Category: China

  • MIL-OSI Asia-Pac: President Lai meets delegation from US National Endowment for Democracy

    Source: Republic of China Taiwan

    Details
    2025-07-24
    President Lai meets Somaliland Foreign Minister Abdirahman Dahir Adam  
    On the morning of July 24, President Lai Ching-te met with a delegation led by Republic of Somaliland Minister of Foreign Affairs and International Cooperation Abdirahman Dahir Adam. In remarks, President Lai thanked the Somaliland government for its longstanding, staunch support for Taiwan-Somaliland relations. The president mentioned that this year marks the fifth anniversary of Taiwan and Somaliland’s mutual establishment of representative offices and that our exchanges in various areas have yielded significant results. He expressed hope for continuing to deepen our partnership, advancing our bilateral friendship and fruitful cooperation. A translation of President Lai’s remarks follows: I warmly welcome all of our guests to Taiwan. This is the first visit to Taiwan for Minister Adam, Minister Khadir Hussein Abdi, and Admiral Ahmed Hurre Hariye. I thank you for your high regard and support for Taiwan. I also very much appreciate that Lead Advisor Mohamed Omar Hagi Mohamoud, who served as representative of Somaliland to Taiwan during the past five years, continues deepening Taiwan-Somaliland ties in his new role. Somaliland is renowned as a beacon of democracy in the Horn of Africa. I want to once again congratulate Somaliland on successfully holding presidential and political party elections last November, which garnered praise from the international community. At that time, I appointed Deputy Minister of Foreign Affairs François Chihchung Wu (吳志中) to serve as special envoy and lead a delegation to attend the inauguration of President Abdirahman Mohamed Abdullahi, demonstrating that Taiwan would work closely with Somaliland’s new government to write a new chapter in our friendship. Recently, authoritarian regimes have continued to apply new forms of coercion as they intensify suppression of Taiwan’s and Somaliland’s international participation. In response, our two sides must continue to deepen our partnership and demonstrate the resilience of democratic alliances, as well as our staunch commitment to defending our values.  This year marks the fifth anniversary of Taiwan and Somaliland’s mutual establishment of representative offices. Through our joint efforts, we have continued to expand exchanges in various areas, yielding significant results. This afternoon, we will also sign an agreement on coast guard cooperation, launching bilateral cooperation in maritime affairs. Regarding President Abdullahi’s focus on maritime security, the blue economy, and other policy objectives, we can strengthen our bilateral partnership moving forward. In addition, we also hope to work together with like-minded countries such as the United States, and through trilateral or multilateral cooperation platforms, realize the strategic goal of a non-red Somaliland coastline. I want to thank the Somaliland government once more for its longstanding, staunch support for Taiwan-Somaliland relations. I look forward to working with all of you to continue to advance our bilateral friendship and fruitful cooperation. In closing, I once again welcome Minister Adam and the delegation. I have every confidence that, in addition to advancing bilateral cooperation, this trip will allow you to experience Taiwan’s natural beauty and diverse culture. Minister Adam then delivered remarks, thanking the government and people of Taiwan for the warm hospitality they have received since their arrival. He stated that Taiwan is a peaceful nation and that it shares with Somaliland the value of democracy. He stated that we also share the goal of obtaining recognition, so he is glad that the Taiwan-Somaliland relationship is growing by the day. Minister Adam pointed out that there is much pressure that we are both facing in our relationship, but he reassured President Lai that no amount of pressure can change Somaliland’s strong ties with Taiwan. He also thanked the Taiwan government for the help it has proffered to Somaliland, adding that our relationship will only get better. Minister Adam said that Taiwan and Somaliland can cooperate in many areas and that there is more opportunity in Somaliland than any other country, adding that Somaliland is open for investment from Taiwan. Noting that our countries can also collaborate in other areas such as education and maritime security, the minister said that he is glad they will be signing a cooperative agreement in maritime security with Taiwan. He then said he is looking forward to a better relationship in the future. The delegation was accompanied to the Presidential Office by Somaliland Representative to Taiwan Mahmoud Adam Jama Galaal.  

    Details
    2025-07-22
    President Lai meets cross-party Irish Oireachtas delegation
    On the morning of July 22, President Lai Ching-te met with a cross-party delegation from the Oireachtas (parliament) of Ireland. In remarks, President Lai stated that Taiwan and Ireland are both guardians of the values of freedom and democracy. He indicated that Taiwan will continue to take action and show the world that it is a trustworthy democratic partner that can contribute to the international community, saying that we look forward to building an even closer partnership with Ireland as we work together for the well-being of our peoples and for global democracy, peace, and prosperity. A translation of President Lai’s remarks follows: Deputy Speaker John McGuinness is a dear friend of Taiwan who also chairs the Ireland-Taiwan Parliamentary Friendship Association. Thanks to his efforts over the years, support for Taiwan has grown stronger in the Oireachtas. I thank him and all of our guests for traveling such a long way to demonstrate support for Taiwan and open more doors for exchanges and cooperation. Europe is Taiwan’s third largest trading partner and largest source of foreign investment. Ireland is a European stronghold for technology and innovative industries. Just like Taiwan, Ireland is an export-oriented economy. Our industrial structures are highly complementary. We hope that Taiwan’s electronics manufacturing and machinery industries can explore deeper cooperation with Ireland’s ICT software and biopharmaceutical fields, creating win-win outcomes. In May, the Irish government launched its National Semiconductor Strategy, outlining a vision to become a global semiconductor hub. Taiwan is home to the world’s most critical semiconductor ecosystem, and our own industrial development closely parallels that of Ireland. Moreover, we aspire to build non-red technological supply chains with democratic partners. I believe that going forward, Taiwan and Ireland can bolster collaboration so as to upgrade the competitiveness of our respective semiconductor industries. Together, we can help build a values-based economic system for democracies. I was delighted to receive congratulations from Deputy Speaker McGuinness on my election. Taiwan and Ireland are both guardians of the values of freedom and democracy. This visit from our guests further attests to our common beliefs. As authoritarianism continues to expand, Taiwan will continue to take action and show the world that it is a trustworthy democratic partner that can contribute to the international community. We look forward to building an even closer partnership with Ireland as we work together for the well-being of our peoples and for global democracy, peace, and prosperity. Deputy Speaker McGuinness then delivered remarks, stating that he has been to Taiwan on many occasions and that it is a great honor to join President Lai and his staff at the Presidential Office. He said that Ireland has continued to build its strong relationship with Taiwan based on our democratic values and the interests that we have in trade throughout the world, strengthening this relationship based on culture, education, and more. Noting that he served with many other diplomats from Taiwan, he said all had the same goal, which was to further the interests of the Ireland-Taiwan friendship and to ensure that it grows and prospers. The deputy speaker then extended to President Lai the delegation’s best wishes for his term in office, stating that they commit to the same values as the previous friendship groups that have been visiting Taiwan. He went on to say that some members of the group are newly elected, representing the next generation of the association, and that they are committed to working together with Taiwan to stand strong in the defense of democracy. Deputy Speaker McGuinness also noted that the father of Deputy Ken O’Flynn, one of the delegation members, played an important role as a former chairman of the association, remarking that it is good to see such continuity taking place. Deputy Speaker McGuiness said that he believes the world is facing huge challenges and uncertainty in terms of our markets and trade with one another. He said we have to watch for what the United States will do next and be conscious of what China is doing, emphasizing that the European Union stands strong in the center of this, while Ireland plays a huge role in the context of democracy, trade, and the betterment of all things for the citizens that they represent. The deputy speaker then stated that while we focus on the development of AI that is extremely important for all of us, we can work together to ensure that we control AI rather than AI controlling us. He also remarked that we cannot lose sight of our traditional trading means, saying that we have to keep all of our trade together, expand on that trade, and then take on the new technologies that come before us. Deputy Speaker McGuinness concluded his remarks by thanking President Lai for receiving the delegation, stating that they commit to their continuation of support for Taiwan and for democracy. Also in attendance were Deputies Malcolm Byrne and Barry Ward, and Senator Teresa Costello.

    Details
    2025-07-22
    President Lai meets official delegation from European Parliament’s Special Committee on the European Democracy Shield
    On the morning of July 22, President Lai Ching-te met with an official delegation from the European Parliament’s Special Committee on the European Democracy Shield (EUDS). In remarks, President Lai thanked the committee for choosing to visit Taiwan for its first trip to Asia, demonstrating the close ties between Taiwan and Europe. President Lai emphasized that Taiwan, standing at the very frontline of the democratic world, is determined to protect democracy, peace, and prosperity worldwide. He expressed hope that we can share our experiences with Europe to foster even more resilient societies. A translation of President Lai’s remarks follows: Firstly, on behalf of the people of Taiwan, I extend a warm welcome to your delegation, which marks another official visit from the European Parliament. The Special Committee on the EUDS aims to strengthen societal resilience and counter disinformation and hybrid threats. Having been constituted at the beginning of this year, the committee has chosen to visit Taiwan for its first trip to Asia, demonstrating the close ties between Taiwan and Europe and the unlimited possibilities for deepening cooperation on issues of concern. I am also delighted to see many old friends of Taiwan gathered here today. I deeply appreciate your longstanding support for Taiwan. Taiwan and the European Union enjoy close trade and economic relations and share the values of freedom and democracy. However, in recent years, we have both been subjected to information manipulation and infiltration by foreign forces that seek to interfere in democratic elections, foment division in our societies, and shake people’s faith in democracy. Taiwan not only faces an onslaught of disinformation, but also is the target of gray-zone aggression. That is why, after taking office, I established the Whole-of-Society Defense Resilience Committee at the Presidential Office, with myself as convener. The committee is a platform that integrates domestic affairs, national defense, foreign affairs, cybersecurity, and civil resources. It aims to strengthen the capability of Taiwan’s society to defend itself against new forms of threat, pinpoint external and internal vulnerabilities, and bolster overall resilience and security. The efforts that democracies make are not for opposing anyone else; they are for safeguarding the way of life that we cherish – just as Europe has endeavored to promote diversity and human rights. The Taiwanese people firmly believe that when our society is united and people trust one another, we will be able to withstand any form of authoritarian aggression. Taiwan stands at the very frontline of the democratic world. We are determined to protect democracy, peace, and prosperity worldwide. We also hope to share our experiences with Europe and deepen cooperation in such fields as cybersecurity, media literacy, and societal resilience. Thank you once again for visiting Taiwan. Your presence further strengthens the foundations of Taiwan-Europe relations. Let us continue to work together to uphold freedom and democracy and foster even more resilient societies. EUDS Special Committee Chair Nathalie Loiseau then delivered remarks, saying that the delegation has members from different countries, including France, Germany, the Czech Republic, Poland, and Belgium, and different political parties, but that they have in common their desire for stronger relations between the EU and Taiwan. Committee Chair Loiseau stated that the EU and Taiwan, having many things in common, should work more together. She noted that we have strong trade relations, strong investments on both sides, and strong cultural relations, while we are also facing very similar challenges and threats. She said that we are democracies living in a world where autocracies want to weaken and divide democracies. She added that we also face external information manipulation, cyberattacks, sabotage, attempts to capture elites, and every single gray-zone activity that aims to divide and weaken us. Committee Chair Loiseau pointed out another commonality, that we have never threatened our neighbors. She said that we want to live in peace and we care about our people; we want to defend ourselves, not to attack others. We are not being threatened because of what we do, she emphasized, but because of what we are; and thus there is no reason for not working more together to face these threats and attacks. Committee Chair Loiseau said that Taiwan has valuable experience and good practices in the area of societal resilience, and that they are interested in learning more about Taiwan’s whole-of-society approach. They in Europe are facing interference, she said, mainly from Russia, and they know that Russia inspires others. She added that they in the EU also have experience regulating social media in a way which combines freedom of expression and responsibility. In closing, the chair said that they are happy to have the opportunity to exchange views with President Lai and that the European Parliament will continue to strongly support relations between the EU and Taiwan. The delegation also included Members of the European Parliament Engin Eroglu, Tomáš Zdechovský, Michał Wawrykiewicz, Kathleen Van Brempt, and Markéta Gregorová.

    Details
    2025-07-17
    President Lai meets President of Guatemalan Congress Nery Abilio Ramos y Ramos  
    On the morning of July 17, President Lai Ching-te met with a delegation led by Nery Abilio Ramos y Ramos, the president of the Congress of the Republic of Guatemala. In remarks, President Lai thanked Congress President Ramos and the Guatemalan Congress for their support for Taiwan, and noted that official diplomatic relations between Taiwan and Guatemala go back more than 90 years. As important partners in the global democratic community, the president said, the two nations will continue moving forward together in joint defense of the values of democracy and freedom, and will cooperate to promote regional and global prosperity and development. A translation of President Lai’s remarks follows:  I recall that when Congress President Ramos visited Taiwan in July last year, he put forward many ideas about how our countries could promote bilateral cooperation and exchanges. Now, a year later, he is leading another cross-party delegation from the Guatemalan Congress on a visit, demonstrating support for Taiwan and continuing to help deepen our diplomatic ties. In addition to extending a sincere welcome to the distinguished delegation members who have traveled so far to be here, I would also like to express our concern and condolences for everyone in Guatemala affected by the earthquake that struck earlier this month. We hope that the recovery effort is going smoothly. Official diplomatic relations between Taiwan and Guatemala go back more than 90 years. In such fields as healthcare, agriculture, education, and women’s empowerment, we have continually strengthened our cooperation to benefit our peoples. Just last month, Guatemala’s President Bernardo Arévalo and the First Lady led a delegation on a state visit to Taiwan. President Arévalo and I signed a letter of intent for semiconductor cooperation, and also witnessed the signing of cooperation documents to establish a political consultation mechanism and continue to promote bilateral investment. This has laid an even sounder foundation for bilateral exchanges and cooperation, and will help enhance both countries’ international competitiveness. Taiwan is currently running a semiconductor vocational training program, helping Guatemala cultivate semiconductor talent and develop its tech industry, and demonstrating our determination to share experience with democratic partners. At the same time, we continue to assist Taiwanese businesses in their efforts to develop overseas markets with Guatemala as an important base, spurring industrial development in both countries and increasing economic and trade benefits. I want to thank Congress President Ramos and the Guatemalan Congress for their continued support for Taiwan’s international participation. Representing the Guatemalan Congress, Congress President Ramos has signed resolutions in support of Taiwan, and has also issued statements addressing China’s misinterpretation of United Nations General Assembly Resolution 2758. Taiwan and Guatemala, as important partners in the global democratic community, will continue moving forward together in joint defense of the values of democracy and freedom, and will cooperate to promote regional and global prosperity and development. Congress President Ramos then delivered remarks, first noting that the members of the delegation are not only from different parties, but also represent different classes, cultures, professions, and departments, which shows that the diplomatic ties between Guatemala and the Republic of China (Taiwan) are based on firm friendships at all levels and in all fields. Noting that this was his second time to visit Taiwan and meet with President Lai, Congress President Ramos thanked the government of Taiwan for its warm hospitality. With the international situation growing more complex by the day, he said, Guatemala highly values its longstanding friendship and cooperative ties with Taiwan, and hopes that both sides can continue to deepen their cooperation in such areas as the economy, technology, education, agriculture, and culture, and work together to spur sustainable development in each of our countries. Congress President Ramos said that the way the Taiwan government looks after the well-being of its people is an excellent model for how other countries should promote national development and social well-being. Accordingly, he said, the Guatemalan Congress has stood for justice and, for a second time, adopted a resolution backing Taiwan’s participation in the World Health Assembly. Regarding President Arévalo’s state visit to Taiwan the previous month, Congress President Ramos commented that this high-level interaction has undoubtedly strengthened the diplomatic ties between Taiwan and Guatemala and led to more opportunities for cooperation. Congress President Ramos emphasized that democracy, freedom, and human rights are universal values that bind Taiwan and Guatemala together, and that he is confident the two countries’ diplomatic ties will continue to grow deeper. In closing, on behalf of the Republic of Guatemala, Congress President Ramos presented President Lai with a Chinese translation of the resolution that the Guatemalan Congress proposed to the UN in support of Taiwan’s participation in international organizations, demonstrating the staunch bonds of friendship between the two countries. The delegation was accompanied to the Presidential Office by Guatemala Ambassador Luis Raúl Estévez López.  

    Details
    2025-07-08
    President Lai meets delegation led by Foreign Minister Jean-Victor Harvel Jean-Baptiste of Republic of Haiti
    On the morning of July 8, President Lai Ching-te met with a delegation led by Minister of Foreign Affairs Jean-Victor Harvel Jean-Baptiste of the Republic of Haiti and his wife. In remarks, President Lai noted that our two countries will soon mark the 70th anniversary of diplomatic relations and that our exchanges have been fruitful in important areas such as public security, educational cooperation, and infrastructure. The president stated that Taiwan will continue to work together with Haiti to promote the development of medical and health care, food security, and construction that benefits people’s livelihoods. The president thanked Haiti for supporting Taiwan’s international participation and expressed hope that both countries will continue to support each other, deepen cooperation, and face various challenges together. A translation of President Lai’s remarks follows: I am delighted to meet and exchange ideas with Minister Jean-Baptiste, his wife, and our distinguished guests. Minister Jean-Baptiste is the highest-ranking official from Haiti to visit Taiwan since former President Jovenel Moïse visited in 2018, demonstrating the importance that the Haitian government attaches to our bilateral diplomatic ties. On behalf of the Republic of China (Taiwan), I extend a sincere welcome. Next year marks the 70th anniversary of the establishment of diplomatic ties between our two countries. Our bilateral exchanges have been fruitful in important areas such as public security, educational cooperation, and infrastructure. Over the past few years, Haiti has faced challenges in such areas as food supply and healthcare. Taiwan will continue to work together with Haiti through various cooperative programs to promote the development of medical and health care, food security, and construction that benefits people’s livelihoods. I want to thank the government of Haiti and Minister Jean-Baptiste for speaking out in support of Taiwan on the international stage for many years. Minister Jean-Baptiste’s personal letter to the World Health Organization Secretariat in May this year and Minister of Public Health and Population Bertrand Sinal’s public statement during the World Health Assembly both affirmed Taiwan’s efforts and contributions to global public health and supported Taiwan’s international participation, for which we are very grateful. I hope that Taiwan and Haiti will continue to support each other and deepen cooperation. I believe that Minister Jean-Baptiste’s visit will open up more opportunities for cooperation for both countries, helping Taiwan and Haiti face various challenges together. In closing, I once again offer a sincere welcome to the delegation led by Minister Jean-Baptiste, and ask him to convey greetings from Taiwan to Prime Minister Alix Didier Fils-Aimé and the members of the Transitional Presidential Council. Minister Jean-Baptiste then delivered remarks, saying that he is extremely honored to visit Taiwan and reaffirm the solid and friendly cooperative relationship based on mutual respect between the Republic of Haiti and the Republic of China (Taiwan), which will soon mark its 70th anniversary. He also brought greetings to President Lai from Haiti’s Transitional Presidential Council and Prime Minister Fils-Aimé. Minister Jean-Baptiste emphasized that over the past few decades, despite the great geographical distance and developmental and cultural differences between our two countries, we have nevertheless established a firm friendship and demonstrated to the world the progress resulting from the mutual assistance and cooperation between our peoples. Minister Jean-Baptiste pointed out that our two countries cooperate closely in agriculture, health, education, and community development and have achieved concrete results. Taiwan’s voice, he said, is thus essential for the people of Haiti. He noted that Taiwan also plays an important role in peace and innovation and actively participates in global cooperative efforts. Pointing out that the world is currently facing significant challenges and that Haiti is experiencing its most difficult period in history, Minister Jean-Baptiste said that at this time, Taiwan and Haiti need to unite, help each other, and jointly think about how to move forward and deepen bilateral relations to benefit the peoples of both countries. Minister Jean-Baptiste said that he is pleased that throughout our solid and friendly diplomatic relationship, both countries have demonstrated mutual trust, mutual respect, and the values we jointly defend. He then stated his belief that Haiti and Taiwan will together create a cooperation model and future that are sincere, friendly, and sustainable. The delegation was accompanied to the Presidential Office by Chargé d’Affaires a.i. Francilien Victorin of the Embassy of the Republic of Haiti in Taiwan.

    Details
    2025-05-20
    President Lai interviewed by Nippon Television and Yomiuri TV
    In a recent interview on Nippon Television’s news zero program, President Lai Ching-te responded to questions from host Mr. Sakurai Sho and Yomiuri TV Shanghai Bureau Chief Watanabe Masayo on topics including reflections on his first year in office, cross-strait relations, China’s military threats, Taiwan-United States relations, and Taiwan-Japan relations. The interview was broadcast on the evening of May 19. During the interview, President Lai stated that China intends to change the world’s rules-based international order, and that if Taiwan were invaded, global supply chains would be disrupted. Therefore, he said, Taiwan will strengthen its national defense, prevent war by preparing for war, and achieve the goal of peace. The president also noted that Taiwan’s purpose for developing drones is based on national security and industrial needs, and that Taiwan hopes to collaborate with Japan. He then reiterated that China’s threats are an international problem, and expressed hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war. Following is the text of the questions and the president’s responses: Q: How do you feel as you are about to round out your first year in office? President Lai: When I was young, I was determined to practice medicine and save lives. When I left medicine to go into politics, I was determined to transform Taiwan. And when I was sworn in as president on May 20 last year, I was determined to strengthen the nation. Time flies, and it has already been a year. Although the process has been very challenging, I am deeply honored to be a part of it. I am also profoundly grateful to our citizens for allowing me the opportunity to give back to our country. The future will certainly be full of more challenges, but I will do everything I can to unite the people and continue strengthening the nation. That is how I am feeling now. Q: We are now coming up on the 80th anniversary of the end of World War II, and over this period, we have often heard that conflict between Taiwan and the mainland is imminent. Do you personally believe that a cross-strait conflict could happen? President Lai: The international community is very much aware that China intends to replace the US and change the world’s rules-based international order, and annexing Taiwan is just the first step. So, as China’s military power grows stronger, some members of the international community are naturally on edge about whether a cross-strait conflict will break out. The international community must certainly do everything in its power to avoid a conflict in the Taiwan Strait; there is too great a cost. Besides causing direct disasters to both Taiwan and China, the impact on the global economy would be even greater, with estimated losses of US$10 trillion from war alone – that is roughly 10 percent of the global GDP. Additionally, 20 percent of global shipping passes through the Taiwan Strait and surrounding waters, so if a conflict breaks out in the strait, other countries including Japan and Korea would suffer a grave impact. For Japan and Korea, a quarter of external transit passes through the Taiwan Strait and surrounding waters, and a third of the various energy resources and minerals shipped back from other countries pass through said areas. If Taiwan were invaded, global supply chains would be disrupted, and therefore conflict in the Taiwan Strait must be avoided. Such a conflict is indeed avoidable. I am very thankful to Prime Minister of Japan Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio, as well as US President Donald Trump and former President Joe Biden, and the other G7 leaders, for continuing to emphasize at international venues that peace and stability across the Taiwan Strait are essential components for global security and prosperity. When everyone in the global democratic community works together, stacking up enough strength to make China’s objectives unattainable or to make the cost of invading Taiwan too high for it to bear, a conflict in the strait can naturally be avoided. Q: As you said, President Lai, maintaining peace and stability across the Taiwan Strait is also very important for other countries. How can war be avoided? What sort of countermeasures is Taiwan prepared to take to prevent war? President Lai: As Mr. Sakurai mentioned earlier, we are coming up on the 80th anniversary of the end of WWII. There are many lessons we can take from that war. First is that peace is priceless, and war has no winners. From the tragedies of WWII, there are lessons that humanity should learn. We must pursue peace, and not start wars blindly, as that would be a major disaster for humanity. In other words, we must be determined to safeguard peace. The second lesson is that we cannot be complacent toward authoritarian powers. If you give them an inch, they will take a mile. They will keep growing, and eventually, not only will peace be unattainable, but war will be inevitable. The third lesson is why WWII ended: It ended because different groups joined together in solidarity. Taiwan, Japan, and the Indo-Pacific region are all directly subjected to China’s threats, so we hope to be able to join together in cooperation. This is why we proposed the Four Pillars of Peace action plan. First, we will strengthen our national defense. Second, we will strengthen economic resilience. Third is standing shoulder to shoulder with the democratic community to demonstrate the strength of deterrence. Fourth is that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China, and seek peace and mutual prosperity. These four pillars can help us avoid war and achieve peace. That is to say, Taiwan hopes to achieve peace through strength, prevent war by preparing for war, keeping war from happening and pursuing the goal of peace. Q: Regarding drones, everyone knows that recently, Taiwan has been actively researching, developing, and introducing drones. Why do you need to actively research, develop, and introduce new drones at this time? President Lai: This is for two purposes. The first is to meet national security needs. The second is to meet industrial development needs. Because Taiwan, Japan, and the Philippines are all part of the first island chain, and we are all democratic nations, we cannot be like an authoritarian country like China, which has an unlimited national defense budget. In this kind of situation, island nations such as Taiwan, Japan, and the Philippines should leverage their own technologies to develop national defense methods that are asymmetric and utilize unmanned vehicles. In particular, from the Russo-Ukrainian War, we see that Ukraine has successfully utilized unmanned vehicles to protect itself and prevent Russia from unlimited invasion. In other words, the Russo-Ukrainian War has already proven the importance of drones. Therefore, the first purpose of developing drones is based on national security needs. Second, the world has already entered the era of smart technology. Whether generative, agentic, or physical, AI will continue to develop. In the future, cars and ships will also evolve into unmanned vehicles and unmanned boats, and there will be unmanned factories. Drones will even be able to assist with postal deliveries, or services like Uber, Uber Eats, and foodpanda, or agricultural irrigation and pesticide spraying. Therefore, in the future era of comprehensive smart technology, developing unmanned vehicles is a necessity. Taiwan, based on industrial needs, is actively planning the development of drones and unmanned vehicles. I would like to take this opportunity to express Taiwan’s hope to collaborate with Japan in the unmanned vehicle industry. Just as we do in the semiconductor industry, where Japan has raw materials, equipment, and technology, and Taiwan has wafer manufacturing, our two countries can cooperate. Japan is a technological power, and Taiwan also has significant technological strengths. If Taiwan and Japan work together, we will not only be able to safeguard peace and stability in the Taiwan Strait and security in the Indo-Pacific region, but it will also be very helpful for the industrial development of both countries. Q: The drones you just described probably include examples from the Russo-Ukrainian War. Taiwan and China are separated by the Taiwan Strait. Do our drones need to have cross-sea flight capabilities? President Lai: Taiwan does not intend to counterattack the mainland, and does not intend to invade any country. Taiwan’s drones are meant to protect our own nation and territory. Q: Former President Biden previously stated that US forces would assist Taiwan’s defense in the event of an attack. President Trump, however, has yet to clearly state that the US would help defend Taiwan. Do you think that in such an event, the US would help defend Taiwan? Or is Taiwan now trying to persuade the US? President Lai: Former President Biden and President Trump have answered questions from reporters. Although their responses were different, strong cooperation with Taiwan under the Biden administration has continued under the Trump administration; there has been no change. During President Trump’s first term, cooperation with Taiwan was broader and deeper compared to former President Barack Obama’s terms. After former President Biden took office, cooperation with Taiwan increased compared to President Trump’s first term. Now, during President Trump’s second term, cooperation with Taiwan is even greater than under former President Biden. Taiwan-US cooperation continues to grow stronger, and has not changed just because President Trump and former President Biden gave different responses to reporters. Furthermore, the Trump administration publicly stated that in the future, the US will shift its strategic focus from Europe to the Indo-Pacific. The US secretary of defense even publicly stated that the primary mission of the US is to prevent China from invading Taiwan, maintain stability in the Indo-Pacific, and thus maintain world peace. There is a saying in Taiwan that goes, “Help comes most to those who help themselves.” Before asking friends and allies for assistance in facing threats from China, Taiwan must first be determined and prepared to defend itself. This is Taiwan’s principle, and we are working in this direction, making all the necessary preparations to safeguard the nation. Q: I would like to ask you a question about Taiwan-Japan relations. After the Great East Japan Earthquake in 2011, you made an appeal to give Japan a great deal of assistance and care. In particular, you visited Sendai to offer condolences. Later, you also expressed condolences and concern after the earthquakes in Aomori and Kumamoto. What are your expectations for future Taiwan-Japan exchanges and development? President Lai: I come from Tainan, and my constituency is in Tainan. Tainan has very deep ties with Japan, and of course, Taiwan also has deep ties with Japan. However, among Taiwan’s 22 counties and cities, Tainan has the deepest relationship with Japan. I sincerely hope that both of you and your teams will have an opportunity to visit Tainan. I will introduce Tainan’s scenery, including architecture from the era of Japanese rule, Tainan’s cuisine, and unique aspects of Tainan society, and you can also see lifestyles and culture from the Showa era.  The Wushantou Reservoir in Tainan was completed by engineer Mr. Hatta Yoichi from Kanazawa, Japan and the team he led to Tainan after he graduated from then-Tokyo Imperial University. It has nearly a century of history and is still in use today. This reservoir, along with the 16,000-km-long Chianan Canal, transformed the 150,000-hectare Chianan Plain into Taiwan’s premier rice-growing area. It was that foundation in agriculture that enabled Taiwan to develop industry and the technology sector of today. The reservoir continues to supply water to Tainan Science Park. It is used by residents of Tainan, the agricultural sector, and industry, and even the technology sector in Xinshi Industrial Park, as well as Taiwan Semiconductor Manufacturing Company. Because of this, the people of Tainan are deeply grateful for Mr. Hatta and very friendly toward the people of Japan. A major earthquake, the largest in 50 years, struck Tainan on February 6, 2016, resulting in significant casualties. As mayor of Tainan at the time, I was extremely grateful to then-Prime Minister Abe, who sent five Japanese officials to the disaster site in Tainan the day after the earthquake. They were very thoughtful and asked what kind of assistance we needed from the Japanese government. They offered to provide help based on what we needed. I was deeply moved, as former Prime Minister Abe showed such care, going beyond the formality of just sending supplies that we may or may not have actually needed. Instead, the officials asked what we needed and then provided assistance based on those needs, which really moved me. Similarly, when the Great East Japan Earthquake of 2011 or the later Kumamoto earthquakes struck, the people of Tainan, under my leadership, naturally and dutifully expressed their support. Even earlier, when central Taiwan was hit by a major earthquake in 1999, Japan was the first country to deploy a rescue team to the disaster area. On February 6, 2018, after a major earthquake in Hualien, former Prime Minister Abe appeared in a video holding up a message of encouragement he had written in calligraphy saying “Remain strong, Taiwan.” All of Taiwan was deeply moved. Over the years, Taiwan and Japan have supported each other when earthquakes struck, and have forged bonds that are family-like, not just neighborly. This is truly valuable. In the future, I hope Taiwan and Japan can be like brothers, and that the peoples of Taiwan and Japan can treat one another like family. If Taiwan has a problem, then Japan has a problem; if Japan has a problem, then Taiwan has a problem. By caring for and helping each other, we can face various challenges and difficulties, and pursue a brighter future. Q: President Lai, you just used the phrase “If Taiwan has a problem, then Japan has a problem.” In the event that China attempts to invade Taiwan by force, what kind of response measures would you hope the US military and Japan’s Self-Defense Forces take? President Lai: As I just mentioned, annexing Taiwan is only China’s first step. Its ultimate objective is to change the rules-based international order. That being the case, China’s threats are an international problem. So, I would very much hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war – prevention, after all, is more important than cure.

    MIL OSI Asia Pacific News

  • MIL-OSI NGOs: UK has ‘become a hunting ground for authoritarian regimes’

    Source: Amnesty International –

    Amnesty International UK has welcomed today’s damning report by the Joint Committee on Human Rights (JCHR), which finds that foreign states are operating with impunity to harass, threaten and intimidate individuals on UK soil, with the Government failing to provide adequate protection or response.

    The report, Transnational Repression in the UK, warns that hostile governments, including China, Iran and Russia, are using tactics such as surveillance, harassment, and abuse of legal systems to silence critics, human rights defenders and diaspora communities across the UK. It also highlights severe gaps in the UK’s response, including the absence of a clear legal definition, a lack of data collection, and no dedicated reporting mechanisms for victims.

    The findings reinforce Amnesty’s own research, published last year, which exposed the deep fear experienced by Chinese and Hong Kong students in the UK as a result of Beijing’s efforts to extend its repressive reach abroad. Amnesty documented how students live in constant fear of surveillance, reprisals against family members, and threats from Chinese authorities with many feeling unable to speak freely or engage in activism, even while on UK university campuses.

    Read the report: Chinese and Hong Kong students in the UK live in fear of the long arm of the Chinese government

    Responding to today’s JCHR report, Kerry Moscogiuri, Campaigns Director at Amnesty International UK, said:

    “This report should be a wake-up call. The UK has become a hunting ground for authoritarian regimes targeting dissidents, journalists, and exiles. It’s appalling that those who sought refuge here are met with fear, harassment and intimidation from foreign powers, with woefully inadequate protection and little coordinated response.

    “Amnesty International has repeatedly documented the Chinese government’s transnational repression, including the surveillance and intimidation of students and activists here in the UK. That includes the alarming escalation in threats against the Hong Kong community, with bounties placed on the heads of UK-based pro-democracy activists. Since our report last year, the Government has failed to take adequate action to address this threat.

    “The powerful JCHR report rightly exposes major gaps: the lack of a clear definition of transnational repression, no dedicated reporting mechanism, patchy police response, and a failure to collect even basic data on the scale of the threat. Crucially, it sets a 12-month timeline for government action to put protective systems in place for those most at risk.

    “The Government must now act on these recommendations, not just in principle, but in practice. Protections must be real, visible, and trusted by those they’re meant to serve. Civil society and affected communities need to see that the UK is not just listening, but standing up to repression in all its forms.

    “The UK must act now: work with affected activists and communities to define transnational repression, track it, and confront it, before silence becomes the new norm.”

    Amnesty International UK is urging the Government to immediately adopt the JCHR’s recommendations and establish a clear, cross-departmental strategy to identify, deter and respond to transnational repression including visible protections for those most at risk, and regular engagement with civil society organisations and affected communities.

     

    ENDS

    MIL OSI NGO

  • MIL-OSI USA News: Adjusting Imports of Copper into the United States

    Source: US Whitehouse

    class=”has-text-align-center”> BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
     
    A PROCLAMATION

    1.  On June 30, 2025, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effects of imports of copper in all forms (copper), including copper ores, copper concentrates, refined copper, copper alloys, scrap copper, and derivative products, on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended, 19 U.S.C. 1862 (section 232).  Based on the facts considered in that investigation, the Secretary found and advised me of his opinion that copper is being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.

    2.  The Secretary found that the present quantities of copper imports and the circumstances of global excess capacity for producing copper are weakening our economy, resulting in the persistent threat of further closures of domestic copper production facilities and the shrinking of our ability to meet national security production requirements.  Because of these risks, and taking into account the close relation of the economic welfare of the Nation to our national security and other relevant factors, see 19 U.S.C. 1862(d), the Secretary found that the present quantities and circumstances of copper imports threaten to impair the national security as provided in section 232.

    3.  In reaching this conclusion, the Secretary found that copper is essential to the manufacturing foundation on which United States national and economic security depend.  Copper is the second most widely used material by the Department of Defense and is a necessary input in a range of defense systems, including aircraft, ground vehicles, ships, submarines, missiles, and ammunition.  Copper also plays a central role in the broader United States industrial base.  The metal’s exceptional electrical conductivity and durability also make it indispensable to critical infrastructure sectors that support the American economy, national security, and public health.  Alternatives to copper are insufficient substitutes for these vital industries and products in many circumstances.

    4.  The Secretary found that the United States was a world leader across the value chain of copper production (mining, refining, semi-finished goods, and finished goods containing copper) for most of the 20th century.  But despite copper being a crucial material in manufacturing and for the national and economic security of the United States, United States copper production has plummeted.  Today, a single foreign country dominates global copper smelting and refining, controlling over 50 percent of global smelting capacity and holding four of the top five largest refining facilities.

    5.  The Secretary found that unfair trade practices abroad, exacerbated by overly burdensome environmental regulations at home, have hollowed out United States copper refining and smelting, caused the United States to be overly reliant on foreign copper imports, and prevent a path forward without strong corrective action.  Foreign competitors leverage state subsidies and overproduction to flood international markets with artificially low-priced copper products, driving United States producers out of business.  The United States is now dangerously dependent on foreign imports of semi-finished copper, intensive copper derivative products, and copper-containing products, and imbalances in the global markets make domestic investment increasingly unviable.

    6.  The Secretary found that United States dependency on foreign sources of copper is a national security vulnerability that could be exploited by foreign countries, weakens United States industrial resilience, exposes the American people to supply chain disruptions, economic instability, and strategic vulnerabilities, and jeopardizes the United States defense industrial base. 

    7.  In light of these findings, the Secretary recommended a range of actions to adjust the imports of copper so that such imports will not threaten to impair the national security.  For example, the Secretary recommended an immediate universal 30 percent import duty on semi-finished copper products and intensive copper derivative products.  The Secretary also recommended a phased universal tariff on refined copper of 15 percent starting in 2027 and 30 percent starting in 2028.  The Secretary further recommended a domestic sales requirement for copper input materials starting at 25 percent in 2027, a domestic sales requirement of 25 percent for high-quality copper scrap, and export controls for high-quality copper scrap. 

    8.  After considering the Secretary’s report, the factors in section 232(d), 19 U.S.C. 1862(d), and other relevant factors, among other things, I concur with the Secretary’s finding that copper is being imported into the United States in quantities and under circumstances that threaten to impair the national security of the United States.  In my judgment, and in light of the Secretary’s report, the factors in section 232(d), 19 U.S.C. 1862(d), and other relevant factors, among other things, I also determine that it is necessary and appropriate to impose tariffs, as described below, to adjust imports of copper and its derivatives so that such imports will not threaten to impair the national security of the United States.

    9.  To ensure that the tariffs on copper in this proclamation are not circumvented and that the purpose of this action to address the threat to impair the national security of the United States posed by imports of copper is not undermined, I also deem it necessary and appropriate to set up a process to identify and impose tariffs on certain derivatives of copper, as further described below.

    10.  In my judgment, the action in this proclamation will, among other things, help increase domestic production of semi-finished copper products and intensive copper derivative products, thereby reducing our Nation’s reliance on foreign sources.  It will ensure that domestic fabricators are able to supply sufficient quantities of copper products essential for infrastructure, defense systems, and advanced manufacturing.  This action will also promote investment, employment, and innovation in the domestic copper fabrication sector, strengthen supply chains, enhance industrial resilience, and generate meaningful economic benefits.  This action will adjust the imports of semi-finished copper products, intensive copper derivative products, and certain other copper derivatives and is necessary and appropriate to address the threat to impair the national security of the United States posed by imports of such articles.

    11.  Section 232 authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security so that such imports will not threaten to impair the national security. 

    12.  Section 604 of the Trade Act of 1974, as amended, 19 U.S.C. 2483, authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.

    13.  Consistent with the General Terms for the United States of America and the United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal (May 8, 2025), the United States intends to coordinate with the United Kingdom to adopt a structured, negotiated approach to addressing the national security threat in the copper sector.

    NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 232; the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); section 101 of the Defense Production Act of 1950 (DPA), as amended, 50 U.S.C. 4511; section 301 of title 3, United States Code; and section 604 of the Trade Act of 1974, as amended, 19 U.S.C. 2483, do hereby proclaim as follows:
    (1)  Except as otherwise provided in this proclamation, all imports of semi-finished copper products and intensive copper derivative products, as set forth in the Annex to this proclamation, shall be subject to a 50 percent tariff.  This tariff shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 1, 2025, and shall continue in effect, unless such action is expressly reduced, modified, or terminated.  This tariff is in addition to any other duties, fees, exactions, and charges applicable to such imported semi-finished copper products and intensive copper derivative products, unless stated otherwise below.
    (2)  The Secretary, in consultation with the United States International Trade Commission and U.S. Customs and Border Protection (CBP), shall determine whether any modifications to the HTSUS are necessary to effectuate this proclamation and shall make such modifications through notice in the Federal Register if needed.
    (3)  Within 90 days after the date of this proclamation, the Secretary shall establish a process for including additional derivative copper articles within the scope of the duties of this proclamation, consistent with the processes established pursuant to Proclamation 10895 of February 10, 2025 (Adjusting Imports of Aluminum Into the United States) and Proclamation 10896 of February 10, 2025 (Adjusting Imports of Steel Into the United States).
    (4)  The non-copper content of all copper articles subject to this proclamation shall be subject to tariffs pursuant to Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), and any other applicable duties, including those imposed by Executive Order 14193 of February 1, 2025 (Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border), as amended, Executive Order 14194 of February 1, 2025 (Imposing Duties To Address the Situation at Our Southern Border), as amended, and Executive Order 14195 of February 1, 2025 (Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China), as amended.  The additional duties described in clauses 1 through 3 of this proclamation shall apply only to the copper content of articles subject to this proclamation.  CBP shall issue authoritative guidance mandating strict compliance with declaration requirements for copper content in imported articles and outlining maximum penalties for noncompliance, including that importers who submit underreported declarations may be subject to severe consequences, such as significant monetary penalties, loss of import privileges, and criminal liability, consistent with United States law.
    (5)  If any product is subject to tariffs under both this proclamation and Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended, the product shall be subject to the duties imposed pursuant to Proclamation 10908, as amended, and not those imposed pursuant to this proclamation.
    (6)  Any product described in clause 1 of this proclamation, except those eligible for admission as “domestic status” as described in 19 CFR 146.43, that is subject to a duty imposed by this proclamation and that is admitted into a United States foreign trade zone on or after the effective date of this proclamation must be admitted as “privileged foreign” status as described in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading. 
    (7)  The Secretary shall continue to monitor imports of copper and its derivatives.  The Secretary shall, from time to time, in consultation with any senior executive branch officials the Secretary deems appropriate, review the status of copper and copper derivative imports with respect to national security.  The Secretary shall inform the President of any circumstances that, in the Secretary’s opinion, might indicate the need for further action by the President under section 232.  By June 30, 2026, the Secretary shall provide the President with an update on domestic copper markets, including refining capacity and the market for refined copper in the United States, so that the President may determine whether imposing a phased universal import duty on refined copper of 15 percent starting on January 1, 2027, and 30 percent starting on January 1, 2028, as recommended by the June 30, 2025, report, is warranted to ensure that copper imports do not continue to threaten to impair the national security.  The Secretary shall also inform the President of any circumstance that, in the Secretary’s opinion, might indicate that the duty rate provided for in this proclamation, or any actions modifying this proclamation, is no longer necessary.
    (8)  Separately, I find that copper input materials and high-quality copper scrap meet the criteria specified in section 101(b) of the DPA, 50 U.S.C. 4511(b).  Pursuant to the authority delegated to the Secretary in Executive Order 13603 of March 16, 2012 (National Defense Resources Preparedness), the Secretary shall take all appropriate action to implement the domestic sales requirements that he recommended in the June 30, 2025, report.
    (9)  The Secretary may issue regulations, rules, guidance, and procedures consistent with the purpose of this proclamation, including to address operational necessity.
    (10)  No drawback shall be available with respect to the duties imposed pursuant to this proclamation.
    (11)  CBP may take any necessary or appropriate measure to administer the tariff imposed by this proclamation.
    (12)  Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency.  If any provision of this proclamation, or the application of any provision to any individual or circumstance, is held to be invalid, the remainder of this proclamation and the application of its provisions to any other individuals or circumstances shall not be affected.

    IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of July, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and fiftieth.
     
     
     
                                   DONALD J. TRUMP

    MIL OSI USA News

  • MIL-OSI USA: 07.29.2025 Sen. Cruz Introduces Bill to Establish Drone Manufacturing in Texarkana

    US Senate News:

    Source: United States Senator for Texas Ted Cruz

    WASHINGTON, D.C. – Today, U.S. Sen. Ted Cruz (R-Texas), joined by Sens. John Cornyn (R-Texas), Tom Cotton (R-Ark.), and John Boozman (R-Ark.), introduced the SkyFoundry Act of 2025 to establish a drone production facility, SkyFoundry, at the Red River Army Depot (RRAD) in Texarkana, Texas. This bill will allow RRAD to develop, produce, and field drones for the Department of Defense.
    Sen. Cruz said, “Establishing a drone manufacturing facility at the Red River Army Depot will help ensure that the United States remains at the forefront of drone production. I’m proud to see the Lone Star State continuing to lead in defense innovation, and I look forward to working with my colleagues in Congress to swiftly pass this legislation.”
    Sen. Cornyn said, “Russia and China are currently outpacing America in scalable drone production and investment, making us vulnerable to national security threats if left unmatched. This legislation seeks to close this gap and help ensure America remains competitive with our foreign adversaries by establishing a new innovation and production facility that would rapidly improve our ability to develop, test, and mass-produce small unmanned aircraft systems.”
    Sen. Cotton said, “Large-scale manufacturing of small drones is critical to the Army’s current and future operational capability. This bill is a win for national security and for Arkansas as the Skyfoundry program presents a unique opportunity to more fully utilize the Army’s organic industrial base by positioning Red River Army Depot to meet the Army’s emerging requirements.”
    Sen. Boozman said, “The men and women of the Red River Army Depot are committed to providing our servicemembers with the tools they need to defend our nation. With unmanned aircraft systems playing an increasingly prominent role in modern warfare, tasking them with developing and sustaining an adequate supply of drone systems would be a win for this skilled workforce and our armed forces. I am pleased to join my colleagues to champion this effort and the Arkansans whose vital contributions to Red River support our national security and local economy.”
    Companion legislation was introduced in the House by Rep. Pat Harrigan (R-N.C.-10).
    Rep. Harrigan said, “The future of warfare is cheap, fast, and scalable—and right now, America is none of those things. The SkyFoundry Act changes that. It creates a fully American pipeline to design, test, and mass-produce FPV drones at scale, decoupled from Chinese supply chains and driven by U.S. innovation. This initiative doesn’t just build drones; it rebuilds our defense industrial base to meet the demands of modern conflict.”
    Read the full text of the bill here.
    The Texarkana Chamber of Commerce, TexAmericas Center, and the City Manager of the City of Texarkana support the bill.
    Robin Hickerson, President & CEO of the Texarkana Chamber of Commerce said, “The Texarkana USA Regional Chamber of Commerce thanks Senators Ted Cruz, John Boozman, Tom Cotton, and John Cornyn for sponsoring the SkyFoundry Act of 2025, which supports the rapid development and production of small unmanned aircraft systems and emphasizes the use of existing Army Depot facilities. Red River Army Depot is well positioned to meet the criteria outlined in the bill, with over 15,000 acres, 8 million square feet of facilities, and a central location near four states. The Chamber commends RRAD for its flexibility and readiness to support future innovation in defense manufacturing. RRAD has long been a vital economic engine for the Texarkana region. This legislation reinforces its strategic value and opens the door for even greater impact on jobs, innovation, and national security. The Chamber stands ready to support the SkyFoundry Program and advocate for continued investment in Red River Army Depot.”
    Scott Norton, Executive Director & CEO of the TexAmericas Center said, “TexAmericas Center thanks Senator Cruz and his staff for all their efforts with the SkyFoundry Act of 2025. Utilizing a location such as Red River Army Depot for the annual production of 1,000,000 unmanned aircraft systems, and other associated systems, allows the Department of Defense to collaborate employee training and program enhancements with Texas A&M University – Texarkana, University of Arkansas Hope-Texarkana, and Texarkana College. Investing in the dedicated organic industrial base workforce emphasizes the value of the current and future workforce at Red River Army Depot and demonstrates value of our defense community to our nation’s defense. We look forward to the passing of the SkyFoundry Act of 2025 and the continued expansion of workload at Red River Army Depot.”
    David Orr, City Manager of the City of Texarkana, Texas said, “The SkyFoundry Act of 2025 represents a forward-thinking investment in advanced manufacturing of unmanned aircraft systems and workforce development that aligns with the Texarkana region’s long-standing commitment to economic growth and regional opportunity. We appreciate Senator Cruz’s leadership in advancing legislation that strengthens our national defense and the industries that power our future.”

    BACKGROUND
    The SkyFoundry Act of 2025 will:

    Establish a production facility and innovation facility for the production and development of small unmanned aircraft systems.
    Utilize a Government-Owned, Government-Operated Contractor Augmented (GOGO/CA) model, blending military, civilian, and contract personnel.
    Encourage public-private partnerships with industry, academia, and nonprofits.

    RRAD supports 3,500 direct jobs and over 9,100 total jobs, providing an economic impact of at least $1.6 billion annually to the region.

    MIL OSI USA News

  • MIL-OSI: FormFactor, Inc. Reports 2025 Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    LIVERMORE, Calif., July 30, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2025 ended June 28, 2025. Quarterly revenues were $195.8 million, an increase of 14.3% compared to $171.4 million in the first quarter of fiscal 2025, and a decrease of 0.8% from $197.5 million in the second quarter of fiscal 2024.

    • Anticipated strength in HBM and Foundry & Logic probe cards drove sequentially stronger second-quarter revenue
    • FormFactor is now shipping in volume to all three major HBM manufacturers
    • Closed acquisition of Farmers Branch manufacturing facility, providing significant operational flexibility in lower operating cost region

    “FormFactor reported sequentially stronger second-quarter revenue that exceeded the high end of our outlook range, due to higher-than-anticipated growth in our probe-card business,” said Mike Slessor, CEO of FormFactor, Inc. “Despite this revenue strength, non-GAAP gross margin and overall profitability fell short of our outlook, mainly caused by an unfavorable shift in product mix and unforecasted ramp-up costs for a second HBM DRAM customer.”

    Second Quarter Highlights

    On a GAAP basis, net income for the second quarter of fiscal 2025 was $9.1 million, or $0.12 per fully-diluted share, compared to net income for the first quarter of fiscal 2025 of $6.4 million, or $0.08 per fully-diluted share, and net income for the second quarter of fiscal 2024 of $19.4 million, or $0.25 per fully-diluted share. Gross margin for the second quarter of 2025 was 37.3%, compared with 37.7% in the first quarter of 2025, and 44.0% in the second quarter of 2024.

    On a non-GAAP basis, net income for the second quarter of fiscal 2025 was $21.2 million, or $0.27 per fully-diluted share, compared to net income for the first quarter of fiscal 2025 of $18.0 million, or $0.23 per fully-diluted share, and net income for the second quarter of fiscal 2024 of $27.3 million, or $0.35 per fully-diluted share. On a non-GAAP basis, gross margin for the second quarter of 2025 was 38.5%, compared with 39.2% in the first quarter of 2025, and 45.3% in the second quarter of 2024.

    GAAP net cash provided by operating activities for the second quarter of fiscal 2025 was $18.9 million, compared to $23.5 million for the first quarter of fiscal 2025, and $21.9 million for the second quarter of fiscal 2024. Free cash flow for the second quarter of fiscal 2025 was negative $47.1 million, compared to free cash flow for the first quarter of fiscal 2025 of $6.3 million, and free cash flow for the second quarter of 2024 of $14.2 million.

    A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

    Outlook

    Dr. Slessor added, “In the current third quarter, we expect to deliver revenue comparable to the second quarter, with slightly higher gross margin and operating profit.”

    For the third quarter ending September 27, 2025, FormFactor is providing the following outlook*:

        GAAP   Reconciling Items**   Non-GAAP
    Revenue   $200 million +/- $5 million     $200 million +/- $5 million
    Gross Margin   38.5% +/- 1.5%   $3 million   40% +/- 1.5%
    Net income per diluted share   $0.14 +/- $0.04   $0.11   $0.25 +/- $0.04
    *This outlook assumes consistent foreign currency rates.
    **Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.
     

    We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today.

    The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.

    Use of Non-GAAP Financial Information:

    To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and six months ended June 28, 2025, and for outlook provided before, as well as for the comparable periods of fiscal 2024, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management’s reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.

    About FormFactor:

    FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle – from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

    Forward-looking Statements:

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, and the Company’s performance, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” “continue,” and “prospect,” and the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in and impacts from export control, tariffs and other trade barriers; changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as tariffs, military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

    FORMFACTOR, INC. 
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended   Six Months Ended
      June 28,
    2025
      March 29,
    2025
      June 29,
    2024
      June 28,
    2025
      June 29,
    2024
    Revenues $ 195,798     $ 171,356     $ 197,474     $ 367,154     $ 366,199  
    Cost of revenues   122,860       106,833       110,574       229,693       216,561  
    Gross profit   72,938       64,523       86,900       137,461       149,638  
    Operating expenses:                  
    Research and development   28,793       27,800       31,564       56,593       60,191  
    Selling, general and administrative   31,839       33,454       37,874       65,293       70,953  
    Total operating expenses   60,632       61,254       69,438       121,886       131,144  
    Gain on sale of business               310             20,581  
    Operating income   12,306       3,269       17,772       15,575       39,075  
    Interest income, net   2,642       3,317       3,415       5,959       6,571  
    Other income (expense), net   (6 )     890       360       884       880  
    Income before income taxes   14,942       7,476       21,547       22,418       46,526  
    Provision for income taxes   2,372       1,075       2,155       3,447       5,353  
    Loss from equity investment   3,484                   3,484        
    Net income $ 9,086     $ 6,401     $ 19,392     $ 15,487     $ 41,173  
    Net income per share:                  
    Basic $ 0.12     $ 0.08     $ 0.25     $ 0.20     $ 0.53  
    Diluted $ 0.12     $ 0.08     $ 0.25     $ 0.20     $ 0.52  
    Weighted-average number of shares used in per share calculations:                
    Basic   77,107       77,345       77,235       77,226       77,343  
    Diluted   77,527       77,884       78,717       77,721       78,746  
                                           
    FORMFACTOR, INC.
    NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended   Six Months Ended
      June 28,
    2025
      March 29,
    2025
      June 29,
    2024
      June 28,
    2025
      June 29,
    2024
    GAAP Gross Profit $ 72,938     $ 64,523     $ 86,900     $ 137,461     $ 149,638  
    Adjustments:                  
    Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   528       542       545       1,070       1,131  
    Stock-based compensation   1,690       2,005       1,932       3,695       3,860  
    Restructuring charges   183       60       39       243       83  
    Non-GAAP Gross Profit $ 75,339     $ 67,130     $ 89,416     $ 142,469     $ 154,712  
                       
    GAAP Gross Margin   37.3 %     37.7 %     44.0 %     37.4 %     40.9 %
    Adjustments:                  
    Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   0.3 %     0.3 %     0.3 %     0.3 %     0.3 %
    Stock-based compensation   0.8 %     1.2 %     1.0 %     1.0 %     1.1 %
    Restructuring charges   0.1 %     %     %     0.1 %     %
    Non-GAAP Gross Margin   38.5 %     39.2 %     45.3 %     38.8 %     42.3 %
                       
    GAAP operating expenses $ 60,632     $ 61,254     $ 69,438     $ 121,886     $ 131,144  
    Adjustments:                  
    Amortization of intangibles   (191 )     (191 )     (191 )     (382 )     (382 )
    Stock-based compensation   (7,701 )     (7,791 )     (8,277 )     (15,492 )     (16,754 )
    Restructuring charges   (195 )     (2,823 )     (49 )     (3,018 )     (98 )
    Costs related to sale and acquisition of businesses   (55 )     (217 )     (43 )     (272 )     (689 )
    Non-GAAP operating expenses $ 52,490     $ 50,232     $ 60,878     $ 102,722     $ 113,221  
                       
    GAAP operating income $ 12,306     $ 3,269     $ 17,772     $ 15,575     $ 39,075  
    Adjustments:                  
    Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   719       733       736       1,452       1,513  
    Stock-based compensation   9,391       9,796       10,209       19,187       20,614  
    Restructuring charges   378       2,883       88       3,261       181  
    Gain on sale of business, net of costs and acquisition related expenses   55       217       (267 )     272       (19,892 )
    Non-GAAP operating income $ 22,849     $ 16,898     $ 28,538     $ 39,747     $ 41,491  
                                           
    FORMFACTOR, INC.
    NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended   Six Months Ended
      June 28,
    2025
      March 29,
    2025
      June 29,
    2024
      June 28,
    2025
      June 29,
    2024
    GAAP net income $ 9,086     $ 6,401     $ 19,392     $ 15,487     $ 41,173  
    Adjustments:                  
    Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   719       733       736       1,452       1,513  
    Stock-based compensation   9,391       9,796       10,209       19,187       20,614  
    Restructuring charges   378       2,883       88       3,261       181  
    Gain on sale of business and assets, net of costs and acquisition related expenses   3,460       217       (267 )     3,677       (19,892 )
    Income tax effect of non-GAAP adjustments   (1,812 )     (2,026 )     (2,835 )     (3,838 )     (1,922 )
    Non-GAAP net income $ 21,222     $ 18,004     $ 27,323     $ 39,226     $ 41,667  
                       
    GAAP net income per share:                  
    Basic $ 0.12     $ 0.08     $ 0.25     $ 0.20     $ 0.53  
    Diluted $ 0.12     $ 0.08     $ 0.25     $ 0.20     $ 0.52  
                       
    Non-GAAP net income per share:                  
    Basic $ 0.28     $ 0.23     $ 0.35     $ 0.51     $ 0.54  
    Diluted $ 0.27     $ 0.23     $ 0.35     $ 0.50     $ 0.53  
                       
    GAAP net cash provided by operating activities $ 18,893     $ 23,539     $ 21,878     $ 42,432     $ 54,890  
    Adjustments:                  
    Sale of business and acquisition related payments in working capital   168       1,221       630       1,389       677  
    Cash paid for interest   95       92       101       187       201  
    Capital expenditures   (66,256 )     (18,584 )     (8,398 )     (84,840 )     (21,834 )
    Free cash flow $ (47,100 )   $ 6,268     $ 14,211     $ (40,832 )   $ 33,934  
                       
    GAAP net cash used in investing activities $ (78,553 )   $ (84,660 )   $ (6,140 )   $ (163,213 )   $ (9,960 )
    GAAP net cash used in financing activities $ (4,214 )   $ (2,964 )   $ (4,934 )   $ (7,178 )   $ (19,426 )
                                           
    FORMFACTOR, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Six Months Ended
      June 28,
    2025
      June 29,
    2024
    Cash flows from operating activities:      
    Net income $ 15,487     $ 41,173  
    Selected adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation   17,051       14,563  
    Amortization   1,339       1,280  
    Stock-based compensation expense   19,187       20,614  
    Provision for excess and obsolete inventories   6,695       6,277  
    Loss from equity investment   3,484        
    Gain on sale of business and assets   (103 )     (20,581 )
    Non-cash restructuring charges   2,160        
    Other activity impacting operating cash flows   (22,868 )     (8,436 )
    Net cash provided by operating activities   42,432       54,890  
    Cash flows from investing activities:      
    Acquisition of property, plant and equipment   (84,840 )     (21,834 )
    Proceeds from sale of business and assets   103       21,585  
    Purchase of equity investment   (67,156 )      
    Purchases of marketable securities, net   (11,320 )     (9,711 )
    Net cash used in investing activities   (163,213 )     (9,960 )
    Cash flows from financing activities:      
    Purchase of common stock through stock repurchase program, including excise tax paid   (24,586 )     (20,271 )
    Proceeds from issuances of common stock   21,576       4,948  
    Principal repayments on term loans   (549 )     (534 )
    Tax withholdings related to net share settlements of equity awards   (3,619 )     (3,569 )
    Net cash used in financing activities   (7,178 )     (19,426 )
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   1,658       (2,826 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   (126,301 )     22,678  
    Cash, cash equivalents and restricted cash, beginning of period   197,206       181,273  
    Cash, cash equivalents and restricted cash, end of period $ 70,905     $ 203,951  
                   
    FORMFACTOR, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      June 28,
    2025
      December 28,
    2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 67,380     $ 190,728  
    Marketable securities   181,949       169,295  
    Accounts receivable, net of allowance for credit losses   115,199       104,294  
    Inventories, net   110,789       101,676  
    Restricted cash   1,061       3,746  
    Prepaid expenses and other current assets   48,884       35,389  
    Total current assets   525,262       605,128  
    Restricted cash   2,464       2,732  
    Operating lease, right-of-use-assets   19,475       22,579  
    Property, plant and equipment, net of accumulated depreciation   259,288       210,230  
    Equity investment   67,264        
    Goodwill   200,858       199,171  
    Intangibles, net   9,017       10,355  
    Deferred tax assets   94,795       92,012  
    Other assets   3,185       4,008  
    Total assets $ 1,181,608     $ 1,146,215  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 59,932     $ 62,287  
    Accrued liabilities   38,545       43,742  
    Current portion of term loan, net of unamortized issuance costs   1,121       1,106  
    Deferred revenue   16,450       15,847  
    Operating lease liabilities   7,919       8,363  
    Total current liabilities   123,967       131,345  
    Term loan, less current portion, net of unamortized issuance costs   11,644       12,208  
    Long-term operating lease liabilities   15,231       17,550  
    Deferred grant   18,000       18,000  
    Other liabilities   22,743       19,344  
    Total liabilities   191,585       198,447  
           
    Stockholders’ equity:      
    Common stock   77       77  
    Additional paid-in capital   850,064       837,586  
    Accumulated other comprehensive income (loss)   3,450       (10,840 )
    Accumulated income   136,432       120,945  
    Total stockholders’ equity   990,023       947,768  
    Total liabilities and stockholders’ equity $ 1,181,608     $ 1,146,215  
                   

    About our Non-GAAP Financial Measures:

    We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” included in this press release.

    Investor Contact:
    Stan Finkelstein
    Investor Relations
    (925) 290-4273
    ir@formfactor.com

    Source: FormFactor, Inc.
    FORM-F

    The MIL Network

  • MIL-OSI USA: Coons, Schumer, Murray, Shaheen, Reed, Warner, Schatz, Kaine, Duckworth, Kelly, Bennet, Slotkin, Kim release joint statement to raise alarm about President Trump’s steep concessions to Beijing

    US Senate News:

    Source: United States Senator for Delaware Christopher Coons

    WASHINGTON – Today, Ranking Senate Defense Appropriator Chris Coons (D-Del.), Senate Minority Leader Chuck Schumer (D-N.Y.), Senate Appropriations Vice Chair Patty Murray (D-Wash.), Senate Foreign Relations Committee Ranking Member Jeanne Shaheen (D-N.H.), Senate Armed Services Ranking Member Jack Reed (D-R.I.), Senate Intelligence Committee Vice Chairman Mark Warner (D-Va.), Senate Appropriations Subcommittee on State and Foreign Operations Ranking Member Brian Schatz (D-Hawaii), Senate Foreign Relations Committee member Tim Kaine (D-Va.), Senate Foreign Relations Committee member Tammy Duckworth (D-Ill.), Senate Armed Services Committee member Mark Kelly (D-Ariz.), Senate Intelligence Committee member Michael Bennet (D-Colo.), Senate Armed Services Committee member Elissa Slotkin (D-Mich.), and Senate Subcommittee on National Security and International Trade and Finance Ranking Member Andy Kim (D-N.J.) released the following statement about public reporting that President Trump is pausing export controls on critical technology sold to China as part of an effort to secure a trade deal with Beijing:

    “President Trump has spent the past six months eroding our advantages over China, but recent developments make clear how willing his administration is to sacrifice American economic and technological leadership for symbolic “wins” with China in its self-inflicted trade war.

    “In just the last two days, we have seen reporting that the Trump administration has cancelled a long-planned high-level security dialogue with Taiwan and denied the president of Taiwan the ability to transit the United States—a longstanding tradition respected by administrations of both parties. These developments come right on the heels of a decision to pave the way for the sale of advanced AI chips to China and to freeze export controls on additional American technologies enabling them to now flow to China, even as Beijing tightens export controls on the United States. Independent media reports today suggest these moves are an attempt to secure trade concessions, curry favor with President Xi Jinping, and ensure President Trump gets a visit to China. The president is demonstrating to Beijing that he can be cajoled into giving up America’s core interests.

    “In the face of lackluster domestic economic forecasts and anemic interest from Beijing in achieving a real breakthrough in talks, President Trump and his economic team have ceded leverage and negotiating power to Beijing in a desperate attempt to lure President Xi to a meeting with President Trump. Even more dangerously, they risk putting American national security, technological advantage, and economic prosperity on the chopping block in order to do so.

    “President Trump is handing our primary geopolitical adversary the keys to the castle of 21st century global technological dominance. Doing so will enable Chinese leadership in artificial intelligence, infusing the Chinese military with the technological advantage it needs to continue hostile operations across the globe. He is signaling his ambivalence about standing with Taiwan, our long-term partner in the region and a powerhouse of the global economy. And he is emboldening Beijing to take aggressive actions and seek even more aggressive concessions in whatever trade negotiations may follow.

    “President Trump and this administration must reset their dangerously weak approach to China and make clear they will no longer accept symbolic wins in exchange for steep American concessions. An administration convinced it can renegotiate the world order needs to stop negotiating against itself.”

    MIL OSI USA News

  • MIL-OSI USA News: Suspending Duty-Free De Minimis Treatment for All Countries

    Source: US Whitehouse

    class=”has-text-align-left”>By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, it is hereby ordered:

    Section 1.  Background.  In Executive Order 14193 of February 1, 2025 (Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border), I declared a national emergency regarding the unusual and extraordinary threat to the safety and security of Americans, including the public health crisis caused by fentanyl and other illicit drugs and the failure of Canada to do more to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug and human traffickers, criminals at large, and illicit drugs.  In that order, I determined that it was necessary and appropriate to, among other things, suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for articles described in section 2(a) and section 2(b) of that order.  In Executive Order 14226 of March 2, 2025 (Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border), I paused the suspension of duty-free de minimis treatment on such articles until I received a notification from the Secretary of Commerce (Secretary) that adequate systems are in place to fully and expeditiously process and collect duties for such articles that would otherwise be eligible for duty-free de minimis treatment.

    In Executive Order 14194 of February 1, 2025 (Imposing Duties To Address the Situation at Our Southern Border), I declared a national emergency regarding the unusual and extraordinary threat to the safety and security of Americans, including the public health crisis caused by fentanyl and other illicit drugs and the failure of Mexico to do more to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug and human traffickers, criminals at large, and illicit drugs.  In that order, I determined that it was necessary and appropriate to, among other things, suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for articles described in section 2(a) of that order.  In Executive Order 14227 of March 2, 2025 (Amendment to Duties To Address the Situation at Our Southern Border), I paused the suspension of duty-free de minimis treatment on such articles until I received a notification from the Secretary that adequate systems are in place to fully and expeditiously process and collect duties for such articles that would otherwise be eligible for duty-free de minimis treatment.

    In Executive Order 14195 of February 1, 2025 (Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China), I declared a national emergency regarding the unusual and extraordinary threat from the failure of the Government of the People’s Republic of China (PRC) to arrest, seize, detain, or otherwise intercept chemical precursor suppliers, money launderers, other transnational criminal organizations, criminals at large, and illicit drugs.  In that order, I determined that it was necessary and appropriate to, among other things, suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for articles described in section 2(a) of that order.  In Executive Order 14200 of February 5, 2025 (Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China), I paused the suspension of duty-free de minimis treatment for articles described in section 2(a) of Executive Order 14195 until I received a notification from the Secretary that adequate systems are in place to fully and expeditiously process and collect duties for such articles that would otherwise be eligible for duty-free de minimis treatment.

    I subsequently received notification from the Secretary that adequate systems have been established to process and collect duties for articles of the PRC and Hong Kong that would otherwise be eligible for duty-free de minimis treatment, and in Executive Order 14256 of April 2, 2025 (Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports), I suspended duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for products of the PRC and Hong Kong described in section 2(a) of Executive Order 14195, as amended by Executive Order 14228 (Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China).  In addition, I instructed the Secretary to submit a report regarding the impact of Executive Order 14256 on American industries, consumers, and supply chains and to make recommendations for further action as he deems necessary.

    In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), I declared a national emergency with respect to underlying conditions indicated by the large and persistent annual U.S. goods trade deficits.  I also provided that duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) would remain available for products described in section 3(a) of that order until I received a notification by the Secretary that adequate systems are in place to fully and expeditiously process and collect duties applicable for articles otherwise eligible for duty-free de minimis treatment.

    The Secretary has notified me that adequate systems are now in place to fully and expeditiously process and collect duties for articles otherwise eligible for duty-free de minimis treatment on a global basis, including for products described in section 2(a) and section 2(b) of Executive Order 14193, section 2(a) of Executive Order 14194, and section 3(a) of Executive Order 14257.

    In my judgment, I determine that it is still necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) in the manner and for the articles described below to deal with the unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States. 

    I determine that it is necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for certain Canadian goods to deal with the emergency declared in Executive Order 14193, as amended.  In my judgment, this suspension is necessary and appropriate to ensure that the tariffs imposed by Executive Order 14193, as amended, are effective in addressing the emergency declared in Executive Order 14193 and that the purpose of this action and other actions to address the emergency declared in Executive Order 14193 is not undermined.  For example, many shippers go to great lengths to evade law enforcement and hide illicit substances in imports that go through international commerce.  These shippers conceal the true contents of shipments sent to the United States through deceptive shipping practices.  Some of the techniques employed by these shippers to conceal the true contents of the shipments, the identity of the distributors, and the country of origin of the imports include the use of re-shippers in the United States, false invoices, fraudulent postage, and deceptive packaging.  The risks of evasion, deception, and illicit-drug importation are particularly high for low-value articles that have been eligible for duty-free de minimis treatment.

    Independently, I determine that it is necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for certain Mexican goods to deal with the emergency declared in Executive Order 14194, as amended.  In my judgment, and for substantially similar reasons as above, this suspension is necessary and appropriate to ensure that the tariffs imposed by Executive Order 14194, as amended, are effective in addressing the emergency declared in Executive Order 14194 and that the purpose of this action and other actions to address the emergency declared in Executive Order 14194 is not undermined.

    Independently, and after considering information newly provided by the Secretary, among other things, I determine that it is still necessary and appropriate to continue to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for certain goods of the PRC and Hong Kong to deal with the emergency declared in Executive Order 14195, as amended.  In my judgment, and for substantially similar reasons as above, this suspension is still necessary and appropriate to ensure that the tariffs imposed by Executive Order 14195, as amended, are effective in addressing the emergency declared in Executive Order 14195 and that the purpose of this action and other actions to address the emergency declared in Executive Order 14195 is not undermined.

    Also independently, I determine that it is necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) on a global basis to deal with the emergency declared in Executive Order 14257, as amended.  In my judgment, this suspension is necessary and appropriate to ensure that the tariffs imposed by Executive Order 14257, as amended, are not evaded and are effective in addressing the emergency declared in Executive Order 14257 and that the purpose of this action and other actions to address the emergency declared in Executive Order 14257 is not undermined.

    Each of my determinations to suspend or continue to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) are independent from the other.  And each determination is made only for the purpose to deal with the respective emergency and not for the purpose of dealing with another emergency.

    Sec. 2.  Suspension of Duty-Free de minimis Treatment.  (a)  The duty-free de minimis exemption provided under 19 U.S.C. 1321(a)(2)(C) shall no longer apply to any shipment of articles not covered by 50 U.S.C. 1702(b), regardless of value, country of origin, mode of transportation, or method of entry.  Accordingly, all such shipments, except those sent through the international postal network, shall be subject to all applicable duties, taxes, fees, exactions, and charges.  International postal shipments not covered by 50 U.S.C. 1702(b) shall be subject to the duty rates described in section 3 of this order.  Entry for all shipments that — prior to the effective date of this order — qualified for the de minimis exemption, except for shipments sent through the international postal network, shall be filed using an appropriate entry type in the Automated Commercial Environment (ACE) by a party qualified to make such entry.

    (b)  Shipments sent through the international postal network that would otherwise qualify for the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) shall pass free of any duties except those specified in section 3 of this order, and without the preparation of an entry by U.S. Customs and Border Protection (CBP), until such time as CBP establishes a new entry process and publishes that process in the Federal Register.  

    Sec. 3.  Duty Rates for International Postal Shipments.  (a)  Transportation carriers delivering shipments to the United States through the international postal network, or other parties if qualified in lieu of such transportation carriers, must collect and remit duties to CBP using the methodology described in either subsection (b) or (c) of this section.  Each transportation carrier shall apply the same methodology across all covered shipments during any given period but may change its methodology no more than once per calendar month, or on another schedule determined to be appropriate by CBP, upon providing at least 24 hours’ notice to CBP.

    (b)  A duty equal to the effective IEEPA tariff rate applicable to the country of origin of the product shall be assessed on the value of each dutiable postal item (package) containing goods entered for consumption.

    (c)  A specific duty shall be assessed on each package containing goods entered for consumption, based on the effective IEEPA tariff rate applicable to the country of origin of the product as follows:

    (i)    Countries with an effective IEEPA tariff rate of less than 16 percent:  $80 per item;

    (ii)   Countries with an effective IEEPA tariff rate between 16 and 25 percent (inclusive):  $160 per item; and

    (iii)  Countries with an effective IEEPA rate above 25 percent:  $200 per item.

    (d)  For all international postal shipments subject to the methodologies described in subsections (b) and (c) of this section, the country of origin of the article must be declared to CBP.

    (e)  The specific duty methodology provided for in subsection (c) of this section shall be available for transportation carriers to select for a period of 6 months from the effective date of this order.  After such time all shipments to the United States through the international postal network must comply with the ad valorem duty methodology in subsection (b) of this section.

    (f)  Shipments sent through the international postal network that are subject to antidumping and countervailing duties or a quota must continue to be entered under an appropriate entry type in ACE to the extent required by all applicable regulations.

    Sec. 4.  Implementation.  (a)  The requirements and procedures established by sections 2 and 3 of this order shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 29, 2025.

    (b)  The provisions of this order supersede section 2 of Executive Order 14256, as amended, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 29, 2025.

    (c)  Consistent with applicable law, the Secretary of Homeland Security is directed and authorized to take all necessary actions to implement and effectuate this order — including through temporary suspension or amendment of regulations or through notices in the Federal Register and by adopting rules, regulations, or guidance — and to employ all powers granted to the President by IEEPA as may be necessary to implement and effectuate this order.  The Secretary of Homeland Security, in consultation with the United States International Trade Commission (ITC), shall determine whether modifications to the Harmonized Tariff Schedule of the United States are necessary to effectuate this order and may make such modifications through notice in the Federal Register.  The Secretary of Homeland Security shall consult with the Secretary of State, the Secretary of the Treasury, the Attorney General, the Secretary of Commerce, the United States Trade Representative, the ITC, and the Postmaster General, where appropriate.  The Secretary of Homeland Security may, consistent with applicable law, redelegate any of these functions within the Department of Homeland Security.  All executive departments and agencies shall take all appropriate measures within their authority to implement this order.

    (d)  To ensure remittance of duties in accordance with this order, and to assure compliance with other legal requirements, CBP is authorized to require a basic importation and entry bond as described in 19 C.F.R. 113.62 for informal entries valued at or less than $2,500.  Any carrier that transports international postal shipments to the United States, by any mode of transportation, must have an international carrier bond as described in 19 C.F.R. 113.64 to ensure payment of the duties described in section 3 of this order.  CBP is authorized to ensure that the international carrier bonds required by this subsection are sufficient to account for the duties described in section 3 of this order.

    Sec. 5Definition.  As used in this order, the term “effective IEEPA tariff rate” means the total duty rate imposed on articles to address a national emergency declared under IEEPA, including Executive Order 14257, as amended; Executive Order 14193; as amended, Executive Order 14194, as amended; and Executive Order 14195, as amended, in accordance with the stacking rules set out in Executive Order 14289 of April 29, 2025 (Addressing Certain Tariffs on Imported Articles), and any subsequent order or proclamation addressing stacking or the applicability of tariffs imposed under IEEPA.

    Sec. 6.  Severability.  (a)  If any provision of this order or the application of any provision of this order to any individual or circumstance is held to be invalid, the remainder of this order and the application of its provisions to any other individuals or circumstances shall not be affected.

    (b)(i)  If the additional duties imposed under Executive Order 14193, as amended, Executive Order 14194, as amended, Executive Order 14195, as amended, or Executive Order 14257, as amended, are held to be invalid, the suspension of, or continued suspension of, duty-free de minimis treatment, as detailed in this order, shall not be affected.  Duty-free de minimis treatment would still be suspended, whether pursuant to my authority under 50 U.S.C. 1702(a)(1)(B) to “regulate . . . importation” or my authority under that provision to “nullify” or “void” “exercising any right . . . or privilege with respect to . . . any property,” in the way and to the extent explained in this order, to deal with the emergencies declared in Executive Order 14193, as amended, Executive Order 14194, as amended, Executive Order 14195, as amended, or Executive Order 14257, as amended.  Such suspensions are still necessary and appropriate to address the unusual and extraordinary threats to the national security, foreign policy, and economy of the United States.  Each determination to suspend or continue to suspend duty-free de minimis treatment is still independent from the other determination and made only with the purpose to deal with the respective emergency and not for the purpose of dealing with another emergency.  CBP is directed and authorized to take all necessary actions consistent with applicable law to implement and effectuate this order in line with this section ‑- including through temporary suspension or amendment of regulations or through notices in the Federal Register and by adopting rules, regulations, or guidance — and to employ all powers granted to the President by IEEPA as may be necessary to implement and effectuate this order in line with this section.

    (ii)  Duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) shall remain available for postal shipments until notification by the Secretary to the President that adequate systems are in place to fully and expeditiously process and collect duties applicable for postal shipments otherwise eligible for duty-free de minimis treatment.  After such notification, duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) shall not be available for postal shipments.

    Sec7.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:

    (i)   the authority granted by law to an executive

    department or agency, or the head thereof; or

    (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

    (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

    (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

    (d)  The costs for publication of this order shall be borne by the Department of Homeland Security.

                                 DONALD J. TRUMP

    THE WHITE HOUSE,

        July 30, 2025.

    MIL OSI USA News

  • MIL-OSI USA: Warner and Colleagues Release Joint Statement to Raise Alarm about President Trump’s Steep Concessions to Beijing

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner

    WASHINGTON – Today, Senate Intelligence Committee Vice Chairman Mark Warner (D-Va.), Ranking Senate Defense Appropriator Chris Coons (D-Del.), Senate Minority Leader Chuck Schumer (D-N.Y.), Senate Appropriations Vice Chair Patty Murray (D-Wash.), Senate Foreign Relations Committee Ranking Member Jeanne Shaheen (D-N.H.), Senate Armed Services Ranking Member Jack Reed (D-R.I.), Senate Appropriations Subcommittee on State and Foreign Operations Ranking Member Brian Schatz (D-Hawaii), Senate Foreign Relations Committee member Tim Kaine (D-Va.), Senate Foreign Relations Committee member Tammy Duckworth (D-Ill.), Senate Armed Services Committee member Mark Kelly (D-Ariz.), Senate Intelligence Committee member Michael Bennet (D-Colo.), Senate Armed Services Committee member Elissa Slotkin (D-Mich.), and Senate Subcommittee on National Security and International Trade and Finance Ranking Member Andy Kim (D-N.J.) released the following statement about public reporting that President Trump is pausing export controls on critical technology sold to China as part of an effort to secure a trade deal with Beijing: 

    “President Trump has spent the past six months eroding our advantages over China, but recent developments make clear how willing his administration is to sacrifice American economic and technological leadership for symbolic “wins” with China in its self-inflicted trade war. 

    “In just the last two days, we have seen reporting that the Trump administration has cancelled a long-planned high-level security dialogue with Taiwan and denied the president of Taiwan the ability to transit the United States—a longstanding tradition respected by administrations of both parties. These developments come right on the heels of a decision to pave the way for the sale of advanced AI chips to China and to freeze export controls on additional American technologies enabling them to now flow to China, even as Beijing tightens export controls on the United States. Independent media reports today suggest these moves are an attempt to secure trade concessions, curry favor with President Xi Jinping, and ensure President Trump gets a visit to China. The president is demonstrating to Beijing that he can be cajoled into giving up America’s core interests.

    “In the face of lackluster domestic economic forecasts and anemic interest from Beijing in achieving a real breakthrough in talks, President Trump and his economic team have ceded leverage and negotiating power to Beijing in a desperate attempt to lure President Xi to a meeting with President Trump. Even more dangerously, they risk putting American national security, technological advantage, and economic prosperity on the chopping block in order to do so. 

    “President Trump is handing our primary geopolitical adversary the keys to the castle of 21st century global technological dominance. Doing so will enable Chinese leadership in artificial intelligence, infusing the Chinese military with the technological advantage it needs to continue hostile operations across the globe. He is signaling his ambivalence about standing with Taiwan, our long-term partner in the region and a powerhouse of the global economy. And he is emboldening Beijing to take aggressive actions and seek even more aggressive concessions in whatever trade negotiations may follow.

    “President Trump and this administration must reset their dangerously weak approach to China and make clear they will no longer accept symbolic wins in exchange for steep American concessions. An administration convinced it can renegotiate the world order needs to stop negotiating against itself.” 

    MIL OSI USA News

  • MIL-OSI: JD.com Announces Decision to Make a Voluntary Public Takeover Offer and Strategic Investment Partnership with CECONOMY

    Source: GlobeNewswire (MIL-OSI)

    BEIJING, July 30, 2025 (GLOBE NEWSWIRE) — JD.com, Inc. (“JD.com” or the “Company”) (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a leading supply chain-based technology and service provider, today announced that it decided to make a voluntary public takeover offer, through a wholly-owned indirect subsidiary JINGDONG Holding Germany GmbH (the “Bidder”), to all shareholders of CECONOMY AG (“CECONOMY”) (XETRA: CEC), the parent company of leading European consumer electronics retailers MediaMarkt and Saturn, to acquire all issued and outstanding bearer shares in CECONOMY (the “CECONOMY Shares”) for a cash consideration of EUR 4.60 per share (the “Takeover Offer”).

    The Bidder and CECONOMY have also signed an investment agreement regarding the Takeover Offer and their intended cooperation after completion of the Takeover Offer. Furthermore, regarding their future cooperation, the Bidder and CECONOMY’s largest shareholder group comprising Convergenta Invest GmbH and related shareholders (together, “Convergenta”) entered into a shareholders’ agreement, effectiveness of which is subject to the completion of the Takeover Offer. As a result, post the completion of the Takeover Offer, Convergenta will hold 25.35% of the CECONOMY Shares, reducing its current shareholding in CECONOMY from 29.16% by an irrevocable undertaking to accept the Takeover Offer with respect to 3.81% of the CECONOMY Shares. The Bidder has also entered into agreements with several shareholders of CECONOMY, under which those shareholders have irrevocably undertaken to accept the Takeover Offer with respect to 31.7% of the CECONOMY Shares in total (including 3.81% from Convergenta), securing a total shareholding of 57.1% in combination with the retained stake of JD.com’s future partner Convergenta ahead of the launch of the Takeover Offer.

    CECONOMY is a European retail leader in the field of consumer electronics. Its main brands MediaMarkt and Saturn operate omni-channel retail businesses, combining strong e-commerce presence with more than 1,000 retail stores in 11 countries. Under the strategic investment agreement, the Company and CECONOMY aim to drive CECONOMY’s growth as a stand-alone business and accelerate CECONOMY’s transformation into Europe’s leading omni-channel consumer electronics platform. JD.com, renowned for its superior customer experience and industry-leading e-commerce logistics service standards, will contribute its advanced technology, leading omni-channel retail expertise, and logistics and warehouse capabilities to the partnership. This will strengthen CECONOMY’s capabilities and further develop its core business and capitalize on its market position. As part of the strategic roadmap, CECONOMY will remain a stand-alone business in Europe with a local independent technology stack, and no changes are planned to the workforce, employee agreements and sites. CECONOMY’s Supervisory Board and Management Board fully support the public Takeover Offer.

    “This partnership with CECONOMY will build Europe’s leading next-generation consumer electronics platform,” said JD.com CEO Sandy Xu. “CECONOMY’s market-leading position, strong customer relationships and growth are impressive, and we are firmly committed to investing in its people and distinct culture to build on this success. We will work with the team to strengthen the capabilities, while applying our advanced technology capabilities to accelerate CECONOMY’s ongoing transformation. Our goal is to further grow CECONOMY’s platform across Europe and create long-term value for customers, employees, investors and local communities. We have full confidence in the management team of CECONOMY and look forward to working together to initiate the next phase of growth.”

    CECONOMY CEO Dr. Kai-Ulrich Deissner said, “With JD.com’s outstanding retail, logistics, and technology capabilities, we can further accelerate our successful growth trajectory and go beyond our current strategic goals. Thanks to the tremendous dedication and commitment of our entire team, CECONOMY operates from a position of strength. Given the constantly evolving customer expectations and market dynamics, standing still is not an option. In the coming years, we don’t just want to keep pace with the transformation in European retail – we want to continue leading it. JD.com is the right partner for this. We share a passion for our customers and a firm belief that our employees, trusted partnerships with international brand manufacturers, and the combination of digital and brick-and-mortar business are the keys to success. We partner with JD.com to strengthen European retail, based on complementary strengths and shared values.”

    “We fully support the strategic investment agreement and takeover offer and are confident that it represents the best opportunity to further drive the successful transformation of CECONOMY,” said Jürgen Kellerhals of anchor shareholder Convergenta. “The management team of CECONOMY has a clear strategic vision, and JD.com brings the resources and expertise required to accelerate the company’s (CECONOMY’s) next phase of growth. The technological expertise of JD.com is world-leading, as demonstrated by its success in other markets. As the long-term anchor investor, we believe this is the right step at the right time for the business, our employees, and our customers.”

    The Takeover Offer will be subject to customary conditions, including, among others, merger control, foreign direct investment and foreign subsidies clearances. The Takeover Offer will not be subject to a minimum acceptance rate. The transaction will be financed through a combination of acquisition loan and the Company’s cash on balance sheet. The closing of the Takeover Offer is expected to take place in the first half of 2026.

    The Offer Document (in German and a non-binding English translation) which will set forth the detailed terms and conditions of the Takeover Offer, as well as further information relating thereto, will be published by the Bidder following approval by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) on the internet at the website www.green-offer.com.

    This announcement and the information within it are not intended to, and do not, constitute or form part of any offer to purchase or a solicitation of an offer to sell the CECONOMY Shares. Investors and holders of CECONOMY Shares are strongly advised to read the Offer Document and all other documents relating to the Takeover Offer as soon as they have been made public, as they will contain important information.

    About JD.com, Inc.

    JD.com is a leading supply chain-based technology and service provider. The Company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The Company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.

    Safe Harbor Statement

    This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. JD.com may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in announcements made on the website of the Hong Kong Stock Exchange, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; laws, regulations and governmental policies relating to the industries in which JD.com or its business partners operate; potential changes in laws, regulations and governmental policies or changes in the interpretation and implementation of laws, regulations and governmental policies that could adversely affect the industries in which JD.com or its business partners operate, including, among others, initiatives to enhance supervision of companies listed on an overseas exchange and tighten scrutiny over data privacy and data security; risks associated with JD.com’s acquisitions, investments and alliances, including fluctuation in the market value of JD.com’s investment portfolio; natural disasters and geopolitical events; change in tax rates and financial risks; intensity of competition; and general market and economic conditions in China and globally. Further information regarding these and other risks is included in JD.com’s filings with the SEC and the announcements on the website of the Hong Kong Stock Exchange. All information provided herein is as of the date of this announcement, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law. 

    For investor and media inquiries, please contact:

    Investor Relations
    Sean Zhang
    +86 (10) 8912-6804
    IR@JD.com

    Media Relations
    +86 (10) 8911-6155
    Press@JD.com

    The MIL Network

  • MIL-OSI: Silicon Motion Announces Results for the Period Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

    • Second quarter of 2025 sales increased 19% Q/Q and decreased 6% Y/Y
      • SSD controller sales: 2Q of 2025 increased 0% to 5% Q/Q and decreased 15% to 20% Y/Y
      • eMMC+UFS controller sales: 2Q of 2025 increased 40% to 45% Q/Q and increased 10% to 15% Y/Y
      • SSD solutions sales: 2Q of 2025 increased 0% to 5% Q/Q and decreased 45% to 50% Y/Y

    Financial Highlights

      2Q 2025 GAAP 2Q 2025 Non-GAAP*
     • Net sales $198.7 million (+19% Q/Q, -6% Y/Y) $198.7 million (+19% Q/Q, -6% Y/Y)
     • Gross margin 47.7% 47.7%
     • Operating margin 11.2% 12.8%
     • Earnings per diluted ADS $0.49 $0.69

    *  Please see supplemental reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

    TAIPEI, Taiwan and MILPITAS, Calif., July 31, 2025 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended June 30, 2025. For the second quarter of 2025, net sales (GAAP) increased sequentially to $198.7 million from $166.5 million in the first quarter of 2025. Net income (GAAP) decreased to $16.3 million, or $0.49 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $19.5 million, or $0.58 per diluted ADS (GAAP), in the first quarter of 2025.

    For the second quarter of 2025, net income (non-GAAP) increased to $23.0 million, or $0.69 per diluted ADS (non-GAAP), from net income (non-GAAP) of $20.3 million, or $0.60 per diluted ADS (non-GAAP), in the first quarter of 2025.

    All financial numbers are in U.S. dollars unless otherwise noted.

    Second Quarter of 2025 Review
    “We experienced a strong recovery in our business during the second quarter of 2025 and delivered revenue well above our previously provided range,” stated Wallace Kou, President and CEO of Silicon Motion. “Our industry leading PCIe5 client SSD controller sales grew more than 75% quarter-over-quarter as AI-at-the-edge PCs are beginning to gain market traction and as white box AI server makers continue to leverage mainstream hardware components. Our eMMC and UFS products experienced strong growth during the second quarter of 2025, primarily driven by better-than-anticipated smartphone sales and market share gains. We are benefiting from increased product and market diversification and we believe that we are better positioned to deliver long-term, sustainable growth due to our expanding portfolio of leading consumer, enterprise, automotive, industrial and storage solutions.”

    Key Financial Results

    (in millions, except percentages and per ADS amounts) GAAP Non-GAAP
    2Q 2025 1Q 2025 2Q 2024 2Q 2025 1Q 2025 2Q 2024
    Revenue $198.7 $166.5 $210.7 $198.7 $166.5 $210.7
    Gross profit
       Percent of revenue
    $94.7
    47.7%
    $78.4
    47.1%
    $96.8
    45.9%
    $94.7
    47.7%
    $78.4
    47.1%
    $96.8
    46.0%
    Operating expenses $72.4 $68.6 $66.0 $69.3 $63.6 $62.1
    Operating income
       Percent of revenue
    $22.3
    11.2%
    $9.8
    5.9%
    $30.7
    14.6%
    $25.3
    12.8%
    $14.9
    8.9%
    $34.7
    16.5%
    Earnings per diluted ADS $0.49 $0.58 $0.91 $0.69 $0.60 $0.96


    Other Financial Information

    (in millions) 2Q 2025 1Q 2025 2Q 2024
    Cash, cash equivalents and restricted cash—end of period $282.3 $331.7 $343.6
    Routine capital expenditures $7.4 $7.0 $6.3
    Dividend payments $16.7 $17.0 $16.8
    Share repurchases $24.3

    During the second quarter of 2025, we had $15.6 million of capital expenditures, including $7.4 million for the routine purchases of testing equipment, software, design tools and other items, and $8.2 million for building construction and improvements in Hsinchu, Taiwan.

    Returning Value to Shareholders

    On October 28, 2024, our Board of Directors declared a $2.00 per ADS annual cash dividend to be paid in quarterly installments of $0.50 per ADS. On May 22, 2025, we paid $16.7 million to Silicon Motion shareholders as the third installment of the annual cash dividend.

    On February 6, 2025, we announced that our Board of Directors had authorized a new program for the Company to repurchase up to $50 million of our ADSs over a six-month period. In the second quarter of 2025, we did not repurchase any of our ADSs.

    Business Outlook
    “Our diversification strategy is expanding our market opportunities as we continue to invest in new products and markets. In 2025, we are benefitting from the introduction of several new products including our leading 6nm, 8-channel PCIe5 client SSD controller, our new eMMC and UFS controllers, and our MicroSD controller that is selling alongside the Nintendo Switch 2. In the second half of the year, we expect to further benefit from the initial ramp of our new 6nm, 4-channel PCIe5 client SSD controller targeting the mass market in late 2025, our first MonTitan enterprise/AI-class product, and our boot drive storage products for DPU network accelerators for the greater SSD data storage ecosystem. We expect to ramp each of these products to scale in 2026 with our customers. Additionally, we continue to experience significant design win activity and demand for our leading automotive portfolio, and we expect to benefit from a mix shift to higher ASP products moving forward as customers shift to our growing portfolio of full solutions. We expect a stronger second half of the year, and we continue to target a revenue run rate of $1 billion for 2025 as we exit the year,” stated Mr. Kou.

    For the third quarter of 2025, management expects:

    ($ in millions, except percentages) GAAP Non-GAAP Adjustment Non-GAAP
    Revenue $219 to $228
    +10% to 15% Q/Q
    $219 to $228
    +10% to 15% Q/Q
    Gross margin 48.0% to 49.0% Approximately $0.1* 48.0% to 49.0%
    Operating margin 8.9% to 11.5% Approximately $6.5 to $7.5** 12.3% to 14.3%

    * Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
    ** Projected operating margin (non-GAAP) excludes $6.5 million to $7.5 million of stock-based compensation and dispute related expenses.

    Conference Call & Webcast:

    The Company’s management team will conduct a conference call at 8:00 am Eastern Time on July 31, 2025.

    Conference Call Details
    Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

    Participant Online Registration:
    https://register-conf.media-server.com/register/BI9e8eb8a4d35743cfa957757c6a1207e2

    A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

    Discussion of Non-GAAP Financial Measures

    To supplement the Company’s unaudited consolidated financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

    Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

    • the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
    • the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
    • a better understanding of how management plans and measures the Company’s underlying business; and
    • an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

    The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

    Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

    Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments. 

    Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

    Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

    Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

    Silicon Motion Technology Corporation
    Consolidated Statements of Income
    (in thousands, except percentages and per ADS data, unaudited)
           
      For Three Months Ended   For the Six Months Ended
      Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
      2024    2025    2025    2024    2025 
      ($)   ($)   ($)   ($)   ($)
    Net sales   210,670       166,492       198,675       399,981       365,167  
    Cost of sales   113,893       88,125       103,988       218,084       192,113  
    Gross profit   96,777       78,367       94,687       181,897       173,054  
    Operating expenses                  
    Research & development   50,788       55,026       58,147       105,180       113,173  
    Sales & marketing   6,777       7,115       7,093       13,081       14,208  
    General & administrative   7,215       6,460       7,118       13,689       13,578  
    Loss from settlement of litigation   1,250                   1,250        
    Operating income   30,747       9,766       22,329       48,697       32,095  
    Non-operating income (expense)                  
    Interest income, net   4,175       2,929       2,706       7,241       5,635  
    Foreign exchange gain (loss), net   245       373       (3,302 )     833       (2,929 )
    Realized/Unrealized gain(loss) on investments   1,855       3,296       (1,051 )     247       2,245  
    Others, net               1             1  
    Subtotal   6,275       6,598       (1,646 )     8,321       4,952  
    Income before income tax   37,022       16,364       20,683       57,018       37,047  
    Income tax expense (benefit)   6,201       (3,099 )     4,372       10,181       1,273  
    Net income   30,821       19,463       16,311       46,837       35,774  
                       
    Earnings per basic ADS   0.92       0.58       0.49       1.39       1.06  
    Earnings per diluted ADS   0.91       0.58       0.49       1.39       1.06  
                       
    Margin Analysis:                  
    Gross margin   45.9 %     47.1 %     47.7 %     45.5 %     47.4 %
    Operating margin   14.6 %     5.9 %     11.2 %     12.2 %     8.8 %
    Net margin   14.6 %     11.7 %     8.2 %     11.7 %     9.8 %
                       
    Additional Data:                  
    Weighted avg. ADS equivalents   33,684       33,634       33,557       33,596       33,596  
    Diluted ADS equivalents   33,697       33,827       33,562       33,687       33,681  
                                           
    Silicon Motion Technology Corporation
    Reconciliation of GAAP to Non-GAAP Operating Results
    (in thousands, except percentages and per ADS data, unaudited)
           
      For Three Months Ended   For the Six Months Ended
      Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
      2024       2025       2025       2024       2025  
    ($)   ($)   ($)   ($)   ($)
    Gross profit (GAAP)   96,777       78,367       94,687       181,897       173,054  
    Gross margin (GAAP)   45.9 %     47.1 %     47.7 %     45.5 %     47.4 %
    Stock-based compensation (A)   14       73             86       73  
    Restructuring charges   46                   46        
    Gross profit (non-GAAP)   96,837       78,440       94,687       182,029       173,127  
    Gross margin (non-GAAP)   46.0 %     47.1 %     47.7 %     45.5 %     47.4 %
                       
    Operating expenses (GAAP)   66,030       68,601       72,358       133,200       140,959  
    Stock-based compensation (A)   (371 )     (4,738 )     (175 )     (3,464 )     (4,913 )
    Dispute related expenses   (3,527 )     (277 )     (2,841 )     (5,059 )     (3,118 )
    Operating expenses (non-GAAP)   62,132       63,586       69,342       124,677       132,928  
                       
    Operating profit (GAAP)   30,747       9,766       22,329       48,697       32,095  
    Operating margin (GAAP)   14.6 %     5.9 %     11.2 %     12.2 %     8.8 %
    Total adjustments to operating profit   3,958       5,088       3,016       8,655       8,104  
    Operating profit (non-GAAP)   34,705       14,854       25,345       57,352       40,199  
    Operating margin (non-GAAP)   16.5 %     8.9 %     12.8 %     14.3 %     11.0 %
                       
    Non-operating income (expense) (GAAP)   6,275       6,598       (1,646 )     8,321       4,952  
    Foreign exchange loss (gain), net   (245 )     (373 )     3,302       (833 )     2,929  
    Unrealized holding loss (gain) on investments   (1,855 )     (3,296 )     1,051       (247 )     (2,245 )
                       
    Non-operating income (expense) (non-GAAP)   4,175       2,929       2,707       7,241       5,636  
                       
    Net income (GAAP)   30,821       19,463       16,311       46,837       35,774  
    Total pre-tax impact of non-GAAP adjustments   1,858       1,419       7,369       7,575       8,788  
    Income tax impact of non-GAAP adjustments   (218 )     (610 )     (670 )     (365 )     (1,280 )
    Net income (non-GAAP)   32,461       20,272       23,010       54,047       43,282  
                       
    Earnings per diluted ADS (GAAP) $ 0.91     $ 0.58     $ 0.49     $ 1.39     $ 1.06  
    Earnings per diluted ADS (non-GAAP) $ 0.96     $ 0.60     $ 0.69     $ 1.60     $ 1.28  
                       
    Shares used in computing earnings per diluted ADS (GAAP)   33,697       33,827       33,562       33,687       33,681  
    Non-GAAP adjustments   18       20       18       23       33  
    Shares used in computing earnings per diluted ADS (non-GAAP)   33,715       33,847       33,580       33,710       33,714  
                       
    (A)Excludes stock-based compensation as follows:                  
    Cost of sales   14       73             86       73  
    Research & development   94       3,003       55       2,237       3,058  
    Sales & marketing   173       862       79       520       941  
    General & administrative   104       873       41       707       914  
                                           

                  

    Silicon Motion Technology Corporation
    Consolidated Balance Sheets
    (In thousands, unaudited)
                           
        Jun. 30,       Mar. 31,       Jun. 30,  
        2024       2025       2025  
        ($)       ($)       ($)  
    Cash and cash equivalents   289,175       275,140       208,043  
    Accounts receivable (net)   191,692       206,693       220,924  
    Inventories   240,811       180,903       208,005  
    Refundable deposits – current   51,036       53,015       70,308  
    Prepaid expenses and other current assets   31,460       32,102       68,040  
    Total current assets   804,174       747,853       775,320  
    Long-term investments   17,301       20,636       19,620  
    Property and equipment (net)   179,550       193,603       208,826  
    Other assets   29,121       29,310       29,997  
    Total assets   1,030,146       991,402       1,033,763  
                           
    Accounts payable   36,411       23,048       37,455  
    Income tax payable   14,103       14,782       17,370  
    Accrued expenses and other current liabilities   134,947       130,277       134,377  
    Total current liabilities   185,461       168,107       189,202  
    Other liabilities   60,182       50,968       55,620  
    Total liabilities   245,643       219,075       244,822  
    Shareholders’ equity   784,503       772,327       788,941  
    Total liabilities & shareholders’ equity   1,030,146       991,402       1,033,763  
                           
    Silicon Motion Technology Corporation
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
           
      For Three Months Ended   For the Six Months Ended
      Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
        2024       2025       2025       2024       2025  
      ($)   ($)   ($)   ($)   ($)
    Net income   30,821       19,463       16,311       46,837       35,774  
    Depreciation & amortization   5,802       7,225       7,445       11,411       14,670  
    Stock-based compensation   385       4,811       175       3,550       4,986  
    Investment losses (gain) & disposals   (1,855 )     (3,309 )     1,053       (247 )     (2,256 )
    Changes in operating assets and liabilities   (13,660 )     22,082       (42,258 )     (32,246 )     (20,176 )
    Net cash provided by (used in) operating activities   21,493       50,272       (17,274 )     29,305       32,998  
                       
    Purchase of property & equipment   (10,427 )     (11,661 )     (15,551 )     (21,176 )     (27,212 )
    Proceeds from disposal of properties         13                   13  
    Net cash used in investing activities   (10,427 )     (11,648 )     (15,551 )     (21,176 )     (27,199 )
                       
    Dividend payments   (16,820 )     (16,956 )     (16,746 )     (33,629 )     (33,702 )
    Share repurchases         (24,291 )     (21 )           (24,312 )
    Net cash used in financing activities   (16,820 )     (41,247 )     (16,767 )     (33,629 )     (58,014 )
                       
    Net increase (decrease) in cash, cash equivalents & restricted cash   (5,754 )     (2,623 )     (49,592 )     (25,500 )     (52,215 )
    Effect of foreign exchange changes   86       37       124       121       161  
    Cash, cash equivalents & restricted cash—beginning of period   349,279       334,333       331,747       368,990       334,333  
    Cash, cash equivalents & restricted cash—end of period   343,611       331,747       282,279       343,611       282,279  
                       

    About Silicon Motion:

    We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

    Forward-Looking Statements:
    This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our Board of Directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2025. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

    The MIL Network

  • MIL-OSI USA: McConnell Remarks at McCain Institute Russia Task Force Event

    US Senate News:

    Source: United States Senator for Kentucky Mitch McConnell

    WASHINGTON, D.C.U.S. Senator Mitch McConnell (R-KY), Chairman of the Senate Appropriations Defense Subcommittee, delivered opening remarks at a McCain Institute event “Highlighting Policy Recommendations for Post-War Russia.” Below are his remarks as prepared for delivery:

    It’s hard to think of a more appropriate home for the Task Force’s important work than the McCain Institute, or a more fitting ringleader than a proud McCain alumnus like Dan Twining.  

    My good friend, John McCain, was so unapologetic and clear-eyed about the scope of America’s interests. And he relished being the speck in Vladimir Putin’s eye through his solidarity with the free peoples of eastern Europe…

    He supported the expansion of the greatest military alliance in the history of the world… And stood for the right of sovereign nations to choose their destiny.

    When Putin called the fall of the Soviet Union the “greatest political catastrophe of the 20th century,” John understood that he meant it, and urged our colleagues to take Russia’s neo-Soviet ambitions seriously.

    In the not-so-distant past, that sort of clarity – acknowledging that Russia still threatened America’s interests – could invite public scorn…

    …Like the sort of sanctimonious condemnation a certain former colleague of mine received from President Obama during a prime-time debate.

    We heard that Putin would moderate… That his ambitions were limited… And that anyone who suggested otherwise was a dusty Cold Warrior past his prime.

    Well, to that I say: It is so good to be among friends!

    ***

    Needless to say, the importance of grappling with Russia’s behavior and motivations can no longer be laughed away.

    Wake-up call is perhaps the most tired phrase of the past three years.

    And yet that’s exactly what Putin’s escalation in 2022 was: an urgent, overdue, uncomfortable, and undeniable alarm.

    It was a reminder that the realities of geopolitics don’t care which region we’d rather prioritize or what we’d rather spend our treasure on. The bravery of Ukraine’s defenders and the suffering of its civilians press us to remember that our enemies get a vote.

    There are, of course, promising signs that the West has managed to free itself from the delusion that hegemonic aggressors can be appeased.

    Reports of our European allies’ rebuilding their military strength are not exaggerated.

    Nearly all NATO members today are striving toward the Baltics’ example of investment and readiness… And those who are not should hear from all of us.

    In the process, allies are making overdue sacrifices to stamp out dependency on Russian energy…

    They’re placing enormous investments in cutting-edge American-made weapons…

    And they’re proving willing to break domestic political china – even changing a Constitution or two – to unlock deeper and more sustained commitments to collective defense.

    This transformation is real. It’s well underway. And it’ll be essential to securing America’s interests in the coming decades.

    What about here at home? As friends of Ukraine, we may be tempted to dwell on the ways we drag behind this progress… and overlook the ways we underpin it.

    We may rightly be frustrated by years of murky commitments, slow-walked assistance, fear of escalation, and confusion about who the aggressor is.

    But I would suggest that, on this, America has much to be proud of.

    Just consider the cascading benefits of U.S. assistance to Ukraine: a small fraction of our defense budget has helped Ukraine resist and degrade a more powerful military aggressor.

    After years of talk and little action to address the shortcomings of our own arsenal and defense industrial base, we’ve spurred massive investments in replenishing stocks and producing deterrent capabilities faster.

    By partnering with the world’s most experienced practitioners of drone warfare, we’ve tapped into a wealth of knowledge about the changing nature of the modern battlefield. Ukraine’s expertise is teaching America today what our forces will need to prevail tomorrow.

    And as NATO’s biggest spender, America has encouraged much of our allies’ transformation.

    ***

    Of course, I don’t mean to suggest that we’ve escaped the gravitational pull of complacency and short-sightedness for good. Our allies’ progress is not assured forever. European security – and trans-Atlantic security – is not some clock to be wound once and left alone.

    Perhaps the biggest lesson of 2022 – even bigger than the need to invest urgently today – is the importance of long-term commitments, and steady, annual investments in defense.

    And on this front, America must continue to lead by our example. We simply cannot expect allies to reach and sustain five percent if we’re only willing to spend three-and-a-half, ourselves.

    A strategy to lead from behind is no strategy at all. And as the Task Force makes perfectly clear, this goes beyond spending targets – it’s about presence, too.

    Even as our allies and partners build more lethal forces, there’s still no more credible deterrent than American commitment.

    No wonder European allies generously support rotational deployments of U.S. troops and invest in state-of-the-art training ranges for joint exercises. These commitments improve our collective readiness and interoperability, and they’re worth sustaining.

    The task of illustrating the strategic importance of Europe to America’s security interests is not ours, alone. In fact, for years now, there’s been no more effective communicator of what’s at stake in Ukraine – strategically and morally – than Putin, himself.

    As he continues to throw a generation into the meat-grinder of combat and target Ukrainian mothers and children at will, Putin is sending a clear message.

    And in the face of his brutal aggression and public revisionism, overwhelming majorities of Americans recognize Russia as our adversary… and see that the outcome of Putin’s war of conquest matters immensely to us.

    Much to the dismay of restrainers and isolationists who thought they’d get to freelance American foreign policy, the President of the United States increasingly sees Putin’s signals for what they are.

    The President has been right to recognize Putin’s play for time. He’s been right to entertain proposals for new, secondary sanctions. Most importantly, he’s been right to green-light further lethal assistance to Ukraine.

    I’ve said this before: Stopping the killing is a noble goal, but the price of peace matters. And there will be no enduring peace unless Ukraine is equipped to credibly deter further aggression from Russia.

    ***

    The appetite of neo-Soviet imperialism does not end with Ukraine. How do we know?

    Because Putin’s predecessors subjugated far wider swaths of Europe…

    Because he invaded Georgia…

    And because, as we speak, his troops are in Moldova, too!

    Nations that have spent centuries in Russia’s shadow do not stumble westward by accident.

    Finland and Sweden did not join NATO out of symbolic solidarity with Ukraine.

    They did it because they know that Putin wants more.

    So the Task Force is right to take the long view and grapple seriously with what comes next.

    What comes next for the trans-Atlantic alliance?

    What comes next for the increasingly aligned authoritarians working to undermine U.S. interests and influence?

    What comes next for America and our ability to defend these interests and preserve this influence?

    As you put it, our deterrence is not divisible. And I would add: this is because our credibility is not divisible.

    No U.S. ally in the Indo-Pacific has time to waste on the notion that the implications of deterrence in Europe are confined to a separate sphere of influence.

    No ally in Europe can afford to miss the crystal-clear connection between Russian aggression and support from China, North Korea, and Iran.

    The consequences of America’s strategic decisions still ripple across oceans and continents with equal speed.

    And a headline that reads “Russia Wins, America Loses” will read as clearly in Beijing, Tehran, and Pyongyang as it does here in Washington.

    Avoiding that outcome will take more work from all of us. Thank you for all you’re doing.

    MIL OSI USA News

  • MIL-OSI USA: Senator Marshall: We’re Not Tired of Winning

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

    Senator Marshall Joins the Brian Kilmeade Show to Discuss Trump Trade Deals, the MAHA Movement, and Democrats Obstructing Confirmations
    Washington – On Wednesday, U.S. Senator Roger Marshall, M.D. (R-Kansas), joined Brian Kilmeade on The Brian Kilmeade Show on Fox News Radio to discuss President Trump’s historic trade deals and what they mean specifically for Kansas agriculture, MAHA movement momentum, China deterrence, and Senate Democrats’ attempts to obstruct the confirmation process.

    Click HERE or on the image above to listen to Senator Marshall’s full interview.
    On President Trump’s trade deals:
    “Brian, I mean, we’re ecstatic, absolutely ecstatic. Every time I see the President, I’ll tell him we’re not tired of winning. But you know, who’s excited about these trade deals are my Kansas farmers and the aerospace industry. What Kansas exports are agriculture products and airplanes, and jets. So just ecstatic about these deals. The President removing these non-trade barriers all these countries, in addition to giving us basically zero types of penalties going into their country’s tariffs, but they’re also opening their markets, and they’re moving investment into America. Just this past week, I had several of the large pharma companies who make their drugs overseas, very popular, very successful [say that] they’re moving that manufacturing here, so we’re all excited about them.”
    On Fed Chair Powell and interest rates:
    “I sure hope so. Jerome “too late” Powell, he is too late, kind of like “too tall” Jones. This is Jerome “too late” Powell. He should have cut it a quarter point, some time ago, a quarter point now, half point in the future. He’s a lame duck, and I don’t know what he’s going to do. If he doesn’t drop something today, I just have to think it’s politically or emotionally motivated.”
    On the progress of the MAHA movement:
    “Yeah, we’re making great progress. Making incredible progress. We have a group of bills that will help support that movement as well. A group of bills that’s going to make our soil healthier, help our farmers grow more with less pesticides, and with less fertilizers. The thing I’m worried about right now, which is coming to my attention, Brian is China continues to make a lot of knockoffs. So, for instance, China is making a knockoff of a GLP-1, that they’re sending to the US, that’s compounded into a pharmacy. 14 people have died from that. So, one of my big emphases here is moving all that supply chain back to the United States. It’s easier said than done.”
    On U.S.-China trade deals:
    “The big picture is that with China, we have a $270 billion trade deficit to address. I think that people missed the calculated way that the Trump administration is doing this. Basically, they boxed in China. Think about it. They’ve done the EU. They’ve done Indonesia, the Philippines, Vietnam, Japan, and Australia, so that by having bilateral trade agreements with them, it’s putting a lot of pressure on China. One other thing China does to cheat is they’ll send a bunch of T-shirts that they made or tennis shoes, and they’ll send them to Vietnam, and then Vietnam is getting them in at their lower tariff rate. So, the President is doubling up on that type of transaction to make sure that those are tarred appropriately. So, we absolutely are getting there. To your point, I’m much more concerned about fentanyl poisoning, their intellectual property theft, the counterfeits they make, all those things. But I have faith in Scott Bessent. This guy is one of the sharpest people I’ve ever met.”
    On Democrats stalling nominations and spending bills:
    “I think this is the big political picture here, and you get this, but what’s driving the Democrat Party right now is the far left. Chuck Schumer is scared to death of AOC on the far left, so they’re demanding he’s got to do something. He’s got to do something. So, he’s doing everything in his power to gum up the process, whether it’s nominations or appropriations bills as well. He’s in a panicked mode right now, and he’s lashing out, slowing up what is traditionally done. People that would pass with unanimous consent and take zero floor time, we’re having to vote on them three times and spend two hours or more on each one of them. So, if they’re going to keep doing that, then we just need to stay here in August till we get more of these people confirmed.
    On the Senate delaying recess until nominations are confirmed:
    “The Democrats secretly want to all go home, right? That is their number one priority. These people are professional politicians; they’re used to having all summer off. And by the way, when I go back, I’m going to work harder back in Kansas than I do here. Then, at the same time, their leader is scared to death. I can’t believe he’s still there. Their leader hasn’t been fired yet, but he’s scared to death to be in a primary. So it’s all about his political legacy right now, keeping that together. But I just have to emphasize, Brian, yes, I want to go home, but I’ve done four telephone town halls up here with people back in Kansas in the last two weeks, with over 5,000 people on each one of those calls. You can go home on weekends. We’ve had significant, strong events as well. We could stay for easily two weeks, and still go back and accomplish that mission of targeting the great things about the Big Beautiful Bill, whether it’s the biggest tax cut in American history or no tax on tips, all those types of things. So, I think we can walk and chew gum. But, what we could do most to help the people of America is get President Trump’s nominations confirmed so they can execute his agenda.”
    On Democrats battling each other on bipartisan bills:
    “First of all, the one thing I learned politically up here is when your opponent is forming a circular firing squad, don’t hop in the middle of them. So, I think we need to give them all the rope we can on this. This kind of takes us back to what I was talking about earlier. The far left of the Democrat Party is the tail wagging the dog. Here’s Cory Booker running for president, right? He’s trying to reach that primary base, saying he’s the most radical, progressive person up here. That’s what he’s doing right there. And again, this is a party that won’t stop digging. They’re in this hole. They have no respect for law and order. They he just keep digging and digging. These bills that she’s proposing are bipartisan, stronger law and order support the police. He’s out there still shouting like this mayor candidate from New York that wants to defund the police. So, I think this is all political. They’re more interested in running for president, Cory Booker is. Then here, you have Amy Klobuchar, who’s one of the most moderate Democrats, level-headed people up here. And to be honest, it’s just been a joy to get to know and work with her. We’re in bipartisan prayer breakfast together. It’s something you’ll never see, but she gave just an incredible lesson to us today about life in our bipartisan prayer breakfast.”

    MIL OSI USA News

  • MIL-OSI USA: Boozman, Cotton Back Effort to Establish Drone Production Facility at Red River Army Depot

    US Senate News:

    Source: United States Senator for Arkansas – John Boozman

    WASHINGTON—U.S. Senators John Boozman (R-AR) and Tom Cotton (R-AR) joined Senators Ted Cruz (R-TX) and John Cornyn (R-TX) to introduce the SkyFoundry Act of 2025, legislation to establish a Department of Defense drone production facility at the Red River Army Depot to develop, produce and field drones for the Department of Defense.

    “The men and women of the Red River Army Depot are committed to providing our servicemembers with the tools they need to defend our nation,” said Boozman. “With unmanned aircraft systems playing an increasingly prominent role in modern warfare, tasking them with developing and sustaining an adequate supply of drone systems would be a win for this skilled workforce and our armed forces. I am pleased to join my colleagues to champion this effort and the Arkansans whose vital contributions to Red River support our national security and local economy.”

    “Large-scale manufacturing of small drones is critical to the Army’s current and future operational capability,” said Cotton. “This bill is a win for national security and for Arkansas as the Skyfoundry program presents a unique opportunity to more fully utilize the Army’s organic industrial base by positioning Red River Army Depot to meet the Army’s emerging requirements.”

    “Establishing a drone manufacturing facility at the Red River Army Depot will help ensure that the United States remains at the forefront of drone production,” said Cruz. “I’m proud to see the Lone Star State continuing to lead in defense innovation, and I look forward to working with my colleagues in Congress to swiftly pass this legislation.”

    “Russia and China are currently outpacing America in scalable drone production and investment, making us vulnerable to national security threats if left unmatched,” said Cornyn. “This legislation seeks to close this gap and help ensure America remains competitive with our foreign adversaries by establishing a new innovation and production facility that would rapidly improve our ability to develop, test, and mass-produce small unmanned aircraft systems.”

    Specifically, the SkyFoundry Act of 2025 will:

    • Establish a production facility and innovation facility for the manufacturing and development of small unmanned aircraft systems;
    • Utilize a Government-Owned, Government-Operated Contractor Augmented (GOGO/CA) model, blending military, civilian and contract personnel; and
    • Encourage public-private partnerships with industry, academia and nonprofits.

    Boozman has continually championed efforts to support the Red River Army Depot,  successfully securing $47 million in 2024 for workforce support and recently advancing an additional $93 million in funding through the Senate Military Construction, Veterans Affairs, and Related Agencies (MilCon-VA) Appropriations Subcommittee as part of the FY 2026 MilCon-VA Appropriations Act.  

    This legislation is supported by the Texarkana Chamber of Commerce and the TexAmericas Center.

    Companion legislation was introduced in the U.S. House of Representatives by Congressman Pat Harrigan (NC-10).

    The bill text is available here.

    MIL OSI USA News

  • MIL-OSI China: China to allocate 90 billion yuan for nationwide childcare subsidies

    Source: People’s Republic of China – State Council News

    China’s central budget will allocate 90 billion yuan (about 12.6 billion U.S. dollars) this year to support the issuance of childcare subsidies, the Ministry of Finance said Wednesday.

    A woman and her child have fun at a park in Zaozhuang, east China’s Shandong Province, June 1, 2025. (Photo by Sun Zhongzhe/Xinhua)

    The fund, which is a transfer payment from the central budget, will assist local governments in issuing the subsidies, covering nearly 90 percent of the total amount distributed, ministry official Guo Yang told a press conference.

    The move follows the country’s recent introduction of a nationwide childcare subsidy program, which sets a standard of 3,600 yuan per year for each child under the age of three, and is expected to benefit more than 20 million families each year.

    The finance and healthcare departments are actively advancing the calculation and distribution of the fund, Guo said, emphasizing that through comprehensive oversight, every penny will safely reach those eligible for the support.

    According to Wang Haidong, an official with the National Health Commission (NHC), childcare subsidy applications will be gradually rolled out across China in late August, with full access expected by Aug. 31.

    EASY ACCESS TO CHILDCARE SUBSIDIES

    The subsidy can be applied for online through a unified national information system, allowing everyone to submit applications without leaving home, while offline channels and in-person services will also be in place, Wang said at the press conference.

    Those who are unable to apply online due to special circumstances can do so by going to the township or subdistrict office where the infant is registered, he added.

    Measures have been introduced to make the application process easier. Applicants, notably, only need to submit essential materials that verify the infant’s identity and caregiving relationship — such as the birth certificate and household registration book.

    A wide range of application channels will also be available, including provincial-level government service platforms and third-party platforms such as Alipay and WeChat, which are all commonly used and can be conveniently accessed online using mobile phones, Wang said.

    Guo Yanhong, deputy head of the NHC, said the subsidy is available to all eligible children, regardless of whether they live in urban or rural areas, their ethnicity or region, or whether they are the first, second, or third child in the family.

    She noted that the subsidy standard was set based on factors such as childcare costs and fiscal capacity, while also drawing on international practices, as direct financial support is a common policy tool to encourage childbirth globally. In China, some local governments have piloted similar programs, which have been well-received by the public.

    EXPANDING BIRTH-FRIENDLY POLICIES

    According to Liu Hongmei at the All-China Federation of Trade Unions, China has intensified efforts to protect the maternity rights of working women.

    At the press conference, Liu said that from 2022 to 2024, the organization allocated 22.5 million yuan in employer subsidies to expand workplace childcare, making these services more accessible and affordable for working parents.

    Trade unions nationwide are encouraged to foster family-friendly workplaces through multiple measures, such as providing breastfeeding rooms for female employees, the official said.

    Liu Juan, an official of the National Healthcare Security Administration, said that a total of 253 million people were covered by China’s maternity insurance by June 2025, including rising numbers of flexible employees and migrant workers.

    Since 2021, the country’s maternity insurance benefits have been accessed 96.14 million times, with cumulative fund expenditure totaling 438.3 billion yuan, she added.

    Notably, assisted reproductive services are now covered by medical insurance across 31 provincial-level regions and in the Xinjiang Production and Construction Corps, and painless delivery services are also covered in certain regions, according to Liu. 

    MIL OSI China News

  • MIL-OSI China: Rainstorms leave 8 dead, 18 missing in north China county

    Source: People’s Republic of China – State Council News

    The latest round of heavy rains have left eight people dead and 18 missing in Xinglong County in north China’s Hebei Province, local authorities said late Wednesday.

    The rainstorms had wreaked havoc on some villages in Liudaohe Township, said the rescue headquarters, adding that the rescue and search operation is still ongoing.

    MIL OSI China News

  • MIL-OSI China: China drafts new rules to guide, evaluate government investment funds

    Source: People’s Republic of China – State Council News

    China’s National Development and Reform Commission announced on Wednesday that it is soliciting public opinions on draft plans to guide and evaluate government investment funds, aiming to better leverage their role in serving national strategies, boosting industrial upgrading, and fostering innovation and entrepreneurship.

    The draft plan on guiding government investment funds is designed to provide robust support for major national strategies, key sectors, and areas where market mechanisms fall short. It also seeks to facilitate the transformation and upgrading of traditional industries, back the growth of competitive and distinctive industries, and accelerate the cultivation of new quality productive forces.

    Government investment funds are required to channel investments into sectors aligned with the encouraged industries specified in national industrial catalogs. The plan also emphasizes the need to maintain differentiated investment focuses between national and local funds, while strengthening coordination to attract more social capital and create synergistic effects.

    The draft plan on evaluating government investment funds clarifies their role in integrating market forces with government oversight, as well as supporting state-encouraged sectors and restricting regulated ones.

    As defined in the draft, national funds are government investment funds approved by the State Council and capitalized by central government departments and their affiliates. Local funds are those set up with government capital from provincial or lower-level governments, their departments, or affiliates.

    MIL OSI China News

  • MIL-OSI China: Emergency teams accelerate restoration of damaged bridges and roads in Beijing

    Source: People’s Republic of China – State Council News

    Emergency teams accelerate restoration of damaged bridges and roads in Beijing

    Updated: July 31, 2025 07:19 Xinhua
    Emergency workers attempt to restore a damaged road in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. Due to continuous heavy rainfall in recent days, hundreds of villages in multiple districts of Beijing have been affected. Emergency teams have been accelerating the restoration of damaged bridges and roads to facilitate transportation of living supplies and rescue equipment. [Photo/Xinhua]
    Emergency workers attempt to restore a damaged road in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. [Photo/Xinhua]
    Emergency workers attempt to restore a damaged road in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. [Photo/Xinhua]
    Emergency workers dredge river course in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. [Photo/Xinhua]
    Rescuers and villagers wait as a damaged road is being restored, in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. [Photo/Xinhua]
    An engineering machine clears a blocked road in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. [Photo/Xinhua]
    Emergency workers attempt to restore a damaged road in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. [Photo/Xinhua]
    Emergency workers attempt to restore a damaged road in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. [Photo/Xinhua]
    Emergency workers attempt to restore a damaged road in Fengjiayu Town, Miyun District of Beijing, capital of China, July 30, 2025. [Photo/Xinhua]

    MIL OSI China News

  • MIL-OSI Australia: Interview with James Glenday and Emma Rebellato, News Breakfast, ABC

    Source: Australian Parliamentary Secretary to the Minister for Industry

    James Glenday:

    Welcome back to the show. On this Thursday morning, you’re watching News Breakfast. It is always lovely to have your company.

    Emma Rebellato:

    We’ll get an update on the latest with the global tsunami alerts in just a moment. But first, borrowers will be hoping the latest inflation data will be the confirmation the Reserve Bank needs to cut rates next month.

    Treasurer, Jim Chalmers, joins us now from Canberra. Treasurer, thanks for joining us this morning.

    Jim Chalmers:

    Thanks for having me back on, Emma.

    Rebellato:

    So homeowners are hoping for a rate cut. Are you worried though that if there is a cut it will encourage more investors into the market, and that will price out people wanting to buy their own home?

    Chalmers:

    I’m not going to pre‑empt decisions that the Reserve Bank takes independently. I think rate relief is welcome, certainly when interest rates were cut twice already this year, that provided some very, very welcome rate relief for millions of Australians with a mortgage. That’s how we see it, but I don’t want to make predictions or pre‑empt the decisions that the Reserve Bank will take.

    What yesterday’s numbers showed when it comes to those inflation numbers is really quite remarkable progress. The progress that Australians have made together over the course of the last 3 years on inflation has been outstanding because we’ve been able to get inflation down at the same time as we deep unemployment low, we’ve got real wages growing again – but it’s never mission accomplished, because the global environment’s uncertain, we’ve got some persistent structural issues in our economy, growth in our economy is soft and people are under pressure. And that’s why the primary goal, the main priority of the first 2 weeks of the parliament sitting has been to roll out more cost‑of‑living help.

    Rebellato:

    Treasurer, your productivity roundtable is on in just a few weeks. Will you be looking – and we know housing going’s to be on the agenda – will you be looking specifically at property investors. Do you want to change the capital gains tax discount?

    Chalmers:

    That’s not why we’ve put this Economic Reform Roundtable together. It’s all about making our economy more resilient and more productive, and our budget more sustainable.

    I expect and I hope that building more homes is one of the central considerations of the Economic Reform Roundtable. I’ve been working very closely with Minister Clare O’Neil with a number of people who will be at the roundtable and with a whole range of people around the country.

    We’ve all got an interest in building more homes sooner; that’s the government’s priority. The primary focus there, I think, at the roundtable will be around how we speed up approvals and get the zoning for housing right, because we desperately need more homes. The Commonwealth government has come to the table with tens of billions of dollars in investment, our political opponents want to cut funding for housing, but overwhelmingly, people want to see where there’s common ground to build more homes, and that will be the focus.

    Rebellato:

    Treasurer, one of the stories we’re following today is the latest Productivity Commission report on closing the gap. Again, so many targets are showing so little progress, and some are worsening. How would you characterise this? Is this a failure by governments?

    Chalmers:

    We need to do much better. I think from memory, 10 of the 15 measures, we’ve seen a little bit of progress in the report released overnight, some have gone backwards in worrying ways.

    I think every member of the government, and I think many Australians would acknowledge that we need to do better, and the reason why these reports are so important is because they make sure that we keep governments and the community more broadly up to the mark. We need to do better when it comes to closing the cap.

    Minister Malarndirri McCarthy is working in her characteristically diligent way with all of the stakeholders, all of the communities to try and turn these numbers around. There has been progress in 10 of the 15, there has been some worrying outcomes in the rest, but overall, we need to do more and we need to do better.

    Rebellato:

    Treasurer, we know the issue in the Middle East is a big talking point in parliament and in the government at the moment. Is it now inevitable that Australia will recognise a Palestinian state; do you want to see that happen?

    Chalmers:

    I do, and I think it’s a matter of when, not if Australia recognises a Palestinian state for a long.

    Rebellato:

    So could we see it before September, before that UN meeting?

    Rebellato:

    I don’t want to put a timeframe for it, it’s been a long‑standing bipartisan policy that we see a two‑state solution in that part of the Middle East. From my point of view that progress that has been made, that momentum that we’re seeing in the international community is welcome, but it’s also conditional.

    There are a number of obstacles still in the way to recognition of a Palestinian state, for example, the treatment, the release of the hostages, making sure that there’s absolutely no role for Hamas. These are the sorts of things that the international community is working through.

    That statement that came out yesterday that we signed as Australians via our Foreign Minister Penny Wong is a really important one. It condemns the terrorist act on 7 October, it demands a ceasefire, the release of hostages and access for humanitarian aid; it encourages countries to work towards recognition as a really important part of that two‑state solution, and the reason we want to see a two‑state solution is because Israeli families and Palestinian families need and deserve to be able to raise their kids in peace, and that’s what this is all about.

    Rebellato:

    Treasurer, let’s stay with issues overseas, and the issue of tariffs. Now, Donald Trump has now said if he’s not negotiated with a country that they’re now looking at between a 15 and 20 per cent tariff. Is that what you’re working towards now; forget about 10 per cent, it’s now looking 15 to 20?

    Chalmers:

    We haven’t heard differently from the 10 per cent baseline that’s been levied on Australia; obviously we continue to engage with the Americans on this. It’s one of the main issues playing out in the global economy, it’s a major source of uncertainty in the economy, whether it’s what’s been said overnight about India, whether it’s the back and forth between the US and China or the tariffs levied directly on Australia. We’ve got the baseline rate as far as we are aware, and as we understand it, which is 10 per cent.

    Rebellato:

    So you don’t expect that to move?

    Chalmers:

    I think it would be a brave person to assume that there won’t be – whether it’s with other countries or – there will always be more announcements about this. These tariff announcements are a moving feast. But our understanding, our expectation is we get the baseline.

    We think that the best outcome is zero because these tariffs are an act of economic self‑harm. We see inflation is going up in the US. Earlier in the year they had slowing growth, interest rates on hold again in the US overnight, they’ve got higher interest rates than we do in Australia.

    We think these tariffs are bad for the American economy, certainly bad for the global economy. We’re better placed and better prepared than most countries to deal with that, but we won’t be immune. We’ll continue to engage with the Americans on it.

    Rebellato:

    Treasurer, just to change things up a little bit, this is possibly the hardest question you’ll be asked today, we’ve been talking about theme songs. Do you have a favourite theme song?

    Chalmers:

    It’s hard to go past the themes – the 2 theme songs in the Rocky movies, or the theme song to that great Eminem movie, 8 Mile. I’m a hip‑hop guy –

    Rebellato:

    Oh, yeah.

    Chalmers:

    – as James on the couch knows, but I think the best theme song, now that you put me on the spot, the best theme song I can remember is when Powderfinger, These Days kicks in during that wonderful Australian movie, Two Hands.

    I think These Days by Powderfinger came in at number 14 on the week in the Triple J Hottest 100 Australian songs. Like everyone who loves Powderfinger, I think that should have been higher. But that’s an amazing theme song, and that’s an incredible, Two Hands, Heath Ledger, Bryan Brown, Rose, all the great Australian actors and a wonderful Australian theme song too by Powderfinger from Brisbane.

    Rebellato:

    Treasurer, thank you so much for joining us this morning, we appreciate it.

    Chalmers:

    Thanks very much.

    MIL OSI News

  • MIL-OSI China: China, US should respect each other’s core interests, avoid conflicts: Chinese FM

    Source: People’s Republic of China – State Council News

    China and the United States should respect each other’s core and major interests, and avoid falling into confrontation and conflict, Chinese Foreign Minister Wang Yi said in Beijing on Wednesday.

    Chinese Foreign Minister Wang Yi, also a member of the Political Bureau of the Communist Party of China Central Committee, meets with a delegation of the Board of Directors of the U.S.-China Business Council in Beijing, capital of China, July 30, 2025. (Xinhua/Gao Jie)

    He called on the two sides to establish more channels for communication and consultation, view each other with an objective, rational and pragmatic attitude, and foster correct strategic perceptions.

    Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks when meeting with a delegation of the Board of Directors of the U.S.-China Business Council (USCBC).

    He said that no matter how the situation changes, China has maintained the continuity and stability of its policy towards the United States, and China will handle and advance its relations with the U.S. in accordance with three principles: mutual respect, peaceful coexistence and win-win cooperation.

    China is willing to strengthen contact with the United States to avoid misjudgment, control differences, explore cooperation, implement the consensus reached between their two heads of state, and promote the stable, healthy and sustainable development of China-U.S. relations, he said.

    He also urged adhering to the principles of respect, equality and reciprocity and refraining from unilateral hegemony, calling for doing more big, practical and good things for the benefits of the two countries and the world.

    Wang noted that China will expand its high-level opening-up and build a first-class business environment that is market-oriented, law-based and internationalized. China hopes that U.S. companies will continue to be optimistic about China and invest in the country to achieve mutual benefits and common growth, he added.

    China hopes that the U.S. business community will take on the role of conveying correct perceptions of China, cultivate friendship between the Chinese and U.S. peoples, and practice mutually beneficial cooperation, making new and positive contributions to the development of China-U.S. relations and the friendship between the two peoples, he said.

    The delegation included USCBC Board Chair Rajesh Subramaniam; Thermo Fisher Scientific Chairman Marc N. Casper; Otis Worldwide Corporation Chair Judy Marks; Goldman Sachs President and COO John E. Waldron; Senior Vice President of the Boeing Company and President of Boeing Global Brendan Nelson; founder and Vice Chair of United Family Healthcare Roberta Lipson; Apple Inc. COO Sabih Khan; and USCBC President Sean Stein.

    They said that the U.S.-China relationship is the most important bilateral relationship in the world today, and that the good, far-sighted interaction between the two countries’ heads of state has provided guidance and impetus for the development of bilateral relations.

    The U.S. business community will continue to take root in China and deepen its presence, expanding cooperation in areas such as trade, investment, technological innovation, green development and health care, they said, noting that they will participate in China’s high-quality development and promote further connectivity between China and the world.

    USCBC is committed to actively leveraging its influence to expand bilateral economic and trade cooperation, strengthen people-to-people exchange, enhance mutual understanding, and advance the U.S.-China relationship towards a more vigorous, balanced and mutually beneficial direction, they said.

    MIL OSI China News

  • MIL-OSI China: 12-year-old Yu reaches second final at Aquatics Worlds

    Source: People’s Republic of China – State Council News

    China’s 12-year-old Yu Zidi advanced to her second final at the World Aquatics Championships on Wednesday, clocking two minutes 7.95 seconds in the women’s 200-meter butterfly semifinal.

    Yu Zidi of China competes during the women’s 200m butterfly semifinal of swimming at the World Aquatics Championships in Singapore, July 30, 2025. (Xinhua/Xia Yifang)

    Yu, who narrowly missed the podium with a fourth-place finish in the 200-meter individual medley on Monday, placed sixth in her semifinal heat.

    The race was led by Olympic champion Summer McIntosh of Canada, who posted a time of 2:06.22.

    Competing in her first international meet, Yu qualified for the final as the eighth-fastest swimmer overall. The final will be held on Thursday. 

    MIL OSI China News

  • MIL-OSI China: Sunderland sign midfielder Xhaka from Leverkusen

    Source: People’s Republic of China – State Council News

    Sunderland continues to prepare for its return to the Premier League with the signing of Switzerland international midfielder Granit Xhaka from Bayer Leverkusen.

    Chelsea’s Jorginho (R) is challenged by Arsenal’s Granit Xhaka during the 23th round English Premier League match between Arsenal and Chelsea at the Emirates Stadium in London, Britain on Jan. 19, 2019. Arsenal won 2-0. (Xinhua/Matthew Impey)

    The 32-year-old won the Bundesliga and German Cup double with Leverkusen in 2024 and previously spent seven years at Arsenal. Xhaka joins for a fee thought to be around 13 million pounds and has agreed a three-year deal at the Stadium of Light.

    The midfielder will bring a wealth of experience to Sunderland as the club looks to avoid instant relegation back to the Championship.

    “I’m very proud to be here. When I spoke to the club, I was excited, and I felt the energy, and the mentality all the people and players have.”

    “It’s exactly what I wanted, and I have a very good feeling. We are back to where this club needs to be, and we want to stay here to write our own history,” Xhaka was quoted as saying on the Sunderland website.

    “I feel I’m ready to help the team with my experience but with quality as well. We need to find ourselves on the pitch, but I don’t think this will be a big problem. It’s been a long time to wait, but I’m here now, and I’m looking forward to it,” he concluded.

    This summer has seen Sunderland bring in Enzo Le Fee, Habib Diarra, Noah Sadiki, Reinildo Mandava, Chemsdine Talbi and Simon Adingra, spending over 110 million pounds.

    Sunderland finished fourth in the Championship in the 2024-25 season and grabbed the third and last ticket to promote to the Premier League through two rounds of playoffs.

    MIL OSI China News

  • MIL-OSI China: Bayern Munich sign Luis Díaz from Liverpool

    Source: People’s Republic of China – State Council News

    Colombia international winger Luis Diaz has completed a transfer to Bayern Munich, bringing an end to his three-and-a-half-year spell with Liverpool.

    “The Colombian departs the Reds having played a significant role in the lifting of four major trophies since arriving from FC Porto in early 2022, highlighted by Premier League title glory last term,” Liverpool said in an official statement on Wednesday.

    Liverpool’s Luis Diaz celebrates after scoring the opening goal during the English Premier League match between Chelsea and Liverpool in London, Britain, on Aug. 13, 2023. (Xinhua)

    The 28-year-old has signed a four-year contract with the Bundesliga champions, following Liverpool’s acceptance of a reported £65.5 million bid.

    “I arrived with all the dreams in the world, and I am leaving proud of everything we achieved together,” Diaz wrote on Instagram.

    “I have met incredible people, fabulous colleagues, coaches who helped me a lot, and extraordinary fans. Liverpool is, indeed, a special team, and I will keep everyone in my heart.

    Diaz also made reference to former Liverpool midfielder Diogo Jota, who died in a car accident earlier this month.

    “It’s good to be leaving with the feeling of a duty fulfilled, and, most of all, to be leaving a champion. It would have been the perfect goodbye if we hadn’t lost one of ours in such a tragic way.

    “I carry everyone with me in my heart, but one of them in particular: Diogo. I will never forget him. We will never forget him. Thank you for everything,” he wrote.

    Diaz joined Liverpool from FC Porto in January 2022 and went on to make 148 appearances, scoring 41 goals during his time at Anfield.

    MIL OSI China News

  • MIL-OSI China: Thomas Muller set to join MLS side Vancouver Whitecaps

    Source: People’s Republic of China – State Council News

    Bayern Munich veteran Thomas Muller is close to sealing a move to Major League Soccer (MLS).

    According to German and Canadian media reports, only minor details remain before the 35-year-old signs a two-year contract with the Vancouver Whitecaps as a free agent on August 1.

    The 131-time capped German international is expected to further boost the MLS’ profile alongside Argentine superstar Lionel Messi, who plays for Inter Miami. Reports say Muller’s debut for the Whitecaps could come on August 9 against the San Jose Earthquakes.

    Layvin Kurzawa (L) from Paris Saint-Germain competes with Thomas Muller from Bayern Munich during their match of Group B of the 2017-18 season Champions League at Parc des Princes in Paris, France on Sept. 27, 2017. Paris Saint-Germain won by 3-0 at home. (Xinhua/Chen Yichen)

    The Bavarian forward recently expressed a desire to gain international experience to round out a decorated career that includes two UEFA Champions League titles, 13 Bundesliga championships and six German Cup trophies.

    Muller has called the MLS an intriguing competition, noting that “we see a World Cup played in the United States, Canada and Mexico, in 2026.”

    German ties to the Canadian west coast club may have influenced his decision. Canadian international full-back Alphonso Davies joined Bayern from Vancouver in 2018, while Whitecaps managing director Alexander Schuster previously worked for German sides Mainz 05 and Schalke 04. In 2022, Nick Salihamidzic, son of former Bayern sporting director Hasan Salihamidzic, played for Vancouver.

    “I am looking forward to playing in the MLS and meeting figureheads such as Messi,” said Muller, who leaves Bayern after contributing 250 goals and 276 assists in 756 competitive appearances.

    He follows in the footsteps of fellow Bayern and German greats Franz Beckenbauer, Gerd Muller, Lothar Matthaeus and Bastian Schweinsteiger, who all played in the MLS after their European careers.

    The Whitecaps have won the Canadian Championship four times, including three in the past three years.

    Muller acknowledged the challenge of adapting to new surroundings, saying, “When you leave a club like Bayern, you meet different circumstances.” He added that he still feels “the desire for football burning in my chest.”

    Turning 36 in September, Muller saw his wish for a one-year contract extension turned down by Bayern as his playing time declined in recent seasons, when he primarily served as a substitute and mentor for younger players. 

    MIL OSI China News

  • MIL-OSI China: Barca defender Kounde agrees new contract until 2030

    Source: People’s Republic of China – State Council News

    Although the club has yet to make the news official, FC Barcelona defender Jules Kounde on Wednesday confirmed that he has agreed a new five-year contract.

    Barcelona’s Lamine Yamal (R) celebrates his goal with teammate Jules Kounde during the UEFA Champions League Round of 16 2nd leg football match between FC Barcelona and SL Benfica in Barcelona, Spain, on March 11, 2025. (Photo by Joan Gosa/Xinhua)

    Speaking from the club’s Asian tour in South Korea, the French international commented that “everything has been finished” in terms of a contract extension until the end of June 2030.

    He added it was “a question of days” before the contract was made official, saying he was “very happy” the negotiations had been “so fast.”

    “Barca and I had the same idea. I am very happy with the team and to be at such an ambitious club and happy we can fight for titles every year,” commented the player who scored a late winner as Barca beat Real Madrid in last season’s Copa del Rey final.

    26-year-old Kounde joined Barcelona from Sevilla in 2022 and has scored seven goals in 141 games for Barcelona. Although he was initially signed as a central defender, recent seasons have seen him adapt to play at right-back.

    MIL OSI China News

  • MIL-OSI USA: Leading National Security Dems Alarmed by Trump’s Steep Concessions to China

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    WASHINGTON, DC – Today, Senate Armed Services Ranking Member Jack Reed (D-RI) joined Ranking Senate Defense Appropriator Chris Coons (D-DE), Senate Minority Leader Chuck Schumer (D-NY), Senate Appropriations Vice Chair Patty Murray (D-WA), Senate Intelligence Committee Vice Chairman Mark Warner (D-VA), and several other key members of the Appropriations, Armed Services, Foreign Relations, and Intelligence Committees raised the alarm over public reporting that President Trump is pausing export controls on critical technology sold to China and undermining relations with Taiwan as part of an effort to secure a trade deal with Beijing.

    The Senators are deeply concerned that President Trump’s desire for a perceived “deal” is clouding crucial U.S. export control decisions that could imperil national security, threaten U.S. artificial intelligence advantages, and put other American-generated emerging technologies critical to military programs at risk.

    The twelve U.S. Senators, who also included Senate Appropriations Subcommittee on State and Foreign Operations Ranking Member Brian Schatz (D-HI), Senate Foreign Relations Committee member Tim Kaine (D-VA), Senate Foreign Relations Committee member Tammy Duckworth (D-IL), Senate Armed Services Committee member Mark Kelly (D-AZ), Senate Intelligence Committee member Michael Bennet (D-CO), Senate Armed Services Committee member Elissa Slotkin (D-MI), and Senate Subcommittee on National Security and International Trade and Finance Ranking Member Andy Kim (D-NJ), issued the following joint statement:

    “President Trump has spent the past six months eroding our advantages over China, but recent developments make clear how willing his administration is to sacrifice American economic and technological leadership for symbolic “wins” with China in Trump’s self-inflicted trade war.

    “In just the last two days, we have seen reporting that the Trump administration has cancelled a long-planned high-level security dialogue with Taiwan and denied the president of Taiwan the ability to transit the United States—a longstanding tradition respected by administrations of both parties. These developments come right on the heels of a decision to pave the way for the sale of advanced AI chips to China and to freeze export controls on additional American technologies enabling them to now flow to China, even as Beijing tightens export controls on the United States. Independent media reports today suggest these moves are an attempt to secure trade concessions, curry favor with President Xi Jinping, and ensure President Trump gets a visit to China. The president is demonstrating to Beijing that he can be cajoled into giving up America’s core interests.

    “In the face of lackluster domestic economic forecasts and anemic interest from Beijing in achieving a real breakthrough in talks, President Trump and his economic team have ceded leverage and negotiating power to Beijing in a desperate attempt to lure President Xi to a meeting with President Trump. Even more dangerously, they risk putting American national security, technological advantage, and economic prosperity on the chopping block in order to do so.

    “President Trump is handing our primary geopolitical adversary the keys to the castle of 21st century global technological dominance. Doing so will enable Chinese leadership in artificial intelligence, infusing the Chinese military with the technological advantage it needs to continue hostile operations across the globe. He is signaling his ambivalence about standing with Taiwan, our long-term partner in the region and a powerhouse of the global economy. And he is emboldening Beijing to take aggressive actions and seek even more aggressive concessions in whatever trade negotiations may follow.

    “President Trump and this administration must reset their dangerously weak approach to China and make clear they will no longer accept symbolic wins in exchange for steep American concessions. An administration convinced it can renegotiate the world order needs to stop negotiating against itself.”

    MIL OSI USA News

  • MIL-OSI USA: Leading National Security Dems Alarmed by Trump’s Steep Concessions to China

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    WASHINGTON, DC – Today, Senate Armed Services Ranking Member Jack Reed (D-RI) joined Ranking Senate Defense Appropriator Chris Coons (D-DE), Senate Minority Leader Chuck Schumer (D-NY), Senate Appropriations Vice Chair Patty Murray (D-WA), Senate Intelligence Committee Vice Chairman Mark Warner (D-VA), and several other key members of the Appropriations, Armed Services, Foreign Relations, and Intelligence Committees raised the alarm over public reporting that President Trump is pausing export controls on critical technology sold to China and undermining relations with Taiwan as part of an effort to secure a trade deal with Beijing.

    The Senators are deeply concerned that President Trump’s desire for a perceived “deal” is clouding crucial U.S. export control decisions that could imperil national security, threaten U.S. artificial intelligence advantages, and put other American-generated emerging technologies critical to military programs at risk.

    The twelve U.S. Senators, who also included Senate Appropriations Subcommittee on State and Foreign Operations Ranking Member Brian Schatz (D-HI), Senate Foreign Relations Committee member Tim Kaine (D-VA), Senate Foreign Relations Committee member Tammy Duckworth (D-IL), Senate Armed Services Committee member Mark Kelly (D-AZ), Senate Intelligence Committee member Michael Bennet (D-CO), Senate Armed Services Committee member Elissa Slotkin (D-MI), and Senate Subcommittee on National Security and International Trade and Finance Ranking Member Andy Kim (D-NJ), issued the following joint statement:

    “President Trump has spent the past six months eroding our advantages over China, but recent developments make clear how willing his administration is to sacrifice American economic and technological leadership for symbolic “wins” with China in Trump’s self-inflicted trade war.

    “In just the last two days, we have seen reporting that the Trump administration has cancelled a long-planned high-level security dialogue with Taiwan and denied the president of Taiwan the ability to transit the United States—a longstanding tradition respected by administrations of both parties. These developments come right on the heels of a decision to pave the way for the sale of advanced AI chips to China and to freeze export controls on additional American technologies enabling them to now flow to China, even as Beijing tightens export controls on the United States. Independent media reports today suggest these moves are an attempt to secure trade concessions, curry favor with President Xi Jinping, and ensure President Trump gets a visit to China. The president is demonstrating to Beijing that he can be cajoled into giving up America’s core interests.

    “In the face of lackluster domestic economic forecasts and anemic interest from Beijing in achieving a real breakthrough in talks, President Trump and his economic team have ceded leverage and negotiating power to Beijing in a desperate attempt to lure President Xi to a meeting with President Trump. Even more dangerously, they risk putting American national security, technological advantage, and economic prosperity on the chopping block in order to do so.

    “President Trump is handing our primary geopolitical adversary the keys to the castle of 21st century global technological dominance. Doing so will enable Chinese leadership in artificial intelligence, infusing the Chinese military with the technological advantage it needs to continue hostile operations across the globe. He is signaling his ambivalence about standing with Taiwan, our long-term partner in the region and a powerhouse of the global economy. And he is emboldening Beijing to take aggressive actions and seek even more aggressive concessions in whatever trade negotiations may follow.

    “President Trump and this administration must reset their dangerously weak approach to China and make clear they will no longer accept symbolic wins in exchange for steep American concessions. An administration convinced it can renegotiate the world order needs to stop negotiating against itself.”

    MIL OSI USA News

  • MIL-OSI Banking: Samsung Electronics Announces Second Quarter 2025 Results

    Source: Samsung

    Samsung Electronics today reported financial results for the second quarter ended June 30, 2025.
     
    The Company posted KRW 74.6 trillion in consolidated revenue, a decrease of 5.8% compared to the previous quarter. Operating profit decreased to KRW 4.7 trillion.
     
    The Device Solutions (DS) Division reported an increase in revenue on the back of expanded sales of high density, high-performance memory products, but inventory value adjustments in memory and one-off costs related to the impacts of export restrictions related to China in non-memory had an adverse effect on profit. In the Device eXperience (DX) Division, operating profit declined quarter-on-quarter due to a sequential decline in sales volume following the launch of new smartphone models in the first quarter.
     
    Looking ahead to H2, the DS Division plans to proactively meet the growing demand for high-value-added and AI-driven products and continue to strengthen competitiveness in advanced semiconductors. The DX Division will seek to minimize the impact of uncertainties stemming from tariff policies that are likely to persist.
     
     
    Semiconductors Expected To Proactively Meet Continued AI Demand
    The DS Division posted KRW 27.9 trillion in consolidated revenue and KRW 0.4 trillion in operating profit for the second quarter.
     
    In Q2 2025, the Memory Business proactively addressed robust server demand by expanding HBM3E sales and by expanding the proportion of high-density DDR5 products. Also, with the resumption of datacenter projects that were previously delayed, sales of server SSDs increased, helping NAND inventory to decrease significantly. However, earnings were impacted by one-off costs such as inventory value adjustments.
     
    In H2 2025, AI demand is expected to remain robust due to continued investments by major cloud service providers, and therefore server demand for both DRAM and NAND is expected to stay strong.
     
    To align with solid AI-server demand for DRAM, the Memory Business will proactively address the need for high-density products and diversify product offerings through HBM, server LPDDR5x, high-density DDR5, 24Gb GDDR7 and other products. For NAND, the Memory Business plans to increase sales of high-density and high-performance SSDs while accelerating the transition to 8th Generation V-NAND across all applications.
     
    The System LSI Business generated solid revenue from shipments of flagship systems-on-a-chip (SoCs) using the Gate-All-Around (GAA) process, but earnings improvement was limited due to higher costs of developing advanced products.
     
    In H2 2025, the System LSI Business will focus on improving Exynos competitiveness to ensure its adoption in 2026 flagship mobile lineups of a major customer and expanding the sales of ultra-high-resolution and nano-prism sensors.
     
    Despite significant growth in revenue from the first quarter, earnings for the Foundry Business remained weak due to the impact of inventory value adjustments that stemmed from US export restrictions on advanced AI chips to China, as well as a continued low utilization rates at mature nodes.
     
    In H2 2025, the Foundry Business will ramp up mass production of a new mobile SoC with the 2nm GAA process. It also aims to improve factory utilization and profitability through expanded sales to major customers.
     
     
    SDC To Further Accelerate Leadership By Differentiating and Enhancing Display Technologies
    Samsung Display Corporation (SDC) posted KRW 6.4 trillion in consolidated revenue and KRW 0.5 trillion in operating profit for the second quarter.
     
    For the mobile display business, SDC saw a revenue increase based on the response to new smartphones of major customers as well as the expansion of sales in the IT and automotive segments. The large display business experienced continued growth in sales of QD-OLED monitor displays, driven by robust demand in the gaming market.
     
    In H2 2025, the mobile display business expects sales growth from major customers’ new smartphone launches amid ongoing market uncertainties. It also aims to strengthen market leadership with differentiated technologies and the continued expansion of sales beyond smartphone displays. The large display business will seek to maintain a stable supply of TV panels while continuing to accelerate the penetration of QD-OLED monitors by enhancing the product lineup.
     
     
    MX Grows Revenue and Operating Profit YoY, Will Focus on Flagship Sales and AI Capabilities
    The Mobile eXperience (MX) and Networks businesses posted KRW 29.2 trillion in consolidated revenue and KRW 3.1 trillion in operating profit for the second quarter.
     
    In Q2 2025, the MX Business experienced a decrease in smartphone shipments compared to Q1, when new models were released, but both revenue and operating profit grew YoY through robust sales of the Galaxy S25 series, Galaxy A series and Galaxy tablets. The Business also maintained solid double-digit profitability via efficient resource management.
     
    In H2 2025, the MX Business plans to continue a flagship-first approach for smartphone sales focusing on foldables and the Galaxy S25 series — while emphasizing the AI functionality of the Galaxy A series — to increase market share. It will also reinforce the AI capabilities of tablets and wearables and expand the Galaxy ecosystem with the launch of products with new form-factors, including extended reality (XR) and TriFold devices, and contribute to maintaining solid profitability despite market uncertainties and rising bill of materials (BOM) costs.
     
    The Networks Business improved profitability in Q2 2025 by expanding revenue in overseas markets and enhancing cost efficiencies, and in H2 2025, it will focus on achieving revenue targets and regaining competitiveness by securing new orders with optimized costs.
     
     
    Visual Display Enhances Sales Mix, Targets the Capture of Peak-Season Demand in H2
    The Visual Display and Digital Appliances businesses posted KRW 14.1 trillion in consolidated revenue and KRW 0.2 trillion in operating profit in the second quarter.
     
    In Q2 2025, the Visual Display Business improved the sales of premium products, such as Neo QLED and OLED TVs, but earnings declined due to stagnant demand and intensified competition.
     
    In H2 2025, the Business plans to reinforce revenue growth by capturing peak-season demand, based on a strengthened lineup of high-value-added TVs offering superior viewing experiences with enhanced AI features. In addition, the Business will drive solid profitability and growth through its differentiated experiences and services including SmartThings, Samsung Knox, Samsung Art Store and Samsung TV Plus.

    MIL OSI Global Banks

  • MIL-OSI China: China, U.S. should respect each other’s core interests, avoid conflicts: Chinese FM

    Source: People’s Republic of China – State Council News

    China, U.S. should respect each other’s core interests, avoid conflicts: Chinese FM

    Chinese Foreign Minister Wang Yi, also a member of the Political Bureau of the Communist Party of China Central Committee, meets with a delegation of the Board of Directors of the U.S.-China Business Council in Beijing, capital of China, July 30, 2025. [Photo/Xinhua]

    BEIJING, July 30 — China and the United States should respect each other’s core and major interests, and avoid falling into confrontation and conflict, Chinese Foreign Minister Wang Yi said in Beijing on Wednesday.

    He called on the two sides to establish more channels for communication and consultation, view each other with an objective, rational and pragmatic attitude, and foster correct strategic perceptions.

    Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks when meeting with a delegation of the Board of Directors of the U.S.-China Business Council (USCBC).

    He said that no matter how the situation changes, China has maintained the continuity and stability of its policy towards the United States, and China will handle and advance its relations with the U.S. in accordance with three principles: mutual respect, peaceful coexistence and win-win cooperation.

    China is willing to strengthen contact with the United States to avoid misjudgment, control differences, explore cooperation, implement the consensus reached between their two heads of state, and promote the stable, healthy and sustainable development of China-U.S. relations, he said.

    He also urged adhering to the principles of respect, equality and reciprocity and refraining from unilateral hegemony, calling for doing more big, practical and good things for the benefits of the two countries and the world.

    Wang noted that China will expand its high-level opening-up and build a first-class business environment that is market-oriented, law-based and internationalized. China hopes that U.S. companies will continue to be optimistic about China and invest in the country to achieve mutual benefits and common growth, he added.

    China hopes that the U.S. business community will take on the role of conveying correct perceptions of China, cultivate friendship between the Chinese and U.S. peoples, and practice mutually beneficial cooperation, making new and positive contributions to the development of China-U.S. relations and the friendship between the two peoples, he said.

    The delegation included USCBC Board Chair Rajesh Subramaniam; Thermo Fisher Scientific Chairman Marc N. Casper; Otis Worldwide Corporation Chair Judy Marks; Goldman Sachs President and COO John E. Waldron; Senior Vice President of the Boeing Company and President of Boeing Global Brendan Nelson; founder and Vice Chair of United Family Healthcare Roberta Lipson; Apple Inc. COO Sabih Khan; and USCBC President Sean Stein.

    They said that the U.S.-China relationship is the most important bilateral relationship in the world today, and that the good, far-sighted interaction between the two countries’ heads of state has provided guidance and impetus for the development of bilateral relations.

    The U.S. business community will continue to take root in China and deepen its presence, expanding cooperation in areas such as trade, investment, technological innovation, green development and health care, they said, noting that they will participate in China’s high-quality development and promote further connectivity between China and the world.

    USCBC is committed to actively leveraging its influence to expand bilateral economic and trade cooperation, strengthen people-to-people exchange, enhance mutual understanding, and advance the U.S.-China relationship towards a more vigorous, balanced and mutually beneficial direction, they said.

    MIL OSI China News