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The President's Daily Brief
July 24th, 2025: Chinese Spy Busted Stealing U.S. Nuclear Secrets & Tariff Deal With Japan
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- [00:01]
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- [00:30]
Mike Baker
Looking to diversify and protect your hard earned assets? Well, schedule a free consultation with the Birch Gold Group. They're the precious metals specialists. Just text PDB to the number 989898 and you'll receive a free no obligation information kit. And you'll learn how to convert an existing IRA or a 401k into a gold IRA. Again, text PDB to the number 989898. Foreign It's Thursday, the 24th of July. Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. All right, let's get briefed. First up, a Chinese American engineer admits to stealing US national security technology. Well, I for one, am shocked. Prosecutors say he smuggled sensitive military data while working for an American firm. We've got the details and what it reveals about China's espionage efforts. Oh, here's, here's a spoiler alert. China's espionage efforts are amazingly aggressive. Later in the show, delegations from Ukraine and Russia met in Istanbul yesterday to discuss a potential peace deal. We'll have the details on those discussions. Plus, President Trump unveils a major trade deal with Japan locking in 15% tariffs and slashing auto duties, while the US reportedly edges closer to a similar agreement with Europe just days before steeper tariffs are set to kick in. And in today's back of the brief, Saudi Arabia says Israel and Hamas have cleared most hurdles in ceasefire negotiations, with the two sides appearing close to a deal. Well, we've heard that song before. I hate to be a cynic, but am I wrong to point out how often the mediators, whether the US or the Saudis or the Egyptians or the Qataris, have expressed optimism that we're close to a deal. And yet still no deal. But first, today's PDB Spotlight. We'll begin stateside in the US with an alarming case of alleged Chinese espionage targeting the US Military. Now, the latest reminder that Beijing is engaged in an unrelenting effort to undermine America's national security interests. That should be obvious by now earlier this week, the U.S. department of justice revealed that a dual U.S. chinese citizen formerly employed as an engineer at an unnamed Southern California research and development firm, has pled guilty to stealing highly sensitive US Military trade secrets in an attempt to benefit the Chinese communist party, the CCP. Specifically, he downloaded 3,600 proprietary files to personal storage devices related to next generation defense technologies used to detect nuclear missile launches and track hypersonic weapons. Yeah, that would be considered all sensitive material, and that's according to a report from Fox News. Among these files were blueprints for sophisticated infrared sensors designed for space based missile detection systems, as well as schematics for sensors designed to enable US Military aircraft to detect incoming heat seeking missiles. Additionally, he downloaded files related to the company's proprietary blueprints for the mechanical assemblies used to house and cryogenically cool these advanced sensors. That's a trade secret worth hundreds of millions of dollars to the Malibu based company. Prosecutors noted that the company was primarily funded through contracts with the Pentagon and other major defense firms and said the stolen information gives critical insights into the military's plans for space based surveillance and threat detection systems. Well, it does kind of make you wonder what sort of due diligence and background investigation and vetting was done on this individual prior to giving him access to all this information. It does make you wonder. The former Engineer, identified as 59 year old San Jose resident Chun Guang Gong, only worked at the company for a few months in early 2023. He transferred most of the files between 30 March of that year until his termination on 26 April 2023, including 1,800 files that he downloaded after accepting a job at one of the company's main competitors. Most of the files have been marked in bold letters as containing proprietary quote export controlled information and were also labeled as being quote for official use only. On 8 May 2023, the FBI executed a search warrant at Gong's residence, seizing multiple digital devices containing the stolen files. But alarmingly, the FBI was unable to locate two hard drives that Gong used to store some of the files, and officials said the whereabouts of those drives remains unknown. I don't know. Maybe you should check a desk there in Beijing somewhere. According to the complaint, Ngong repeatedly denied processing those hard drives or knowing where they were located. I have no idea. Maybe check Beijing. He was formally arrested on federal charges back on February 7, 2024. So where does the connection to the Chinese government come in? As if it's not somewhat clear. According to prosecutors, Gong regularly participated in what are called talent programs administered by the CCP while working for several major defense technology companies in the US between 2014 and 2022. Again, who is doing the due diligence in background investigations and vetting on this individual does make you wonder. The DOJ notes that these talent programs are used by the Communist regime to identify individuals who have knowledge of advanced sciences and technologies in order to leverage that expertise to enhance their military capabilities. On multiple occasions between 2014 and 2022, Gong sent Business proposals to Chinese contacts in order to secure talent program funding. That is what we might call, in counterintelligence terms, a clue. In these applications, he described plans to produce high performance analog to digital converters, much like the ones being developed at the companies he worked for. In one email from 2019, he described the military value of his proposals, noting that technology could help the Chinese military, quote, determine the accuracy and range of radar systems. He added that he thought he could offer a valuable contribution to China's, quote, high end military integrated circuits, end quote. Again, that could be considered a clue when you're doing a counterintelligence investigation. Gong also traveled to China several times to seek funding. Oh, another clue. In another email from 2019, he notes that he, quote, took a risk traveling to China to participate in the program as he was actively working for an American military industry company. After his arrest, Gong entered a plea deal with the doj, admitting to one count of theft of trade secrets, which carries a maximum penalty of 10 years in prison. Under the deal, he's currently free on a $1.75 million bond, but is scheduled for sentencing in late September. Yes, he's roaming free. While it appears authorities interceded in this case before any real damage was done, as far as they know, it follows a disturbing pattern of Chinese espionage and infiltration. By the way, we still have those two hard drives that they don't know where. Where they're located. As we discussed earlier this month, the DOJ recently charged two Chinese nationals for allegedly spying on U.S. navy service members and bases. The pair oversaw what called dead drop payments to other US Based assets of the Communist regime and attempted to recruit members of the US Military to carry out assignments on behalf of China's main foreign intelligence service. In that case, the nationals worked directly with Chinese intelligence operatives, making several trips to China to receive instructions for various clandestine tasks. Despite these recent arrests, US officials stress that the threat remains widespread. Well, of course it does. As China's intelligence service dedicates years to recruiting individuals and cultivating them as assets. They have a very long term view. They're well resourced, they're highly motivated. U.S. attorney General Pam Bondi has warned that Beijing is engaged in a, quote, sustained and aggressive effort to infiltrate our military and undermine our national security from within. Well, I for one cannot spot the lie in that statement. Okay. Coming up after the break, peace talks resume in Istanbul as Ukraine and Russia meet face to face. And President Trump rolls out new trade deals with Japan as tariff hikes loom for Europe. I'll be right back. Hey, Mike Baker here. Now, let's talk briefly about personal finances. And let me ask you an intriguing question. Right what if you could delay your next two mortgage payments? That's right. How about if you could put those two payments in your pocket and finally get a little breathing room? Well, it's possible. When you call American Financing today. Hey, look, if you're feeling stretched by everyday expenses, I'm talking about grocery bills, gas bills, other various bills piling up. Well, look, you're not alone. Most Americans are actually putting a lot of these expenses on credit cards. And for many of them, there doesn't seem to be a way out. Well, American Financing can show you how to use your home's equity to pay off that debt. 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- [10:59]
Mike Baker
Foreign welcome back to the pdb. Ukraine and Russia sat down for a third round of peace talks Wednesday in Istanbul. Just 40 minutes later, both sides walked away, no closer to ending the conflict. The day began with a private discussion between Rustev Umarov, the head of Ukraine's negotiating team, and his Russian counterpart, Vladimir Badinsky what was said in that one on one meeting remains undisclosed. The however, what was discussed in the peace negotiations followed a now familiar script. Turkey's foreign minister tried to set an optimistic tone prior to the meeting, urging negotiators to build on May and June's modest progress of prisoner exchanges to end this bloody war as soon as possible. But that call was met with the usual gridlock. This round's only deliverable was an agreement to swap an additional 1,200 prisoners of war and a Russian offer to return the remains of 3,000 Ukrainian soldiers. Ukrainian President Zelensky posted on X Seriously ill and severely wounded defenders are returning home, end quote. At a post meeting press conference, Madinsky claimed Moscow had proposed a short term 24 to 48 hour ceasefire. But Ukraine, with backing from Washington, is sticking to its demand for a 30 day unconditional truce. It's a proposal that the Kremlin has repeatedly dismissed. Trump's 50 day ultimatum issued days before the Istanbul summit has yet to shake Russia from its entrenched negotiating position. The Kremlin hasn't even acknowledged the threat publicly, which warns of very severe tariffs if a ceasefire isn't reached. Still, pressure from the Trump administration is somewhat being credited for dragging both sides back to the table for this third time. But any illusion of possible momentum towards a truce was quickly shattered by continued Russian drone and missile attacks on Kyiv and the country's east. Russia, for its part, proposed creating three working groups. Oh, they want to set up some working groups. Well that'll, that'll give them another year or two to continue their invasion. They wanted the working groups to tackle political, military and humanitarian issues via follow up video calls between the delegations. At what point does anyone realize that Putin is not serious about ending this conflict? But Modinsky was quick to pour cold water on any idea of a Zelenskyy Putin summit, saying any such meeting should only be for signing a final deal, not negotiating one. Now that's likely to be a non starter for Kyiv. Zelenskyy has made it clear he's open to meeting Putin by the end of August. And as our regular PDB listeners will recall, when Zelenskyy arrived in Turkey back in May in the hopes of a face to face meeting with Putin. Well, the Russian President failed to show sending a lower level delegation in his place. As we've previously discussed, part of that was due to Putin's ongoing refusal to recognize Zelenskyy as Ukraine's legitimate president. He cites Zelenskyy's expired term under martial law, thus dismissing his government as unconstitutional. Umarov, striking a hopeful note after Wednesday's talks, said, quote, we are working on priority issues. Our priority is always people, a ceasefire and a meeting of leaders, end quote. But underneath that sentiment, the core problem hasn't changed. Kyiv insists on a full ceasefire before discussing any political settlement. And Moscow, well, they want the terms locked down first, including Ukraine's material recognition of Russian control over all the territory they currently occupy. All right. Shifting to the US President Trump took a victory lap on Tuesday, hailing a landmark trade deal with Japan that he called, quote, perhaps the largest deal ever made could be the agreement slashes auto tariffs, unlocks U.S. exports and secures a $550 billion windfall for the American economy. The deal, finalized after weeks of pressure from Washington, imposes reciprocal 15% tariffs on Japanese exports to the U.S. that's a steep drop from the previous 25% rate. It's a dramatic concession from Tokyo, particularly in the auto sector, which alone accounted for over 25% of all Japanese exports last year. Japan's prime minister confirmed the new rate, calling the move a recalibration of trade ties with America. In a post on Truth Social, Trump declared that the US would pocket 90% of the profits of Japan's over half a trillion investment, while promising that the deal would create, quote, hundreds of thousands of jobs. He also announced Japan would now open its markets to a wide range of American goods such as cars, trucks, rice and agricultural products, describing the economic impact to the US as immediate. Japan's auto exports had already been on the ropes, plunging over 26% in June after a near 25% slide in May. And while total US bound exports topped 70 billion in the first half of the year, the trajectory has shifted. Tuesday's deal, Trump argued, marks a definitive course correction. Tokyo's top trade negotiator echoed the victory, posting quote, hashtag mission accomplished on X and offering a, quote, heartfelt thanks to everyone involved. But now this may be just the first new trade chapter with Japan. Speaking after his announcement on social media, Trump hinted that a second deal with Tokyo, this one centered on liquefied natural gas, is already in the works, though details as of now anyway remain sparse. Meanwhile, European leaders are scrambling to replicate Japan's success. With Trump's 1 August deadline fast approaching, the European Union is now deep in negotiations to secure its own bilateral pact. Brussels is negotiating from a weaker hand, though. Since Trump's April tariff hike, EU exporters have been slapped with an additional 10% surcharge on top of his existing duties averaging nearly 5%. Are you keeping track of all of this? That hike came with a 90 day pause, a window that's now rapidly closing. In a bid to push back, the EU has prepared a retaliatory package worth reportedly $110 billion, including tariffs that could surge as high as 30% if negotiations fail. But with Japan's trade capitulation already inked, well, the leverage has clearly shifted in Washington's favor. All right, coming up next, in the back of the brief, Saudi media claims Israel and Hamas are close to a ceasefire deal, with most major disputes reportedly resolved, including a massive prisoner swap. While that sounds promising, it's important to remember that we've heard this song before. Stay with us. Hey, Mike Baker here. Let's take just a moment to talk about ways to protect your hard earned savings. Look, I know this the personal finance talk, it's not everybody's favorite, but it is important to your financial health. Now, one of the smartest ways you can protect your savings is through diversification. And one way to diversify is with gold from the Birch Gold Group. Look, gold is up some 40% just this past year. And central banks, well, they're busy buying up record amounts of gold, in part due to global instability. Birch Gold Group makes it easy to own physical gold, either in your IRA or like a lot of folks, just stored safely at home. Text PDB to the number 989898 and Birch Gold will send you a free information kit. On gold, there's no obligation. It's just useful information with an A rating. 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- [18:43]
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- [19:29]
Mike Baker
In today's Back of the brief, a quick update on the latest developments in the Trump administration's push to secure a long, elusive ceasefire deal in Gaza. As we've been tracking here on the pdb, Israel and Hamas have been engaged in weeks of indirect negotiations on ending the war, but as always, progress has been slow, largely due to Hamas's refusal to make concessions. Negotiations entered a critical phase after Israel submitted an updated proposal to Qatari mediators just last week. The tentative proposal involves a 60 day truce and the release of 10 of the remaining living Israeli hostages, as well as the bodies of 18 deceased hostages in exchange for thousands of Palestinian prisoners. US special envoy Steve Witkoff is expected to meet with Israeli and Qatari officials in Rome on Thursday to discuss the details and may travel directly to the Qatari capital of Doha to finalize a deal if enough progress is made. But while sources with direct knowledge of the talks told Axios a deal may be just days away, media reports have been, well, let's say, a bit contradictory to say the least. Saudi Arabian media reported Wednesday that Israel and Hamas have overcome most of the contentious issues, including how far Israeli troops will withdraw during the 60 day truce and the number of Palestinian prisoners set to be released. According to those reports, Israel has offered to exchange 125 prisoners currently serving life sentences, along with 1,100 prisoners who were arrested after the 7 October massacre, and Hamas is expected to accept those terms now. Other Accounts this is where it gets a little more complicated. Well, other accounts paint a more complicated picture. According to Israeli officials that spoke to the Times of Israel and the Jerusalem Post, Hamas continues to play hardball. The terror group reportedly delivered a response to the current U S backed proposal on Tuesday that was deemed unacceptable by Egyptian and Qatari mediators, the sources said. Hamas backtracked on several issues that were already agreed upon, including humanitarian matters and the scope of Israel's proposed troop redeployment. Representatives from Qatar and Egypt told Hamas that their submission was not a serious proposal and that they would not even bother presenting it to Witkoff and Israeli officials. Instead, the mediators told Hamas to return with a softened proposal by day's end. The Egyptian and Qatari mediators are reportedly furious over Hamas's continued intransigence. During a particularly tense meeting on Tuesday, they told Hamas leaders, if you don't return with a serious response, your problem will be with us, the mediators but whether Hamas will finally engage in any good faith effort to pause the fighting remains to be seen. Israeli officials have repeatedly softened their own position in order to get a deal across the finish line, but have stressed that If Hamas refuses to compromise, they will be forced to intensify their military operations. As a reminder, there are still 50 hostages being held by Hamas in Gaza, though Israel believes that roughly half are deceased. And that, my friends, is the President's Daily brief for Thursday, the 24th of July. Now, if you have any questions or comments, and I hope you do, please reach out to me@pdbhefirsttv.com and as you've likely heard from family and friends, to listen to the show ad free. Well just become a premium member of the President's Daily brief by visiting PDB premium.com and if you get a minute, please check out and subscribe to our YouTube channel. You can find that at President's Daily Brief. I'm Mike Baker. I'll be back later today with the PDB Afternoon Bulletin. Until then, stay informed, stay safe, stay cool.
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