans to issue proposed rules in August limiting Chinese-made software in connected vehicles, citing national security concerns and potential data risks.

Hong Kong plans to introduce a licensing regime for stablecoin issuers, requiring licenses and monthly reserve attestations, as part of efforts to strengthen virtual asset regulations and position itself as a digital-asset hub.

Researchers found that AlexNet, an advanced deep learning model, outperforms conventional CNNs in crop classification using UAV imagery, showing promise for enhancing precision agriculture and addressing future food security challenges.

Radar data from NASA's Cassini mission reveals Earth-like hydrological processes on Saturn's moon Titan, showing that its hydrocarbon seas vary in methane-ethane composition by latitude, exhibit surface ripples and tidal currents, and have river-like inflows.

DEALS & FUNDING

GlobalWafers, a Taiwanese silicon wafer manufacturer, is set to receive a $400M grant from the U.S. government as part of the Chips and Science Act.

The company plans to invest $4B in projects in Texas and Missouri, creating 2.5K jobs. This marks the 13th award from the $39B program aimed at boosting domestic semiconductor production and reducing dependence on Asian manufacturing.

The investment will support the production of standard and specialized silicon wafers, including those used in defense applications.

In other news…

Tekion, an automotive technology startup founded by former Tesla CIO Jay Vijayan, has secured a $200M investment from Dragoneer, valuing the company at over $4B and positioning it for potential future IPO.

Anthropic and Menlo Ventures have partnered to create a $100M fund called the Anthology Fund, which will invest in AI startups using Anthropic's Claude models.

Pindrop, a company specializing in deepfake detection and voice authentication technology, has secured a $100M loan to expand its product offerings and enter new markets amid growing concerns about AI-generated voice fraud.

The Air Force has issued a pre-solicitation for a $99M research effort to develop next-generation target tracking capabilities using AI, machine learning, and advanced data processing techniques across multiple intelligence sources.

Israeli medical AI firm CytoReason has raised $80M in funding from investors including Nvidia, Pfizer, and Thermo Fisher to expand its disease modeling technology and establish a new office in Cambridge, Massachusetts.

The U.S. and Saudi Arabia have signed a framework agreement for civilian space research and exploration, strengthening their alliance through cooperation in areas like aeronautics, education, and Earth science, while reaffirming their commitment to the Artemis Accords for responsible space exploration.

DARPA has selected Exiger and MetalMiner to develop technology for the OPEN program, aimed at improving transparency in critical commodity pricing and supply chain forecasting to enhance national security and supply chain resilience.

Ron Baron's investment firm has created new funds allowing clients to invest in Elon Musk's private ventures SpaceX and xAI, aiming to raise the firm's profile among potential investors while deepening its ties to Musk's companies.

Germany plans to reduce its military aid to Ukraine by half in 2025, despite concerns about potential reduced U.S. support if Donald Trump returns to the White House, while still aiming to meet NATO's 2% GDP defense spending target.