Crackdown on Chip Smuggling to China; Trump Warns of Communist Threat at Michigan Rally

Welcome to China in Focus. I'm Tiffany Meyer. Our top story, President Trump brings his campaign message to Michigan, declaring communism the greatest threat facing America today. He's warning voters that the country is moving toward communism. And remember, you go communist, nothing good happens. A crackdown on AI chip smuggling in Taiwan. Why an NVIDIA employee is at the center of the probe. Intelligence documents declassified, revealing the Chinese regime sought to influence the 2020 U.S. presidential election. The Pentagon is taking further action to stop U.S. taxpayer dollars from supporting China's military. It's cutting off research funding to Chinese universities with ties to Beijing's military. And Taiwan is preparing for major military drills next month, testing how the island would keep its forces supplied during a potential Chinese invasion. President Trump returned to the campaign trail in Michigan Monday, warning that America is facing an existential ideological threat. Speaking to a crowd in the key battleground state, Trump said the political opposition is trying to push the country past socialism and directly into communism. Do you remember like in one of my State of the Union speech, I said, we will never be a socialist country. But I was right. We're going to be a communist country. That's what they want. They skipped socialism. Can you believe it? But communism is the greatest threat to our country. Anti-socialist and anti-communist views have long been elements of Trump's political agenda. During his 2019 State of the Union address, he told Congress America will never be a socialist country. Now, Trump says the political landscape has shifted even further left, warning supporters about drastic economic changes. They want to take your houses. They want to do things that nobody's ever even thought of before. They want to take your money. They want to raise your tax up to 80%. President Trump urged voters to reject far-left policies, framing the upcoming election as a fight between common sense and what he called communist crazy. Democrats have consistently pushed back against Trump's rhetoric and pointed to their economic platform focused on middle-class support, still expect ideological contrast to remain a major talking point on the campaign trail ahead. Crackdown on AI chip smuggling to China, Taiwan expands its probe. It has detained an NVIDIA employee as part of a growing investigation into the smuggling of AI servers with restricted US chips into China. Authorities searched the employee's home and workspace in Taiwan last week before detaining the suspect on Tuesday, identified only by the surname Chang. Prosecutors say Chang is being held on forgery and breach of trust allegations, saying he could tamper with evidence or coordinate with others in the case. The case centers on super micro AI servers equipped with NVIDIA chips that are subject to US export controls. Washington has banned exports of those advanced AI chips to China since 2022, citing national security concerns that the technology could aid Beijing's military. Taiwanese prosecutors say this is the third round of raids in the investigation. It follows arrests in recent months involving employees from super microcomputer and others accused of falsifying documents to smuggle servers to China. The investigation comes as Taiwan steps up efforts to prevent sensitive technology from being diverted to China and made a broader crackdown on AI chip smuggling networks. Newly declassified documents show the Chinese regime sought to influence the 2020 presidential election. Acting Director of National Intelligence Bill Pulte released the files on Tuesday. Declassified government records say that China tried to utilize cyber operations to sway public opinion against the Trump administration ahead of the 2020 elections. The operations were designed to exploit US social fissures, especially racial tensions and partisan disagreements. The file goes on to say that the Chinese regime resorted to social media, including TikTok, Facebook and X to project these tensions. Another declassified file is from the National Intelligence Council in January 2020. It reads, we judge that US adversaries, including at a minimum Russia, China, Iran and North Korea, as well as non-state groups, have the capability to compromise US election infrastructure for the 2020 presidential election. The release of the documents comes amid President Trump's push for stricter election rules. The Pentagon is expanding its blacklist of Chinese universities, cutting off research funding over concerns that it's supporting China's military. NTD's Washington correspondent Jeff Bradley reports. The Pentagon is taking further action to stop US taxpayer funding from going to China's military. It blacklisted more than 90 additional Chinese universities and research institutions, blocking them from receiving War Department research funding. This list includes some of China's most prestigious civilian universities, and before the Pentagon had previously added dozens of other institutions with very apparent close ties to China's military, US officials say that they are engaging in problematic activities. Emil Michael, Undersecretary of War for Research and Engineering said, this latest move is protecting taxpayer-funded research and preserving the integrity of the American scientific enterprise. The House Select Committee on the CCP found in a September report that the Pentagon funded $2.5 billion in research projects that collaborated with Chinese institutions that support their military. In response, the War Department has since been taking a series of actions to cut ties with Chinese entities due to China's military-civil fusion and 2017 national security law that requires all Chinese entities to turn over any information to authorities upon request. Every Chinese citizen, even a dual citizen in this country, is required to spy on our country, and they do. Last month, the Pentagon labeled some of China's biggest companies that operate in the U.S. as linked to China's military, including online retailer Alibaba and car manufacturer BYD. Almost immediately after that designation, multiple U.S. lobbyists cut ties with these companies in order to preserve their business relationships with the U.S. military contractors. Also last month, the National Science Foundation banned its funding from going to any entity on any restricted U.S. government federal agency list. Other agencies like the Department of Energy and the National Institutes of Health say they're looking into implementing similar restrictions. These are already on entity lists that the federal government has designated to be dangerous for the United States. Why wouldn't you have a policy on that? We are currently reviewing the NSF policy. This is something that we're definitely discussing, particularly after seeing NSF's policy come out. Now this comes after years of Chinese companies paying millions of dollars to lobbyists to persuade government entities to partner with them, now all being undone. Jack Bradley, NTD News, Washington. The Senate is facing a packed schedule before the August recess. President Trump wants action on a third Republican reconciliation bill. Meanwhile, two committees are preparing high-profile proceedings, and Washington is set to honor the late Senator Lindsey Graham. NTD's Chris Baugh reports. A budget resolution that unlocks our third reconciliation bill, which of course is Republicans' best shot to get as much of the Save America Act into law as possible, in addition to funding our national defense and our farmers. House Speaker Mike Johnson is urging the Senate to act after the House approved the blueprint for Republicans' third reconciliation package. The plan includes defense and agricultural funding, along with $10 billion to incentivize states to adopt provisions of the Save America Act. President Trump posted on Truth Social Friday, quote, this will be one of the most consequential bills in American history, strengthening our powerful military, providing aid for our farmers, and most importantly, as much of the Save America Act as possible. Trump added, quote, I'm asking that the Senate adopt a budget resolution which can pass with a simple majority before leaving for the August recess. The Senate Judiciary Committee is also scheduled to vote Thursday on advancing the nomination of Todd Blanch for Attorney General. The committee held the nomination over last week under its rules. One day earlier, Dr. Anthony Fauci will return to Capitol Hill under subpoena. Senator Rand Paul posted an interview clip from the first TV on X July 22nd, previewing his committee's questioning. He will be asked again about funding gain of which I believe he lied about the first time. But he also this time will be asked about deleting and destroying records and compelling or seeking others to delete and destroy records. Paul released more than 1,100 pages of Fauci's diaries ahead of the hearing. One entry shows Fauci received a private CIA briefing concerning the Wuhan Institute of Virology. Fauci wrote that officials had information from a source that, quote, unknown experiments were conducted by the military in Wuhan. But Fauci described the CIA briefers as, quote, naive and uninformed, adding, quote, there is something very fishy about all of this. Weeks later, Fauci wrote that the FBI had, quote, no idea who they were talking about when it concluded that COVID-19 originated from a laboratory leak. Senator Tom Cotton of Arkansas posted on X Monday, quote, Fauci's diary confirms what we have long known. Tony Fauci is a lying fraud who covered up for China. Fauci is scheduled to testify Wednesday before Paul's Senate Homeland Security and Governmental Affairs Committee. Chris Bobb, NTD News. New Taiwan drills focus on a potential conflict with China. The island's annual military drills next month will examine how Taiwan can maintain weapons production and support its forces during a Chinese invasion. The exercises will test whether Taiwan can move production lines and convert civilian factories to support military needs. Officials say the drills will simulate a scenario where China uses routine military exercises as cover for invasion preparations. Taiwan's military will practice rapid response operations and test how it can maintain supplies if key facilities are attacked. The exercises will also include training to protect sea lanes and escort shipments of critical materials. It comes as Taiwan reports increased Chinese military and Coast Guard activity around the island. For the first time, Taiwan will also test slowing mobile Internet speeds to study how communications would hold up during a crisis. Coming up, Peru just got a new president. What does this mean for the U.S.-China battle for influence in Latin America? And a fragile ceasefire. Rising tensions and questions over China's role in the Middle East. Is Beijing fueling the conflict while advancing its own agenda? Military expert Rick Fisher weighs in. More on that after the break here on China In Focus. Welcome back to China In Focus. I'm Tiffany Meyer. In Latin America, a battleground between the U.S. and China. Keiko Fujimori is being sworn in as Peru's president, marking another shift toward conservative leadership in Latin America. Fujimori is the daughter of former President Alberto Fujimori. She returns one of Peru's influential political families to power after years of failed campaigns. Fujimori has signaled closer cooperation with President Trump's administration, including interest in joining a U.S.-backed initiative targeting transnational crime. Washington is also seeking stronger ties with Peru, a key producer of copper and critical minerals. Peru is also a strategic partner in countering China's regional influence. The war in the Middle East continues, but questions are growing over China's role behind the scenes. As ceasefire talks resume, critics accuse Beijing of helping fuel the conflict while using it to advance its own strategic goals. We discuss China's influence operations, its ties to Iran, and what Washington can do next with Rick Fisher, senior fellow at the International Assessment and Strategy Center. The strikes have been paused a few days now, and it sounds like negotiations are back on the table. What do you expect to come from this round of talks? Tiffany, I don't expect much. The Iranians are playing for time. They're being encouraged by the Chinese and the Pakistanis to approach the United States to promote negotiations. But at the same time, China is enabling this conflict by its supply of strategic information, satellite data, and the long buildup of components to build the drones and even the ballistic missiles that are carrying out the strikes that you just reported. On that China point, among the many mediators, Pakistan reportedly pushed for a ceasefire at the request of China. Now this comes as U.S. officials, including President Trump, say any aid China has provided Iran has been ineffective. And like the president has said before, China needs to straight open a lot more than the U.S. How badly does China want the conflict to end? I don't think they do, Tiffany. I think they are very much enjoying that the United States is involved in a conflict, largely of their making. Iran's nuclear program has been supported indirectly and directly and funded indirectly by China for decades. The Chinese want us to waste our munitions so that they can ratchet up tensions in the Pacific, in the South China Sea, like they've been doing for the last several months. And of course, to prepare for a final showdown over the future of the democracy on Taiwan. And Rick, I want to shift gears a little bit here because a Fox analysis of federal records shows a broad push by the Chinese Communist Party to influence U.S. policy, public opinion, commercial decisions, and a lot more. Now this is based on the official Chinese regime-linked entities that have registered under the Foreign Agents Registration Act. And we know from federal charges in recent years that there is a lot, of course, more unregistered and therefore illegal activity happening. How concerning is this? Well, it's very concerning, Tiffany. Since the late 1980s, China has built circles of influence in all of America's state capitals, in addition to the wide influence they exercise in Washington, DC, largely through legal means. They are basically exercising the same rights that Americans have. Yes, there are laws that require companies to register if they're lobbying for China. And of course, Chinese firms have to register as well. But this is all governed by a legal structure. What's really, really concerning, Tiffany, is that China can fund and advance all of this activity in pursuit of their interests in the United States of America, but the United States of America cannot pursue the same kind of activities and the same kind of influence in China without the risk of broad arrest, censure. The Chinese Communist Party just doesn't allow this to happen. And so there is a fundamental asymmetry in our relationship with China. China gets to use our freedoms against us, whereas we have no access to Chinese society in a way that allows us to pursue our interests, even a fraction of the degree to which China does so in our country. And given what you just laid out there in terms of accountability or pushing back against that, what actions could we see from the US? Well, initially, the best defense is exposure. Americans simply are not aware of the companies that promote Chinese interests, the think tanks that are funded, the universities that receive money from Chinese entities, many of them linked to the Chinese military, the People's Liberation Army. Exposing these linkages is the first line of defense. And then constraining their activities is essential. We have, what, 200,000, 300,000 Chinese students in the United States, most of them pursuing STEM degrees. Most of these individuals receive very valuable degrees, they go back to China, they join military-affiliated companies, and they help make weapons. We have to decide, do we want our university sector to be open to the people that are building the military that wants to dominate us and eventually take away our freedoms? A lot to watch here, for sure. Rick Fisher, as always, thank you so much for joining us. Thank you. That's all for today's China In Focus. I'm Trudy Meyer. If you have any feedback on the show or have something you'd like to see us cover, send us an email at ChinaInFocus at NTD.com. We'd love to hear from you. For on-the-clock original news coverage, visit us at NTD.com or download our NTD app. Thanks for watching. See you tomorrow.