Imagine leaving your front door unlocked with a note that reads, “Back in 15. Please don’t steal the silverware.” That, in essence, is what the United States government — yes, including the Pentagon — may have unwittingly done through its long-standing relationship with Microsoft and the tech giant’s disturbingly lax attitude toward cybersecurity oversight.
Microsoft’s China-linked engineers should be setting off DEFCON-level alarms in Washington. Instead, we’ve mostly gotten silence, shrugs, and vague murmurs. According <a href="https://www.propublica.org/article/microsoft-tech-support-government-cybersecurity-china-doj-treasury">to reports</a>, Microsoft gave foreign nationals access to parts of the software that power critical U.S. military infrastructure.
You read that right. Engineers based in China, working for a U.S. tech behemoth under no formal federal contract, had proximity to the digital equivalent of the Pentagon’s control room.
Even worse? Microsoft allegedly failed to tell the Pentagon about it.
This is no small &#8220;oopsie.&#8221; We’re talking about a company that provides essential software infrastructure to every arm of the U.S. government — military included — quietly hiring engineers from a geopolitical rival with a track record of industrial espionage, cyber warfare, and digital sabotage. If you think China wouldn’t exploit this access, you haven’t been paying attention.
Microsoft has since responded to the report from <a href="https://www.propublica.org/article/defense-department-pentagon-microsoft-digital-escort-china">ProPublica</a> that exposed the issue. “In response to concerns raised earlier this week about US-supervised foreign engineers, Microsoft has made changes to our support for US Government customers to assure that no China-based engineering teams are providing technical assistance for DoD Government cloud and related services,” stated Frank Shaw, Microsoft’s chief communications officer.
Senator Tom Cotton (R-AR), however, is now asking some <a href="https://www.cotton.senate.gov/news/press-releases/chairman-cotton-to-hegseth-current-dod-agreements-and-practices-fail-to-account-for-threat-of-china">very pointed</a> questions, and rightly so. Why was this program not disclosed? Why were Chinese nationals permitted to work on products used by the Department of Defense? And who, exactly, at Microsoft thought this was a good idea?
<div id="attachment_954433" style="width: 874px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-954433" class="size-large wp-image-954433" src="https://dw-wp-production.imgix.net/2025/07/GettyImages-2193887719-864x576.jpg" alt="WASHINGTON, DC - JANUARY 14: U.S. Sen. Tom Cotton (R-AK) questions U.S. President-elect Donald Trump's nominee for Secretary of Defense Pete Hegseth during his Senate Armed Services confirmation hearing on Capitol Hill on January 14, 2025 in Washington, DC. Hegseth, an Army veteran and the former host of “FOX &amp; Friends Weekend” on FOX News will be the first of the incoming Trump administration’s nominees to face questions from Senators. (Photo by Anna Moneymaker/Getty Images)" width="864" height="576" srcset="https://dw-wp-production.imgix.net/2025/07/GettyImages-2193887719-864x576.jpg 864w, https://dw-wp-production.imgix.net/2025/07/GettyImages-2193887719-300x200.jpg 300w, https://dw-wp-production.imgix.net/2025/07/GettyImages-2193887719-768x512.jpg 768w, https://dw-wp-production.imgix.net/2025/07/GettyImages-2193887719.jpg 1024w" sizes="auto, (max-width: 864px) 100vw, 864px" />Anna Moneymaker/Getty Images</div>
The problem isn&#8217;t just Microsoft&#8217;s apparent blind spot for national security. The deeper issue is how cavalier we&#8217;ve become with <a href="https://www.spyhunter.com/shm/why-is-endpoint-protection-important/">endpoint protection </a>— that last line of defense between a secure network and total compromise. Whether it&#8217;s a government agency or a private company, relying on outdated firewalls and blind trust in tech titans is like wearing a screen door for armor.
This is the same Microsoft, mind you, that in just the last year alone has racked up a staggering number of <a href="https://www.enigmasoftware.com/cve202553770zerodayvulnerability-removal/">Common Vulnerabilities and Exposures (CVEs)</a>. These aren’t minor bugs; these are gaping holes in the digital fabric — many of which can be exploited with a single click. One CVE alone allowed hackers to access Outlook inboxes without requiring the user to even open an email. Just receiving it was enough. That’s not an email; that’s a digital landmine.
Add in the explosion of <a href="https://www.spywareremove.com/remove-fake-virus.html">tech support scams</a>, the thousands of reported of <a href="https://www.enigmasoftware.com/verificationfailedemailscam-removal/">phishing schemes</a>, and malware attacks that install silently with a <a href="https://www.cyclonis.com/remove-oneclik-malware/">single mistimed click</a>, and we’ve got ourselves a cyber hygiene crisis. Criminals and state-backed hackers alike have figured out that Americans are highly advanced at building systems, but dangerously naive at guarding them.
Want another cherry on this data breach sundae? Microsoft’s move to hire foreign engineers coincided with its transition to a &#8220;cloud-first&#8221; infrastructure. Translation: the very people with questionable loyalties were potentially helping build and maintain systems that store terabytes of sensitive U.S. government data — offsite, off-premises, and off the radar of traditional defense monitoring.
Here’s a scary thought: if you were a Chinese intelligence officer dreaming of getting into Pentagon systems, would you rather recruit a spy, build a malware strain, or just… get hired by Microsoft?
You can’t blame China for trying. The blame lies with Microsoft for leaving the vault open and pretending it’s a broom closet.
The solution isn’t to boycott Microsoft (though the pressure to modernize and secure their systems needs to be immediate and non-negotiable). The real fix lies in overhauling our government’s relationship with Big Tech. We need rigorous vetting of foreign hires working on national security products. We need independent audits of source code, vulnerability testing, and real-time threat modeling. And we absolutely need to build up our domestic cybersecurity talent pool so that we’re not outsourcing our digital sovereignty to countries with conflicting interests.
Most importantly, endpoint security must become as ubiquitous in government as badge scanners and background checks. Every workstation, laptop, mobile device, and cloud node must be locked down with zero-trust architecture, real-time behavioral analytics, and automatic quarantine capabilities. Anything less is an open invitation to espionage.
This isn’t just a Microsoft problem or a Pentagon problem. It’s an American problem. We’re letting convenience and tech monopolies override prudence and national defense. The same way we wouldn’t allow a Chinese company to handle nuclear launch codes, we shouldn’t let their engineers code the operating systems that support those platforms.
Let’s not forget: the Chinese Communist Party plays a long game. They don’t need to hack into Fort Knox if we’re leaving the digital vault open with a &#8220;Welcome&#8221; sign in Mandarin. And Microsoft, by cozying up to foreign nationals while serving American defense clients, has done exactly that.
President Trump built his first administration on the promise of draining the swamp and putting America First. That promise must now extend to cybersecurity. Our digital borders are every bit as vital as our physical ones. It’s time to hold tech giants accountable and ensure our software backbone isn’t quietly being rewritten by our adversaries.
Because when the dragon’s inside the network, it’s already too late to “build” a firewall.
* * *
Julio Rivera is a business and political strategist, cybersecurity researcher, founder of <a href="https://www.itfunk.org/">ItFunk.Org</a>, and a political commentator and columnist. His writing, which is focused on cybersecurity and politics, is regularly published by many of the largest news organizations in the world.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.

Microsoft  Zizhu Campus In Shanghai

Why Microsoft Must Be Held Responsible For Its Pentagon Security Breach

Big Tech

China

Cybersecurity

Espionage

Microsoft

Pentagon

Tom Cotton

STOCKHOLM (Reuters) — U.S. Treasury Secretary Scott Bessent on Tuesday said he warned Chinese officials that continued purchases of sanctioned Russian oil would lead to big tariffs due to legislation in Congress, but was told that Beijing would protect its energy sovereignty.
Wrapping up two days of U.S.-China trade talks in Stockholm, Bessent said he also expressed U.S. displeasure at China&#8217;s continued purchases of sanctioned Iranian oil, and its sales of over $15 billion worth of dual-use technology goods to Russia that have bolstered Moscow&#8217;s war against Ukraine.
Bessent said legislation in the U.S. Congress authorizing Trump to levy tariffs up to 500% on countries that purchase sanctioned Russian oil would draw U.S. allies into taking similar steps to cut off Russia&#8217;s energy revenues.
Trump on Monday shortened a deadline for Moscow to make progress toward a Ukraine war peace deal or see its oil customers slapped with secondary tariffs of 100% in 10 to 12 days, reflecting his growing frustration with Russia&#8217;s actions.
&#8220;So I think anyone who buys sanctioned Russian oil should be ready for this,&#8221; Bessent told a news conference.
Chinese officials responded by saying China was a sovereign nation with energy needs, and oil purchases would be based on the country&#8217;s internal policies, Bessent said.
&#8220;The Chinese take their sovereignty very seriously. We don&#8217;t want to impede on their sovereignty, so they&#8217;d like to pay a 100% tariff,&#8221; Bessent said.
China remains the largest buyer of Russian oil, at about 2 million barrels per day, followed by India and Turkey.
Bessent said he also has warned his counterpart, Vice Premier He Lifeng, that China&#8217;s continued sales of goods to Russia that wind up in weapons will hurt its efforts to boost trade ties with Europe.
&#8220;I pointed out to them that it is very much hurting their public perception in Europe that they are contributing to the war on the European border,&#8221; Bessent said.
(Reporting by David Lawder; Editing by Terje Solsvik and Daniel Wallis)

U.S. Treasury Secretary Bessent and U.S. Trade Representative Greer attend a press conference at government quarters Rosenbad

Bessent Warns China On Russian Oil Purchases That Could Bring 100% Tariffs

Donald Trump

Russia

Scott Bessent

Tariffs

Trump Administration

Ukraine-Russia War

Kansas Attorney General Kris Kobach sent a letter Monday to Attorney General Pam Bondi calling for an investigation into a Chinese firm suspected of engaging in &#8220;climate lawfare.&#8221;
Kobach wrote to Bondi that Energy Foundation China&#8217;s &#8220;environmental lawfare poses a growing challenge for American industry and the American consumer because it drives up energy costs. … It also weakens our national security and places us at a strategic disadvantage with our adversaries in China.&#8221;
The Kansas attorney general recently testified before a Senate Judiciary subcommittee <a href="https://www.dailywire.com/news/ted-cruz-exposes-chinas-plot-to-undermine-american-energy-a-coordinated-assault" target="_blank" rel="noopener">hearing</a> on the same topic, alleging that Energy Foundation China — a San Francisco-based climate activist group with ties to the Chinese Communist Party — funnels money to American climate groups to drown American firms in climate-related lawsuits.
&#8220;It is evident that China&#8217;s asymmetric warfare against the United States extends to our nation&#8217;s courtrooms and state legislatures,&#8221; Kobach said in his <a href="https://www.judiciary.senate.gov/imo/media/doc/29618a0d-bcc1-b75b-d41b-439177ef3902/2025-06-25%20PM%20-%20Testimony%20-%20Kobach%20-%20updated.pdf" target="_blank" rel="noopener">statement</a> before the committee. &#8220;The CCP plainly has a strategy of driving the United States away from domestic energy sources and increasing U.S. dependence on sources that rely on a Chinese supply of solar panels, electric vehicle batteries, and other technologies.&#8221;
The committee hearing, &#8220;Enter The Dragon– China and the Left&#8217;s Lawfare Against American Energy Dominance,&#8221; focused on the ways the CCP may be interfering with the American energy sector, which was detailed in a <a href="https://statearmor.org/wp-content/uploads/2025/06/State-Armor-Who-is-Energy-Foundation-China-Report.pdf" target="_blank" rel="noopener">report</a> by State Armor, a research group aimed at exposing CCP activity in the United States.
While the CCP develops green technologies like solar panels and windmills, it advocates for climate legislation in America through Energy Foundation China, hoping to make America dependent on imported Chinese-produced technology, according to the report.
Subcommittee Chairman Senator Ted Cruz (R-TX) also noted in the hearing that another group is reportedly training judges to sway in favor of those pursuing restrictive climate policies.
Cruz noted that the Climate Judiciary Project, which claims to be impartial and uninvolved in litigation, <a href="https://www.foxnews.com/politics/climate-justice-group-deep-ties-judges-experts-involved-litigation-claims-impartiality" target="_blank" rel="noopener">reportedly</a> trains and supports judges who preside over cases of climate litigation in ways that heavily influence their decisions in favor of the climate agenda.
Kobach wrote in his letter that, &#8220;The Senate hearing exposed that China&#8217;s ongoing asymmetric campaign against the United States extends to our nation&#8217;s courtrooms and state legislatures, and that the EFC plays a central role in that campaign.&#8221;
&#8220;This three-pronged strategy — foreign funding, mass litigation, and judicial indoctrination — is a full-spectrum assault on American energy independence,&#8221; Cruz said. &#8220;And while China drills and digs, we sue and shut down.&#8221;
&#8220;Every day, Communist China is waging a war on American energy to make us more reliant on technology that is built and controlled by the CCP,&#8221; State Armor founder and CEO Michael Lucci said in a statement to The Daily Wire. &#8220;As part of their strategy to control our energy grid and supply chains, they control non-profits and co-opt left-wing environmental groups to drive the CCP&#8217;s agenda through our own court systems and universities.&#8221;
Kobach concluded his letter to Bondi by calling for an investigation into Energy Foundation China&#8217;s deep-rooted connection to the CCP and its involvement in changing American climate legislation.
&#8220;I respectfully urge the Department of Justice to open an investigation into the actions of the EFC in America, including its ties to climate lawfare in the courts,&#8221; Kobach wrote. &#8220;It is important to learn the full extent of the CCP&#8217;s reach into the ongoing campaign of environmental lawfare in our state and federal courts.&#8221;
Lucci supported Kobach&#8217;s call for an investigation, adding that, &#8220;No sane country would allow its strategic adversary to severely damage its national security, control its energy supply chains, and insert kill switches into its energy grid, all driven through united front influence operations.&#8221;
&#8220;The evidence is clear,&#8221; he wrote. &#8220;EFC should be permanently shut down.&#8221;

US-NEWS-WILL-ELECTION-CONSPIRACY-THEORIES-CAUSE-7-KC

‘Climate Lawfare:’ Kansas AG Asks Justice Department To Investigate Chinese Climate Firm

Climate Change

Energy

Pam Bondi

A new show imagines how a Chinese invasion of Taiwan would transpire — and what consequences it would have.
“Zero Day Attack” —  a 10-part series that draws its <a href="https://csrc.nist.gov/glossary/term/zero_day_attack" target="_blank" rel="noopener">name</a> from a cyber attack that takes advantage of an unknown system vulnerability — premieres in Taiwan this week. The show, which is funded in part by the Taiwan Ministry of Culture, highlights <a href="https://www.pbs.org/newshour/show/with-future-at-risk-taiwan-prepares-citizens-to-resist-potential-chinese-invasion" target="_blank" rel="noopener">growing concerns</a> that the country is not prepared for a war with China.
Some hope it will serve as a wake-up call to the Taiwanese public.
“Presenting such a situation (of conflict) can lead to more discussion about what we should do if it really turns into reality one day,” said Blair Yeh, a 35-year-old engineer, after watching the first episode at the Taipei premier last week.
The show’s 17-minute <a href="https://www.youtube.com/watch?v=iAnZdVG041Y" target="_blank" rel="noopener">preview</a>, which was released last year, depicts a multi-staged hybrid attack by China. It begins when the disappearance of a Chinese plane over Taiwanese waters prompts the People’s Liberation Army to blockade the island.
Stock markets crash, and foreign governments start to evacuate their citizens. Small-scale civil war breaks out as citizens disagree on whether to fight or accede to annexation by China. China pressures jails into releasing criminals and recruits them to serve as a “fifth column.” Utter chaos follows before Chinese troops finally land on the island, formally beginning a war.
Taiwanese producers were long unwilling to tackle the subject, fearing retaliation and boycotts from China. And apprehensions remain: more than half of the show’s crew opted to remain anonymous, and some, including a director, pulled out at the last minute.
Producer Cheng Hsin-mei told the <a href="https://www.wsj.com/world/asia/nightmares-of-a-chinese-invasion-inspire-taboo-breaking-entertainment-in-taiwan-d67764d9?utm_source=chatgpt.com" target="_blank" rel="noopener">Wall Street Journal</a> that she conceived “Zero Day” years ago, but felt the social climate wasn’t right at the time. She says the war in Ukraine pushed her to bring the show to air.
“On the surface, Taiwanese people may not seem to feel the threat, but in reality, that fear exists,” she said of a shift in the public psyche.
The premiere comes as China sends increased signals that it is preparing to attack the island, which it considers its own territory. Defense Secretary Pete Hegseth <a href="https://theweek.com/news/world-news/asia-pacific/954343/what-would-happen-china-attempt-invade-taiwan" target="_blank" rel="noopener">said</a> at the 2025 Shangri-la Dialogue Defense Summit that a Chinese invasion of the island “could be imminent.”
Per the Taiwan Relations Act of 1979, the United States is committed to providing arms for Taiwan to defend itself against possible attacks from China. However, it does not require the United States to use force on Taiwan’s behalf.
Nevertheless, the United States and 19 allied countries are conducting joint <a href="https://www.reuters.com/world/asia-pacific/papering-over-strains-us-allies-prep-taiwan-war-2025-07-25/" target="_blank" rel="noopener">military exercises</a> in the Pacific to build military readiness and to serve as a deterrent for Chinese aggression, in what are “the largest and most sophisticated military drills held in the Pacific since the end of World War Two.”
Speaking at the summit, Hegseth <a href="https://www.bbc.com/news/articles/c071xm4x7g7o" target="_blank" rel="noopener">affirmed</a> that “We do not seek to dominate or strangle China, to encircle or provoke. We do not seek regime change… but we must ensure that China cannot dominate us or our allies and partners.”
“We will not be pushed out of this critical region,” he added.
“Zero Day Attack” will begin streaming for American audiences on Amazon Prime on August 15, the 80th anniversary of Japan’s surrender in World War II.

Taiwan Flags

New Taiwanese Show Imagines A Chinese Invasion

Amazon Prime

Pete Hegseth

Taiwan

Television

The leaders of Thailand and Cambodia agreed to a ceasefire effective at midnight on Monday after President Donald Trump threatened not to enter into a trade deal with either country until the fighting ended. Dozens of people were killed and hundreds of thousands of civilians were forced to flee when fighting erupted last week near the border.
Thailand’s acting prime minister, Phumtham Wechayachai, and Cambodia’s prime minister, Hun Manet, shook hands just hours after President Donald Trump <a href="https://www.dailywire.com/news/very-good-conversation-trump-says-peace-between-cambodia-and-thailand-imminent-after-phone-calls">spoke</a> to both leaders on Saturday and pushed them to stop the fighting. The peace talks between the two countries took place in Putrajaya, Malaysia, and were organized by Malaysian and American officials, The New York Times <a href="https://www.nytimes.com/2025/07/28/world/asia/thailand-cambodia-ceasefire-talks.html">reported</a>.
Malaysian Prime Minister Anwar Ibrahim said that Thailand and Cambodia agreed to &#8220;an immediate and unconditional ceasefire with effect from midnight tonight,&#8221; according to Reuters.
&#8220;This is final,&#8221; Ibrahim added.
Trump commented on the ceasefire agreement while speaking to reporters in Scotland on Monday, saying, &#8220;That was going to be a very bad war, and so we&#8217;re honored we got involved. It&#8217;s essentially settled.&#8221;
&#8220;That could&#8217;ve gone on for years. Millions of people could&#8217;ve been killed. We ended the war — and we&#8217;re very happy about it,&#8221; Trump added.
<blockquote class="twitter-tweet" data-media-max-width="560">
.<a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@POTUS</a> on the ceasefire between Cambodia and Thailand: &#8220;It&#8217;s peace. That was going to be a very bad war &#8230; That could&#8217;ve gone on for years. Millions of people could&#8217;ve been killed. We ended the war — and we&#8217;re very happy about it.&#8221; <a href="https://t.co/KuIqjoBRsb">pic.twitter.com/KuIqjoBRsb</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1949799407198638548?ref_src=twsrc%5Etfw">July 28, 2025</a></blockquote>
The fighting erupted last Thursday near a temple that both Thailand and Cambodia claim. The two Southeast Asian countries traded attacks, including airstrikes and rocket fire along the 508-mile-long border separating them. The recent fighting marks the deadliest conflict between Thailand and Cambodia in nearly 15 years, as 36 people have been killed. Between 2008 and 2011, the countries engaged in fighting over contested border land that resulted in 34 deaths.
The fighting drew the attention of the United States and China, as both countries have interests in the region. Thailand is a military and trading partner with the United States, while China is the largest trading partner of both Thailand and Cambodia. China also funds a large navy base in Cambodia. Chinese diplomats attended the peace talks in Putrajaya as Beijing pressured both countries to agree to a ceasefire.
&#8220;Today we have a very good meeting and very good results&#8230; that hope to stop immediately the fighting that has caused many lives lost, injuries, and also caused displacement of people,&#8221; said Cambodian Prime Minister Manet.
Acting Thai Prime Minister Wechayachai, who had previously expressed doubts about Cambodia sticking to the terms of a ceasefire, said that the deal would &#8220;be carried out successfully in good faith by both sides.&#8221;
On Sunday, Secretary of State Marco Rubio said that he had spoken with leaders in both Thailand and Cambodia, adding that he and President Trump were &#8220;monitoring the situation very closely.”
&#8220;We want this conflict to end as soon as possible,&#8221; Rubio stated.
In a post on Truth Social on Saturday, Trump said that he would not make a trade deal with either country if the fighting continued. The Trump administration is currently in talks with both Thailand and Cambodia as the president prepares to roll out his worldwide tariffs on August 1.
Thailand has been a major U.S. trading partner, exporting <a href="https://ustr.gov/countries-regions/southeast-asia-pacific/thailand">$63.3 billion</a> worth of goods to the United States in 2024. Thailand&#8217;s exports to the United States include vital items such as electronic equipment and nuclear reactors, <a href="https://tradingeconomics.com/thailand/exports/united-states">according</a> to Trading Economics.

‘This Is Final’: Thailand, Cambodia Reach Ceasefire Agreement After Call From Trump

Executive

Global Politics

Thailand

World

Legal and illegal immigrants send approximately $200 billion out of the United States and back to their home countries every year, a new study on remittances finds.
The <a href="https://www.fairus.org/issue/remittances-us-loses-more-than-200-billion-dollars">report</a> from the Federation for American Immigration Reform (FAIR) found that the whopping sum of money was exported out of the American economy in 2021 and sent to 134 different foreign countries across the globe.
The organization points out that the amount of remittances —money sent out the America to foreign countries — has almost certainly increased in recent years alongside record levels of immigration into the United States and a <a href="https://www.dailywire.com/news/foreign-born-population-surges-to-new-high-with-illegal-immigration-driving-increase-report-finds">ballooning percentage</a> of the population that is foreign-born.
“Remittances effectively represent a transfer payment of hundreds of billions of dollars from American workplaces and communities to people abroad. To compound the problem, many migrants who send remittances out of the U.S. earn so little that they qualify for public benefits,” FAIR Executive Director Dale Wilcox explained. “The result is that American citizens subsidize social services and welfare benefits for aliens, legal and illegal, who send much of what they earn out of the country.”
The five countries receiving the most remittances from the United States are Mexico, India, Guatemala, the Philippines, and China, the organization notes.
<div id="attachment_950527" style="width: 1034px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-950527" class="wp-image-950527 size-large" src="https://dw-wp-production.imgix.net/2025/07/Screen-Shot-2025-07-22-at-2.56.46-PM-1024x557.png" alt="From the Federation for American Immigration Reform" width="1024" height="557" srcset="https://dw-wp-production.imgix.net/2025/07/Screen-Shot-2025-07-22-at-2.56.46-PM-1024x557.png 1024w, https://dw-wp-production.imgix.net/2025/07/Screen-Shot-2025-07-22-at-2.56.46-PM-300x163.png 300w, https://dw-wp-production.imgix.net/2025/07/Screen-Shot-2025-07-22-at-2.56.46-PM-768x418.png 768w, https://dw-wp-production.imgix.net/2025/07/Screen-Shot-2025-07-22-at-2.56.46-PM.png 1140w" sizes="auto, (max-width: 1024px) 100vw, 1024px" />From the Federation for American Immigration Reform</div>
The scale of remittances from the United States is so high that they “account for around 20 percent of the Gross Domestic Product (GDP) of multiple countries in Central America,” FAIR points out.
“Mexico benefits more than any other country from U.S. remittances. Mexican nationals living in the U.S. remit on average almost a fifth of their monthly incomes to Mexico,” the FAIR report explains. “Remittances to Mexico represent more than a quarter of the money sent out of the U.S.”
Conservative organizations and Republican politicians alike have advocated for a tax on remittances to recoup some of the money sent out of the American economy and throttle funding sent to criminal enterprises south of the border.
“Placing a fee on remittances is crucial because the more money that is smuggled back into Mexico, the stronger the cartels become,” FAIR Media Director Ira Mehlman <a href="https://www.dailywire.com/news/a-new-tax-on-money-sent-abroad-could-dry-up-drug-cartel-cash-and-penalize-illegal-immigration">told The Daily Wire</a>. “Many illegal aliens are working off-the-books, and therefore, no payroll taxes have been collected. Taxing the money as it leaves the country would be a way to recoup some of that revenue loss.”
A remittance tax of 5 percent was introduced in the original version of the Big Beautiful Bill, but the figure <a href="https://insightplus.bakermckenzie.com/bm/tax/united-states-obbba-introduces-new-excise-tax-on-remittance-transfers_1?utm_source=chatgpt.com">shrank</a> to a meager 1 percent tax.
The proposal <a href="https://www.dailywire.com/news/mexican-president-threatens-to-mobilize-against-law-that-could-help-cut-off-cash-to-cartels?author=Spencer+Lindquist&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=Mexican+President+Threatens+To+%E2%80%98Mobilize%E2%80%99+Against+Law+That+Could+Help+Cut+Off+Cash+To+Cartels">sparked outrage</a> from Mexican President Claudia Sheinbaum. “If necessary, we’ll mobilize,” Sheinbaum threatened. “We don’t want taxes on remittances from our fellow countrymen. From the U.S. to Mexico.”
“America is not the world&#8217;s piggy bank. And we don&#8217;t take kindly to threats,” Senator Eric Schmitt (R-MO) fired back in response to Sheinbaum’s comments.
Sheinbaum later <a href="https://mexiconewsdaily.com/news/mexico-remittance-tax-finabien-card/">promoted</a> one way in which Mexicans residing in the United States can avoid the one percent remittance tax, which takes effect in January of 2026.
The Senator from Missouri also <a href="https://x.com/Eric_Schmitt/status/1947357663118889408">introduced legislation</a>, called the REMIT Act, which would implement a <a href="https://www.schmitt.senate.gov/media/press-releases/senator-schmitt-introduces-bill-to-implement-15-percent-remittance-tax/">15 percent tax</a> on remittances. “Each year, the U.S. sees tens of billions of dollars leave our country as foreign nationals wire money back to their nations of origin, siphoning wealth and resources directly from our economy,” Schmitt said. “Remittances have also been a major driver of the mass migration crisis we have seen at our southern border.”

Mexican Flag at Protest

Immigrants Send $200 Billion Out Of The United States Every Year, Study Finds

Illegal Immigration

Immigration

mass immigration

Mexico

Former Rep. Mike Waltz (R-FL) challenged the United Nations over policy positions that coddle Communist China and unfairly attack Israel, saying that if he is confirmed as U.S. Ambassador to the UN, he will work to change that and &#8220;make the UN great again.&#8221;
Waltz delivered his opening statement on Tuesday before the Senate Foreign Relations Committee, and he argued — among other things — that the United Nations should no longer treat China as a &#8220;developing nation&#8221; when it boasts the world&#8217;s second-largest economy.
WATCH:
<blockquote class="twitter-tweet">
U.S. Ambassador to the U.N. Nominee <a href="https://twitter.com/michaelgwaltz?ref_src=twsrc%5Etfw">@michaelgwaltz</a>&#8216;s opening statement before the Senate Foreign Relations Committee:
&#8220;I&#8217;m confident under <a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@POTUS</a>&#8216; leadership, we can continue to spread peace and prosperity — and I&#8217;m confident we can Make the U.N. Great Again.&#8221; <a href="https://t.co/Ao1uE8pQp9">pic.twitter.com/Ao1uE8pQp9</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1945134303328845991?ref_src=twsrc%5Etfw">July 15, 2025</a></blockquote>
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After offering thanks to his family and military colleagues for their support, Waltz jumped immediately to how his experience as a Green Beret veteran would inform his ability to work within the United Nations and advance President Donald Trump&#8217;s agenda and vision within the global body.
Referencing his prior field experience with non-governmental organizations (NGOs), Waltz noted that often the money and resources were mismatched — and said that he would direct efforts toward correcting those imbalances wherever possible.
Waltz went on to say that many Americans had become disillusioned with the United Nations, arguing that it had &#8220;drifted from its core mission&#8221; — and that a refocusing was in order. &#8220;We must return to the UN&#8217;s charter and first principles &#8230; and focus on peacekeeping, not nation-building.&#8221;
&#8220;Countering China, absolutely &#8230; is critical,&#8221; he continued, promising to work alongside Secretary of State Marco Rubio to &#8220;challenge&#8221; China&#8217;s influence. &#8220;It’s absurd that the world’s second-largest economy is treated as a developing nation in most UN agencies that gives China favorable status.&#8221;
Waltz concluded by saying that it was equally important to push back against the &#8220;pervasive&#8221; antisemitism in the United Nations, pointing out the fact that in just the last decade alone, the General Assembly had passed &#8220;154 resolutions against Israel versus 71 against all other nations combined.&#8221;
&#8220;I&#8217;m confident under [Trump&#8217;s] leadership, we can continue to spread peace and prosperity — and I&#8217;m confident we can Make the U.N. Great Again,&#8221; he said.

Rep. Michael Waltz

‘Make The UN Great Again’: Waltz Challenges Antisemitism, China Favoritism At United Nations

'Make The UN Great Again': Waltz Challenges Antisemitism, China Favoritism At United Nations

anti-Israel

antisemitism

Communist China

Israel

Mike Waltz

Politics

United Nations

United States tech giant Apple announced on Tuesday that it has agreed to purchase $500 million worth of rare earth magnets from American company MP Materials, after the Defense Department became the company&#8217;s <a href="https://www.dailywire.com/news/defense-department-becomes-largest-shareholder-of-company-that-owns-americas-lone-rare-earth-mine">largest shareholder</a> last week.
Apple said that it will rely on MP Materials&#8217; Fort Worth, Texas, facility to provide it with rare earth magnets that are used in important components of iPhones, The Wall Street Journal <a href="https://www.wsj.com/livecoverage/stock-market-cpi-inflation-tariffs-07-15-2025/card/apple-strikes-500-million-deal-to-buy-rare-earths-from-u-s-supplier-wA62cPCKdBo26wFi9h03">reported</a>. Apple also needs rare earth magnets for audio equipment and microphones in other products.
MP Materials <a href="https://mpmaterials.com/news/mp-materials-and-apple-announce-500-million-partnership-to-produce-recycled-rare-earth-magnets-in-the-united-states">said</a> that the deal with Apple means it &#8220;will significantly expand the capacity of its Fort Worth magnetics facility,&#8221; adding that &#8220;Magnet shipments are expected to begin in 2027 and ramp up to support hundreds of millions of Apple devices.&#8221;
“We are proud to partner with Apple to launch MP’s recycling platform and scale up our magnetics business,” said James Litinsky, Founder, Chairman and CEO of MP Materials. “This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America’s industrial capacity at a pivotal moment.”
MP Materials&#8217; <a href="https://www.google.com/search?q=mp+materials+stock&amp;rlz=1C5GCCM_en&amp;oq=mp+materials+stock&amp;gs_lcrp=EgZjaHJvbWUqFAgAEEUYOxhGGIMBGPoBGLEDGIAEMhQIABBFGDsYRhiDARj6ARixAxiABDIHCAEQABiABDIHCAIQABiABDIHCAMQABiABDIHCAQQABiABDIHCAUQABiABDIHCAYQABiABDIHCAcQABiABDIHCAgQABiABDIHCAkQABiABNIBCDM1MTFqMGo3qAIAsAIA&amp;sourceid=chrome&amp;ie=UTF-8">stock</a> reached an all-time high on Tuesday following the deal with Apple, jumping 28% and surpassing $62 per share as of Tuesday morning. Apple stock was also up <a href="https://www.google.com/search?q=apple+stock&amp;sca_esv=4aa233782b511ba8&amp;rlz=1C5GCCM_en&amp;ei=MWp2aOKTIIqY5OMPn6WImAc&amp;ved=0ahUKEwii8Ijvjb-OAxUKDHkGHZ8SAnMQ4dUDCBE&amp;uact=5&amp;oq=apple+stock&amp;gs_lp=Egxnd3Mtd2l6LXNlcnAiC2FwcGxlIHN0b2NrMhUQABiABBixAxhDGIMBGIoFGEYY-gEyEBAAGIAEGLEDGEMYgwEYigUyCxAAGIAEGLEDGIMBMgoQABiABBhDGIoFMgUQABiABDIFEAAYgAQyBRAAGIAEMgUQABiABDIFEAAYgAQyBRAAGIAEMiEQABiABBixAxhDGIMBGIoFGEYY-gEYlwUYjAUY3QTYAQFI_ewBUIsEWOcVcAV4AZABAJgBjQGgAe8IqgEDOS4zuAEDyAEA-AEBmAIRoAKlCcICChAAGLADGNYEGEfCAg0QABiABBiwAxhDGIoFwgIQEC4YgAQY0QMYQxjHARiKBcICDhAuGIAEGLEDGNEDGMcBwgIIEAAYgAQYsQPCAhMQLhiABBixAxjRAxhDGMcBGIoFwgILEC4YgAQYsQMY5QTCAg4QLhiABBiSAxjHARivAcICCBAAGIAEGMkDwgIOEC4YgAQYxwEYjgUYrwHCAgcQABiABBgKwgIGEAAYFhgewgILEAAYgAQYhgMYigWYAwCIBgGQBgq6BgYIARABGBOSBwQxNC4zoAeCfbIHAzkuM7gHlAnCBwYwLjEyLjXIBy4&amp;sclient=gws-wiz-serp">0.5%</a> at the time this article was published.
The agreement between Apple and MP Materials marks yet another positive economic and national security development for President Donald Trump as the White House pushes to break free from reliance on China for rare earth minerals. China currently produces around 60% of the world’s rare earths and refines nearly 90%, <a href="https://www.csis.org/analysis/what-chinas-ban-rare-earths-processing-technology-exports-means">according</a> to the Center for Strategic and International Studies.
For decades, MP Materials has operated the only rare earth mine in the United States, which is located in Mountain Pass, California, 60 miles southwest of Las Vegas. Last week, the Trump administration <a href="https://cowboystatedaily.com/2025/07/11/first-u-s-rare-earth-mine-in-70-years-opens-in-wyoming/">announced</a> the grand opening of the country&#8217;s second rare earth mine in Wyoming, where workers at the Brook Mine, owned by Ramaco Resources, Inc., will extract rare earth materials directly from coal.
Shortly after starting his second term, President Trump <a href="https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-takes-immediate-action-to-increase-american-mineral-production/">said</a> that he wants to make the United States “the leading producer and processor of non-fuel minerals, including rare earth minerals.”
After the Pentagon agreed to buy $400 million of preferred stock in MP Materials, the company said it would soon begin construction on a “second domestic magnet manufacturing facility (the ’10X Facility’) at a soon-to-be-chosen location to serve both defense and commercial customers.”

Apple Logo

Apple Agrees To $500M Deal To Buy Rare Earths From American Company, Reduce China Dependence

Apple

Business

Economy

rare earth minerals

Longtime blue-collar job proponent Mike Rowe had heaps of praise for an acknowledgement made by Nvidia CEO Jensen Huang about the future.
“What we need more than anything right now is we need to celebrate skilled craft workers,” Huang said during an appearance on MSNBC&#8217;s Morning Joe. “We’ve moved away from industrialization and manufacturing for so long that there’s a void for the ability to manufacture things,” he continued, saying he loves that the United States is building AI factories, which will “need skilled craft.”
“We need to go back and make sure that the trade schools are really well invested in,” Huang added.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
My first two words on this particular Sunday morning were &quot;Hallelujah!” followed by, “Amen!”
I was not in church when I uttered them. I was at my kitchen table, watching the CEO of the most valuable company in the world say precisely what mikeroweWORKS has been espousing for the… <a href="https://t.co/oxNZZfzqTv">pic.twitter.com/oxNZZfzqTv</a>
&mdash; The Real Mike Rowe (@mikeroweworks) <a href="https://twitter.com/mikeroweworks/status/1944547209976164515?ref_src=twsrc%5Etfw">July 13, 2025</a></blockquote>
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Rowe responded with praise for what the tech industry exec was saying.
“My first two words on this particular Sunday morning were ‘Hallelujah!’ followed by ‘Amen!’” the “Dirty Jobs” host wrote as part of his lengthy response.
“If you haven’t already heard, a massive challenge is upon us. With regard to artificial intelligence and the energy we need to feed it, America will either change its current direction, or get left far, far behind. I know this because I run a modest foundation that has been arguing for decades that the portion of our workforce most often described as ‘the skilled trades’ will become the most essential component of our economy, our independence, and our collective future,” he went on. 
“Well, the future is here. Obviously, I didn’t know that the race to dominate artificial intelligence would be the thing that finally galvanized the folks at the grown-up table. When I founded mikeroweWORKS in 2008, I figured it would be a new commitment to rebuild our crumbling infrastructure that would necessitate a collective push to reinvigorate the trades.&#8221;
Rowe said, &#8220;That need is still pressing, but I never imagined the most urgent cry for more welders and electricians would be ushered in by the need for more data centers. Back then, I didn’t even know what a data center was. But today, here we are. Data centers are headline news, because they are – as Jensen Huang says &#8211; AI factories. And if we want to remain competitive with China, we need to build thousands of them. Now. And presently, we simply don’t have the workforce to do it.”
He went on to explain that skilled trades need “better PR” at a national level and that people need to realize that these skills are “in demand.” 
Rowe went into detail about attempting to help then-President Barack Obama push “shovel-ready jobs,” but not having much success. Now he’s turning his attention to assisting Trump.
“Just as I was rooting for President Obama in 2009, I’m rooting for President Trump today. I hope he succeeds in reinvigorating our industrial base and reshoring our manufacturing capabilities, and I want to offer my support. But if he does succeed, we’re talking about millions new jobs in manufacturing alone,” Rowe added.

Mike Rowe

‘Hallelujah’: Jubilant Mike Rowe Wakes Up To See The Economy Turn Back To Dirty Jobs

 Mike Rowe Praises Nvidia CEO For Admitting 'Skilled Craft Workers' Are The Future

Celebrities

Jobs

U.S.

United States

The Pentagon agreed to purchase $400 million of preferred stock in MP Materials, which operates the only rare earth minerals mine in the United States, the company announced on Thursday.
The mine, located in Mountain Pass, California — 60 miles southwest of Las Vegas — extracts rare earth minerals that are vital for the U.S. military, CNBC <a href="https://www.cnbc.com/2025/07/10/pentagon-to-become-largest-shareholder-in-rare-earth-magnet-maker-mp-materials.html">reported</a>. The Defense Department&#8217;s move is part of the Trump administration&#8217;s plan to break its dependence on China for rare earths, a goal that Interior Secretary Doug Burgum <a href="https://www.youtube.com/watch?v=kL1kagSsIk8">discussed</a> in April.
“This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,” <a href="https://investors.mpmaterials.com/investor-news/news-details/2025/MP-Materials-Announces-Transformational-Public-Private-Partnership-with-the-Department-of-Defense-to-Accelerate-U-S--Rare-Earth-Magnet-Independence/default.aspx">said</a> James Litinsky, Founder, Chairman, and CEO of MP Materials. “We are proud to enter into this transformational public-private partnership and are deeply grateful to President Trump, our partners at the Pentagon, and our employees, customers and stakeholders for their unwavering support and dedication.”
Rare earths are used to produce magnets that are incorporated into critical U.S. military weapons systems, including those for drones, submarines, and the F-35 fighter jet, CNBC reported. Shortly after taking office, Trump <a href="https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-takes-immediate-action-to-increase-american-mineral-production/">signed</a> an executive order to ramp up American rare earth mining, bemoaning the fact that 70% of the United States&#8217; imports of rare earths come from China. Trump stated that he wants to make the United States “the leading producer and processor of non-fuel minerals, including rare earth minerals.”
China currently produces around 60% of the world&#8217;s rare earths and refines nearly 90%, <a href="https://www.csis.org/analysis/what-chinas-ban-rare-earths-processing-technology-exports-means">according</a> to the Center for Strategic and International Studies. Rare earth minerals are also used to manufacture electronics, including smartphones and laptops, as well as electric vehicles and renewable energy technologies. After Trump levied tariffs on China, the communist country halted shipments of rare earth minerals to the United States. The administration <a href="https://www.reuters.com/world/china/trump-says-deal-related-trade-was-signed-with-china-wednesday-2025-06-26/" target="_blank" rel="noopener">announced</a> late last month that it had reached an agreement with China to restart rare earth imports.
MP Materials&#8217; agreement with the Pentagon will result in the construction of the company&#8217;s &#8220;second domestic magnet manufacturing facility (the &#8217;10X Facility&#8217;) at a soon-to-be-chosen location to serve both defense and commercial customers.&#8221; The &#8220;10X Facility&#8221; is expected to be completed in 2028, which will boost MP Materials&#8217; manufacturing capacity to 10,000 metric tons, according to the company. The Pentagon&#8217;s agreement with MP Materials is for 10 years and establishes &#8220;a price floor commitment&#8221; to ensure that the company is protected from &#8220;non-market forces.&#8221;
Shares of MP Materials <a href="https://www.google.com/search?q=mp+materials+stock&amp;rlz=1C5GCCM_en&amp;oq=mp+materials+stock&amp;gs_lcrp=EgZjaHJvbWUqDQgAEAAYgwEYsQMYgAQyDQgAEAAYgwEYsQMYgAQyDQgBEAAYgwEYsQMYgAQyBwgCEAAYgAQyBwgDEAAYgAQyBwgEEAAYgAQyBwgFEAAYgAQyBwgGEAAYgAQyBwgHEAAYgAQyBwgIEAAYgAQyBwgJEAAYgATSAQgyOTIxajBqN6gCALACAA&amp;sourceid=chrome&amp;ie=UTF-8">jumped</a> nearly 50% on Thursday, hitting $44 as of Thursday morning. The company&#8217;s all-time high was $56.54, reached on April 1, 2022.
News of the agreement comes shortly after Sen. Tom Cotton (R-AR) <a href="https://www.dailywire.com/news/tom-cotton-introduces-bill-to-break-chinas-monopoly-on-rare-earth-minerals-for-u-s-defense">introduced</a> a bill to expedite the extraction of rare earth elements in the United States, aiming to better protect America&#8217;s national security.
“Current environmental laws put our readiness to counter Communist China at risk and waste taxpayer dollars on projects that stall out and die on the vine,” Cotton <a href="https://www.foxnews.com/politics/senate-republican-moves-give-u-s-edge-china-harvesting-minerals-weapons-systems">told</a> Fox News Digital. “This bill will create jobs, better arm and prepare our soldiers, and spend taxpayer dollars more efficiently.”

Department of Defense

Defense Department Becomes Largest Shareholder Of Company That Owns America’s Lone Rare Earth Mine

Military

BEIJING/SHANGHAI (Reuters) &#8211; China&#8217;s auto industry has inflated car sales for years through a burgeoning government-backed grey market that registers new cars right off the assembly line and then ships them overseas as &#8220;used&#8221; vehicles.
These so-called &#8220;zero-mileage&#8221; cars have never been driven but they are being exported as used to markets like Russia, Central Asia and the Middle East, allowing Chinese automakers to show growth and to dispose of cars that it would be difficult to sell domestically, according to a Reuters review of government documents and interviews with five auto dealers and car traders.
&#8220;This is the outcome of an almost-four-year price war that has made companies desperate to book any sales possible,&#8221; said Tu Le, Michigan-based founder of consultancy Sino Auto Insights.
The practice only gained national attention after the boss of Chinese automaker Great Wall Motor criticized the sale of zero-mileage used cars within China in May. On June 10 the People&#8217;s Daily newspaper condemned the sale of zero-mileage used cars domestically.
The paper, which often signals the positions of China&#8217;s top Communist Party leaders, blamed these fake used cars for driving down prices amid a withering domestic price war and called for &#8220;tough regulatory action&#8221; to restore order.
But the export and sale of fake used cars is actively encouraged by regional governments in China, according to a Reuters review of state media reports and government documents.
Local governments have embraced the practice as vital to meeting ambitious targets for economic growth set by Beijing, according to a Reuters review of local policy documents and state media articles.
Reuters has identified 20 local governments in China &#8211; including major export hubs like Guangdong and Sichuan &#8211; that have described their support for the export of zero-mileage used cars in publicly available government documents.
The tactics include creating extra licenses for the export of zero-mileage used cars, fast-tracking tax rebate claims, investing in export infrastructure, and funding networking events to encourage zero-mileage used-car exports, the government documents showed.
The zero-mileage used car export market works like this: as a fresh car emerges from the assembly line, an exporter buys the car either directly from the automaker or from a dealer, registers it with a Chinese license plate, and then immediately marks it as a second-hand car for shipping abroad. Along the way, the automaker books the car as sold and logs the revenue.
The support for the practice from local governments would make little sense anywhere outside China&#8217;s centrally planned economy. But here, showing rapid growth in sales and employment can bring about promotion or unlock new funding while missing economic targets that trickle down from Beijing can lead to demotions of local officials.
Because these export firms both purchase and sell a single car, the transaction value is double that of new or used-car purchases, so local governments court them to set up shop on their turf to quickly and artificially boost their GDP statistics, two Chinese auto industry executives said.
The tactic is only one sign that China&#8217;s car industry – the world&#8217;s largest – is allowing production to outpace demand, driving a protracted domestic price war and spurring accusations of automotive &#8220;dumping&#8221; abroad.
Cui Dongshu, the secretary general of the China Passenger Car Association, praised the practice earlier this month during an online panel discussion hosted by Tencent’s news portal, saying it was an alternative channel for automakers in China to access certain markets overseas that they may not be able to access due to rising trade barriers globally.
He added that it also helped to satisfy overseas demand for China-made cars in countries where Chinese brands had yet to enter.
Reuters contacted all the local governments mentioned in this article for comment but none responded. China&#8217;s State Council and commerce ministry did not respond to a request for comment. China&#8217;s foreign ministry referred queries on the practice to &#8220;the department in charge,&#8221; without elaborating.
GOVERNMENT SUPPORT
Local government support has taken various forms, from simplifying paperwork, to allocating extra quotas for local vehicle registrations, to setting up free warehouses for zero-mileage used cars close to China&#8217;s land and maritime borders, the Chinese documents showed.
In February 2024, the planning commission of the southern city of Shenzhen, one of China&#8217;s richest cities and a tech hub that is home to Huawei and Tencent, pledged to expand the export of zero-mileage used cars as part of efforts to reach an annual target to export 400,000 vehicles of all kinds.
Nearby, the southern Chinese metropolis Guangzhou announced earlier this year it had created a mechanism to support and accelerate the export of zero-mileage gasoline vehicles by allocating extra quotas for local registrations that are otherwise capped to mitigate traffic congestion and air pollution in the city.
Xinmi, a district of Zhengzhou, the provincial capital of China&#8217;s third-most populous province of Henan, said in February that it helped local firm Xinjiasheng Supply Chain Management Co., Ltd to &#8220;promote zero-mileage used car exports, in order to use exports to drive domestic sales.&#8221;
Reuters found a dozen local governments were boosting the export of zero-mileage used cars as part of their strategy or core to their plans for growth.
Sichuan province, one of China&#8217;s most important economic engines, said in October in a policy document it had supported the creation of an &#8220;online export ecosystem for zero-mileage used NEVs&#8221; by promoting e-commerce platforms like Alibaba International, where 100 Sichuan-based used-car sellers are now active.
Xinjiasheng Supply Chain Management and Alibaba did not respond to requests for comment.
MARKET SHIFTS
The practice began sometime after 2019 when China allowed used cars to be exported to other countries. Now thousands of traders are involved in passing off new cars as used to qualify for the channel, according to Wang Meng, a consultant for the China Automobile Dealers Association.
Of the 436,000 used passenger and commercial vehicles exported by China in 2024, 90% are estimated to be &#8220;zero-mileage,&#8221; Wang said.
China overtook Japan to become the world&#8217;s largest exporter of new cars in 2023 and exported 6.41 million vehicles last year, according to the China Passenger Car Association. Of these, about 6% would have actually been zero-mileage used cars, according to Wang&#8217;s estimates.
Two dealers and two industry experts said the majority of zero-mileage used cars are gasoline powered and thus less desirable in the Chinese market. But electric vehicles, which are subject to generous government-funded purchase subsidies, also make up a significant portion.
Huanyu Auto, a used-car seller in China&#8217;s west metropolis of Chongqing, expanded to the zero-mileage used-car business in 2022.
The returns were so good in 2022 and 2023 that they were able to earn 10,000 yuan ($1,400) in profit off an electric sedan that they had purchased in China for 40,000 yuan by selling it in Central Asia, said William Ng, director of the firm&#8217;s international market division.
Criticism has started to mount. On June 7, Zhu Huarong, chairman of Chinese automaker Changan called for a crackdown on exports of zero-mileage used cars at a Chinese auto conference, saying the practice could &#8220;enormously damage Chinese brands&#8217; image&#8221; abroad. Changan did not respond to a request for further comment.
Xing Lei, the Massachusetts-based founder of consultancy AutoXing which provides insights on Chinese EV companies to foreign investors, said the practice could cause foreign investors to assess Chinese automakers&#8217; sales skeptically.
&#8220;How many are real or inflated? No one knows,&#8221; he said.
&#8216;DUMPING&#8217; CONCERNS
The proliferation of new cars being shipped for sale with &#8220;used&#8221; tags is reinforcing fears that China is dumping subsidized vehicles overseas, at a time when Beijing is scrambling to find export markets outside the United States, now heavily protected by tariffs.
Some countries, concerned that the influx of cars will crowd out local dealers and confuse consumers, are starting to push back.
&#8220;We&#8217;re definitely seeing friction and tension in markets where there are already manufacturers on the ground there,&#8221; said Michael Dunne, a consultant who closely follows the China auto industry.
Russia in 2023 issued a government decree effectively banning zero-mileage used cars from brands that already had official distributors in the country. The commerce bureau of Heihe, a Chinese city that sits on the China-Russia border, said last November on its website that this applied to Chinese brands such as Chery, Changan, and Geely.
Geely declined to comment while Chery and Changan did not respond to requests for comment.
Other countries&#8217; market regulators, including Jordan, are finetuning their definition of used cars by mandating a longer period after a vehicle&#8217;s licensing or production before it is classified as used.
Ng, of Huanyu Auto, said growing competition from new entrants such as mom-and-pop stores and even TikTokers selling zero-mileage used cars was causing the trade to become less lucrative.
&#8220;They used to sell vases, wine and are now selling cars in the same way,&#8221; he said of the new entrants. &#8220;This is chaos.&#8221;
(Reporting by Beijing and Shanghai newsrooms; Additional reporting by Gleb Stolyarov in Tbilisi; Editing by Mike Colias and Michael Learmonth)

Employee repairs a second hand car at a used car market in Beijing

Smoke & Mirrors In China’s Auto Industry: New Cars Exported As ‘Zero-Mileage Used’ To Inflate Sales

Automobiles

WASHINGTON—During a Senate Judiciary hearing Wednesday, Texas Senator Ted Cruz exposed China’s shady efforts to infiltrate the American energy sector and leave the United States dependent on Beijing for so-called green energy.
&#8220;We are witnessing right now a systematic campaign against American energy,&#8221; Cruz said at the hearing. &#8220;There is a coordinated assault by the radical Left, backed and paid for by the Chinese Communist Party, to seize control of our courts, to weaponize litigation against US energy producers all in order to undermine American energy dominance.&#8221;
Cruz in particular <a href="https://statearmor.org/who-is-energy-foundation-china/" target="_blank" rel="noopener">focused</a> on Energy Foundation China, a group with ties to the Chinese Communist Party. The senator cited a report from State Armor, which found that &#8220;To secure U.S. dependence, the CCP has been co-opting the progressive American climate change lobby to push a transition from fossil fuels and other critical inputs…onto &#8216;green&#8217; technologies controlled by China.&#8221;
By funneling money through the foundation, the report claims, the CCP has funded many climate advocacy groups in America, including the Natural Resources Defense Council, which is well known for its litigious character.
&#8220;Their lawsuits are designed to destroy the American energy industry, which happens to perfectly coincide with the political objective of Senate Democrats to destroy the American energy industry,&#8221; Cruz said.
Cruz continued by exposing the Climate Judiciary Project, which claims to be impartial and uninvolved in litigation, but <a href="https://www.foxnews.com/politics/climate-justice-group-deep-ties-judges-experts-involved-litigation-claims-impartiality" target="_blank" rel="noopener">reportedly</a> trains and supports judges presiding over cases of climate litigation.
Cruz pointed out that Energy Foundation China, which is run by former CCP officials, is funding litigation groups working to flood the courts with cases against American energy companies. These cases then come before judges trained by leftist-funded climate advocacy groups.
&#8220;This three-pronged strategy — foreign funding, mass litigation, and judicial indoctrination — is a full-spectrum assault on American energy independence,&#8221; Cruz said. &#8220;And while China drills and digs, we sue and shut down.&#8221;
&#8220;While China prepares for energy dominance, the American Left prepares to attack our own domestic capability.&#8221;
Ranking Member Senator Sheldon Whitehouse (D-RI) called Cruz’s claims a &#8220;conspiracy,&#8221; arguing that the oil industry’s &#8220;dark money&#8221; schemes were more concerning.
&#8220;The hearing ignores that the fossil fuel industry has, for decades, benefited from secret funding to wage war on the American consumer by making energy more expensive and dirtier,&#8221; Whitehouse said.
Whitehouse also dismissed the claim that China was indirectly providing funds to litigious groups. Energy Foundation China, he argued, seemed focused on addressing Chinese environmental concerns, not advocating for legislative change in the United States.
Whitehouse said, &#8220;Fighting Chinese pollution in China [&#8230;] is a very different thing than having a Chinese conspiracy that funds a litigation group here in the United States.&#8221;
From 2001 to 2020, the EFC has paid out nearly $1.02 billion in grants to hundreds of different organizations seeking climate reform, according to a <a href="https://www.influencewatch.org/non-profit/energy-foundation/" target="_blank" rel="noopener">report</a> by Influence Watch. The Climate Judiciary Project paid an undisclosed amount toward its judicial education programs.
Scott Walter, the president of the Capital Research Center, was among those testifying about the role the CCP might play among American climate lobbyists and judges.
Asked about the motives of the CCP officials who founded Energy Foundation China, Walter said he was &#8220;skeptical that former Chinese communist officials are interested in doing anything that would harm their country.&#8221;

Senate Judiciary Subcommittee Examines District Judges v. Trump

Ted Cruz Exposes China’s Plot To Undermine American Energy: ‘A Coordinated Assault’

Ted Cruz

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