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Beijing Reacts To Arrest Of 2 Chinese "Spies" In US For Espionage

Beijing Reacts To Arrest Of 2 Chinese "Spies" In US For Espionage

NDTV12 hours ago
Beijing:
Beijing opposed the "hyping up the so-called Chinese spies" narrative after two Chinese nationals were arrested in the United States for espionage and for allegedly seeking to recruit members of the US Navy to serve as intelligence assets for China. Asked about the case, China's foreign ministry said it did not know the specifics of the case but would take necessary measures to safeguard Chinese citizens' legitimate rights.
"I am not aware of the specifics, but we have always opposed unfounded hype about the so-called 'Chinese spies' narrative. We will take the necessary measures to protect the legitimate rights and interests of Chinese citizens," ministry spokesperson Mao Ning told reporters at a regular news briefing on Wednesday.
#FMsays China always opposes hyping up the so-called "Chinese spies" narrative, and will take necessary measures to safeguard legitimate rights and interests of Chinese nationals abroad, FM spokeswoman Mao Ning said after the US Department of Justice charged two Chinese citizens… pic.twitter.com/ydKItVoQrj
— China Daily (@ChinaDaily) July 2, 2025
Arrest Of 2 Chinese Nationals In the US
Yuance Chen (38), a resident of Happy Valley, and Liren "Ryan" Lai (39), who arrived in Houston, Texas, in April on a tourist visa, were arrested by the FBI on Friday. They face charges of acting as agents of the Chinese government and a maximum sentence of 10 years in prison if convicted, the Justice Department said Tuesday.
According to a criminal complaint, Chen and Lai carried out a number of intelligence activities in the United States on behalf of China's Ministry of State Security.
The suspects facilitated a "dead-drop payment" of at least $10,000 in a locker at a recreational facility in Northern California in 2022 in exchange for U.S. national security information that had already been passed to Chinese intelligence.
"This case underscores the Chinese government's sustained and aggressive effort to infiltrate our military and undermine our national security from within," Attorney General Pamela Bondi said in a statement.
According to the criminal complaint, Lai recruited Chen, a legal permanent resident of the United States, to work for the Ministry of State Security in 2021.
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Gold, lies and eBay: US novelist, 80, accused of selling stolen gold from 18th century shipwreck
Gold, lies and eBay: US novelist, 80, accused of selling stolen gold from 18th century shipwreck

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Gold, lies and eBay: US novelist, 80, accused of selling stolen gold from 18th century shipwreck

What began as a glittering underwater mystery off the coast of France has turned into an international legal matter, the one now involving an 80-year-old American novelist and her husband. Eleonora 'Gay' Courter, a Florida based writer known for her marine themed fiction and her 82-year-old husband, Philip, are facing the possibility of standing trial in France according to The Guardian. Authorities accuse the couple of illegally selling gold bars stolen from an 18th century shipwreck Le Prince de Conty, a French trading vessel that sank in 1746 near Brittany. The vessel which had been on a voyage from Asia was discovered in 1974 and partially dug out by French archaeologists. The site revealed valuable Chinese porcelain, tea crates, and gold bars until a violent storm in 1985 scattered the wreck and halted official recovery efforts. However, the treasure apparently caught illegal attention long before that. In 2018, suspicions arose when head of France's underwater archaeology department Michel L'Hour, spotted five gold bars being auctioned on a US website. He contacted authorities who seized the items and returned them to France in 2022. The seller was identified as Eleonora Courter. Courter maintained she had received the gold from French contact, including 78-year-old Annette May Pesty, who once claimed on Antiques Roadshow that she found the treasure while diving off Cape Verde. However, investigators traced the origin of the gold ingots back to Pesty's brother-in-law, Yves Gladu, an underwater photographer with a long history of clandestine dives at the Prince de Conty site. In a 2022 confession, Gladu admitted retrieving 16 gold bars over a 23 year period between 1976 and 1999. He claimed to have sold them all to a Swiss retiree in 2006, denying any involvement with the Courters' stash. Yet investigators allege the Courters had access to at least 23 bars and sold 18 of them some on eBay netting nearly 200,000 dollars. The couple insisted the proceeds were meant for Gladu and said they had no idea the items were stolen. Their attorney, Gregory Levy, said they were nice people who were misled. 'They didn't see the harm, as US laws regarding gold ownership differ greatly from French regulations,' he said, adding that the couple did not profit personally from the sales. The Courters were arrested in the UK in 2022 and placed under house arrest. French prosecutors in Brest have since recommended a trial for the couple, Gladu, and Pesty. A judge is expected to rule on the matter soon, with proceedings likely to begin in late 2026. Courter has authored several novels and nonfiction works many set on the high seas including a memoir about being quarantined on a cruise ship during the early days of the Covid-19 pandemic in 2020.

The curious case of iPhones: Why a small gadget in your pocket is making US & China insecure about India
The curious case of iPhones: Why a small gadget in your pocket is making US & China insecure about India

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The curious case of iPhones: Why a small gadget in your pocket is making US & China insecure about India

TIL Creatives Representative Image As over 300 Chinese engineers prepares their bags to leave Foxconn's iPhone plants in southern India this week, Beijing is quietly watching. For China, Apple's big bet on India is more than just a factory shift, it's a direct threat to its image of being the world's factory. At the same time, from across the Pacific, earlier this year, US President Donald Trump had a 'little problem' with Apple too. 'We are treating you really good, we put up with all the plants you built in China for years,' Trump said in May. 'We are not interested in you building in India.' He wanted Apple to bring those jobs back to American economies, both far bigger than India's, now appeared to be bothered with the same worry: what happens if India really does become Apple's new favourite factory floor? The US and China both see risk in Apple's supply chain pivot. For America, it challenges efforts to bring jobs home. For China, it threatens its stronghold on global high-tech manufacturing. Earlier this year, Foxconn, Apple's long-time assembler, had pressed ahead with a $1.5 billion display module plant near Chennai. The unit was slated to make the part under an iPhone's glass screen that controls touch and display Nadu's state government had approved the plan last October. Indian officials had expect it to add about 14,000 jobs, a tidy boost for India's growing electronics behind the scenes, China is now quietly tightening the screws. Bloomberg revealed yesterday that more than 300 skilled Chinese engineers who taught Indian workers how to run precision assembly lines have been asked by Foxconn to leave India. No official reason, just a quiet exit. The impact is anything but silent. These technicians brought decades of process know-how from Shenzhen's vast factories. Without them, Foxconn expansion plans in India may not go as smooth as it would have US, too, is not exactly cheering India's gain. When Trump launched his first China trade war in 2018, companies scrambled to find new bases. India was slow to catch up then. Now, as China battles rising costs, with new tariffs being imposed every other month, India has never looked more attractive for Trump's 'America First' pitch was brought to the forefront as he sought to charge exorbitant tariffs on every nation that sought to export to Americans. He insisted that Apple must also 'make in America.' For Apple, that's far from easy. US wages are high. Large-scale electronics assembly needs armies of trained workers. Those don't appear Apple chose to stick with its India plan. In May, officials told FT that by the end of next year, Apple aims to make all 60 million iPhones sold in the US in Indian plants. In 2024, India already produced 18% of global iPhone output. Counterpoint Research expects this share to reach 32% in 2025. During March-May, Foxconn exported iPhones worth $3.2 billion from India, with an average 97% shipped to the US, Reuters reported on June 13, citing customs data. India iPhone shipments by Foxconn to the United States in May 2025 were worth nearly $1 billion, the second-highest ever after the record $1.3 billion worth of devices shipped in March, the data Beijing has more to lose than just iPhone lines. It fears losing its edge in EV batteries, solar panels and key rare earth exports. Already this year, China has delayed shipments of specialised machinery to India and Vietnam. Now, ironically, that same tariff wall has cracked China's supply dominance—and opened the door for India. US tariffs on Chinese goods run as high as 145%, while most Indian goods face only 10%. Exemptions on key electronics like iPhones give India an edge in US. For Washington, this creates a dilemma: keep punishing China, or watch supply chains drift to India instead of coming home. Former Foreign Secretary Vijay Gokhale summed up the mood: China sees India's manufacturing rise as 'a direct threat, not just a parallel development.' India's phone surge didn't happen by accident. Foxconn, Tata Electronics, Corning, big names are pouring billions into Indian supply lines. FT reported Corning will soon start making Apple's scratchproof glass in Tamil own officials know what's at stake. 'We are looking at building the entire value chain in India itself,' said Ekroop Caur, secretary for electronics in Karnataka. The aim: not just assemble phones, but design and supply every vital isn't just a trade story. The way screws, screens and circuit boards move around the world now shapes how countries negotiate, from trade talks to climate pacts and military knows that whoever controls the factories holds the upper hand. When COVID lockdowns froze huge parts of China's manufacturing heartland, companies from California to Berlin realised the risk of putting too many eggs in one basket. According to a Wall Street Journal analysis, the shutdowns cost global electronics makers billions in missed shipments and forced Apple to rethink its near-total dependence on push into India is one answer to that risk. But China has other tools. By restricting exports of critical raw materials, like rare earth metals used in iPhones, wind turbines and guided missiles, Beijing reminds the world that supply chains can double as economic weapons. Just last year, China tightened controls on gallium and germanium exports, minerals vital for semiconductors and defence tech, Reuters tactic isn't new. Back in 2010, China briefly cut off rare earth supplies to Japan during a territorial dispute, crippling factories until Tokyo relented. Now, with the US and Europe pushing to 'de-risk' their dependence, China's leaders are signalling they can still squeeze the tap when clamp on Foxconn's engineers in India fits the same playbook. A senior Indian official, speaking to Bloomberg, confirmed that Chinese authorities are informally blocking export of key equipment and skilled workers to India's iPhone lines. No official reason. But the signal is clear, China wants to slow any rival that could dilute its manufacturing moves ripple far beyond trade. European leaders have linked secure supply chains to climate goals, arguing that building green tech like EV batteries and solar panels depends on stable flows of materials and parts. As reported by the Indian Express, India's Foreign Minister S. Jaishankar summed it up in June: 'The upending of global trade has focused our own minds on the need for correcting what I would call a certain skewed nature of our openness to the global economy.'China's talent clamp is the latest warning shot. By slowing India's learning curve, Beijing hopes to buy time. But India's window is open. There is no national election for a year. Global companies want out of China's grip. US tariffs slam China far harder than the moment is now. India's share of global phone exports has jumped from $250 million a decade ago to over $22 billion today. Most of that is Apple. The next big leap is to match China's scale.A few hundred engineers leaving might not sound big. But behind those exits sits a giant question: who controls the supply chain of tomorrow? If India cracks that code, despite the hold-ups, despite the politics, it won't just make iPhones. It will make itself impossible to ignore at the trade table. And that is what big economies fear a world splitting along new lines, where supply chains double as strategic weapons, India's iPhone story shows how a gadget in your pocket can reshape who calls the shots far beyond a factory floor.

The dragon is tightening its hold: Can India defy it?
The dragon is tightening its hold: Can India defy it?

Economic Times

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The dragon is tightening its hold: Can India defy it?

Why is China waging a low-intensity war on Indian manufacturing? Live Events You Might Also Like: Foxconn recalls Chinese staff from India, disrupting Apple's iPhone 17 plans Can China hobble India's rise as a manufacturing power? (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel In recent months, geopolitical undercurrents have intensified between Asia's two largest economies, India and China. While the military standoff in Ladakh's Galwan Valley in 2020 marked a turning point in bilateral relations, a quieter but far more consequential confrontation is now unfolding. China is trying to undermine India's manufacturing ascent through strategic export denials, regulatory pressure and skilled labour restrictions. Several steps taken by China in the past few months indicate a well-formed strategy to hobble India's rise as a manufacturing power just when many factors align to help India's dependence on Chinese imports in several sectors, China can seriously hamper India's dream of becoming a rival manufacturing power. But in the long run, its obstructive measures will only help India gain economic strategy appears to be increasingly shaped by the need to maintain its dominance as the world's factory, especially as global manufacturers pursue the 'China Plus One' strategy to diversify supply chains. India, with its vast labour force, growing infrastructure and government-backed industrial policies, is emerging as a prime alternative. This transition poses a direct threat to China's central role in global recent actions suggest it is deploying several tools to delay or derail India's industrial ambitions. Bloomberg reported on Wednesday that over 300 Chinese engineers employed by Foxconn in India have been recalled to China, reportedly due to regulatory pressure from Beijing. These engineers were supposed to be critical to the upskilling of Indian teams at Foxconn's iPhone assembly lines, a process essential to ramp up production of future models like the iPhone China has either halted or significantly delayed exports of key materials to India, including rare earth magnets (vital for manufacturing electric vehicles), specialty fertilisers (essential for Indian agriculture), and even tunnel boring machines (critical for infrastructure projects like metros and smart cities). These are not isolated trade hiccups but part of a broader strategy to weaponize trade and technology transfers. Beijing is keen to prevent a large-scale migration of Chinese technology and manufacturing expertise to India. By restricting technology and skilled labour exports, China aims to create bottlenecks in India's supply chain just as it begins gaining global could be two key motivations behind China's behaviour. India's post-Galwan measures, such as tightened scrutiny of Chinese FDI, banning hundreds of Chinese apps and blocking Huawei and ZTE from 5G trials in 2021, have significantly curtailed China's economic leverage in India. Denied access to one of the world's largest markets, Beijing may be retaliating economically to assert its relevance and influence. Secondly, China wants to strengthen a pre-emptive control of supply chains. As India's PLI schemes begin to yield tangible results -- Apple boosting iPhone production, semiconductor plans taking off and India becoming a major mobile phone exporter -- China wants to prevent a global narrative shift from 'Make in China' to 'Make in India".India's dependence on China for several intermediate goods, especially in electronics, EVs, chemicals and rare earth elements, is substantial. China controls more than 85% of global rare earth processing, and a large portion of Indian imports for electronics manufacturing still originate from China. In the short term, China's restrictions can cause delays, cost overruns and capacity the long-term picture is more nuanced. The exit of Chinese engineers from Foxconn's Indian operations is deemed to have a "negligible" impact, as per Apple analyst Ming-Chi Kuo. He noted that there were not many Chinese employees at the company's India iPhone facilities. Production capabilities at Foxconn's India iPhone facilities were established by the company's Taiwanese employees, like those from FIH's Minsheng plant, not Chinese employees, he said. Even amid US tariff threat over iPhones, Foxconn has not slowed down its ongoing mega expansion in India. This indicates that while Chinese know-how may have played a critical role in the initial ramp-up, Indian talent and local engineering capabilities are set to mature global firms are increasingly bullish on India. Apple's contract manufacturers, including Foxconn, Pegatron and Wistron (now owned by Tata), continue to expand their Indian footprints. With supply chain diversification being a geopolitical imperative for Western companies, India remains a central part of this new global manufacturing has recognized the vulnerabilities arising from over-reliance on China and has responded with a mix of policy, investment and diplomatic initiatives. India is offering financial incentives across 14 sectors -- including semiconductors, electronics, EVs and pharmaceuticals -- to attract investment and scale up manufacturing. The PLI scheme has already contributed to India becoming the second-largest mobile phone producer in the in a direct response to China's rare earth squeeze, India is preparing a Rs 3,500–5,000 crore PLI scheme to boost the local manufacturing of rare earth magnets. Under this scheme, Sona Comstar, a major importer of these magnets, has announced plans to produce them domestically, signaling industry alignment with national goals. India is actively exploring alternate sources for specialty fertilisers and critical minerals, including deals with countries like Australia, Vietnam, and African nations. This aims to insulate agriculture and green energy sectors from Chinese pressure. India is investing heavily in upskilling its labour force and creating engineering talent pipelines to reduce dependency on Chinese programmes and partnerships with industry are part of this push. India is negotiating trade agreements with the US and EU while it has already signed an FTA with the UK. These deals will open up new export markets and attract investment, helping India position itself as a global manufacturing hub outside China's manufacturing ecosystem is still young, but it is evolving rapidly, powered by a combination of global realignment, domestic ambition and geopolitical support from the West. China's export denials and covert trade obstructionism are signs of concern but they also reflect a realization that India is no longer just a large market -- it is a serious manufacturing contender .Ultimately, China's restrictions may serve as an accelerator rather than an obstacle. They are pushing India to build domestic capabilities, diversify partnerships, and focus on resilience. If India continues on its current trajectory - with strategic clarity, global cooperation, and internal reforms - it has the potential not just to withstand China's pressure, but to emerge stronger from it.

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