The Food and Drug Administration (FDA) will crack down on illegal vapes entering the U.S. from China, FDA Commissioner Marty Makary told ABC News.
&#8220;[What] we have been doing is laughable,&#8221; Makary said. &#8220;We&#8217;re going to start confiscating and seizing. We&#8217;re going to take this seriously.&#8221;
The illegal e-cigarettes appeal to children and teens through bright colors and fruit- and candy-based flavors, according to Makary. The vapes are often disguised as handheld video game consoles, highlighters, or smartphone cases, ABC News <a href="https://abcnews.go.com/US/fda-head-warns-illegal-vaping-products-china/story?id=123977131">reported</a>.
&#8220;There is no approved vaping product in the United States that has a video game,&#8221; Makary said. &#8220;There is not an approved vaping product in the United States that has one of these cutie fruity flavors.&#8221;
The only legal e-cigarette flavors are menthol and tobacco, Makary said. There are only 39 authorized e-cigarette products in the U.S.
&#8220;Eighty-five percent of the vaping products sold in the vape stores are illegal according to the FDA&#8217;s list,&#8221; Makary said. &#8220;We don&#8217;t even know what&#8217;s in some of these vaping products.&#8221;
Makary said stopping illegal vapes is a &#8220;top priority&#8221; for the agency.
U.S. Customs and Border Patrol seized about two million illegal vape products last month, ABC News reported. The vapes are worth about $34 million.
&#8220;This is just a small fraction of the seizures we have here,&#8221; CBP official Eric Everson told the outlet.
Over 90% of Chinese vape products imported to the U.S. in 2024 were not reported in American import data, The Daily Wire previously <a href="https://www.dailywire.com/news/china-is-flooding-america-with-illegal-vapes-and-more-than-90-fly-under-the-radar">reported</a>. Experts say Chinese manufacturers intentionally mislabel their products to avoid duties, tariffs, and FDA regulations.
In late 2023, CBP agents <a href="https://apnews.com/article/ecigarettes-elf-bar-fda-teen-vaping-434dc600866cf2a626aa8c7a0063ac43">seized</a> $18 million worth of illegal vapes mislabeled as shoes, toys, and other items.
The influx of illegal vapes led Attorneys General from 27 states to <a href="https://content.govdelivery.com/attachments/IACIO/2025/04/10/file_attachments/3226671/2025.04.09%20-%20Letter%20on%20Chinese%20E-Cigarettes.pdf">write</a> a letter to the Trump administration asking for help &#8220;combating the flood of illegal Chinese products — including illegal Chinese e-cigarettes marketed to minors.&#8221;
&#8220;Illegal, flavored Chinese e-cigarettes are flooding the U.S. market in flagrant disregard of State and federal laws. The products have never been approved by the FDA and target America’s youth,&#8221; the Attorneys General wrote in April. &#8220;They are often brought into the country in mislabeled packaging or shipped in a manner specifically designed to evade detection by the FDA and U.S. Customs and Border Protection.&#8221;

Disposable Vapes For Sale In London

‘Top Priority:’ FDA To Crack Down On Illegal Chinese Vapes

Communist China

trade

A dual citizen of China and the United States pled guilty on Monday to stealing American missile defense technology for the Chinese government. 
The Justice Department <a href="https://www.justice.gov/opa/pr/engineer-pleads-guilty-stealing-chinese-governments-benefit-trade-secret-technology-designed">announced</a> that 59-year-old Chenguang Gong pled guilty to theft of trade secrets. Gong, a former engineer who lives in San Jose, California, admitted to stealing information developed by the U.S. government for detecting nuclear missile launches, tracking ballistic and hypersonic missiles, and technology to assist fighter jets evade heat-seeking missiles. 
Gong, who faces up to 10 years in prison upon sentencing, is currently free on $1.75 million bond. 
In his plea agreement, Gong said that he transferred 3,600 files from the Los Angeles area research and development company where he worked and moved them to personal storage devices, including a personal laptop. The file transfers took place between March 2023 and April 2023, when he was fired by the company, which was identified as a victim of Gong.
The files contained blueprints for infrared sensors designed for use in space-based systems to detect missiles and blueprints for sensors for American military aircraft to combat heat-seeking missiles. Some of the files were later discovered at Gong’s private residence, the Justice Department said. 
The information on the files was worth hundreds of millions of dollars, according to prosecutors.
From 2014 to 2022, Gong applied for multiple “talent programs” run by the Chinese government while working for major American technology companies.  
The Justice Department said that China “established these talent programs as a means to identify individuals who have expert skills, abilities, and knowledge of advanced sciences and technologies in order to access and utilize those skills and knowledge in transforming the PRC’s economy, including its military capabilities.”
Gong sent in applications to the talent programs that mirrored technology produced by his employers. For example, in September 2020, Gong submitted an application for “low light/night vision” image sensors that had the model number of a sensor produced by a defense industry company he worked for from 2015-2019, according to investigators. 
The Justice Department also said that Gong took several trips to China to meet with talent program managers. In a 2019 email, Gong admitted that he “took a risk” to fly to China “because [he] worked for…an American military industry company.”
The guilty plea comes as government officials have attempted to crack down on intellectual property theft by China. It is estimated that Chinese-backed IP theft costs American companies between $300 to $600 billion per year.

HONG KONG-CHINA-HANDOVER-ANNIVERSARY

Chinese National Admits To Stealing Missile Defense Blueprints For Communist China

California

Department of Justice

Espionage

Spying

President Trump continues his assault on Fed Chair Jerome Powell. With the Big Beautiful Bill signed into law, the House GOP lays out their next set of priorities. And, Trump unveils a $100 billion energy investment in Pennsylvania – which he hopes will spur America&#8217;s tech dominance over China.
It’s Thursday, July 17, and this is the news you need to know to start your day.
Morning Wire is available on video! You can watch today’s episode here: 
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<h2>Trump Threatens To Fire Fed Chair</h2>
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Topline: As the Federal Reserve continues to hold interest rates steady, President Trump is once again threatening to fire Federal Reserve Chair Jerome Powell.
Jerome Powell was first appointed Chairman of the Federal Reserve by Donald Trump himself back in 2017, but ever since 2019, he’s drawn the consistent ire of the president. Trump says he was too slow to cut rates during the pandemic, and felt Powell intentionally kept rates high ahead of the 2020 election to try and hurt the economy and his re-election odds.
Now Trump is furious with Powell once again over his hesitation to cut rates despite low inflation and strong labor numbers — for his part, Powell has expressed concerns that Trump’s tariffs will spur inflation, and he doesn’t want to cut rates if the economy is about to slow down.
Trump has repeatedly hinted that he could fire Powell — however, because the Federal Reserve is meant to be independent of Congress and the White House, the president is only allowed to remove its chair with cause. Policy disputes aside, the White House believes they could have cause in the form of a $2.5 billion renovation plan for the Federal Reserve that Powell approved. Trump says Powell has wasted taxpayer money on a “palace” for himself and hinted that the project could constitute fraud.
“I don’t rule out anything,” Trump <a href="https://x.com/BreitbartNews/status/1945520191883948337">said</a> when asked if he would fire Powell, although he noted such a move would be &#8220;highly unlikely.&#8221; “It&#8217;s possible that there&#8217;s fraud involved with the $2.5 billion-$2.7 billion renovation. &#8230; And he didn’t have proper clearance. So there could be something to that.”
On Tuesday night, Trump reportedly floated the idea to his allies in Congress, showing conservative House members a draft letter informing Powell he’d been fired that he was prepared to send. He then polled those 12 members for their thoughts – 11 reportedly advised him to fire Powell. But by Wednesday, the president <a href="https://x.com/Acyn/status/1945513505941241860">seemed</a> to be having second thoughts. “We’re not planning on doing anything. We’re a little concerned.”
<h2>Congressional Round-Up</h2>
<div class="image"><img loading="lazy" decoding="async" class="alignnone size-large wp-image-948251" src="https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_01_22_09.Still002-1024x576.jpg" alt="" width="1024" height="576" srcset="https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_01_22_09.Still002-1024x576.jpg 1024w, https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_01_22_09.Still002-300x169.jpg 300w, https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_01_22_09.Still002-768x432.jpg 768w, https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_01_22_09.Still002-1536x864.jpg 1536w, https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_01_22_09.Still002.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></div>
Topline: After the passage of the One Big, Beautiful Bill, congressional Republicans are focusing on new legislative priorities.
On Tuesday, the Republican Study Committee hosted a “new media row” on the Hill, an opportunity for outlets like The Daily Wire to speak to their members one-on-one. That includes House Majority Leader Steve Scalise, who spoke to Daily Wire White House Correspondent Mary Margaret Olohan about the concerning rise of violent political rhetoric on the Left. Scalise was badly injured at a mass shooting by a left-wing activist at the 2017 Congressional baseball game — he’s particularly sensitive to this issue.
“You&#8217;re seeing people attacking our law enforcement, including ICE agents, and they&#8217;re spurred on by a lot of the rhetoric from the Left,” Scalise told The Daily Wire. “That&#8217;s got to stop.”
Scalise also addressed the ongoing Jeffrey Epstein controversy – he told The Daily Wire he trusts President Trump will &#8220;straighten things out … I haven&#8217;t been privy to those documents, the classified information. Others have, but look, I trust Donald Trump and his judgment. And ultimately, I think he&#8217;s going to get the right answers.”
“The cartels are going to go where the money is, and they&#8217;re going to go where they&#8217;re going to find the most lax state laws where they can take advantage,” said New York Congresswoman Claudia Tenney, who’s been fighting to keep drugs and criminals from pouring through our northern border. She said she’s particularly worried about the problem in light of recent developments in New York City. “New York City is facing a major crisis, which is going to impact not just the state, but all of us. Obviously, the election of a Marxist antisemite, like Zoran Mamdani … these are the kind of people that are helping, aiding and abetting the criminal cartels that are trafficking children, trafficking women.”
Florida Congresswoman Kat Cammack said her biggest priority was imposing background checks for Congress. “We’ve seen situations where individuals who have ties to foreign nations, different organizations that have terrorist funding have made their way in through different offices … I think the American people deserve to know who&#8217;s working on their behalf. It&#8217;s pretty simple, but you would not believe the resistance that we&#8217;re getting.”
Several other lawmakers also spoke at length with The Daily Wire – stay tuned to hear more about protecting kids, women’s sports, the Middle East, the Texas floods, and why Rep. Jim Jordan (R-OH) never wears a suit jacket.
<h2>Pennsylvania Receives $100 Billion In AI Investments</h2>
<div class="image"><img loading="lazy" decoding="async" class="alignnone size-large wp-image-948249" src="https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_02_18_02.Still003-1024x576.jpg" alt="" width="1024" height="576" srcset="https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_02_18_02.Still003-1024x576.jpg 1024w, https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_02_18_02.Still003-300x169.jpg 300w, https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_02_18_02.Still003-768x432.jpg 768w, https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_02_18_02.Still003-1536x864.jpg 1536w, https://dw-wp-production.imgix.net/2025/07/SEGMENT-HEADERS.00_02_18_02.Still003.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></div>
Topline: President Trump is directing $100 billion to artificial intelligence infrastructure in Pennsylvania. A summit held at Carnegie Mellon University was billed as a chance to showcase the state’s “potential to power the A.I. revolution.”
AI investment is picking up rapidly in the state of Pennsylvania. On Tuesday, Trump <a href="https://x.com/cspan/status/1945209947962118191">said</a> that he had received pledges worth over $90 billion for new AI and energy investment in the Keystone state. By Wednesday, that number had risen to more than $100 billion, including an investment from the asset manager Blackstone, which wants to bankroll $25 billion worth of new data centers and energy infrastructure in the state.
Pennsylvania is a key swing state located in the center of the Rust Belt – the old industrial heart of the United States – but electoral concerns aside, many of the same factors that helped the state rise to prominence in the industrial era have become relevant again in the AI age. Old industrial sites generally have ready access to water and electricity, which data centers consume huge amounts of for cooling and power generation – some data centers <a href="https://www.asce.org/publications-and-news/civil-engineering-source/civil-engineering-magazine/issues/magazine-issue/article/2024/03/engineers-often-need-a-lot-of-water-to-keep-data-centers-cool">require</a> millions of gallons of water per day and AI is <a href="https://www.technologyreview.com/2025/05/20/1116327/ai-energy-usage-climate-footprint-big-tech/">projected</a> to account for more than 20% of global power consumption by ~2030.
Pennsylvania also sits on top of the Marcellus Shale formation – that means plentiful natural gas ready to be tapped into, and less money spent on pipelines to get it to power plants to fuel the data centers. A deactivated coal plant in Homer City, Pennsylvania, is being rebuilt into the largest natural gas-fired power plant in the world – <a href="https://x.com/RapidResponse47/status/1945515122551566624">according</a> to President Trump – and the nuclear plant at <a href="https://www.technologyreview.com/2024/09/26/1104516/three-mile-island-microsoft/">Three Mile Island</a> is being reactivated to exclusively power Microsoft data centers.
The U.S. leads the field in AI research and development, but China has emerged as a major competitor. China is investing heavily in new power stations to build out its already substantial lead over the U.S. In 2023, according to the <a href="https://www.brookings.edu/articles/how-do-china-and-america-think-about-the-energy-transition/#:~:text=China%20is%20very%20reliant%20on,that%20level%20of%20solar%20installations.">Brookings Institution</a>, China had over twice the electricity generation that the United States has and was on track to greatly increase that.

MRN 7.16.25 Thumbnail V1-2

Morning Brief: Trump Vs Fed Chair, Congressional Chats, $100 Billion Investment In Pennsylvania AI

Artificial Intelligence

Congress

Donald Trump

Economy

Inflation

Jerome Powell

Politics

President Donald Trump&#8217;s Education Department opened an <a href="https://www.ed.gov/about/news/press-release/us-department-of-education-opens-foreign-funding-investigation-university-of-michigan">investigation</a> into the University of Michigan&#8217;s foreign funding on Tuesday, weeks after two Chinese nationals with ties to the university were charged by the Department of Justice for smuggling biohazards into the United States.
Michigan has a &#8220;history of downplaying its vulnerabilities to malign foreign influence&#8221; and &#8220;recent reports reveal that UM’s research laboratories remain vulnerable to sabotage,&#8221; according to the Education Department&#8217;s Office of General Counsel (OGC) Chief Investigative Counsel Paul Moore. The Department of Education said that it will look into whether UM is in compliance with federal law after &#8220;a review of the university’s foreign reports revealed inaccurate and incomplete disclosures.&#8221;
&#8220;Unfortunately, tens of millions of dollars in foreign funding in UM’s disclosure reports have been reported in an untimely manner and appear to erroneously identify some of UM’s foreign funders as ‘nongovernmental entities,’ even though the foreign funders seem to be directly affiliated with foreign governments,&#8221; Moore said. &#8220;OGC will vigorously investigate this matter to ensure that the American people know the true scope of foreign funding and influence on our campuses.”
The Education Department is demanding that UM hand over tax records, documents, and lists of all gifts detailing any agreement with foreign governments within 30 days. The Trump administration also wants the names and contact information &#8220;of all university research personnel and contract personnel, undergraduate and graduate, involved in bilateral or multilateral research collaborations with non-U.S. research institutions.&#8221;
&#8220;Today’s investigation into UM reflects the Trump Administration’s ongoing efforts to hold colleges and universities accountable for failing to comply with federal disclosure laws on foreign funding, consistent with President Trump’s Executive Order on Transparency Regarding Foreign Influence at American Universities,&#8221; the department stated.
Last month, two Chinese scholars at the university were <a href="https://www.dailywire.com/news/alarming-pattern-another-chinese-national-arrested-for-smuggling-biological-materials-into-u-s">arrested</a> and charged by the DOJ for attempting to smuggle “biological materials” that could potentially wipe out crops into a laboratory at Michigan. The DOJ said the arrests are &#8220;part of an alarming pattern that threatens our security.&#8221; Michigan, which <a href="https://research.umich.edu/news-and-issues/research-annual-reports/fy24-research-annual-report/fy24-news-release/">boasts</a> of being one of the top public research schools in the world, <a href="https://www.dailywire.com/news/university-policies-under-review-after-chinese-researchers-charged-with-smuggling-biohazards?author=Zach+Jewell&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=University+Policies+Under+Review+After+Chinese+Researchers+Charged+With+Smuggling+Biohazards">said</a> last month that it was “actively reviewing all relevant policies” after the arrests of the Chinese nationals.
FBI Director Kash Patel <a href="https://www.dailywire.com/news/feds-arrest-chinese-scholar-for-attempting-to-smuggle-pathogen-used-for-agroterrorism-into-u-s">called</a> the arrests &#8220;a sobering reminder that the CCP is working around the clock to deploy operatives and researchers to infiltrate American institutions and target our food supply, which would have grave consequences… putting American lives and our economy at serious risk.&#8221;
Earlier this year, UM ended its partnership with the Chinese Shanghai Jiao Tong University over national security concerns after the FBI <a href="https://www.cnn.com/2024/10/02/us/5-chinese-nationals-charged-with-covering-up-midnight-visit-to-michigan-military-site">said</a> that five Chinese UM students attempted to mislead investigators about a suspicious late-night trip they took to a Michigan military base in 2023.

Michigan

Trump Admin Probes University’s Foreign Funding After Chinese Biohazard Smuggling Arrests

Department of Education

Education

Investigation

Trump Administration

U.S.

University of Michigan

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>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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

China

Global Politics

Israel

Mike Waltz

United Nations

Arkansas GOP senator Tom Cotton, who has been at the forefront of efforts to protect the United States from Communist China, is introducing a bill that would expedite the harvesting of minerals needed for the nation’s defense and reduce the nation’s dependence on China.
The bill, titled the Necessary Environmental Exemptions for Defense Act, would make it easier for mining activities and permit the Pentagon to “operate with maximum agility and efficiency to ensure it is prepared to deter and, if necessary, fight and win a conflict with the Chinese Communist Party,” Fox News <a href="https://www.foxnews.com/politics/senate-republican-moves-give-u-s-edge-china-harvesting-minerals-weapons-systems">reported</a>.
“Currently, China produces roughly 60% of the world&#8217;s critical mineral supply, and processes up to 90%,” Fox News noted.
The group of rare earths is comprised of “17 elements composed of scandium,  yttrium, and the lanthanides,” James B. Hedrick of the US Geological Survey <a href="https://uscriticalmaterials.com/wp-content/uploads/2025/02/Rare-Earths-in-Selected-Defense-Applications.pdf">noted</a>. The lanthanides include lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium.
“On April 4, China’s Ministry of Commerce imposed export restrictions on seven rare earth elements (REEs) and magnets used in the defense, energy, and automotive sectors in response to U.S. President Donald Trump’s tariff increases on Chinese products,” the Center for Strategic and International Studies <a href="https://www.csis.org/analysis/consequences-chinas-new-rare-earths-export-restrictions">reported</a>. “The restrictions apply to seven medium and heavy rare earths: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. The United States is particularly vulnerable for these supply chains. Until 2023, China accounted for 99 percent of global heavy REEs processing, with only minimal output from a refinery in Vietnam. However, that facility has been shut down for the past year due to a tax dispute, effectively giving China a monopoly over supply.”
“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,&#8221; Cotton told Fox News Digital. &#8220;This bill will create jobs, better arm and prepare our soldiers, and spend taxpayer dollars more efficiently.&#8221;
Cotton’s bill would permit the administration to circumvent the National Environmental Policy Act, Endangered Species Act, Marine Mammal Protection Act and Federal Water Pollution Control Act; he stated that they “frequently and unnecessarily delay” the military’s readiness without “substantial benefit to the environment or protected species.”
Cotton suggested as far back as January 30, 2020, that the COVID-19 virus might have come from Wuhan, prompting harsh criticisms from leftists. Speaking at a Senate Armed Services Hearing, he asserted, &#8220;I want to talk about the biggest and most important story in the world. The Wuhan coronavirus. This coronavirus is a catastrophe on the scale of Chernobyl for China. But actually, it’s probably worse than Chernobyl, which was localized in its effect. The coronavirus could result in a global pandemic. While you were all sleeping overnight, the number of diagnosed cases in China increased by 30%. Let me be clear: that’s not new cases; that is just newly-admitted cases. It is probably several orders of magnitude higher than that.”
“We still don’t know where coronavirus originated,” Cotton said. “Could have been a market, a farm, a food processing company. I would note that Wuhan has China’s only biosafety level-four super laboratory that works with the world’s most deadly pathogens to include, yes, coronavirus.”
In March 2020, Cotton <a href="https://www.dailywire.com/news/watch-tom-cotton-on-china-i-have-never-trusted-a-communist-and-i-never-will-trust-a-communist">said</a> bluntly, “I have never trusted a Communist and I never will trust a Communist. And that&#8217;s who runs China — the Chinese Communist Party.”
A 2019 <a href="https://www.armyupress.army.mil/Portals/7/military-review/Archives/English/SO-19/Sec-Def-extract.pdf">Pentagon report</a> stated:
<blockquote>
China’s military modernization also targets capabilities with the potential to degrade core U.S. operational and technological advantages. China uses a variety of methods to acquire foreign military and dual-use technologies, including targeted foreign direct investment, cyber theft, and exploitation of private Chinese nationals’ access to these technologies, as well as harnessing its intelligence services, computer intrusions, and other illicit approaches. In 2018, Chinese efforts to acquire sensitive, dual-use, or military-grade equipment from the United States included dynamic random access memory, aviation technologies, and anti- submarine warfare technologies.
</blockquote>

Tom Cotton

Tom Cotton Introduces Bill To Break China’s Monopoly On Rare Earth Minerals For U.S. Defense

Tom Cotton Introduces Bill To Fast-Track Rare Earth Minerals For Defense, Which China Dominates

Military Weapons

rare earth minerals

The FBI busted a multi-million dollar marijuana trafficking scheme run by Chinese nationals, the Justice Department said Tuesday. 
Seven Chinese nationals were charged over an alleged marijuana conspiracy operating out of Massachusetts and Maine. Investigators said that the operation, which began in January 2020, generated millions of dollars by distributing kilogram-sized quantities of marijuana in bulk.
“This case pulls back the curtain on a sprawling criminal enterprise that exploited our immigration system and our communities for personal gain,” <a href="https://www.justice.gov/usao-ma/pr/seven-chinese-nationals-charged-alleged-roles-multi-million-dollar-money-laundering">said</a> U.S. Attorney Leah Foley. “These defendants allegedly turned quiet homes across the Northeast into hubs for a criminal enterprise – building a multi-million-dollar black-market operation off the backs of an illegal workforce and using our neighborhoods as cover. That ends today.”
Those charged are 39-year-old Jianxiong Chen, 36-year-old Yuxiong Wu, 38-year-old Dinghui Li, 35-year-old Dechao Ma, 35-year-old Peng Lian Zhu, 35-year-old Hongbin Wu, and 47-year-old Yanrong Zhu. Yanrong Zhu &#8220;remains a fugitive,&#8221; while the others were all taken into federal custody, according to the DOJ. 
They are all charged with conspiracy to manufacture, distribute, and possess with intent to distribute marijuana, and many face money laundering charges as well. Chen, who investigators say was the mastermind behind the operation, is also charged with smuggling aliens into the United States. 
<div id="attachment_944505" style="width: 994px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-944505" class="size-full wp-image-944505" src="https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.45.27%E2%80%AFAM.png" alt="" width="984" height="667" srcset="https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.45.27%E2%80%AFAM.png 984w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.45.27%E2%80%AFAM-300x203.png 300w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.45.27%E2%80%AFAM-850x576.png 850w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.45.27%E2%80%AFAM-768x521.png 768w" sizes="(max-width: 984px) 100vw, 984px" />Illegal marijuana seized: DOJ</div>
FBI agent Ted Docks said that Chen, who lived in Braintree, Massachusetts, a city about 12 miles south of Boston, smuggled Chinese nationals over the Mexican border and forced them to work at marijuana grow houses to pay off the smuggling fees and get their passports back. 
In addition to Braintree, there were grow houses in the Massachusetts cities of Melrose and Greenfield. 
In October 2024, investigators recovered more than $270,000 in cash, a Porsche, and multiple Chinese passports and other identification documents inside a safe at Chen’s house in Braintree. Investigators also seized more than 109 kilograms of marijuana, nearly $200,000 in cash, and a $65,000 Rolex watch at the homes of other alleged conspirators. 
<div id="attachment_944509" style="width: 990px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-944509" class="size-full wp-image-944509" src="https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.16.11%E2%80%AFAM.png" alt="" width="980" height="609" srcset="https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.16.11%E2%80%AFAM.png 980w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.16.11%E2%80%AFAM-300x186.png 300w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.16.11%E2%80%AFAM-927x576.png 927w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-09-at-9.16.11%E2%80%AFAM-768x477.png 768w" sizes="(max-width: 980px) 100vw, 980px" />Massachusetts home at center of Chinese marijuana ring: DOJ.</div>
In the last several years, Chinese-backed marijuana operations have cropped up across the United States, and there have been major drug busts in states like New Mexico and <a href="https://www.themainewire.com/2023/11/triad-weed-illegal-chinese-marijuana-grows-are-all-over-maine/">Maine</a>. In Maine alone, Border Patrol has <a href="https://www.dailywire.com/news/illegal-chinese-marijuana-grow-operations-worth-billions-cropping-up-in-maine-border-patrol-memo">reportedly</a> identified at least 270 illegal marijuana grow operations that are worth billions of dollars.
Congressional lawmakers have also launched inquiries into the issue, saying that the operations pose significant national security risks.

Beautiful green leaves of marijuana close up

FBI Busts Chinese Nationals For Multi-Million Dollar Drug Ring, Exploiting Immigration System

Crime

Drugs

Maine

Marijuana

Massachusetts

Staff at one of America’s top public high schools appeared to have violated Virginia law by sharing its intellectual property with an organization that took millions of dollars from Chinese entities looking to “clone” the school, according to emails reviewed by The Daily Wire.  
New emails obtained by Defending Education show staff at Thomas Jefferson High School for Science and Technology in Alexandria collecting information on its textbooks and science labs to send to a Chinese company, as well as admissions from the school’s principal that previous intellectual property sharing had “violated state law.”
The school has <a href="https://www.dailywire.com/news/virginia-school-system-sold-china-a-handbook-on-how-to-clone-americas-top-stem-school">faced criticism</a> for sharing its blueprints and curriculum with Chinese entities looking to replicate the school in China. The new emails shed more light on the lengths staff went to share information with the school’s “international partners&#8221; and reveal that state laws may have been broken in the process. 
In an August 21, 2019 email to staff, then Principal Ann Bonitatibus said that staff at the high school and the Thomas Jefferson Partnership Fund, a nonprofit supporting renovations at the school, appeared to break the law by selling its intellectual property.
The Thomas Jefferson Partnership Fund received $3.6 million between 2014 and 2021 from Chinese entities like the Ameson Foundation, which had a contract with the partnership fund to help China nearly identical schools. In May, Defending Education <a href="https://defendinged.org/defending-education-request-investigation-into-the-activities-of-the-thomas-jefferson-high-school-for-science-and-technology-partnership-fund-inc/" target="_blank" rel="noopener">filed</a> a complaint with the IRS demanding an investigation into the fund over its foreign funding. 
“[Thomas Jefferson Partnership Fund] staff shall not request from, or compensate, [high school staff] staff for ‘deliverables’ that replicate, mirror or otherwise transmit [Fairfax County Public Schools] intellectual property,” the principal <a href="https://defendinged.org/incidents/thomas-jefferson-high-school-principal-appeared-unfazed-that-school-possibly-broke-state-law-by-partnering-with-china-affiliated-groups/">wrote</a>. “In the summer of 2017, I became aware of HSTI contracts that did such and immediately ended the practice and notified you it violated state law. I have consistently shared with Board leadership that FCPS/TJ staff cannot sell our brand or intellectual property which includes curriculum design, assessments, program design, etc.”
Fairfax County Public Schools did not respond to requests for comment for clarification on what actions were taken in response to the purported violations of state law. 
That came after Bonitatibus said that high school staff were not allowed to use Fairfax County Public School resources during their contractual time to do work for the Thomas Jefferson Partnership Fund. She said that a staff member was previously found to be doing work for the partnership fund without the knowledge of school leadership. 
In the same email, Bonitatibus seemed to shrug off concerns about the situation. 
“As stated during our meeting, I believe all parties are acting with good intentions. It can be difficult to navigate the complex scenarios that arise, and we’re here to partner with you and work together to benefit the TJ staff, students and broader community,&#8221; she wrote. 
In light of the alleged legal violations, she asked that any materials gathered for Shirble HK, a Chinese department store incorporated in the Cayman Islands, be run through her. Shirble gave $1.5 million to the partnership fund between 2016-2021. 
“As a result, I respectfully request that copies of any materials generated by our current or prior teachers this past summer 2019 for Shirble be provided to [redacted] and me for review,” Bonitatibus wrote. 
Shirble has <a href="https://freebeacon.com/national-security/top-us-high-school-traded-curriculum-for-donations-in-secretive-business-deals-with-ccp-tied-groups-irs-complaint-says/">troubling ties</a> to the Chinese Communist Party. Yang Xiangbo, the company’s former chair, has attended meetings at the United Front’s Chinese People’s Political Consultive Conference and previously said that CCP officials stopped by the stores &#8220;to guide the work and put forward ardent expectations for Shirble.&#8221;
Other emails obtained by Defending Education show that high school staff compiled detailed information on the school’s research labs and curriculum for Shirble. For example, on June 10, 2019, an employee of the partnership fund emailed a teacher at the high school saying that Shirble wanted to know “about ALL our Senior Research Labs.”
“I have a special request for you. Our current International Partners, Shirble, have specifically asked to know more about ALL our Senior Research Labs as they are going to work on building some of their own,” the employee wrote, adding that Shirble wanted the “curriculum design, equipment needed, lab layout, and possible senior work projects for their own version of the lab.” 
The employee told the teacher that the partnership fund would pay the teacher “at a rate of Pay Band 11 for up to 15 hours total of work.” By August 15, 2019, the teacher had responded and provided a detailed document on course structure, equipment used, and lab policies. 
<div id="attachment_943669" style="width: 1456px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-943669" class="size-full wp-image-943669" src="https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-07-at-11.52.24%E2%80%AFAM.png" alt="" width="1446" height="1164" srcset="https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-07-at-11.52.24%E2%80%AFAM.png 1446w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-07-at-11.52.24%E2%80%AFAM-300x241.png 300w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-07-at-11.52.24%E2%80%AFAM-716x576.png 716w, https://dw-wp-production.imgix.net/2025/07/Screenshot-2025-07-07-at-11.52.24%E2%80%AFAM-768x618.png 768w" sizes="(max-width: 1446px) 100vw, 1446px" />Document compiled for Shirble.</div>
Earlier in the year, a representative from the partnership fund requested that the school provide a list of all the textbooks it uses for Shirble. 
“One of our international partners, Shirble, has asked for a list of text books that we use for certain specific classes,” the representative <a href="https://defendinged.org/incidents/fairfax-county-public-schools-provided-china-affiliated-organization-with-curriculum-information-used-for-students/" target="_blank" rel="noopener">wrote</a>. “Do we have a main list anywhere I can access? Or is it best for me to send you the list? Or go through Dept heads?”
In response, assistant principal Volita Russell began circulating requests to staff to compile the textbook lists. Lists of texts used for English, biology, chemistry, physics, geosystems, health, French, math, computer science, and history were all gathered. 
Russell indicated in an email that she would be getting the sharing of textbooks approved, but it is unclear if the lists were ever sent to Shirbel. 
Defending Education Vice President Sarah Parshall Perry told The Daily Wire that Fairfax County Public Schools has a “history of malfeasance” including its sharing of school materials with Chinese entities.  
“What&#8217;s more, is that TJ&#8217;s principal appeared to acknowledge that the school broke state law by providing China-affiliated groups with its intellectual property,&#8221; she said. &#8220;As if that wasn&#8217;t enough, further communications revealed through our public records requests indicate that TJ&#8217;s relationship with Shirble Department Store Holdings in China included the apparent provision of specific curricular inclusions (including textbooks) for use by Shirble.&#8221;

Thomas Jefferson High School admitted less than 10 black students to the Class of 2024 sparking outrage and debate

Nation’s Top Public High School ‘Violated’ Law By Sharing Info With Chinese Group, Emails Show

Fairfax County

Virginia

Communism may sound appealing to those who have never lived under it. It promises fairness, equality, and justice. But behind the slogans lies a brutal reality: misery, scarcity, and repression. I know this, because I lived it.
Zohran Mamdani, who just won the Democratic primary for New York City mayor, is not merely another progressive. He is a full-fledged Communist, as revealed in a recently resurfaced video where he uses unmistakably Marxist language to outline his vision for the city.
This is his plan: seizing the means of production, elevating class consciousness, government-controlled housing, state-run grocery stores, and the redistribution of wealth and “dignity.”
To many, this may sound like abstract political theory. But to me, it’s the nightmare I lived through in Mao’s China.
Take Mamdani’s call to “seize the means of production.” Most Americans have no idea what that really means. It means the government takes ownership of everything: businesses, factories, land, resources, and capital. It means that no one owns anything — not their homes, not their labor, not even their lives. In Maoist China, we were stripped of property and turned into mere tools of the state.
Over time, we became the property of the Communist Party itself. It didn’t just own the “means of production.” It owned us.
<div id="attachment_942335" style="width: 395px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-942335" class="size-large wp-image-942335" src="https://dw-wp-production.imgix.net/2025/07/IMG-2613-385x576.jpg" alt="" width="385" height="576" srcset="https://dw-wp-production.imgix.net/2025/07/IMG-2613-385x576.jpg 385w, https://dw-wp-production.imgix.net/2025/07/IMG-2613-200x300.jpg 200w, https://dw-wp-production.imgix.net/2025/07/IMG-2613-768x1150.jpg 768w, https://dw-wp-production.imgix.net/2025/07/IMG-2613-1026x1536.jpg 1026w, https://dw-wp-production.imgix.net/2025/07/IMG-2613-1368x2048.jpg 1368w, https://dw-wp-production.imgix.net/2025/07/IMG-2613.jpg 1440w" sizes="(max-width: 385px) 100vw, 385px" />The author dressed as a &#8220;little red guard,&#8221; holding Mao&#8217;s &#8220;little red book&#8221; during the Cultural Revolution (Xi Van Fleet)</div>
Mamdani talks about redistributing wealth — a notion that may sound noble, but in practice leads to ruin. Socialism excels at redistribution but utterly fails at creating wealth. In Mao’s China, the state eventually ran out of resources to distribute, and we were all made equally poor. Yet we were taught to celebrate that poverty, because wealth was portrayed as evil and exploitative — just as Mamdani now claims there should be no billionaires in America.
But poverty was never equal. The Party elites were never hungry, and never deprived. They lived in comfort while the rest of us endured scarcity and fear. That’s what Communist “equality” truly means: enforced misery for the many, privilege for the few. Mamdani grew up enjoying the comfort made possible by the American dream. Now he seeks to dismantle that very dream — not just for New Yorkers, but for all Americans.
He also speaks of “redistributing dignity” — as if dignity is something the government can grant or withhold.
This is a core Communist belief. In America, we understand that dignity does not come from the state; it is inherent, endowed by our Creator, as affirmed in the Declaration of Independence. Just as there is no dignity in slavery, there is none under Communism.
In Mao’s China, we were constantly told to be grateful to the Party for every crumb we received. We were not seen as individuals with rights, but as human resources — tools to be exploited by the state. From a very young age we were taught that each of us was just a tiny screw, and that true happiness came from accepting whatever role the Party assigned us in the big socialist machine. It is hard to speak of dignity under Communism when its very goal is to erase individuality.
In Mao’s China, housing was granted by the state. My family of five was assigned one and a half small rooms. We shared a kitchen and toilet with multiple other families — and we were the lucky ones. Most families had no plumbing at all. There was no privacy. There was no choice. That is what government-run housing looks like — not the idealized version Mamdani promises, but a system in which the state decides what you deserve and where you live.
Mamdani’s plan for government-run grocery cooperatives closely mirrors what I experienced under Communism. In Mao’s China, food distribution was centralized and strictly rationed. The result was chronic scarcity. Shelves were often bare, and long lines were a part of daily life. When the state controls the food supply, it controls people. Hunger becomes a tool of obedience, and survival depends on loyalty to the regime.
What alarms me most is not just how radical a Communist Mamdani is, but that New York City voters chose Communism, knowingly or unknowingly. The voting results show that the majority of his supporters are educated white liberals. They have been indoctrinated by the American education system to reject capitalism and view socialism as compassionate — a cure for all the problems in their city.
My message to them is simple: while capitalism does not guarantee wealth for everyone, socialism guarantees poverty for all — except those in power.
In 2024, the American people rejected Communism by electing President Donald Trump. But the fight is far from over. Communism — disguised as Wokeism — continues to take root, especially in New York.
One of the most prominent Socialists from New York is Congresswoman Alexandria Ocasio-Cortez. In 2022, self-proclaimed socialist Kristen Gonzalez won the state senate seat in District 59. In her victory speech, she declared, “Today we really proved that socialism wins. We are not going anywhere, and we will not stop until we see a socialist slate across this city.” Three years later, we see a socialist poised to become the mayor of the greatest capitalist city in the world.
More than 30 years ago, I escaped Communism by coming to America. I came here for freedom — the very freedom Mamdani now seeks to dismantle. The danger of Communism is not that it comes all at once, but that it creeps in gradually, wrapped in words like “justice” and “equity.” I’ve seen where that road leads. And I’m here to say: don’t go down it.
Let my experience serve as your warning. Communism always promises paradise. But it always delivers misery.
Xi Van Fleet is a survivor of Mao&#8217;s Cultural Revolution, an activist, and author of &#8220;Mao&#8217;s America: A Survivor&#8217;s Warning.&#8221;
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The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.
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New York City Mayoral Candidates Campaign Ahead Of Primary Election

I Lived In The Communist World Zohran Mamdani Dreams Of. It’s Worse Than You Could Imagine.

Chinese Communist Party

New York City

Socialism

Zohran Mamdani

Two Chinese nationals were arrested for allegedly working on behalf of a Chinese intelligence agency to recruit members of the United States military to betray America, the Justice Department announced.
The Justice Department said Tuesday that the FBI on June 27 had arrested 38-year-old Yuance Chen, a Chinese national who has legal permanent residency in Oregon, and 39-year-old Liren “Ryan” Lai, a Chinese national who entered the country on a tourist visa in April. Both were charged with operating within the United States as an agent of a foreign government without notifying the attorney general.
The criminal complaint against them says that they were working on behalf of the Ministry of State Security (MSS), Communist China’s primary foreign intelligence service. Specifically, they are accused of attempting to recruit members of the Navy to be assets for the MSS.
“This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within,” <a href="https://www.justice.gov/usao-ndca/pr/justice-department-charges-two-individuals-acting-agents-prc-government">said</a> Attorney General Pam Bondi. “The Justice Department will not stand by while hostile nations embed spies in our country – we will expose foreign operatives, hold their agents to account, and protect the American people from covert threats to our national security.”
In January 2022, the pair facilitated the leaving of a backpack containing $10,000 from MSS in a locker at a recreational facility in Livermore, California, in a dead-drop payment in exchange for national security information on the United States, according to the Justice Department.
<a class="c-link" href="https://get.dailywire.com/freedom/?utm_medium=website&amp;utm_source=editorial&amp;utm_campaign=freedom&amp;utm_content=freedomeditorial" target="_blank" rel="noopener noreferrer" data-stringify-link="https://get.dailywire.com/freedom/?utm_medium=website&amp;utm_source=editorial&amp;utm_campaign=freedom&amp;utm_content=freedomeditorial" data-sk="tooltip_parent" aria-describedby="sk-tooltip-2388">JULY 4 SALE: Get Six Months Of DW+ Free</a>
“The FBI arrested two Chinese nationals who were allegedly attempting to recruit U.S. military service members on behalf of the PRC,” said FBI Director Kash Patel. “The Chinese Communist Party thought they were getting away with their scheme to operate on U.S. soil, utilizing spy craft, like dead drops, to pay their sources.”
The two also allegedly worked together to obtain recruitment information from a Naval installation in Washington and a Navy recruitment center in San Gabriel, California. Chen stole personal recruitment information and sent it to an MSS agent in China, the Justice Department said.
Chen allegedly met with MSS intelligence officers in April 2024 and March 2025 to discuss his assignments and what he would be paid. If convicted, the pair of Chinese nationals could face up to 10 years in prison and a $250,000 fine.

AG Bondi, FBI Director Patel Hold Press Conference In Florida After Drug Seizure

Chinese Nationals Arrested Over Plot To Recruit American Military Personnel

U.S. Navy

GE Appliances announced this week that it&#8217;s moving even more of its production from China to Kentucky, and investing nearly half-a-billion dollars.
The company is moving most of its washing machine production to Kentucky, spending $490 million in the process, and creating at least 800 full-time jobs. The move is expected to be completed by 2027.
&#8220;We are bringing laundry production to our global headquarters in Louisville because manufacturing in the U.S. is fundamental to our ‘zero-distance’ business strategy to make appliances as close as possible to our customers and consumers,&#8221; GE Appliances President and CEO Kevin Nolan <a href="https://pressroom.geappliances.com/news/ge-appliances-doubles-down-on-u-s-manufacturing-with-490-million-laundry-plant-investment-at-its-global-headquarters-in-louisville-kentucky">said</a> in a statement.
&#8220;This decision is our most recent product reshoring and aligns with the current economic and policy environment,&#8221; Nolan said, adding that the investment &#8220;positions&#8221; GE &#8220;to become the biggest American washer manufacturer.&#8221;
The announcement comes amid President Donald Trump using tariffs on a host of countries, including China, to help restore what he views as fair trade, American manufacturing, and also address national security issues, like illegal immigration and fentanyl.
Additionally, under Trump, <a href="https://www.cnbc.com/2025/06/11/cpi-inflation-may-2025.html" target="_blank" rel="noopener">inflation has cooled</a> and gas prices have hit a <a href="https://www.foxbusiness.com/lifestyle/summer-gas-prices-hit-lowest-level-4-years-despite-middle-east-tensions">four-year low</a>.
GE&#8217;s Appliance Park, a massive industrial complex located in Louisville, already employs around 8,000 workers, the company said. Additionally, GE has invested $3.5 billion in its U.S. manufacturing operations over the past ten years.
&#8220;This investment will move production of more than 15 models of front load washers to Building 2 at Appliance Park – bringing the total area of clothes care production to the equivalent of 33 football fields,&#8221; a statement from the company said.
Kentucky Governor Andy Beshear, a Democrat, praised the move from GE.
<a class="c-link" href="https://get.dailywire.com/freedom/?utm_medium=website&amp;utm_source=editorial&amp;utm_campaign=freedom&amp;utm_content=freedomeditorial" target="_blank" rel="noopener noreferrer" data-stringify-link="https://get.dailywire.com/freedom/?utm_medium=website&amp;utm_source=editorial&amp;utm_campaign=freedom&amp;utm_content=freedomeditorial" data-sk="tooltip_parent" aria-describedby="sk-tooltip-2388">JULY 4 SALE: Get Six Months Of DW+ Free</a>
“Today’s announcement further secures Louisville as the global headquarters of GE Appliances, a Haier company, and brings more world-class, unparalleled appliance manufacturing back to the United States,” he said in a statement on Thursday. 
“This new investment strengthens one of our vital Kentucky assets and underscores our state’s reputation as America’s destination of choice for advanced manufacturing and job creation,&#8221; he added.
A number of companies have committed to investing in the U.S. since Trump took office, including South Korean-based car manufacturer Hyundai, which is <a href="https://www.whitehouse.gov/articles/2025/03/president-trump-is-remaking-america-into-a-manufacturing-superpower/">investing</a> $21 billion in U.S. onshoring, including a $5.8 billion steel plant in Louisiana. Pharmaceutical giant Johnson &amp; Johnson, too, announced plans to invest $55 billion in U.S. manufacturing. And in February, tech company <a href="https://www.cbsnews.com/news/us-manufacturing-domestic-tariffs/">Apple</a> committed to spending more than $500 billion on U.S. manufacturing capabilities over the next four years.
Related: <a href="https://www.dailywire.com/news/ted-cruz-exposes-chinas-plot-to-undermine-american-energy-a-coordinated-assault" target="_blank" rel="noopener">Ted Cruz Exposes China’s Plot To Undermine American Energy: ‘A Coordinated Assault’</a>

Trump/GE

GE Appliances Moving Production From China To Red State

General Electric Moves Production From China To Red State

Kentucky

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

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