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The President's Daily Brief
July 3rd, 2025: Chinese Spies Busted on U.S. Soil & U.S. Halts Ukraine Weapons Shipments
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- [00:01]
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- [00:33]
Mike Baker
Looking to diversify and protect your hard earned assets? Well, schedule a free consultation with Birch Gold Group, the precious metals specialists. Just text PDB to the number 989898. It's that simple and you'll receive a free no obligation information kit and you'll learn. Convert an existing IRA or a 401k to a gold IRA. Again, just text PDB to the number 989898. It's Thursday, the 3rd of July. Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage and yes, quite clearly still on the road. You know, at some point we're going to produce a coffee table book here at the PDB featuring all the backdrops that I've had over the past couple of years. All right, let's get briefed. We'll start things off with a story that's raising serious alarms inside the Pentagon. Two Chinese nationals have been arrested and charged with spying on US Navy bases and service members. We'll break down what they were doing, who they were working for. Oh, here's a hint. They're Chinese nationals and how the FBI caught them. During the show, the pent gotten its paws on key military aid to Ukraine, including air defense systems and precision munitions. Concerns over dwindling US Stockpiles are driving the decision. Plus a diplomatic rift between Azerbaijan and Russia deepens. Baku has detained seven people time tied to a Kremlin backed media outlet following the deaths of two ethnic Azerbaijanis in Russian custody. And in today's back of the brief, President Trump unveils a new trade deal with Vietnam, slapping a 20% tariff on imports while securing tariff free access to Vietnamese markets for U.S. goods. But first, today's PDB Spotlight. We'll begin in the US with an alarming but frankly not surprising case of Chinese espionage targeting the US Military. It's a timely reminder that Beijing is engaged in an unrelenting effort to undermine America's national Security interests from within earlier this week, the Department of Justice unsealed charges against two Chinese nationals for allegedly spying on U.S. navy service members and bases and attempting to recruit members of the military to carry out tasks on behalf of China's Ministry of State Security, or the mss, the Communist nation's main foreign intelligence service. The suspects were arrested by FBI agents last Friday for failing to register as foreign agents as they work to carry out various clandestine intelligence tasks for the ccp, the Chinese Communist Party, according to a report from Fox News Now. The infiltrators were identified as 38 year old Yuan Chen, 39 year old Ryan Lai, both of whom now face up to 10 years in prison and fines of a quarter million dollars. Convicted of the charges, Chen, who resides in Happy Valley, Oregon, reportedly first arrived in the US back in 2015 on a US visa before becoming a lawful permanent resident, though he wasn't recruited by China's intelligence service until years later. Lai, meanwhile, arrived in Texas earlier this spring on a tourist visa as part of an effort to supervise clandestine espionage operations on behalf of China's MSS. Though he had made numerous past trips to the U.S. investigators said they believed Lai was the driving force behind the spying campaign and had been developing Chen to become a Chinese intelligence asset since at least mid-2021. According to the DOJ criminal complaint, the two men traveled to Guangzhou, China in January of 2022 to meet directly with members of the MSS about coordinating what's called a dead drop payment of at least US$10,000 which was used to pay other US based assets of the Communist regime. That task involved leaving a backpack with the cash day use locker, hence the name Dead Drop in Livermore, California, which was later picked up by unknown agents of the ccp. The Cash Drop Payment the pair focused their attention on the US Navy conducting surveillance of a Navy recruiting station in California and a Navy base in Washington state in 2022 and also in 2023. While monitoring the recruitment center in California, Chen took photographs and video footage, including a bulletin board that contained the names and hometowns of Navy recruits of Chinese background. He then sent those photos back to an MSS intelligence officer in China, identifying them as individuals that might be open to working on behalf of the Chinese government. The Chinese intelligence officer sent back instructions to Chen on what to say to potential recruits to lure them into service, including what naval job assignments the MSS would prefer and how the MSS would pay them for their assistance. Eventually, Chen began directly communicating with a naval employee through social media and later arranged for a tour of the USS Abraham Lincoln in San Diego with his target. He also sent detailed information about the unidentified naval employee back to his handlers in China. Chen made two more trips back to Guangzhou, China, once in April 2024 and in March of 2025 to meet with MSS intelligence officers to discuss further payments for specific tasks. As I mentioned, the other suspect, who Ryan Lai, returned to the US in April of this year, saying he was visiting contacts in Houston regarding his business as an online retailer. He claimed that he would only be in town for two weeks. But Lai, who by this time was on the radar of the US authorities, was surveilled more than a month later, traveling with an unidentified companion from Texas to California, raising further suspicions. Authorities moved to arrest Both men on 27 June as part of a coordinated counterintelligence and law enforcement operation across multiple states. Officials with the DOJ said the case highlights what they described as active efforts by the Chinese government to secretly collect intelligence about American military capabilities. They warned that the remains widespread as China's intelligence service dedicates years to recruiting individuals and cultivating them as assets. That's absolutely correct. The Chinese intel apparatus doesn't really concern itself so much with immediate results. They maintain a very long term perspective on their targeting and collection efforts. In a statement, US Attorney General Bam Bondi said this case underscores the Chinese government's unsustained and aggressive effort to infiltrate our military and undermine our national security from within. The Justice Department will not stand by while hostile nations embed spies in our country, end quote. Meanwhile, China's Foreign Ministry predictably feigned ignorance about the case while slamming the Trump administration, pushing what they described as, quote, unfounded allegations of espionage. Oh. A spokesman said, quote, I am not aware of the specifics, but we have always opposed unfounded hype about so called Chinese spies. And then he added, just kidding, but we've been stealing your shit for decades. All right, coming up after the break, the Pentagon. By the way, that was a fake quote at the end. Coming up after the break, the Pentagon halts key weapons shipments to Ukraine over stockpile concerns and tensions spike between Azerbaijan and Russia. I'll be right back. Hey, Mike Baker here. I want to tell you about a great clothing company out there that's producing outstanding gear. You got to know about them. It's called True Classic. True Classic goes beyond fit and fabric. Their primary mission is to help men show up with confidence and purpose. 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- [09:29]
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- [09:52]
Mike Baker
Foreign welcome back to the PDB the Pentagon has halted shipments of critical air defense and precision munitions to Ukraine, citing concerns that American weapons stockpiles have become dangerously depleted amid growing global commitments. That move, initiated by Pentagon policy chief Elbridge Colby, follows months of internal wrangling over just how thin the US can stretch its arsenals without undermining its own readiness, according to three sources familiar with the matter. The review painted a bleak picture. Stocks of interceptors, artillery shells and precision guided munitions have fallen to levels that, if further drawn down, could leave the US Flat footed in the event of a crisis. The pause, which was quietly decided on in early June, is only now taking effect, coinciding, perhaps inconveniently well, definitely inconveniently with one of Russia's most ferocious aerial barrages of the three year war. As we discussed this week, Moscow unleashed more than 470 drones and 60 missiles over the weekend, pounding civilian infrastructure across Kyiv and other urban centers. In a statement defending the move, White House Deputy Press Secretary Kelly said the decision was made to put America's interests first following a DoD review of our nation's military support and and assistance to other countries. She made a point, however, to note that the strength of America's armed forces remains unquestioned, adding, quote, just ask Iran. The freeze impacts weapons drawn from key funding streams, the first being existing Pentagon stockpiles. The others are deliveries tied to the Ukraine Security Assistance Initiative, which contracts U.S. firms to manufacture new weapons systems. That second pipeline was largely exhausted during the Biden administration, though deliveries have continued as production schedules allow. The remaining drawdown authority is now being administered under President Trump using leftover Funds from the $61 billion Ukraine aid package that was passed last year. A senior Trump administration official said that while under the freeze, the White House will not request any further aid for Ukraine. The remaining funds are sufficient to support Ukraine for several more months. He emphasized that future shipments would depend on strategic need, notably, at one point, a memo recommending the munitions freeze reportedly sat on the desk of Defense Secretary Pete Hegseth for weeks as Pentagon staff turnover stalled internal consensus. That memo now appears to be shaping a broader realignment of U.S. military aid. Plans are underway to redirect certain weapons systems, particularly artillery shells, tank rounds and interceptors, either back into domestic depots or toward Israel. On Monday, the Trump administration approved a $510 million arms sale to Israel, including bomb guidance kits and associated logistical support. Now, the freeze and pivot of aid has not gone unnoticed in Kyiv, as you might imagine. On Wednesday, Ukraine's Foreign Ministry summoned John Ginkel, the deputy chief of mission at the US Embassy, seeking clarification. Ukraine's deputy foreign minister warned that, quote, any delay or slowing down in supporting defense capabilities would only encourage Russia to continue the war and the terror rather than seek peace. Moscow, meanwhile, welcomed the development. Kremlin mouthpiece Dmitry Peskov told reporters that, quote, fewer arms supplied to Ukraine, the closer the end of the special military operation will be, end quote. You have to remember that in possibly one of the worst branding exercises ever, Putin has tried to market his three year plus bloody war and invasion of another country as a special military operation. Much like New Coke. Nobody bought it. The pause has drawn some comparison to Trump's 2019 decision to withhold aid to Ukraine. That's a move that critics claimed violated budget law, though no legal consequences followed. Legal experts now warn that if the Pentagon is now delaying congressionally authorized aid without formal budget notification, it may again leave the Trump administration on uncertain legal ground. Okay, shifting to Azerbaijan. Seven people connected to a Kremlin backed media outlet have been arrested following a raid in Baku, deepening an already growing rift between the two former Soviet allies. On Monday, masked officers stormed the offices of Sputnik Azerbaijan. That's the local arm of the Russian state media conglomerate. Authorities said the outlet had continued operations through what they described as, quote, illegal financing after losing its license earlier this year. Among the detained are the editor in chief, the editorial director and five others who are now under criminal investigation for fraud, illegal entrepreneurship and and the criminal acquisition of property. The two senior editors face additional charges of conspiracy to launder money and commit fraud. Those offenses carry sentences of up to 12 years. Now, all seven were ordered to be held in pretrial detention for a minimum of four months. Sputnik's parent company said the raids had effectively blocked the outlet's operations and denounced the move as baseless. Russian state media reported staffers, homes were raided and computers seized, while the Russian consulate has been denied access to its detained citizens once again. Let's hear from Kremlin spokesman Dmitry Peskov. He's always entertaining. Well, he chimed in on the complaints, calling the arrest quote, absolutely not in line with generally accepted rules and norms and inconsistent with the spirit of Russian Azerbaijani relations. Now, I'm not sure if Peskov knows this or but Russia's invasion of Ukraine can also be considered absolutely not in line with generally accepted rules and norms. But I'm starting to think that Dmitry lacks a sense of irony. This wasn't an isolated rupture. Just last week, Russian police in Katerinburg carried out their own raids targeting ethnic Azerbaijanis. Cold case murder probe dating back decades. As a result of the raids, two men died in custody. That sounds about right for the Russian police. Others were hospitalized and nine were detained. Azerbaijan's prosecutor general launched a criminal investigation, accusing Russian authorities of using violence against men who were, quote, practically helpless and unable to defend themselves. The diplomatic blowback from Baku was swift. Azerbaijani officials canceled his scheduled visit to Moscow, disinvited a Russian deputy prime minister, and pulled the plug on all concerts and exhibitions and other events backed by Russian state institutions. And in an unexpected twist, the president of Azerbaijan received a phone call from Ukrainian President Zelensky offering condolences regarding the raids in a rare show of solidarity. This diplomatic spat is nothing new. Despite sharing a membership in the OPEC energy alliance, Azerbaijan has steadily decoupled from Moscow, capitalizing on Russia's growing economic isolation to push into Western energy markets. The major fracture occurred back in December when a passenger airplane from Azerbaijan was downed over Russian airspace near Chechnya, killing 38 people. The Azerbaijani president blamed the incident on Russia's electronic warfare aimed at Ukrainian drones. Russian leader Putin merely offered condolences, but no admission that it was Moscow's doing. Since then, the chill has only intensified. Azerbaijan's president skipped out on Russia's Victory Day parade in May, then rolled out the red carpet for a visit from Ukraine's foreign minister. The warm welcome came less than a year after Baku had hosted Putin. Shortly after that visit, Azerbaijani officials lashed out at top Putin aides for remarks about the Nagorno Karabakh region. Now that territory, long disputed by Armenia and Azerbaijan, was retaken by Baku in a decisive 2023 military campaign. While Russia had long postured as Armenia's protector, its failure to prevent Azerbaijani gains drew ire from both sides. Baku accuses the Kremlin of double dealing and of questioning its territorial claims. Coming up next, in the back of the brick, the White House unveils a new deal with one of America's top trading partners, announcing US Businesses will have free access to Vietnam's market. More on when we come back. Hey, Mike Baker here. 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- [19:34]
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- [20:23]
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- [21:06]
Mike Baker
In today's Back of the Brief President Trump announced a major trade deal with Vietnam on Wednesday, one that will significantly scale back crippling tariffs issued on Vietnamese products earlier this year in exchange for the communist nation opening its markets up to American goods. As a reminder, President Trump issued a slew of tariffs on America's trading partners at the beginning of April, including a 46% blanket tariff on Vietnamese imports. The tariffs left Vietnam's economy particularly vulnerable as their exports to the US account for roughly 30% of their GDP. Shortly after, however, Trump announced a 90 day pause on most of the tariffs, which brought the levy on Vietnam temporarily down to 10%. But with that pause set to expire next week, it appears that leaders in Vietnam were eager to find a long term resolution. While details of the deal are scarce, Trump outlined the broader terms of the agreement in a post on Truth Social. The president said Vietnam has agreed to pay a 20% tariff on exports to America while giving the US preferential tariff free access to Vietnamese markets. Trump said such access will be particularly beneficial for U.S. automakers who had previously faced restrictions on selling large engine cars like SUVs in the country. Critically, Trump said Vietnam also agreed to a 40% tariff any goods that originated in another country but were transferred to Vietnam for final shipment to the U.S. now that's a practice known as trans shipping. It's used by other nations as a way to circumvent trade barriers. That's according to a report from cnbc. Now the new arrangement is frankly bad news for China, which has used Vietnam as a large scale transshipment hub to avoid US tariffs. But the deal cools tensions with America's 10th biggest trading partner and sixth largest supplier of imports. The Vietnamese government later confirmed they had reached a new trade framework with the US Noting that they'll give preferential access to US Goods, but did not confirm the specific tariff levels outlined by Trump. We should note that critics of President Trump's aggressive tariff agenda warned that the new deal will hike costs for US Importers, which they will likely or could pass on to American consumers. Still, The S&P 500 rose slightly on the news. As far as other trade deals go, uncertainty remains as the tariff deadline approaches. Trump has indicated that he may ignore or revise his self imposed July deadline as to date he's only struck revised frameworks with China and the United Kingdom. But administration officials must they continue to insist that the US Is close to reaching deals with dozens of other countries. And that, my friends, is the President's Daily break for Thursday 3rd July. Now if you have any questions or comments, please reach out to me@pdbhefirsttv.com and of course to listen to the show ad free. Just become a premium member of the President's Daily brief by visiting PDB premium.com couldn't be simple. And remember, of course, if you get a chance, please take a minute to check out and subscribe to our YouTube channel. You can find that it's President's Daily Brief. As the kids say, it's the cat's pajamas. I don't know if the kids actually say I'm Mike Baker and I'll be back later today with the PDB Afternoon Bulletin. Until then, stay informed, stay safe, stay cool. It.