US is Bankrolling China

Hi Global Recap readers,

As I was working on today’s newsletter, it hit me how little we’ve covered the CCP this year.

It really seems like last year was all about Xi Jinping and his allies—or those who were too afraid to disagree.

So, we’re kicking things off today with a China story, but with the US taking center stage in the controversy. 👇

🇺🇸🇨🇳 UNITED STATES & CHINA
US Funding Bankrolled Chinese Patents

According to a recent Reuters report, the US government has been funding research that has resulted in over 1,000 patents being granted to inventors based in China since 2010.

This has sparked controversy and calls to renegotiate the US-China Science and Technology Agreement.

Funding Controversy

The US Defense Department, NASA, and other agencies funded research resulting in 1,020 patents for China-based inventors.

• These patents include sensitive fields like biotechnology and semiconductors.

• Critics argue that China unfairly benefits from US-funded research.

• The data has fueled debates around the US-China science pact.

Patent Breakdown

The US Patent and Trademark Office provided data showing the distribution of patents.

• 197 patents in pharmaceuticals and 154 in biotechnology.

• 92 patents funded by the Pentagon, 175 by the Department of Energy, and 4 by NASA.

• The Department of Health and Human Services funded 356 patents, the most of any agency.

Political Reactions

Lawmakers are concerned about the implications of these findings.

• Republican Representative John Moolenaar expressed alarm over US taxpayers funding Chinese patents.

• The State Department is in talks with China about the science agreement.

• Critics call for the cancellation or renegotiation of the pact.

Future of the Agreement

The US-China Science and Technology Agreement is under scrutiny.

• The agreement, signed in 1979, has been extended multiple times.

• Another short-term extension may occur as both sides renegotiate terms.

• Ending the deal could stifle academic and commercial cooperation.

🇷🇺 RUSSIA
Corruption Scandal Deepens

Russia is embroiled in a major corruption scandal involving high-ranking defense officials.

The latest to be detained is Pavel Popov, a former deputy defense minister, accused of fraud related to a “military theme park.”

Popov Detained

Pavel Popov, former deputy defense minister, has been detained on suspicion of fraud.

• Popov is accused of diverting materials from a military theme park to his own property.

• He denies the charges, but the court has ordered his detention until October 29.

Anti-Graft Crackdown

This is part of a broader anti-corruption crackdown targeting associates of ex-defense minister Sergei Shoigu.

• President Putin replaced Shoigu with economist Andrei Belousov in May to tighten control over the defense budget.

• The crackdown began in April with the arrest of Deputy Defense Minister Timur Ivanov.

Military Theme Park Fraud

The fraud allegations center around the construction of Patriot Park, a military-themed tourist attraction.

• Popov allegedly enriched himself by diverting building materials from the park to his own country house.

• Two other senior officials have also been detained as part of this investigation.

Broader Implications

This scandal is seen as a significant blow to Shoigu and his associates.

• Popov was one of Shoigu’s closest associates, serving as his assistant and then deputy.

• The investigation is viewed as part of a power struggle within the Russian defense establishment.

🇯🇵 JAPAN
Japan’s Defense Budget Surge

Japan is on the brink of becoming the world’s third-largest military spender, with a proposed defense budget of 8.5 trillion yen ($59 billion) for the upcoming financial year.

This move is driven by growing military threats from our favorite authoritarian neighbor, China.

Budget Proposal

• Japan’s Defense Ministry proposed budget is an unprecendented 8.5 trillion yen ($59 billion).

• This is part of a five-year military expansion plan.

• The goal is to double annual defense spending to around 10 trillion yen by 2027.

Strategic Focus

The budget is focused on strengthening defense, particularly in the southwestern islands, where tensions with Beijing are growing.⬤

• 970 billion yen ($6.7 billion) is earmarked for strike-back capabilities.

• Investments include long-range missiles and Aegis-class destroyers.

Technological Advancements

You can’t talk about 2024 without mentioning “AI,” right?

• Japan is investing heavily in unmanned systems and… AI.

• 103 billion yen ($710 million) is for drones.

• 314 billion yen ($2.17 billion) is for new multipurpose compact destroyers.

• Its fofucs is on reducing human casualties and conducting extended missions.

Recruitment Challenges

Japan’s Self-Defense Forces are struggling to meet recruitment targets.

• It isn’t just about the budget for the Japanese forces.

• Declining birthrates and competition from the private sector are major factors.

• Only half of the 19,598 positions were filled last year.

🇮🇱 ISRAEL
IDF Drone Strike Kills Hamas Leader

The Israeli Defense Forces (IDF) have taken out a key Hamas leader in Jenin, marking a significant moment in their ongoing operations.

Hamas Leader Killed

Wissam Hazem, the head of Hamas’s military wing in Jenin, was killed in a drone strike.

• Hazem was involved in numerous shooting and bombing attacks.

• Two other operatives, Maysara Masharqa and Arafat Amer, were also killed.

• The IDF recovered assault rifles, handguns, and other equipment from the scene.

Ongoing Operations

The IDF is conducting a large-scale operation in the northern West Bank.

• The operation targets Hamas and Palestinian Islamic Jihad networks.

• It involves the Kfir Brigade, Duvdevan Commando Unit, combat engineers, and Border Police.

• The death toll has risen to 20, with at least 17 gunmen killed.

Recent Clashes

Israeli forces have been active in multiple areas.

• Five Palestinian gunmen were killed in a mosque in Tulkarem.

• The IDF has carried out over 60 airstrikes in the West Bank in the past 10 months.

• Tensions have soared since October 7, with significant casualties on both sides.

Broader Context

The conflict has far-reaching implications.

• Since October 7, over 4,850 Palestinians have been arrested, including 1,960 affiliated with Hamas.

• More than 670 West Bank Palestinians have been killed, mostly gunmen or rioters.

• 27 Israelis, including security personnel, have been killed in terror attacks.

🇮🇱 ISRAEL
Shots Fired at WFP Vehicle

Israel has admitted to the US that shots were fired at a World Food Programme (WFP) vehicle in Gaza due to a “communication error” between Israeli military units.

Incident Details

The incident occurred when a WFP vehicle was approaching an Israeli military checkpoint.

• At least 10 bullets struck the vehicle.

• The vehicle had received multiple clearances from Israeli authorities.

• No one in the vehicle was injured.

US Response

The US has urged Israel to rectify the issues within their system.

• Deputy US Ambassador to the UN Robert Wood emphasized the need for Israel to take ownership of its mistakes.

• Wood called for concrete actions to prevent future incidents involving UN personnel.

WFP’s Reaction

The WFP temporarily suspended the movement of its employees across Gaza.

• The suspension was a direct response to the shooting incident.

• The WFP highlighted that the vehicle was clearly marked and had received clearances.

Broader Context

This incident is part of ongoing tensions and hostilities in the region.

• The UN Security Council meeting addressed the cross-border hostilities between Hezbollah and Israeli forces.

• The situation in Gaza remains volatile, with various international responses and interventions.