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Category: China

  • MIL-OSI USA: ICYMI: Gillibrand Op-Ed in CoinDesk: Why We Need A Bipartisan Stablecoin Bill

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand
    In case you missed it, U.S. Senator Kirsten Gillibrand published an opinion piece in CoinDesk explaining the need for a bipartisan bill to regulate stablecoins – cryptocurrencies whose values are pegged to national currencies or high-quality financial assets. The op-ed follows the introduction of the bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which she introduced alongside Senators Bill Hagerty, Cynthia Lummis, and Tim Scott.
    Read the full op-ed here or below:
    Why We Need a Bipartisan Stablecoin Bill – Gillibrand
    Kirsten Gillibrand | February 10, 2025
    The new Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act lays the groundwork for a new era of American exceptionalism, says Senator Kirsten Gillibrand, of New York.
    For the past century, the U.S. has reigned as the economic superpower of the world. The key to this sustained economic might is a regulatory environment that encourages and enables technological innovation. From semiconductors to personal computers to internet 1.0 and 2.0, U.S. companies have led in developing cutting-edge technologies because our country empowers its builders and creators. Unfortunately, when it comes to Web3 – the next generation of the internet built on blockchain, digital assets, and cryptocurrencies – we are trailing and are at risk of falling further behind.
    In 2023, the European Union passed comprehensive cryptocurrency regulation [americanbar.org], and numerous meaningful provisions went into effect this past summer. China’s central bank has been promoting its digital yuan [forbes.com], which threatens the U.S. dollar’s role as the global reserve currency. The U.S. is just watching, while our opponents move pieces on the chessboard.
    It is absolutely essential to our country’s future that the U.S. enact clear and sensible cryptocurrency regulations that foster innovation and keep Web3 jobs within our borders, protect consumers, and maintain the dominance of the U.S. dollar.
    We should start with stablecoins.
    For newcomers, stablecoins are cryptocurrencies whose values are pegged to national currencies or high-quality financial assets. This gives them stability and enables them to play a crucial role in the digital economy, where they combine the transaction speed and low cost of digital assets with the price stability of traditional reserve currencies. The U.S. is already playing a major role in this space. According to one report, more than 95% of stablecoins are “linked to the U.S. dollar.”
    The many use cases of stablecoins have earned them support from policymakers across the ideological spectrum. Conservatives value their low-cost, frictionless and instantaneous payment abilities, which can lower costs on merchants and consumers and spur startups and economic activity. Progressives appreciate their use in lowering the cost of remittances and reaching the underbanked and underserved, and their ability to increase access to basic financial services.
    It must be acknowledged that, as with any new technology, stablecoins have challenges. Some stablecoins, backed by complex algorithms instead of stable reserve currency, have collapsed due to design flaws. Additionally, unlike bank deposits, stablecoins are not FDIC insured, creating risks should the issuer go bankrupt. While concerns have been raised about money laundering, stablecoins aren’t misused for this purpose any more than traditional cash. But for the public to have confidence in stablecoins, and for businesses to adopt them, we need clear regulations to provide consumer protection, to govern issuers and to guard against money laundering.
    The bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which I introduced Feb. 4 alongside Senators Bill Hagerty, Cynthia Lummis, and Tim Scott, will address these challenges, and create a clear regulatory environment that enables the cryptocurrency environment to thrive.
    It protects consumers by holding stablecoin issuers to strict reserve requirements, requiring them to maintain one-to-one reserves in cash and cash equivalents. The bill prohibits the issuing of unbacked, algorithmic stablecoins, the collapse of which have led to substantial losses. To address their use for illicit purposes, it requires approved stablecoin issuers to comply with U.S. anti-money laundering and sanctions rules. Finally, the bill clarifies rules around conservatorship and procedure should a stablecoin issuer experience insolvency.
    While this bill will undoubtedly be tweaked as it moves through Congress, it has already received input from a wide swath of stakeholders, including industry participants, academic experts and federal regulators. It’s a true bipartisan effort that will empower innovators and builders while simultaneously rooting out bad actors.
    Laying the groundwork for the next century of American exceptionalism is a mission that should unite us all, and positioning the United States at the leading edge of the next iteration of the internet is key to that goal. Stablecoins are already playing an important role, and it’s critical we act now to maintain our position as the leader in global economic competitiveness.

    MIL OSI USA News –

  • MIL-OSI USA: Markey Leads Members of Massachusetts Delegation Blasting Trump’s Drastic Cuts to National Institutes of Health Funding

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey

    Washington (February 10, 2025) – Senator Edward J. Markey (D-Mass.), top Democrat on the Primary Health and Retirement Security Subcommittee of the Health Education, Labor, and Pensions (HELP) Committee, along with Senator Elizabeth Warren (D-Mass.) and Representatives Richard Neal (MA-01), Jim McGovern (MA-02), Lori Trahan (MA-03), Katherine Clark (MA-05), Seth Moulton (MA-06), Ayanna Pressley (MA-07), Stephen Lynch (MA-08), and Bill Keating (MA-09) released the following statement today on the Trump administration’s cuts to the National Institutes of Health (NIH).     

    “Investments in medical research lead to cures, jobs, and economic growth,” said the Massachusetts lawmakers. “The Trump administration is drastically cutting NIH funding and giving away the United States’ and Massachusetts’ leadership in biomedical innovation to pay for tax breaks for billionaires. These cuts and the chaos this announcement has created is already being felt across the country by hospitals, state universities, and research institutions, by the people whose jobs rely on this funding, and by families who will have to wait longer for treatments and cures for Alzheimer’s, Parkinson’s, cancer, diabetes, and more.     

    Massachusetts is a national leader in developing groundbreaking treatments and cures, giving hope to patients, families, and caregivers in need of breakthroughs and discoveries. Committed health providers, researchers, and workers drive these innovations, relying on sustainable funding to do their work. The Trump administration’s illegal NIH funding cut is not only going to impede their work to improve our health care system and save lives, but also diminish our competitiveness and cede leadership to China. This action must be reversed.”  

    In 2024, Massachusetts received nearly 6,000 grants amounting to $3.5 billion, or 9.3 percent of all NIH funding, despite having just 2% of the population.

    President Trump’s nominee for NIH director, Jay Bhattacharya, M.D., Ph.D. will appear before the HELP Committee.

    MIL OSI USA News –

  • MIL-OSI USA: Cantwell Statement on Trump’s Latest Steel & Aluminum Tariffs: “He Wants to Double Down on Raising Costs for Americans Even More”

    US Senate News:

    Source: United States Senator for Washington Maria Cantwell

    02.10.25

    Cantwell Statement on Trump’s Latest Steel & Aluminum Tariffs: “He Wants to Double Down on Raising Costs for Americans Even More”

    In 2024, state imported $1.2B worth of steel & aluminum for aerospace, shipbuilding, electronics & more; Last week, Cantwell delivered a speech on Senate floor calling for increasing exports & voted against advancing Trump’s trade nominee

    WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation and a senior member of the Senate Committee on Finance, issued the following statement in response to President Donald Trump’s new 25% tariffs on all steel and aluminum imports.

    “Many of Trump’s tariffs on steel and aluminum have been in place since 2018. Nothing was resolved and they added costs to cars, building materials, and energy projects. Now in 2025, he wants to double down raising costs for Americans even more,” Sen. Cantwell said.

    In Washington state, two out of every five jobs are tied to trade and trade-related industries. Combined, the state imported $1.21 billion worth of steel and aluminum last year – and the major industries and employers in Washington that rely on steel and aluminum include aerospace, shipbuilding, utilities, and electronics. When President Trump imposed steel tariffs in 2018, our trading partners immediately responded by imposing tariffs of their own on Washington products, especially agriculture, including cherries, apples, pears, and potatoes. Nationally, across all industries, the steel and aluminum tariffs resulted in a decrease in production worth about $3.4 billion per year, according to an ITC report.  The United States imports $58.81 billion in steel and aluminum every year.

    Last week, Sen. Cantwell also delivered a major speech on the Senate floor last week, arguing that the president’s arbitrary tariffs would threaten domestic job creation and economic growth in an Information Age. She outlined a strategy focused on building coalitions, growing exports, and establishing principles to support innovation in the Information Age.

    Sen. Cantwell also voted against advancing the nomination of Howard Lutnick, President Trump’s choice to be Secretary of the Department of Commerce, citing concerns with Lutnick’s support for Trump’s proposed tariffs. More information on how President Trump’s proposed tariffs on goods from Mexico, Canada, and China would affect consumers and businesses in the State of Washington can be found HERE.

    Sen. Cantwell has remained a steadfast supporter of free trade to grow the economy in the State of Washington and nationwide. Sen. Cantwell was the leading voice in negotiations to end India’s 20 percent retaliatory tariff on American apples, which was imposed in response to tariffs on steel and aluminum and devastated Washington state’s apple exports. India had once been the second-largest export market for American apples, but after then-President Trump imposed tariffs on steel and aluminum in his first term, India imposed retaliatory tariffs in response and U.S. apple exports plummeted. The impact on Washington apple growers was severe:  apple exports from the state dropped from $120 million in 2017 to less than $1 million by 2023.  In September 2023, following several years of Sen. Cantwell’s advocacy, India ended its retaliatory tariffs on apples and pulse crops which was welcome news to the state’s more than 1,400 apple growers and the 68,000-plus workers they support.

    In May 2023, Sen. Cantwell sent a letter urging the Biden Administration to help U.S. potato growers finally get approval to sell fresh potatoes in Japan. In June 2023, Sen. Cantwell hosted U.S. Sen. Debbie Stabenow (D-MI), then-chair of the Committee on Agriculture, Nutrition, and Forestry, in Washington state for a forum with 30 local agricultural leaders in Wenatchee to discuss the Farm Bill.

    In 2022, Sen. Cantwell spearheaded passage of the Ocean Shipping Reform Act, a law to crack down on skyrocketing international ocean shipping costs and ease supply chain backlogs that raise prices for consumers and make it harder for U.S. farmers and exporters to get their goods to the global market.

    In August 2020, during the height of the COVID-19 pandemic, Sen. Cantwell sent a letter to then-Secretary of Agriculture Sonny Perdue requesting aid funds be distributed to wheat growers. In December 2018, Sen. Cantwell celebrated the passage of the Farm Bill, which included $500 million of assistance for farmers, including those who grow wheat.

    In 2019, Sen. Cantwell helped secure a provision in the $16 billion USDA relief package, ensuring sweet cherry growers could access emergency funding to offset the impacts of tariffs and other market disruptions.

    MIL OSI USA News –

  • MIL-OSI China: ‘Ne Zha 2’ forecast to become world’s highest-grossing animated film of all time

    Source: China State Council Information Office 3

    People walk out of a movie screening room at a cinema in Kunming, southwest China’s Yunnan Province, Feb. 3, 2025. [Photo/Xinhua]

    Chinese ticketing platform Maoyan has further revised its forecast for “Ne Zha 2,” projecting the animated blockbuster will reach 14.25 billion yuan (about 1.99 billion U.S. dollars) in total earnings in China.

    The new estimate, announced Monday night, would position the Chinese feature as the highest-grossing animated film in global box office history, and potentially place it among the top seven highest-grossing films of all time across all categories globally.

    The revised projection came just one day after Maoyan had raised its domestic box office forecast for the film to over 12 billion yuan — up from its estimate of 10.8 billion yuan on Feb. 6. As the first Chinese release expected to cross the 10-billion-yuan threshold, the film is a milestone for Chinese cinema.

    MIL OSI China News –

  • MIL-OSI Security: 80 Years Later: 1st Cavalry Division returns to the Philippines to Commemorate the Battle of Manila

    Source: United States INDO PACIFIC COMMAND

    MANILA, Philippines  –  

    80 years ago, on Feb. 3, 1945, the battle for the capital of the Philippines began between Allied Forces and Imperial Japan. The 1st Cavalry Division was one of three divisions under the control of Gen. Douglas MacArthur. It was here that the 1st Cavalry Division earned its nickname, “America’s First Team,” by being the first U.S. Forces to re-enter Manila after its capture in 1942.

    The battle and subsequent liberation of Manila and the Philippines, in the spring of 1945, fulfilled a promise made by Gen. MacArthur in the spring of 1942: When President Theodore D. Roosevelt ordered him to Australia, he said, “I shall return.”

    On a hot Feb. morning at Adamson University in the heart of the capital, the city government of Manila held a ceremony and wreath-laying in honor of this historic event. The ceremony honored our shared history, ongoing commitment, and continued partnership with the Philippines and the Filipino people.

    The Mayor of Manila City, Honey Lacuna Pangan, presided over the ceremony. Commemorating this historical event, several other countries, including the United Kingdom, Australia, Japan, China, and Canada, were represented on-site.

    The U.S. Ambassador to the Philippines, MaryKay L. Carlson, participated in the ceremony and placed a wreath in honor of those Americans and Filipinos who laid down their lives for the freedom of the Filipino people and the two countries.

    Lt. Col. John Dolan, Commander of the 1st Cavalry Squadron, 7th Cavalry Regiment “Garryowen,” was on hand to represent the 1st Cavalry Division at the ceremony along with representatives from 5th Security Forces Assistance Brigade and I Corps, both based out of Joint Base Lewis-McChord, Wa.

    “We’re here to honor the courage and sacrifice of so many soldiers and civilians in the liberation of Manila,” said Lt Col. Dolan, “and recognize the bond between both Americans and Filipinos share in our history and the pursuit of freedom.”

    As the number of the Greatest Generation dwindles and will soon be gone, continuing to commemorate these events ensures their efforts and history is not lost. The Liberation of Manila’s 80th anniversary honors the past generations’ sacrifices to safeguard freedom while inspiring future generations to carry the torch.

    MIL Security OSI –

  • MIL-OSI Global: As Trump abandons the old world order, NZ must find its place in a new ‘Pax Autocratica’

    Source: The Conversation – Global Perspectives – By Chris Ogden, Associate Professor in Global Studies, University of Auckland, Waipapa Taumata Rau

    Donald Trump is moving rapidly to change the contours of contemporary international affairs, with the old US-dominated world order breaking down into a multipolar one with many centres of power.

    The shift already includes the US leaving the World Health Organization and the Paris Climate Accords, questioning the value of the United Nations, and radical cuts to the US Agency for International Development (USAID).

    Such a new geopolitical age also involves an assertion of raw power, with Trump using the threat of tariffs to assert global authority and negotiating positions.

    While the US is not significantly less powerful, this new era may see it wield that power in more openly self-interested and isolationist ways. As new US Secretary of State Marco Rubio put it in January, “the post-war global order is not just obsolete – it is now a weapon being used against us”.

    With global democracy in retreat, the emerging international order looks to be moving in an authoritarian direction. As it does, the position of New Zealand’s vibrant democracy will come under mounting pressure.

    But world orders have come and gone for millennia, reflecting the ebb and flow of global economic, political and military power. Looking back to previous eras, and how countries and cultures responded to shifting geopolitical realities, can help us understand what is happening more clearly.

    An evolving world order

    Previous orders have often focused on specific centres – or “poles” – of power. These include the Concert of Europe from 1814 to 1914, the bipolar world of the Cold War between the US and the Soviet Union, and the unipolar world of American dominance after the end of the Cold War and since the September 11 attacks in 2001.

    Periods of single-power dominance (or hegemony) are referred to as a “pax”, from the Latin for “peace”. We have seen the Pax Romana of the Roman Empire (27 BCE to 180 AD), multiple Pax Sinicas around China (most recently the Qing Dynasty 1644 to 1912), Pax Mongolica (the Mongol Empire from 1271 to 1368) and Pax Britannica (the British Empire from 1815 to 1924).

    It is the Pax Americana of the US, from 1945 to the present, that Trump seems bent on dismantling. We now live in an international order that is visibly in flux. With autocracy on the rise and the US at its vanguard, a “Pax Autocratica” is emerging.

    This is accentuated by the rapid rise of Asia as the main sphere of economic and military growth, particularly China and India. The world’s two most populous countries had the world’s largest and third largest economies respectively in 2023, and the second and fourth highest levels of military spending.

    The simultaneous rise of multiple power centres was already challenging the Pax Americana. Now, a new international order appears to be a certainty, with Trump openly adapting to multipolarity. Several major powers now compete for global influence, rather than any one country dominating.

    China’s preference for a multipolar international order is shared by India and Russia. Without one dominant entity, it will be the political and social basis of this order, as determined by its major actors, that matters most – not who leads it.

    Pax Democratica

    The current (now waning) international order has been underpinned by specific social, political and economic values stemming from the national identity and historical experience of the US.

    According to US political expert G. John Ikenberry, former president Woodrow Wilson’s agenda for peace after the first world war sought to “reflect distinctive American ideas and ideals”.

    Woodrow imagined an order based on collective security and shared sovereignty, liberal principles of democracy and universal human rights, free trade and international law.

    As its dominance and military strength increased in the 20th century, the US also provided security to other countries. Such power enabled Washington to create open global trade markets, as well as build core global institutions like the World Bank, International Monetary Fund, World Trade Organization, United Nations and NATO.

    For Ikenberry, this Pax Americana (we might call it a Pax Democratica) rested on consent to the US’s “provision of security, wealth creation, and social advancement”. This was aided by the its more than 800 military bases in over 80 countries.

    The democratic deficit

    Trump undercuts the central tenets of this liberal world order and accelerates a slide towards authoritarianism. Like Russia, India and China, the US is also actively constraining human rights, attacking minorities and weakening its electoral system.

    This democratic retreat leaves a country such as New Zealand in a global minority. If Trump targets the region or country with economic tariffs, that precariousness might increase.

    On the other hand, previous world orders have not been truly hegemonic. Pax Britannica did not encompass the entire world. Nor did Pax Americana, which didn’t include China, India, the former Soviet bloc, much of the Islamic world and many developing countries.

    This suggests pockets of democracy can survive within a Pax Autocratica, especially in a multipolar world which is more tolerant of political independence.

    The Economist Intelligence Unit’s 2023 Democracy Index ranked New Zealand, the Nordic countries, Switzerland, Iceland and Ireland highest because their citizens

    choose their political leaders in free and fair elections, enjoy civil liberties, prefer democracy over other political systems, can and do participate in politics, and have a functioning government that acts on their behalf.

    It is these countries that can be at the vanguard of democratic resilience.

    Chris Ogden is a Senior Research Fellow with The Foreign Policy Centre, London.

    – ref. As Trump abandons the old world order, NZ must find its place in a new ‘Pax Autocratica’ – https://theconversation.com/as-trump-abandons-the-old-world-order-nz-must-find-its-place-in-a-new-pax-autocratica-249358

    MIL OSI – Global Reports –

  • MIL-OSI China: Ancient genomic study unveils migration and integration patterns in East Asia

    Source: China State Council Information Office 2

    A study on ancient genomes from east China’s Shandong Province has revealed the complex migration and integration patterns of populations in East Asia spanning over 6,000 years.
    Published in the journal Nature Communications, the research provides new insights into how ancient people moved and mixed across northern coastal regions, inland areas, and islands.
    Conducted by a team of Chinese scientists led by Fu Qiaomei from the Institute of Vertebrate Paleontology and Paleoanthropology (IVPP) of the Chinese Academy of Sciences, the study analyzed nuclear genomes from 85 individuals at 11 archaeological sites in Shandong, dating back 6,000 to 1,500 years.
    Collaborators included researchers from Shandong University, Shandong Provincial Institute of Cultural Relics and Archaeology, and Jinan Archaeological Research Institute.
    The study reveals that ancestral groups from northern and southern East Asia began mixing in coastal regions at least 7,700 years ago, earlier than previously believed.
    Genetic data from the Xiaojingshan population, dating back 7,700 years, shows strong links to both southern East Asian and ancient Heilongjiang River Basin populations, updating the timeline of north-south genetic interactions in the region.
    The research also highlights two major waves of genetic influence from northern inland populations into Shandong coastal groups during the Dawenkou culture period (6,000-4,600 years ago) and the early dynastic period (3,500-1,500 years ago).
    These genetic exchanges did not always align with known cultural interactions, such as those between the Yangshao and Dawenkou cultures, suggesting complex demographic dynamics beyond cultural connections.
    In a significant breakthrough, the study traces genetic ties between the populations of Shandong and the ancient inhabitants of Miyako Island in the Ryukyu archipelago, southern Japan.
    The Nagabaka population, dating back 500 years, inherited about 75 percent of their ancestry from Shandong groups during the Longshan period (4,600-4,000 years ago), mixed with indigenous Jomon-related lineages.
    This discovery clarifies a previously unknown East Asian component in the Ryukyu triple-origin model and explains genetic differences between Ryukyu and mainland Japanese populations.
    The findings underscore Shandong’s role as a genetic bridge connecting inland, coastal, and island populations over millennia. By integrating north-south and east-west perspectives, the study demonstrates how cultural exchanges, migration, and genetic mixing shaped the diversity of modern East Asians.
    “This research fills critical gaps in our understanding of East Asia’s genetic history,” said Fu, the study’s corresponding author. “It brings us closer to answering the fundamental question: Where do modern East Asians come from?”
    The study not only updates existing theories but also provides a framework for exploring deeper interactions across Eurasia, highlighting the importance of coastal regions in ancient population movements.

    MIL OSI China News –

  • MIL-OSI China: Tribute paid to pioneer of China’s nuclear submarines

    Source: China State Council Information Office 2

    People across China paid great respect to Huang Xuhua, the late chief designer of the nation’s first-generation nuclear submarines, over the past days in remembrance of the renowned engineer’s contributions to the motherland.
    Huang, who received the country’s highest honor, the Medal of the Republic, in September 2019 and the nation’s top science and technology award in January 2020, died on Thursday evening in Wuhan, Hubei province, at the age of 99. A funeral service for him was held on Monday at the city’s Wuchang funeral parlor.
    Inside a memorial hall at the Wuhan-based Nuclear Submarine Institute of China State Shipbuilding Corp, farewell flowers were arranged in the shape of a submarine and ocean waves in front of Huang’s portrait at a farewell ceremony held on Saturday and Sunday.
    Students from primary and middle schools and universities, as well as local residents and colleagues of Huang, came to the site to salute, pay their respects and say farewell to the preeminent researcher.
    Many people from outside Wuhan ordered flowers from online shops and asked them to be delivered to the farewell ceremony.
    In Huang’s hometown of Shanwei in Guangdong province, at Shanghai Jiao Tong University where the researcher studied, and at the PLA Naval Museum in Qingdao, Shandong province, ceremonies were held in remembrance of the submarine designer.
    Many people who commented below online news reports about Huang’s passing said they were grateful to the late engineer, because what he had done had safeguarded the country and its people, and had also contributed to making China a great power in the world.
    In 1958, Huang became one of China’s first researchers designated to design the nation’s own nuclear-powered submarines. Since then, his name remained classified until almost three decades later, when a magazine in Shanghai was allowed to publish a report on him, which only disclosed his surname of Huang.
    From his early 30s to his passing, Huang was closely linked to China’s nuclear submarine force. He led the research and development of the nation’s first-generation nuclear submarines — the Type 09I nuclear-powered attack submarine and the Type 09II nuclear-powered ballistic missile submarine. He also trained and established a group of engineers who have played central roles in building new generations of nuclear submarines.
    In addition, Huang had been director of the Nuclear Submarine Institute of China State Shipbuilding Corp and an academician of the Chinese Academy of Engineering.

    MIL OSI China News –

  • MIL-OSI China: China’s Spring Festival spending spree fuels global business growth

    Source: China State Council Information Office

    On a balmy afternoon on the first day of the Chinese Spring Festival, a queue of nearly 40 people, over half of them being Chinese tourists, snaked around the plain ice cream stall of “Uncle Chieng” on Orchard Road, Singapore.

    “Recently, more than half of the customers are Chinese tourists. Around the Spring Festival, I sell about 20 percent more ice cream each day compared to usual,” said Chieng Puay Chui, owner of the stall, which has become one of the must-visit spots for Chinese tourists.

    This scene is just a microcosm of the vibrant Spring Festival celebrations that have swept China and beyond, the first Lunar New Year festivities after the Spring Festival was added to UNESCO’s intangible cultural heritage list.

    The festival, which falls on Jan. 29 this year, with week-long nationwide celebrations around the date, has not only ignited a surge in domestic consumption but also created vast opportunities for international businesses, as Chinese consumers embrace global goods and cultures.

    A girl participates in activities to celebrate the Chinese New Year in London, Britain, on Feb. 2, 2025. [Photo/Xinhua]

    Global goods, local celebrations

    The Spring Festival, a time for family reunion and feasting, has seen a growing appetite for “foreign New Year goods” among Chinese consumers. From French wine to Chilean cherries, global delicacies have become essential elements of the Chinese New Year shopping list.

    France’s Occitanie region, renowned for its wine, has been actively promoting its produce in China through platforms like the China International Import Expo and the “From French Farms to Chinese Tables” initiative. For French wine producers, the Spring Festival is one of the best opportunities to promote their products.

    “Ahead of the Chinese New Year, we organized various events to support wine producers from the Occitanie region and importers in distributing their products so that they would be available during the Spring Festival,” said Catherine Machabert, food and wine international director of the economic development agency of the Occitanie Region.

    “For the Year of the Snake, distributors have prepared a variety of gift boxes featuring snake-themed designs to promote the wines,” said Machabert, adding that Occitanie has always maintained strong ties with China and recognizes the importance of the Chinese market.

    Meanwhile, French confectionery giant Andros has capitalized on the festive season by launching special gift packs and organizing in-store tastings. “Our sales during this Spring Festival are expected to double compared to previous years, setting a new record,” said Maxence Zeng, general manager of Andros China.

    Chilean cherries, with their vibrant red hue and symbolic association with prosperity in the Chinese culture, have also become a favorite among Chinese consumers.

    China is a very important market for fresh Chilean cherries, not only because it receives more than 90 percent of total exports, “but also because of the friendly relationship that has been built between our cherries and the people of China,” said Claudia Soler, executive director of the Chilean Cherry Committee.

    A poster of the animated feature “Ne Zha 2” is pictured at a cinema in Shenyang, northeast China’s Liaoning Province, Feb. 6, 2025. [Photo/Xinhua]

    Two-way cultural exchanges

    The Spring Festival is not just about shopping and feasting; it’s also a time for travel and cultural exploration. With extended holidays and visa-free policies, Chinese tourists have been flocking to international destinations, while foreign visitors have been arriving in China to experience the festivities firsthand.

    On the pristine beaches of Zanzibar, Tanzania, Chinese tourists Li Chenguang and his wife, Zhao Xue, marveled at the natural beauty surrounding them. “We can witness the Great Migration in the Serengeti, the azure waters of the Indian Ocean and even the snow-capped peaks of Mount Kilimanjaro,” Zhao exclaimed with excitement.

    Meanwhile, in Malaysia, Kuala Lumpur International Airport has been bustling as Chinese tourists head to Malaysia for tropical experiences and Malaysian travelers embark on winter adventures in China. “We’re planning to visit Harbin, hike up Changbai Mountain and savor traditional northeastern dishes like Guo Bao Rou (crispy sweet and sour pork),” said Zhou Jinglang, a tour guide of a Malaysian travel agency.

    According to the National Immigration Administration, China recorded 14.37 million cross-border trips during the Spring Festival holiday season, a 6.3 percent increase from a year earlier. About 1 million of these trips were made by foreign nationals, marking a 22.9 percent year-on-year rise.

    Meanwhile, the 2025 Spring Festival holiday has marked a new milestone for China’s thriving film industry, with box office revenue soaring to an unprecedented 9.51 billion yuan (approximately 1.33 billion U.S. dollars) between Jan. 28 and Feb. 4, according to the China Film Administration.

    A staggering 187 million moviegoers flocked to cinemas throughout the holiday week, setting new all-time highs in both box office earnings and audience turnout.

    Released on Jan. 29, the first day of Chinese New Year, Chinese animated blockbuster “Ne Zha 2” has shattered multiple box office records, becoming the first film to cross 1 billion dollars in a single market and the first non-Hollywood title to join the coveted billion-dollar club.

    Customers select newly arrived Chilean cherries at a supermarket in Tianjin, north China, Dec. 26, 2024. [Photo/Xinhua]

    Vast business opportunities

    The Spring Festival consumption boom has not only showcased the resilience and vitality of China’s economy but also highlighted the potential for international collaboration. From French dairy products to Chilean cherries, foreign businesses are eager to tap into the vast Chinese market and capitalize on emerging consumer trends.

    “Occitanie has always maintained strong ties with China and recognizes the importance of the Chinese market. With its Shanghai office, the regional agency will continue to support wine, agri-food, and cosmetics companies in entering or expanding in the Chinese market,” said Machabert, the trade official of the Occitanie Region.

    Meanwhile, Herve Lanoe, chief executive officer of French dairy company Fit Group, noted that Chinese consumers are increasingly prioritizing quality and health. “Butter with a protected designation of origin is highly appreciated by our Chinese client,” he said, adding that the company will try to take advantage of this opportunity.

    Over the years, Garces Fruit, Chile’s largest cherry exporter, has been actively expanding its presence in China. “The Chinese market is fundamental for the trade of Chilean cherries,” said Hernan Garces Gazmuri, the export manager of Garces Fruit.

    “It is a clear example of win-win,” said Garces Gazmuri, who settled in China in 2017 and opened an office in 2018. “It produces a lot of employment, from the harvests, the packaging, all this positive dynamic is generated thanks to the Chinese market. This industry does not exist without China.”

    “We want to continue to explore the market, developing e-commerce and boosting our Garces Fruit brand. I think there is a lot to do,” he said.

    MIL OSI China News –

  • MIL-OSI China: Thailand cracks down on mobile, internet signal misuse

    Source: China State Council Information Office

    Thai authorities are taking steps to crack down on the misuse of mobile and internet signals along the border as part of their ongoing efforts to combat transnational scam operations.

    The crackdown operation launched in Thailand’s Sa Kaeo province at the border with Cambodia on Monday aims to cut off critical communication channels exploited by scam syndicates operating in three locations across the border, said Yingyot Thepchamnong, commander of Provincial Police Region 2.

    In a statement, Yingyot said investigations revealed that scam syndicates rely heavily on Thailand’s mobile and internet infrastructure to conduct fraudulent activities targeting Thai citizens.

    These operations concealed their activities by using Thai SIM cards and internet connections, making calls and messages appear to be from within Thailand, he added.

    He noted that the Thai telecom regulator has directed mobile operators to curtail signal ranges in critical border areas and dismantle unauthorized infrastructure in order to limit scammers’ access to Thai telecommunications networks from across the border.

    Last week, Thailand’s National Security Council decided to suspend electricity, internet signals and fuel supply to five areas along the border with Myanmar, suspected to be used as bases for cyber scam operations.

    MIL OSI China News –

  • MIL-OSI China: Chinese business delegation visits Kazakhstan for closer cooperation

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

    BEIJING, Feb. 10 — A delegation of Chinese entrepreneurs from the financial, energy, infrastructure and smart equipment sectors embarked on a four-day trip to Kazakhstan on Monday to promote economic and trade cooperation between the two countries, according to the China Council for the Promotion of International Trade (CCPIT).

    The delegation, led by Ren Hongbin, chairman of the CCPIT, includes representatives from more than 30 Chinese enterprises such as CITIC Group, China National Petroleum Corporation (CNPC), Sinopec, China National Offshore Oil Corporation, and Sinochem Holdings. During the visit, they plan to sign cooperation documents and promote mutually beneficial outcomes.

    Wu Junli, deputy chief economist with PetroChina Company Limited, a subsidiary of CNPC, said that the energy cooperation between China and Kazakhstan in the oil and gas sector is highly complementary. He noted that his company has established long-term and stable partnerships with Kazakh partners and expressed high expectations for the trip.

    “We hope to engage in in-depth exchanges with logistics enterprises in Kazakhstan and other places in Central Asia through this trip,” Zhu Guangmei, deputy general manager at Beijing Tegene Robots Co., Ltd. said, adding that the company aims to promote the integration of intelligent logistics equipment with the needs of local companies, thereby improving efficiency and achieving win-win outcomes.

    MIL OSI China News –

  • MIL-Evening Report: China: Cook Islands’ relationship with Beijing ‘should not be restrained’

    By Caleb Fotheringham, RNZ Pacific journalist

    China and the Cook Islands’ relationship “should not be disrupted or restrained by any third party”, says Chinese Foreign Ministry spokesperson Guo Jiakun, as opposition leaders in Rarotonga express a loss of confidence in Prime Minister Mark Brown.

    In response to questions from the Associated Press about New Zealand government’s concerns regarding Brown’s visit to Beijing this week, Guo said Cook Islands was an important partner of China in the South Pacific.

    “Since establishing diplomatic relations in 1997, our two countries have respected each other, treated each other as equals, and sought common development, achieving fruitful outcomes in exchanges and cooperation in various areas,” he said.

    “China stands ready to work with the Cook Islands for new progress in bilateral relations.”

    Guo said China viewed both New Zealand and the Cook Islands as important cooperation partners.

    “China stands ready to grow ties and carry out cooperation with Pacific Island countries, including the Cook Islands,” he said.

    “The relationship between China and the Cook Islands does not target any third party, and should not be disrupted or restrained by any third party.”

    Information ‘in due course’
    Guo added that Beijing would release information about the visit and the comprehensive strategic partnership agreement “in due course”.

    Chinese Foreign Ministry spokesperson Guo Jiakun . . . “China stands ready to grow ties and carry out cooperation with Pacific Island countries.” Image: China’s Ministry of Foreign Affairs/RNZ

    However, Cook Islanders, as well as the New Zealand government, have been left frustrated with the lack of clarity over what is in the deal which is expected to be penned this week.

    United Party leader Teariki Heather is planning a protest on February 17 against Brown’s leadership.

    He previously told RNZ that it seemed like Brown was “dictating to the people of the Cook Islands, that I’m the leader of this country and I do whatever I like”.

    Another opposition MP with the Democratic Party, Tina Browne, is planning to attend the protest.

    She said Brown “doesn’t understand the word transparent”.

    “He is saying once we sign up we’ll provide copies [of the deal],” Browne said.

    “Well, what’s the point? The agreement has been signed by the government so what’s the point in providing copies.

    “If there is anything in the agreement that people do not agree with, what do we do then?”

    Repeated attempts by Peters
    New Zealand’s Foreign Affairs office said Winston Peters had made repeated attempts for the government of the Cook Islands to share the details of the proposed agreement, which they had not done.

    Peters’ spokesperson, like Browne, said consultation was only meaningful if it happened before an agreement was reached, not after.

    “We therefore view the Cook Islands as having failed to properly consult New Zealand with respect to any agreements it plans to sign this coming week in China,” the spokesperson said.

    Prime Minister Brown told RNZ Pacific that he did not think New Zealand needed to see the level of detail they are after, despite being a constitutional partner.

    Ocean Ancestors, an ocean advocacy group, said Brown’s decision had taken people by surprise, despite the Cook Islands having had a long-term relationship with the Asia superpower.

    “We are in the dark about what could be signed and so for us our concerns are that we are committing ourselves to something that could be very long term and it’s an agreement that we haven’t had consensus over,” the organisation’s spokesperson Louisa Castledine said.

    The details that Brown has shared are that he would be seeking areas of cooperation, including help with a new inter-island vessel to replace the existing ageing ship and for controversial deep-sea mining research.

    Castledine hopes that no promises have been made to China regarding seabed minerals.

    “As far as we are concerned, we have not completed our research phase and we are still yet to make an informed decision about how we progress [on deep-sea mining],” she said.

    “I would like to think that deep-sea mining is not a point of discussion, even though I am not delusional to the idea that it would be very attractive to any agreement.”

    This article is republished under a community partnership agreement with RNZ.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: As Trump abandons the old world order, NZ must find its place in a new ‘Pax Autocratica’

    Source: The Conversation (Au and NZ) – By Chris Ogden, Associate Professor in Global Studies, University of Auckland, Waipapa Taumata Rau

    Donald Trump is moving rapidly to change the contours of contemporary international affairs, with the old US-dominated world order breaking down into a multipolar one with many centres of power.

    The shift already includes the US leaving the World Health Organization and the Paris Climate Accords, questioning the value of the United Nations, and radical cuts to the US Agency for International Development (USAID).

    Such a new geopolitical age also involves an assertion of raw power, with Trump using the threat of tariffs to assert global authority and negotiating positions.

    While the US is not significantly less powerful, this new era may see it wield that power in more openly self-interested and isolationist ways. As new US Secretary of State Marco Rubio put it in January, “the post-war global order is not just obsolete – it is now a weapon being used against us”.

    With global democracy in retreat, the emerging international order looks to be moving in an authoritarian direction. As it does, the position of New Zealand’s vibrant democracy will come under mounting pressure.

    But world orders have come and gone for millennia, reflecting the ebb and flow of global economic, political and military power. Looking back to previous eras, and how countries and cultures responded to shifting geopolitical realities, can help us understand what is happening more clearly.

    An evolving world order

    Previous orders have often focused on specific centres – or “poles” – of power. These include the Concert of Europe from 1814 to 1914, the bipolar world of the Cold War between the US and the Soviet Union, and the unipolar world of American dominance after the end of the Cold War and since the September 11 attacks in 2001.

    Periods of single-power dominance (or hegemony) are referred to as a “pax”, from the Latin for “peace”. We have seen the Pax Romana of the Roman Empire (27 BCE to 180 AD), multiple Pax Sinicas around China (most recently the Qing Dynasty 1644 to 1912), Pax Mongolica (the Mongol Empire from 1271 to 1368) and Pax Britannica (the British Empire from 1815 to 1924).

    It is the Pax Americana of the US, from 1945 to the present, that Trump seems bent on dismantling. We now live in an international order that is visibly in flux. With autocracy on the rise and the US at is vanguard, a “Pax Autocratica” is emerging.

    This is accentuated by the rapid rise of Asia as the main sphere of economic and military growth, particularly China and India. The world’s two most populous countries had the world’s largest and third largest economies respectively in 2023, and the second and fourth highest levels of military spending.

    The simultaneous rise of multiple power centres was already challenging the Pax Americana. Now, a new international order appears to be a certainty, with Trump openly adapting to multipolarity. Several major powers now compete for global influence, rather than any one country dominating.

    China’s preference for a multipolar international order is shared by India and Russia. Without one dominant entity, it will be the political and social basis of this order, as determined by its major actors, that matters most – not who leads it.

    Pax Democratica

    The current (now waning) international order has been underpinned by specific social, political and economic values stemming from the national identity and historical experience of the US.

    According to US political expert G. John Ikenberry, former president Woodrow Wilson’s agenda for peace after the first world war sought to “reflect distinctive American ideas and ideals”.

    Woodrow imagined an order based on collective security and shared sovereignty, liberal principles of democracy and universal human rights, free trade and international law.

    As its dominance and military strength increased in the 20th century, the US also provided security to other countries. Such power enabled Washington to create open global trade markets, as well as build core global institutions like the World Bank, International Monetary Fund, World Trade Organization, United Nations and NATO.

    For Ikenberry, this Pax Americana (we might call it a Pax Democratica) rested on consent to the US’s “provision of security, wealth creation, and social advancement”. This was aided by the its more than 800 military bases in over 80 countries.

    The democratic deficit

    Trump undercuts the central tenets of this liberal world order and accelerates a slide towards authoritarianism. Like Russia, India and China, the US is also actively constraining human rights, attacking minorities and weakening its electoral system.

    This democratic retreat leaves a country such as New Zealand in a global minority. If Trump targets the region or country with economic tariffs, that precariousness might increase.

    On the other hand, previous world orders have not been truly hegemonic. Pax Britannica did not encompass the entire world. Nor did Pax Americana, which didn’t include China, India, the former Soviet bloc, much of the Islamic world and many developing countries.

    This suggests pockets of democracy can survive within a Pax Autocratica, especially in a multipolar world which is more tolerant of political independence.

    The Economist Intelligence Unit’s 2023 Democracy Index ranked New Zealand, the Nordic countries, Switzerland, Iceland and Ireland highest because their citizens

    choose their political leaders in free and fair elections, enjoy civil liberties, prefer democracy over other political systems, can and do participate in politics, and have a functioning government that acts on their behalf.

    It is these countries that can be at the vanguard of democratic resilience.

    Chris Ogden is a Senior Research Fellow with The Foreign Policy Centre, London.

    – ref. As Trump abandons the old world order, NZ must find its place in a new ‘Pax Autocratica’ – https://theconversation.com/as-trump-abandons-the-old-world-order-nz-must-find-its-place-in-a-new-pax-autocratica-249358

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI China: China’s equipment upgrade, consumer goods trade-in programs deliver fruitful results in 2024

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

    China’s equipment upgrade, consumer goods trade-in programs deliver fruitful results in 2024

    BEIJING, Feb. 10 — China’s large-scale equipment upgrade and consumer goods trade-in programs yielded fruitful results last year, driving strong growth in both investment and consumption, official data showed on Monday.

    The programs, which kicked off last March, drove equipment purchases and investment up by 15.7 percent in 2024, contributing 67.6 percent to overall investment growth, and boosted sales of bulk durable consumer goods by over 1.3 trillion yuan (about 181 billion U.S. dollars), according to the National Development and Reform Commission.

    Equipment upgrades and sales of green products have saved energy equivalent to approximately 28 million tonnes of standard coal, and reduced carbon dioxide emissions by about 73 million tonnes, the commission noted.

    In 2024, over 37 million consumers purchased more than 62 million eligible home appliances, with total sales reaching 270 billion yuan. Items at the highest level of energy efficiency accounted for over 90 percent of the total sales revenue.

    In the auto sector, more than 6.8 million vehicles were traded in for new ones, driving sales by 920 billion yuan. Over 60 percent of consumers opted for new energy vehicles.

    To maintain this momentum, China last month announced a raft of measures to expand the scope of its consumer goods trade-in program, including new subsidies for electronic product trade-ins, as well as an increased number of categories on its trade-in list for eligible home appliances.

    MIL OSI China News –

  • MIL-OSI Russia: MIL Analysis – Five best articles in Russian for 10.02.2025

    MIL Analysis: Here are the top five Russian language articles published today. The analysis consists of five articles that are prioritized at the moment.

    Today’s analysis provides us with economic performance and engagement with different communities. There is also a trend towards respect for human rights. The economy in China is growing and prospering.

    Education is increasing computerization skills and introducing artificial intelligence.

    “Samaraneftegaz” shows the innovative activities of Rosneft. Oil reserves have grown. In addition, science is developing day by day, so NSU scientists have developed a technique for measuring ultra-low concentrations of radioactive substances.

    Below you can read one of the articles.

    1. Financial news: Rules for managing conflicts of interest for NPFs.

    Non-state pension funds (NPFs) will be required to identify and manage conflicts of interest. Funds will be able to allow conflicts to arise only if they have notified their clients and their rights are not violated. The Ministry of Justice of Russia has registered the corresponding decree of the Bank of Russia.

    2. Cultural Code of the Celestial Empire: How to Do Business in China.

    Higher School of Economics

    By 2035, China will overtake the US in terms of GDP and become the world’s largest economy. Today, there are over 108 million entrepreneurs and 50 million industrial enterprises in this country. Last year, the economy grew by 4.8%. This opens up unique opportunities for Russian companies. Vysshka experts tell us how to enter one of the most promising markets.

    3. Vyshka launches advanced training course on AI in education.

    The Computer Science Department of the National Research University Higher School of Economics is launching an advanced training course on artificial intelligence in education. The program is designed for educators, teachers, methodologists planning to integrate AI technologies into the educational process, as well as for management teams of educational institutions interested in improving educational processes through the introduction of AI.

    4. “Samaraneftegaz replenished oil reserves by 180%.

    “Samaraneftegaz (part of Rosneft’s oil production complex) added 19 million tons of commercial oil reserves by the end of 2024, which made it possible to replenish oil production 1.8 times.

    5. NSU scientists have developed a methodology for determining ultra-low concentrations of radioactive substances.

    Scientists of the Physics Department of Novosibirsk State University have developed a technique for measuring ultra-small concentrations of radioactive substances whose decay is accompanied by gamma radiation. Data collection is carried out using a detector made of ultrapure germanium, which is part of the equipment of the NSU Interdepartmental Laboratory of Atomic Physics and Spectrometry; a special hardware and software system has been created for data processing. The first project implemented with the use of this technique is research work to determine the level of radioactive substances (radon) in the soil of mines and coal mines in the Kemerovo region.

    Learn more about MIL’s content and data services by visiting milnz.co.nz.

    Regards MIL!

    MIL OSI Russia News –

  • MIL-OSI USA: ICYMI: Sen. Joni Ernst in WSJ: USAID Is a Rogue Agency

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)
    WASHINGTON – In case you missed it, U.S. Senator Joni Ernst (R-Iowa) detailed in the Wall Street Journal how the U.S. Agency for International Development (USAID) acts against our nation’s best interests and stonewalled her oversight of where tax dollars are going and why. 
    As Senate DOGE Caucus chair and founder, Senator Ernst will continue to work with President Trump’s Department of Government Efficiency (DOGE) to examine how taxpayers’ money is spent and put an end to any waste, fraud, and abuse.
    WSJ: Sen. Joni Ernst: USAID Is a Rogue Agency
    It dodges congressional questions about money that went to sex traffickers and the Wuhan virus lab.
    By: Senator Joni Ernst
    In moments of crisis, America can be counted on for leadership. Our nation’s compassionate giving has saved millions of lives around the world that were at risk from starvation or disease. All Americans should be able to take great pride in our generosity. And the government agencies coordinating aid efforts should be eager to share details about how they’re using taxpayers’ money to make the world a better place.
    Yet the U.S. Agency for International Development, entrusted with disbursing tens of billions of aid dollars to other nations annually, is a rogue bureaucracy. I’ve uncovered that the agency often acts at odds with our nation’s best interests and uses intimidation and shell games to hide where money is going, how it’s being spent and why.
    USAID repeatedly rebuffed my requests for a list of recipients of U.S. tax dollars sent to Ukraine, claiming that the information was classified. Despite the pushback, I persisted. Eventually, USAID permitted my staff to review documents under surveillance in a highly secure room at USAID headquarters, with note-taking prohibited.
    What warranted such secrecy? We learned that the aid that was supposed to alleviate economic distress in the war-torn nation was spent on such frivolous activities as sending Ukrainian models and designers on junkets to New York City, London Fashion Week, Paris Fashion Week and South by Southwest in Austin, Texas.
    I faced the same stonewalling from USAID when I asked about tax dollars being diverted from project missions for largely unrelated costs, known as the negotiated indirect cost rate. The agency claimed that it wasn’t possible to track. My team debunked that by providing USAID staff with a link to a public database. The agency fired back, warning that divulging this information would violate federal laws, including the Economic Espionage Act.
    When I launched a formal investigation in cooperation with the House Foreign Affairs Committee, USAID relented. Turns out, the agency is allowing grantees to skim significant amounts of money, up to and even beyond half of the total, for themselves.
    We need guarantees that U.S. assistance is helping people in need, but a recent review by the agency’s own inspector general found USAID still “does not have proper documentation to support indirect costs charged” by grant recipients.
    I shouldn’t have to ask these questions. All federal spending is required to be publicly available on the website USAspending.gov, a searchable database created nearly two decades ago by a bipartisan law.
    USAID’s sketchy spending schemes were the impetus for this law aimed at making federal funding more transparent. Congressional investigators in 2005 caught the agency supporting an organization involved with the trafficking of teenage girls in Asia. USAID staff called the claims “destructive” and vehemently denied them. The evidence proved otherwise. A pass-through group, set up with the help of former agency employees, was found funneling U.S. tax dollars into abetting the sex trade operation.
    The agency has learned to exploit loopholes in the law, as my investigation into the origins of the pandemic exposed. The watchdog organization White Coat Waste Project was the first to release evidence that both USAID and Anthony Fauci’s National Institute of Allergy and Infectious Diseases were financing bat studies involving coronaviruses at the Wuhan Institute of Virology. Yet no grants to the Chinese lab appeared in USAspending.gov. Audits later uncovered that more than a million dollars from the U.S. government were paying for the dangerous research. The bulk of the money was provided by USAID, not Dr. Fauci.
    USAID evaded the obligation to report this transaction to USAspending.gov by using multiple pass-through organizations, including the nefarious EcoHealth Alliance, which is now barred from receiving U.S. government grants.
    What was our international development agency developing at China’s Wuhan Institute of Virology? If the Central Intelligence Agency and Federal Bureau of Investigation are correct that the Covid virus likely originated from a lab leak, USAID may have had a hand in a once-in-a-century pandemic that claimed the lives of millions.
    There’s no shortage of other questionable USAID projects. More than $9 million intended for civilian food and medical supplies in Syria ended up in the hands of violent terrorists. Another $2 million was spent promoting tourism to Lebanon, a nation the State Department warns against traveling to due to the risks of terrorism, kidnapping and unexploded land mines.
    USAID spent millions of dollars paying people to dig irrigation ditches in Afghanistan and encouraging farmers to grow food crops instead of poppies for opium. The result: Poppy cultivation nearly doubled.
    Many other groups supported by USAID are doing great work, such as caring for orphans and people living with HIV. Imagine how much more good work could be supported with the dollars that instead ended up enriching terrorists, sex traffickers, mad scientists and drug cartels.
    After keeping its spending records hidden from Congress and taxpayers, USAID employees are now protesting the review of the agency’s records by President Trump’s Department of Government Efficiency. It’s no surprise that Washington insiders are more upset at DOGE for trying to stop wasteful spending than at USAID for misusing tax dollars.
    The question we should be asking isn’t why USAID’s grants are being scrutinized, but why it took so long.
    Ms. Ernst, an Iowa Republican, is founder and chairwoman of the Senate DOGE Caucus.

    MIL OSI USA News –

  • MIL-OSI: Prospect Capital Announces Financial Results for Fiscal December 2024 Quarter

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended December 31, 2024.

    FINANCIAL RESULTS

    All amounts in $000’s except per share amounts (on weighted average basis for period numbers) Quarter Ended Quarter Ended Quarter Ended
    December 31, 2024 September 30, 2024 December 31, 2023
           
    Net Investment Income (“NII”) $86,431 $89,877 $96,927
    NII per Common Share $0.20 $0.21 $0.24
    Interest as % of Total Investment Income 91.0% 94.0% 92.3%
           
    Net Income (Loss) Applicable to Common Shareholders $(30,993) $(165,069) $(51,436)
    Net Income (Loss) per Common Share $(0.07) $(0.38) $(0.13)
           
    Distributions to Common Shareholders $65,554 $77,358 $74,056
    Distributions per Common Share $0.15 $0.18 $0.18
    Cumulative Paid and Declared Distributions to Common Shareholders(1) $4,445,060 $4,384,924 $4,162,509
    Cumulative Paid and Declared Distributions per Common Share(1) $21.39 $21.25 $20.76
    Multiple of Net Asset Value (“NAV”) per Common Share(1) 2.7x 2.6x 2.3x
           
    Total Assets $7,234,855 $7,592,705 $7,781,214
    Total Liabilities $2,164,305 $2,469,590 $2,596,824
    Preferred Stock $1,630,514 $1,612,302 $1,500,741
    Net Asset Value (“NAV”) to Common Shareholders $3,440,036 $3,510,813 $3,683,649
    NAV per Common Share $7.84 $8.10 $8.92
           
    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,879,738 $1,631,291 $1,187,740
           
    Net of Cash Debt to Total Assets 28.1% 29.7% 31.2%
    Net of Cash Debt to Equity Ratio(2) 39.8% 43.7% 46.2%
    Net of Cash Asset Coverage of Debt Ratio(2) 351% 329% 316%
           
    Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 91.9% 86.0% 78.4%
    Unsecured and Non-Recourse Debt as % of Total Debt 100.0% 100.0% 100.0%
    (1) Declared dividends are through the April 2025 distribution. February through April 2025 distributions are estimated based on shares outstanding as of 2/7/2025.
    (2)  Including our preferred stock as equity.
       

    CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

    Prospect is declaring distributions to common shareholders as follows:

    Monthly Cash Common Shareholder Distribution Record Date Payment Date Amount ($ per share)
    February 2025 2/26/2025 3/20/2025 $0.0450
    March 2025 3/27/2025 4/17/2025 $0.0450
    April 2025 4/28/2025 5/20/2025 $0.0450

    Prospect expects to declare May 2025, June 2025, July 2025, and August 2025 distributions to common shareholders in May 2025.

    Taking into account past distributions and our current share count for declared distributions, since inception through our April 2025 declared distribution, Prospect will have distributed $21.39 per share to original common shareholders, representing 2.7 times December 2024 common NAV per share, aggregating $4.4 billion in cumulative distributions to all common shareholders.

    Since Prospect’s initial public offering in July 2004 through December 31, 2024, Prospect has invested over $21 billion across over 400 investments, exiting over 300 of these investments.

    Drivers focused on optimizing our business include: (1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans, including sometimes with selected equity investments, (2) continued amortization of our subordinated structured notes portfolio, (3) prudent exits of equity linked assets (including real estate properties and corporate investments), (4) enhancement of portfolio company operating performance, and (5) greater utilization of our cost efficient revolving floating rate credit facility.

    In our middle market lending strategy, we recently provided a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment to Taos Footwear Holdings, LLC (“Taos Footwear”), aggregating $65 million, in collaboration with Taos Footwear’s founder and leadership team. Taos Footwear is a leading, innovative footwear brand providing customers with stylish and supportive footwear products. Taos Footwear is renowned for its supportive footbed that has reshaped the lifestyle footwear industry over the past 20 years.

    Examples of similar recent investments in our middle market lending strategy with both first lien senior secured debt and equity linked investments include Druid City Infusion, LLC (an infusion therapy services company with multiple locations across the South and Mountain West regions of the United States), Discovery Point Retreat, LLC (a rapidly growing detox and rehabilitation provider in North Texas), The RK Logistics Group, Inc. (a logistics service provider of turnkey inventory management and transportation services focused on technology and other sectors), and iQor Holdings, Inc. (a provider of customer experience services and business process outsourcing services).

    Our subordinated structured notes portfolio as of December 31, 2024 represented 5.8% of our investment portfolio, a reduction of 210 basis points from 7.9% as of December 31, 2023. Since the inception of this strategy in 2011 and through December 31, 2024, we have exited 15 subordinated structured note investments that have earned an unlevered investment level gross cash internal rate of return (“IRR”) of 12.1% and cash on cash multiple of 1.3 times. The remaining subordinated structured notes portfolio had a trailing twelve month average cash yield of 24.4% and an annualized GAAP yield of 3.9% (in each case as of December 31, 2024, based on fair value, and excluding investments being redeemed), with the difference between cash yield and GAAP yield representing amortization of our cost basis.

    In our real estate property portfolio at National Property REIT Corp. (“NPRC”), since the inception of this strategy in 2012 and through December 31, 2024, we have exited 51 property investments (including two exits in the December 2024 quarter) that have earned an unlevered investment-level gross cash IRR of 24.3% and cash on cash multiple of 2.5 times. The remaining real estate property portfolio included 59 properties and paid us an income yield of 6.9% for the quarter ended December 31, 2024. Our aggregate investments in the related portfolio company had a $522 million unrealized gain as of December 31, 2024.

    Our senior management team and employees own 28.7% of all common shares outstanding (an increase of 240 basis points since June 30, 2024) or approximately $1.0 billion of our common equity as measured at NAV.

    PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

    All amounts in $000’s except per unit amounts As of As of As of
    December 31, 2024 September 30, 2024 December 31, 2023
           
    Total Investments (at fair value) $7,132,928 $7,476,641 $7,631,846
    Number of Portfolio Companies 114 117 126
    Number of Industries 33 33 36
           
    First Lien Debt 64.9% 64.9% 58.7%
    Second Lien Debt 10.2% 11.1% 15.5%
    Subordinated Structured Notes 5.8% 6.2% 7.9%
    Unsecured Debt 0.1% 0.1% 0.1%
    Equity Investments 19.0% 17.7% 17.8%
    Mix of Investments with Underlying Collateral Security 80.9% 82.2% 82.1%
           
    Annualized Current Yield – All Investments 9.1% 9.7% 10.1%
    Annualized Current Yield – Performing Interest Bearing Investments 11.2% 11.8% 12.3%
           
    Non-Accrual Loans as % of Total Assets (1) 0.4% 0.5% 0.2%
           
    Middle-Market Loan Portfolio Company Weighted Average EBITDA(2) $101,644 $104,682 $109,719
    Middle-Market Loan Portfolio Company Weighted Average Net Leverage Ratio(2) 6.1x 5.7x 5.4x
    (1) Calculated at fair value.
    (2) For additional disclosure see “Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage” at the end of the release.
       

    During the March 2025 (to date), December 2024, and September 2024 quarters, investment originations (including follow on investments in existing portfolio companies) and repayments were as follows:

    All amounts in $000’s Quarter Ended Quarter Ended Quarter Ended
    March 31, 2025
    (to date)    		 December 31, 2024 September 30, 2024
           
    Total Originations $110,724 $134,956 $290,639
           
    Middle-Market Lending 86.4% 67.7% 85.8%
    Middle-Market Lending / Buyouts —% 14.5% 6.1%
    Real Estate 13.6% 17.8% 7.8%
    Subordinated Structured Notes —% —% —%
           
    Total Repayments and Sales $19,480 $383,363 $282,328
           
    Originations, Net of Repayments and Sales $91,244 $(248,407) $8,311
           

    For additional disclosure see “Primary Origination Strategies” at the end of this release.

    CAPITAL AND LIQUIDITY

    Our multi-year, long-term laddered and diversified historical funding profile has included a $2.1 billion revolving credit facility (aggregate commitments with 48 current lenders), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. We have retired multiple upcoming maturities and, after we retire our upcoming $156.2 million convertible bond maturity due March 2025 (utilizing existing liquidity on hand), will have just $3.9 million remaining of debt maturing during calendar year 2025.

    On June 28, 2024, we completed an extension and upsizing of our Revolving Credit Facility (the “Revolving Credit Facility”), which extended the term of the Facility five years and the revolving period to four years from such date. The Facility includes a revolving period that extends through June 28, 2028, followed by an additional one-year amortization period. The interest rate for amounts drawn under the Facility remained unchanged from prior to the extension and upsizing and is one-month SOFR plus 2.05%.

    Our total unfunded eligible commitments to portfolio companies totals approximately $62 million, of which $29 million are considered at our sole discretion, representing 0.9% and 0.4% of our total assets as of December 31, 2024, respectively.

      As of As of
    All amounts in $000’s December 31, 2024 September 30, 2024
    Net of Cash Debt to Total Assets Ratio 28.1% 29.7%
    Net of Cash Debt to Equity Ratio(1) 39.8% 43.7%
    % of Interest-Bearing Assets at Floating Rates 79.8% 81.0%
    Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 91.9% 86.0%
         
    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,879,738 $1,631,291
         
    Unencumbered Assets $4,763,601 $4,852,971
    % of Total Assets 65.8% 63.9%
    (1) Including our preferred stock as equity.
       

    The below table summarizes our December 2024 quarter term debt issuance and repurchase/repayment activity:

    All amounts in $000’s Principal Coupon Maturity
    Debt Issuances      
    Prospect Capital InterNotes® $41,759 6.625% – 7.75% January 2027 – December 2034
    Total Debt Issuances $41,759    
           
    Debt Repurchases/Repayments      
    Prospect Capital InterNotes® $1,187 2.25% – 6.63% May 2026 – December 2051
    2026 Notes $11,443 3.706% January 2026
    Total Debt Repurchases/Repayments $12,630    
           
    Net Debt Repurchases/Repayments $29,129    

    We currently have four separate unsecured debt issuances aggregating approximately $1.1 billion outstanding, not including our program notes, with laddered maturities extending through October 2028. At December 31, 2024, $644 million of program notes were outstanding with laddered maturities through March 2052.

    At December 31, 2024 our weighted average cost of unsecured debt financing was 4.49%, an increase of 0.07% from September 30, 2024, and an increase of 0.34% from December 31, 2023.

    We have raised significant capital from our existing $2.25 billion perpetual preferred stock offering programs. The preferred stock provides Prospect with a diversified source of programmatic capital without creating scheduled maturity risk due to the perpetual term of multiple preferred tranches.

    DIVIDEND REINVESTMENT PLAN

    We have adopted a dividend reinvestment plan (also known as our “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate.

    HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN

    Shares held with a broker or financial institution

    Many shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the “Prospect Capital Corporation DRIP through DTC” that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker’s own “synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.

    Shares registered directly with our transfer agent

    If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, Equiniti Trust Company, LLC by calling (888) 888-0313 or by mailing Equiniti Trust Company LLC, PO Box 10027, Newark, New Jersey 07101.

    EARNINGS CONFERENCE CALL

    Prospect will host an earnings call on Tuesday, February 11, 2025 at 9:00 a.m. Eastern Time. Dial 888-338-7333. For a replay after February 11, 2025 visit www.prospectstreet.com or call 877-344-7529 with passcode 2146236.

    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (in thousands, except share and per share data)
     
      December 31, 2024   June 30, 2024
      (Unaudited)   (Audited)
    Assets      
    Investments at fair value:      
    Control investments (amortized cost of $3,323,998 and $3,280,415, respectively) $ 3,772,329   $ 3,872,575
    Affiliate investments (amortized cost of $11,735 and $11,594, respectively) 20,212   18,069
    Non-control/non-affiliate investments (amortized cost of $3,689,972 and $4,155,165, respectively) 3,340,387   3,827,599
    Total investments at fair value (amortized cost of $7,025,705 and $7,447,174, respectively) 7,132,928   7,718,243
    Cash and cash equivalents (restricted cash of $1,508 and $3,974, respectively) 59,760   85,872
    Receivables for:      
    Interest, net 18,428   26,936
    Other 1,914   1,091
    Deferred financing costs on Revolving Credit Facility 21,180   22,975
    Prepaid expenses 641   1,162
    Due from broker —   734
    Due from Affiliate 4   79
    Total Assets 7,234,855   7,857,092
    Liabilities      
    Revolving Credit Facility 301,522   794,796
    Public Notes (less unamortized discount and debt issuance costs of $10,075 and $12,433, respectively) 966,197   987,567
    Prospect Capital InterNotes® (less unamortized debt issuance costs of $9,299 and $7,999, respectively) 634,535   496,029
    Convertible Notes (less unamortized debt issuance costs of $166 and $649, respectively) 156,002   155,519
    Due to Prospect Capital Management 50,700   58,624
    Interest payable 23,214   21,294
    Dividends payable 20,076   25,804
    Due to Prospect Administration 5,070   5,433
    Accrued expenses 4,028   3,591
    Due to broker 2,762   10,272
    Other liabilities 199   242
    Total Liabilities 2,164,305   2,559,171
    Commitments and Contingencies      
    Preferred Stock, par value $0.001 per share (847,900,000 and 647,900,000 shares of preferred stock authorized, with 80,000,000 and 80,000,000 as Series A1, 80,000,000 and 80,000,000 as Series M1, 80,000,000 and 80,000,000 as Series M2, 20,000,000 and 20,000,000 as Series AA1, 20,000,000 and 20,000,000 as Series MM1, 1,000,000 and 1,000,000 as Series A2, 6,900,000 and 6,900,000 as Series A, 80,000,000 and 80,000,000 as Series A3, 80,000,000 and 80,000,000 as Series M3, 90,000,000 and 80,000,000 as Series A4, 90,000,000 and 80,000,000 as Series M4, 20,000,000 and 20,000,000 as Series AA2, 20,000,000 and 20,000,000 as Series MM2, 90,000,000 and 0 as Series A5, and 90,000,000 and 0 as Series M5, each as of December 31, 2024 and June 30, 2024; 27,968,443 and 28,932,457 Series A1 shares issued and outstanding, 1,309,907 and 1,788,851 Series M1 shares issued and outstanding, 0 and 0 Series M2 shares issued and outstanding, 0 and 0 Series AA1 shares issued and outstanding, 0 and 0 Series MM1 shares issued and outstanding, 163,000 and 164,000 Series A2 shares issued and outstanding, 5,251,157 and 5,251,157 Series A shares issued and outstanding, 24,476,826 and 24,810,648 Series A3 shares issued and outstanding, 2,732,317 and 3,351,101 Series M3 shares issued and outstanding, 2,192,884 and 1,401,747 Series M4 shares issued and outstanding, 7,012,458 and 3,766,166 Series A4 issued and outstanding, 0 and 0 Series AA2 shares issued and outstanding, 0 and 0 Series MM2 shares issued and outstanding, 0 and 0 Series A5 issued and outstanding, and 0 and 0 Series M5 issued and outstanding as of December 31, 2024 and June 30, 2024, respectively) at carrying value plus cumulative accrued and unpaid dividends 1,630,514   1,586,188
    Net Assets Applicable to Common Shares $ 3,440,036   $ 3,711,733
    Components of Net Assets Applicable to Common Shares and Net Assets, respectively      
    Common stock, par value $0.001 per share (1,152,100,000 and 1,352,100,000 common shares authorized; 438,851,578 and 424,846,963 issued and outstanding, respectively) 439   425
    Paid-in capital in excess of par 4,267,636   4,208,607
    Total distributable (loss) (828,039)   (497,299)
    Net Assets Applicable to Common Shares $ 3,440,036   $ 3,711,733
    Net Asset Value Per Common Share $ 7.84   $ 8.74
     
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share data)
    (Unaudited)
     
      Three Months Ended December 31, Six Months Ended December 31,
      2024   2023 2024   2023
    Investment Income            
    Interest income (excluding payment-in-kind (“PIK”) interest income):            
    Control investments $ 57,386   $ 41,690 $ 109,768   $ 90,816
    Non-control/non-affiliate investments 87,159   105,749 182,069   212,105
    Structured credit securities 4,054   8,882 8,233   25,569
    Total interest income (excluding PIK interest income) 148,599   156,321 300,070   328,490
    PIK interest income:            
    Control investments 13,884   26,834 33,594   50,951
    Non-control/non-affiliate investments 6,315   11,476 19,749   17,637
    Total PIK Interest Income 20,199   38,310 53,343   68,588
    Total interest income 168,798   194,631 353,413   397,078
    Dividend income:            
    Control investments 4,387   — 4,387   227
    Affiliate investments —   — 141   1,307
    Non-control/non-affiliate investments 2,574   1,340 4,843   2,865
    Total dividend income 6,961   1,340 9,371   4,399
    Other income:            
    Control investments 8,416   11,616 15,383   41,361
    Non-control/non-affiliate investments 1,291   3,355 3,607   4,349
    Total other income 9,707   14,971 18,990   45,710
    Total Investment Income 185,466   210,942 381,774   447,187
    Operating Expenses            
    Base management fee 37,069   39,087 75,675   78,376
    Income incentive fee 13,632   18,325 29,312   43,942
    Interest and credit facility expenses 37,979   40,044 77,739   80,637
    Allocation of overhead from Prospect Administration 5,708   12,252 11,416   14,365
    Audit, compliance and tax related fees 80   479 1,800   1,496
    Directors’ fees 150   131 300   266
    Other general and administrative expenses 4,417   3,697 9,224   5,566
    Total Operating Expenses 99,035   114,015 205,466   224,648
    Net Investment Income 86,431   96,927 176,308   222,539
    Net Realized and Net Change in Unrealized Gains (Losses) from Investments            
    Net realized gains (losses)            
    Control investments 3   — 6,370   (147)
    Non-control/non-affiliate investments (46,656)   123 (153,393)   (207,219)
    Net realized gains (losses) (46,653)   123 (147,023)   (207,366)
    Net change in unrealized gains (losses)            
    Control investments 30,419   (99,441) (143,829)   (117,235)
    Affiliate investments (1,446)   1,751 2,002   2,588
    Non-control/non-affiliate investments (69,053)   (27,051) (22,020)   188,535
    Net change in unrealized gains (losses) (40,080)   (124,741) (163,847)   73,888
    Net Realized and Net Change in Unrealized Gains (Losses) from Investments (86,733)   (124,618) (310,870)   (133,478)
    Net realized gains (losses) on extinguishment of debt 236   (53) 484   (144)
    Net Increase (Decrease) in Net Assets Resulting from Operations (66)   (27,744) (134,078)   88,917
    Preferred Stock dividends (26,228)   (24,070) (53,385)   (47,221)
    Net gain (loss) on redemptions of Preferred Stock (906)   378 1,398   879
    Gain (loss) on Accretion to Redemption Value of Preferred Stock (3,793)   — (9,997)   —
    Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders $ (30,993)   $ (51,436) $ (196,062)   $ 42,575
     
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE
    (in actual dollars)
     
      Three Months Ended December 31,   Six Months Ended December 31,  
      2024   2023   2024   2023  
    Per Share Data                
    Net asset value per common share at beginning of period $         8.10   $         9.25   $         8.74   $         9.24  
    Net investment income(1) 0.20   0.24   0.41   0.54  
    Net realized and change in unrealized gains (losses)(1) (0.21)   (0.30)   (0.74)   (0.33)  
    Net increase (decrease) from operations (0.01)   (0.06)   (0.33)   0.21  
    Distributions of net investment income to preferred stockholders (0.06) (4) (0.07) (3) (0.12) (4) (0.12) (3)
    Distributions of capital gains to preferred stockholders — (4) — (3) — (4) — (3)
    Total distributions to preferred stockholders (0.06)   (0.07)   (0.12)   (0.12)  
    Net increase (decrease) from operations applicable to common stockholders (0.07)   (0.13)   (0.45)   0.10 (7)
    Distributions of net investment income to common stockholders (0.15) (4) (0.18) (3) (0.33) (4) (0.34) (3)
    Return of capital to common stockholders — (4) — (3) — (4) (0.02) (3)(6)
    Total distributions to common stockholders (0.15)   (0.18)   (0.33)   (0.36)  
    Common stock transactions(2) (0.04)   (0.02)   (0.13)   (0.06)  
    Net asset value per common share at end of period $         7.84   $         8.92   $         7.84 (7) $         8.92 (7)
    (1) Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share). Realized gains (losses) is inclusive of net realized losses (gains) on investments, realized losses (gains) from extinguishment of debt and realized gains (losses) from the repurchases and redemptions of preferred stock.
       
    (2) Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments, common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% Preferred Stock and 6.50% Preferred Stock.
       
    (3) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2024.
       
    (4) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2025.
       
    (5) Diluted net decrease from operations applicable to common stockholders was $0.07 for the three months ended December 31, 2024. Diluted net decrease from operations applicable to common stockholders was $0.13 for the three months ended December 31, 2023. Diluted net decrease from operations applicable to common stockholders was $0.45 for the six months ended December 31, 2024. Diluted net increase from operations applicable to common stockholders was $0.10 for the six months ended December 31, 2023.
       
    (6) The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2023 and our Form 10-Q filing for December 31, 2023. Certain reclassifications have been made in the presentation of prior period amounts.
       
    (7) Does not foot due to rounding.
       

    MIDDLE-MARKET LOAN PORTFOLIO COMPANY WEIGHTED AVERAGE EBITDA, NET LEVERAGE AND INTERNAL RATE OF RETURN

    Middle-Market Loan Portfolio Company Weighted Average Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Loan Portfolio Company Weighted Average EBITDA (“Middle-Market Portfolio EBITDA”) provide clarity into the underlying capital structure of PSEC’s middle-market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal.

    Middle-Market Portfolio Net Leverage reflects the net leverage of each of PSEC’s middle-market loan portfolio company debt investments, weighted based on the current fair market value of such debt investments. The net leverage for each middle-market loan portfolio company is calculated based on PSEC’s investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to PSEC’s position within the capital structure because PSEC’s exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, subordinated structured notes, rated secured structured notes, real estate investments, investments for which EBITDA is not available, and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Net Leverage provides PSEC with some guidance as to PSEC’s exposure to the interest payment and principal repayment risk of PSEC’s middle-market loan portfolio. PSEC monitors its Middle-Market Portfolio Net Leverage on a quarterly basis.

    Middle-Market Portfolio EBITDA is used by PSEC to supplement Middle-Market Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal. Middle-Market Portfolio EBITDA is calculated using the EBITDA of each of PSEC’s middle-market loan portfolio companies, weighted based on the current fair market value of the related investments. The calculation provides PSEC with insight into profitability and scale of the portfolio companies within PSEC’s middle-market loan portfolio.

    These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments, and other nonrecurring transaction expenses.

    Together, Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC’s underlying portfolio company debt investments, but to supplement such analysis.

    Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

    PRIMARY ORIGINATION STRATEGIES

    Lending to Companies – We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.

    Lending to Companies and Purchasing Controlling Equity Positions in Such Companies – This strategy involves purchasing senior and secured yield-producing debt and controlling equity positions in operating companies across various industries. We believe this strategy provides enhanced certainty of closing to sellers and the opportunity for management to continue on in their current roles. These investments are often structured in tax-efficient partnerships, enhancing returns.

    Purchasing Controlling Equity Positions and Lending to Real Estate Companies – We purchase debt and controlling equity positions in tax-efficient real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing and senior living. NPRC seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition. Additionally, NPRC makes investments in rated secured structured notes (primarily debt of structured credit). NPRC also purchases loans originated by certain consumer loan facilitators. It purchases each loan in its entirety (i.e., a “whole loan”). The borrowers are consumers, and the loans are typically serviced by the facilitators of the loans.

    Investing in Structured Credit – We make investments in structured credit, often taking a significant position in subordinated structured notes (equity). The underlying portfolio of each structured credit investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate, mortgages, or consumer-based credit assets. The structured credit portfolios in which we invest are managed by established collateral management teams with many years of experience in the industry.

    About Prospect Capital Corporation

    Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

    Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

    Caution Concerning Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

    For additional information, contact:

    Grier Eliasek, President and Chief Operating Officer
    grier@prospectcap.com
    Telephone (212) 448-0702

    The MIL Network –

  • MIL-OSI: Astera Labs Announces Financial Results for the Fourth Quarter of Fiscal Year 2024

    Source: GlobeNewswire (MIL-OSI)

    • Record quarterly revenue of $141.1 million, up 25% QoQ and up 179% YoY
    • Fiscal 2024 record revenue of $396.3 million, up 242% versus the prior year
    • Ramping across diverse set of customers and platforms with four product families in fiscal 2025

    SANTA CLARA, Calif., Feb. 10, 2025 (GLOBE NEWSWIRE) — Astera Labs, Inc. (Nasdaq: ALAB), a global leader in semiconductor-based connectivity solutions for cloud and AI infrastructure, today announced preliminary financial results for the fourth quarter and full fiscal year 2024, ended December 31, 2024.

    “Astera Labs delivered strong Q4 results, with revenue growing 25% versus the previous quarter, and capped off a stellar 2024 with 242% revenue growth year-over-year,” said Jitendra Mohan, Astera Labs’ Chief Executive Officer. “The revenue growth in 2024 was largely driven by Aries PCIe Retimer products, with Taurus Smart Cable Modules for Ethernet coming in strongly in Q4. We expect 2025 to be a breakout year as we enter a new phase of growth driven by revenue from all four of our product families to support a diverse set of customers and platforms. This includes our flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering.”

    Fourth Quarter of Fiscal 2024 Financial Highlights

    GAAP Financial Results:  

    • Revenue of $141.1 million, up 25% sequentially and up 179% year-over-year
    • GAAP gross margin of 74.0%
    • GAAP operating income of $0.1 million
    • GAAP operating margin of 0.1%
    • GAAP net income of $24.7 million
    • GAAP diluted net earnings per share of $0.14

    Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

    • Non-GAAP gross margin of 74.1%
    • Non-GAAP operating income of $48.4 million
    • Non-GAAP operating margin of 34.3%
    • Non-GAAP net income of $66.5 million
    • Non-GAAP diluted earnings per share of $0.37

    Full Year Fiscal 2024 Financial Highlights

    GAAP Financial Results:  

    • Revenue of $396.3 million, up 242% year-over-year
    • GAAP gross margin of 76.4%
    • GAAP operating loss of $116.1 million
    • GAAP operating margin of (29.3%)
    • GAAP net loss of $83.4 million
    • GAAP diluted net loss per share of $0.64

    Non-GAAP and Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

    • Non-GAAP gross margin of 76.6%
    • Non-GAAP operating income of $119.6 million
    • Non-GAAP operating margin of 30.2%
    • Non-GAAP net income of $143.3 million
    • Pro forma non-GAAP diluted earnings per share of $0.84

    Full Year Fiscal 2024 Business Highlights

    • Introduced new portfolio of Scorpio Smart Fabric Switches purpose-built for AI infrastructure at cloud-scale. The Scorpio Smart Fabric Switch family features two application-specific product lines with a multi-generational roadmap, including the P-Series for GPU-to-CPU/NIC/SSD PCIe Gen 6 connectivity and the X-Series for platform-specific, back-end AI accelerator clustering. Scorpio is currently shipping in pre-production quantities.
    • Joined the Ultra Accelerator Link Consortium as a promoting member on the Board of Directors. UALink technology will be used to enable efficient high-speed scale-up connectivity between AI accelerators within large and growing cluster sizes for AI workloads. Astera Labs is well positioned to quickly contribute to this new and compelling industry initiative to develop and advance UALink technology.
    • Demonstrated the industry’s first end-to-end PCIe optical connectivity link to provide extended reach for larger, disaggregated GPU clusters. PCIe over optics expands Astera Labs’ widely deployed and field-tested Aries family of Smart DSP retimers and Smart Cable Modules (SCMs) to deliver robust PCIe and CXL connectivity in chip-to-chip, box-to-box, and rack-to-rack topologies throughout the data center.
    • Expanded the widely deployed and field-tested Aries PCIe/CXL Smart DSP Retimer portfolio with the introduction and initial shipment of Aries 6 Retimers, the industry’s lowest power PCIe 6.x/CXL 3.x Retimer solution, to achieve higher bandwidth and extended reach across complex AI and compute topologies.
    • Shipped Aries PCIe/CXL Smart Cable Modules for Active Electrical Cable applications to enable multi-rack GPU clustering and low-latency memory fabric connectivity within AI infrastructure. The solution drives seven meters of reach over flexible copper cables to seamlessly and affordably interconnect clusters of GPUs across rack enclosures.
    • Showcased the first public demonstration of end-to-end interoperability between a PCIe 6.x Switch and a PCIe 6.x SSD at DesignCon 2025. The PCIe 6.x link-up was between an Astera Labs Scorpio P-Series Fabric Switch and Micron’s PCIe 6.x SSDs and showcased remarkable sequential read speeds exceeding 26GB/s.

    First Quarter of Fiscal 2025 Financial Outlook

    Based on current business trends and conditions, Astera Labs estimates the following:

    GAAP Financial Outlook:

    • Revenue within a range of $151 million to $155 million
    • GAAP gross margin of approximately 74%
    • GAAP operating expenses within a range of approximately $113 million to $114 million
    • GAAP tax expense of approximately $3 million
    • GAAP diluted earnings per share within a range of approximately $0.03 to $0.04 on weighted-average diluted shares outstanding of approximately 180 million

    Non-GAAP Financial Outlook (excluding the impact of approximately $47 million of stock-based compensation and including approximately $3 million of additional income taxes):

    • Non-GAAP gross margin of approximately 74%
    • Non-GAAP operating expenses within a range of approximately $66 million to $67 million
    • Non-GAAP tax rate of approximately 10%
    • Non-GAAP diluted earnings per share within a range of approximately $0.28 to $0.29 on non-GAAP weighted-average diluted shares outstanding of approximately 180 million

    Earnings Webcast and Conference Call
    Astera Labs will host a conference call to review its financial results for the fourth quarter and full year of fiscal 2024 and to discuss our financial outlook today at 1:30 p.m. Pacific Time. Interested parties may join the conference call by dialing 1-800-715-9871 and using conference ID 5908687. The call will also be webcast and can be accessed at the Astera Labs website at https://ir.asteralabs.com/. The webcast will be recorded and available for replay on the company’s website for the next six months.

    Discussion of Non-GAAP Financial Measures
    We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the closest GAAP measure can be found later in this release. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP diluted earnings (loss) per share, and non-GAAP weighted-average share count. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding certain items that may not be indicative of our recurring core operating results, we believe that, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP pro forma diluted earnings (loss) per share, and non-GAAP pro forma weighted-average share count provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

    No reconciliation is provided with respect to the forward-looking non-GAAP financial measures included in our non-GAAP financial outlook, as the GAAP measures are not accessible on a forward-looking basis. As a result, we cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort. The events necessitating a non-GAAP adjustment are inherently unpredictable and may have a significant impact on our future GAAP financial results.

    We adjust the following items from one or more of our non-GAAP financial measures:

    Stock-based compensation expense
    We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate non-cash stock-based compensation expense using a variety of valuation methodologies and subjective assumptions. Moreover, stock-based compensation expense is a non-cash charge that can vary significantly from period to period for reasons that are unrelated to our core operating performance, and therefore excluding this item provides investors and other users of our financial information with information that allows meaningful comparisons of our business performance across periods.

    Employer payroll taxes related to stock-based compensation resulting from our IPO
    We exclude employer payroll taxes related to the time-based vesting and net settlement of restricted stock units in connection with our initial public offering (the “IPO”), because this does not correlate to the operation of our business. We believe that excluding this item provides meaningful supplemental information regarding operational performance given the amount of employer payroll tax-related items on employee stock transactions was immaterial prior to our IPO.

    Income tax effect
    This represents the impact of the non-GAAP adjustments on an after-tax basis and one-off discrete tax adjustments that are unrelated to our core operating performance in connection with the presentation of non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share. This approach is designed to enhance investors’ ability to understand the impact of our non-GAAP tax expense on our current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments.

    Non-GAAP pro forma weighted-average shares to compute non-GAAP pro forma net income (loss) per share
    We present non-GAAP pro forma weighted-average shares, assuming our redeemable convertible preferred stock is converted from the beginning of each respective periods presented, to provide meaningful supplemental information regarding EPS trend on a consistent basis. All of our outstanding redeemable preferred stock converted into the equivalent number of shares of common stock in connection with our IPO.

    Cautionary Note Regarding Forward-Looking Statements
    This press release contains forward-looking statements based on Astera Labs’ current expectations. The words “believe”, “estimate”, “expect”, “intend”, “may”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Astera Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Astera Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position and guidance, including for the first quarter of fiscal 2025, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products and anticipated results of those products for our customers, our competitive positioning, including to meet the connectivity market opportunity in the future and initiative to advance UALink technology, technological capabilities and plans, our plans to add R&D talent and strategic IP blocks, and macroeconomic trends in cloud and AI infrastructure. A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation: the competitive and cyclical nature of the semiconductor industry; the concentration of our customer base; the changes in demand for AI; the macroeconomic environment; risks that demand and the supply chain may be adversely affected, including by the imposition of tariffs by the United States and any corresponding retaliatory tariffs, changes in political policies, military conflict (such as between Russia/Ukraine and Israel/Hamas), terrorism, sanctions or other geopolitical events globally (including conflict between Taiwan and China); quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with managing international activities (including trade barriers, particularly with respect to China); absence of long-term commitments from customers; risks that Astera Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; stock price volatility; information technology risks, including cyber-attacks against Astera Labs’ products and its networks; and other risks and uncertainties that are detailed under the caption “Risk Factors” and elsewhere in our Annual Report on 10-K that will be filed with the Securities and Exchange Commission (the “SEC”) and in Quarterly Reports on Form 10-Q filed with the SEC and the other SEC filings and reports Astera Labs may make from time to time.  Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Astera Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

    About Astera Labs
    Our PCIe, CXL and Ethernet semiconductor-based connectivity solutions are purpose-built to unleash the full potential of accelerated computing at cloud-scale. Inspired by trusted partnerships with hyperscalers and the data center ecosystem, we are an innovation leader of products that are customizable, interoperable, and reliable. Discover how we are transforming AI and modern data-driven applications at www.asteralabs.com.

     
    ASTERA LABS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
    (In thousands)
     
        December 31,
    2024    		   December 31,
    2023
    Assets        
    Current assets        
    Cash and cash equivalents   $ 79,551     $ 45,098  
    Marketable securities     834,750       104,215  
    Accounts receivable, net     38,811       8,335  
    Inventory     43,215       24,095  
    Prepaid expenses and other current assets     16,652       4,064  
    Total current assets     1,012,979       185,807  
    Property and equipment, net     35,651       4,712  
    Other assets     5,878       5,773  
    Total assets   $ 1,054,508     $ 196,292  
             
    Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
    Current liabilities        
    Accounts payable   $ 26,918     $ 6,337  
    Accrued expenses and other current liabilities     59,624       28,742  
    Total current liabilities     86,542       35,079  
    Other liabilities     3,167       3,787  
    Total liabilities     89,709       38,866  
    Commitments and contingencies        
    Redeemable convertible preferred stock     –       255,127  
    Stockholders’ equity (deficit)        
    Common stock     16       4  
    Additional paid-in capital     1,173,153       27,411  
    Accumulated other comprehensive income     426       259  
    Accumulated deficit     (208,796 )     (125,375 )
    Total stockholders’ equity (deficit)     964,799       (97,701 )
    Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)   $ 1,054,508     $ 196,292  
     
    ASTERA LABS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
    (In thousands, except per share amounts)
     
        Three Months Ended   Years Ended
        December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Revenue   $ 141,096     $ 113,086     $ 50,514     $ 396,290     $ 115,794  
    Cost of revenue     36,648       25,209       11,489       93,591       35,967  
    Gross profit     104,448       87,877       39,025       302,699       79,827  
                         
    Operating expenses                    
    Research and development     56,524       50,659       19,654       200,830       73,407  
    Sales and marketing     22,818       23,248       4,995       123,652       19,992  
    General and administrative     24,962       22,866       5,356       94,283       15,925  
    Total operating expenses     104,304       96,773       30,005       418,765       109,324  
    Operating income (loss)     144       (8,896 )     9,020       (116,066 )     (29,497 )
    Interest income     10,558       10,912       1,674       34,288       6,549  
    Income (loss) before income taxes     10,702       2,016       10,694       (81,778 )     (22,948 )
    Income tax (benefit) provision     (14,011 )     9,609       (3,631 )     1,643       3,309  
    Net income (loss)   $ 24,713     $ (7,593 )   $ 14,325     $ (83,421 )   $ (26,257 )
                         
    Net income (loss) per share attributable to common stockholders:        
    Basic   $ 0.15     $ (0.05 )   $ —     $ (0.64 )   $ (0.71 )
    Diluted   $ 0.14     $ (0.05 )   $ —     $ (0.64 )   $ (0.71 )
    Weighted-average shares used in calculating net income (loss) per share attributable to common stockholders:                    
    Basic     159,895       156,831       38,627       131,262       37,131  
    Diluted     177,559       156,831       47,636       131,262       37,131  
     
    ASTERA LABS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
    (In thousands)
     
        Years Ended December 31,
          2024       2023  
    Cash flows from operating activities        
    Net loss   $ (83,421 )   $ (26,257 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities        
    Stock-based compensation     234,588       10,679  
    Depreciation     3,154       1,781  
    Non-cash operating lease expense     2,428       1,232  
    Warrants contra revenue     1,395       805  
    Inventory write-downs     168       10,343  
    Accretion of discounts on marketable securities     (8,341 )     (1,624 )
    Changes in operating assets and liabilities:        
    Accounts receivable, net     (30,480 )     2,386  
    Inventory     (19,287 )     (5,564 )
    Prepaid expenses and other assets     (13,031 )     (720 )
    Accounts payable     20,887       (4,264 )
    Accrued expenses and other liabilities     31,018       (167 )
    Operating lease liability     (2,402 )     (1,346 )
    Net cash provided by (used in) operating activities     136,676       (12,716 )
             
    Cash flows from investing activities        
    Purchases of property and equipment     (34,245 )     (2,761 )
    Purchases of marketable securities     (930,575 )     (126,225 )
    Sales and maturities of marketable securities     208,665       111,214  
    Other investing activities     (1,413 )     —  
    Net cash used in investing activities     (757,568 )     (17,772 )
             
    Cash flows from financing activities        
    Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions     672,198       —  
    Payment of deferred offering costs     (4,801 )     (1,407 )
    Proceeds from exercises of stock options     5,458       1,115  
    Proceeds from employee stock purchase plan     4,160       —  
    Tax withholding related to net share settlements of restricted stock units     (20,111 )     —  
    Repurchase of common stock upon termination     (1,066 )     (210 )
    Net cash provided by (used in) financing activities     655,838       (502 )
    Net increase (decrease) in cash, cash equivalents, and restricted cash     34,946       (30,990 )
    Cash, cash equivalents, and restricted cash        
    Beginning of the period     45,098       76,088  
    End of the period   $ 80,044     $ 45,098  
     
    ASTERA LABS, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)
    (In thousands, except percentages and per share amounts)
     
        Three Months Ended   Years Ended
        December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    GAAP gross profit   $ 104,448     $ 87,877     $ 39,025     $ 302,699     $ 79,827  
    Stock-based compensation expense upon IPO (1)     —       —       —       516       —  
    Stock-based compensation expense     131       102       8       329       24  
    Non-GAAP gross profit   $ 104,579     $ 87,979     $ 39,033     $ 303,544     $ 79,851  
                         
    GAAP gross margin     74.0 %     77.7 %     77.3 %     76.4 %     68.9 %
    Stock-based compensation expense upon IPO (1)     —       —       —       0.1       —  
    Stock-based compensation expense     0.1       0.1       —       0.1       0.1  
    Non-GAAP gross margin     74.1 %     77.8 %     77.3 %     76.6 %     69.0 %
                         
    GAAP operating income (loss)   $ 144     $ (8,896 )   $ 9,020     $ (116,066 )   $ (29,497 )
    Stock-based compensation expense upon IPO (1)     —       —       —       88,873       —  
    Stock-based compensation expense     48,218       45,535       3,299       145,715       10,679  
    Employer payroll tax related to stock-based compensation from IPO (2)     —       —       —       1,072       —  
    Non-GAAP operating income (loss)   $ 48,362     $ 36,639     $ 12,319     $ 119,594     $ (18,818 )
                         
    GAAP operating margin     0.1 %   (7.9)%     17.9 %   (29.3)%   (25.5)%
    Stock-based compensation expense upon IPO (1)     —       —       —       22.4       —  
    Stock-based compensation expense     34.2       40.3       6.5       36.8       9.2  
    Employer payroll tax related to stock-based compensation from IPO (2)     —       —       —       0.3       —  
    Non-GAAP operating margin     34.3 %     32.4 %     24.4 %     30.2 %   (16.3)%
                         
    GAAP net income (loss)   $ 24,713     $ (7,593 )   $ 14,325     $ (83,421 )   $ (26,257 )
    Stock-based compensation expense upon IPO (1)     —       —       —       88,873       —  
    Stock-based compensation expense     48,218       45,535       3,299       145,715       10,679  
    Employer payroll tax related to stock-based compensation from IPO (2)     —       —       —       1,072       —  
    Income tax effect (3)     (6,439 )     2,340       —       (8,910 )     —  
    Non-GAAP net income (loss)   $ 66,492     $ 40,282     $ 17,624     $ 143,329     $ (15,578 )
                         
    Net income (loss) per share attributable to common stockholders:        
    GAAP – basic   $ 0.15     $ (0.05 )   $ —     $ (0.64 )   $ (0.71 )
    GAAP – diluted   $ 0.14     $ (0.05 )   $ —     $ (0.64 )   $ (0.71 )
    Non-GAAP pro forma – diluted   $ 0.37     $ 0.23     $ 0.12     $ 0.84     $ (0.12 )
                         
    Weighted average shares used to compute net income (loss) per share attributable to common stockholders:        
    GAAP – basic     159,895       156,831       38,627       131,262       37,131  
    GAAP – diluted     177,559       156,831       47,636       131,262       37,131  
    Non-GAAP pro forma – diluted (4)     177,559       173,832       138,527       168,913       128,022  

    ____________________

    (1) Stock-based compensation expense recognized in connection with the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.

    (2) Employer payroll taxes related to the time-based vesting and settlement of RSUs, that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.

    (3) Income tax effect is calculated based on the tax laws in the jurisdictions in which we operate and is calculated to exclude the impact of stock-based compensation expense and one-off discrete tax adjustments that are unrelated to our core operating performance. For the three months ended December 31, 2024 and September 30, 2024, the non-GAAP tax benefit rate was 13% and tax expense rate of 15%, respectively. The adjustments for the three months ended December 31, 2023 were not material. For the years ended December 31, 2024, the non-GAAP tax expense rate was 7% compared to a tax benefit rate of 27% for the year ended December 31, 2023.

    (4) We present the non-GAAP pro forma weighted average shares to provide meaningful supplemental information of comparable shares for each periods presented. The non-GAAP pro forma weighted average shares is calculated as follows:

        Three Months Ended   Years Ended
        December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Shares used to compute GAAP net income (loss) per share attributable to common stockholders – diluted   177,559   156,831   47,636   131,262   37,131
    Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the beginning of the periods   —   —   90,891   19,165   90,891
    Effect of dilutive equivalent shares   —   17,001   —   18,486   —
    Shares used to compute non-GAAP pro forma net income (loss) per share- diluted   177,559   173,832   138,527   168,913   128,022

      

     
    ASTERA LABS, INC.SUPPLEMENTAL FINANCIAL INFORMATIONSTOCK-BASED COMPENSATION EXPENSE (Unaudited)
    (In thousands)
     
      Three Months Ended   Years Ended
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Cost of revenue $ 131   $ 102   $ 8   $ 845   $ 24
    Research and development   18,808     14,641     2,303     76,427     7,360
    Sales and marketing   14,671     16,200     681     95,887     2,067
    General and administrative   14,608     14,592     307     61,429     1,228
    Total stock-based compensation expense (1) $ 48,218   $ 45,535   $ 3,299   $ 234,588   $ 10,679

    ____________________

    (1) Stock-based compensation expense recognized during the year ended December 31, 2024 included $88.9 million of cumulative stock-based compensation expense related to the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.


    IR CONTACT:     Leslie Green
    leslie.green@asteralabs.com

    The MIL Network –

  • MIL-OSI United Nations: Noting Terrorist Groups’ Resilience, UN Counter-Terrorism Chief Tells Security Council Lasting Global Collaboration Key to Address Conditions Conducive to Lawlessness

    Source: United Nations General Assembly and Security Council

    Speakers Discuss Risk ISIL/Da’esh, Their Affiliates Pose in Syria, Afghanistan, Across Africa

    The resilience of terrorist groups underscores the need for sustained international collaboration and comprehensive, long-term responses that address the conditions conducive to terrorism, the Security Council heard today during a briefing on the threat posed by Islamic State in Iraq and the Levant (ISIL/Da’esh).

    Vladimir Voronkov, Under-Secretary-General of the United Nations Office of Counter-Terrorism, discussing the Secretary-General’s twentieth biannual strategic-level report on the topic, highlighted the volatile situation in Syria, and “the risk that stockpiles of advanced weapons could fall into the hands of terrorists”.  An estimated 42,500 individuals, some with alleged links to Da’esh, remain in detention camps in the north-east.  Member States must “facilitate the safe, voluntary and dignified repatriation of their nationals still stranded in those camps and facilities”, he said. 

    Providing details on the global terrorism landscape during the past six months, he said that, in Afghanistan, ISIL-Khorasan continued to pose a significant threat noting that its supporters plotted attacks in Europe and were actively seeking to recruit individuals from Central Asian States.  In West Africa and the Sahel, Da’esh affiliates and other terrorist groups intensified attacks, including against schools in Burkina Faso, Mali and Niger, while in Somalia, the organization successfully recruited foreign terrorist fighters. 

    Sub-Saharan Africa has become the epicenter of global terrorism, he said, noting that the United Nations has prioritized capacity-building support to the continent.  His office increased its delivery of technical assistance by 16 per cent, relying notably on the work of its Rabat Office.  Highlighting the Fusion Cells programme which delivered specialized training to 124 analysts from 21 African Member States, he stressed the need to further strengthen border security to counter movements of terrorists.  His office partnered with the Governments of Kuwait and Tajikistan to organize a conference on this.

    The Countering Terrorist Travel programme, he said, continued to expand with 63 beneficiary Member States who are increasingly relying on the goTRAVEL software to collect and process passenger data to detect and prevent terrorist movements.  Noting that the Pact for the Future renewed the international community’s commitment to a future free from terrorism, he urged Member States to translate these commitments into action, prioritizing inclusive, networked and sustainable responses.

    Approach Centered on Prevention, Respect for Human Rights Key to Countering Terrorist Threat

    Also briefing the Council was Natalia Gherman, Executive Director of Counter-Terrorism Committee Executive Directorate, who voiced concern over the humanitarian and security crisis in north-eastern Syria, with over 40,000 individuals confined in camps and detention facilities, under conditions marked by overcrowding, inadequate shelter and limited access to clean water and sanitation.  Beyond the Middle East, Da’esh remains agile, taking advantage of ongoing conflicts and regions experiencing growing instability, she continued.  The group now poses a threat to security and sustainable development across the African continent.

    Armed terrorist groups, such as Islamic State West Africa Province, are exploiting fragile conditions to recruit children, commit abductions and attack schools and hospitals.  In the Sahel and the Lake Chad Basin, Da’esh’s centralized operations continue to proliferate as regional cooperation declines, she said, adding that the role of the regional financial hubs used by the group and its affiliates has also expanded.

    “Addressing these threats requires an approach centered on prevention, grounded in respect for human rights, and with regional cooperation as the linchpin,” she stressed, noting the Committee’s visits to Côte d’Ivoire, Ghana, Malawi, Mauritania and the United Republic of Tanzania.  Assessments revealed gaps in border security and the need for stronger regional collaboration to counter the transnational nature of Da’esh’s activities.  For its part, the Executive Directorate has recently adopted the non-binding guiding principles on preventing, detecting and disrupting the use of new and emerging financial technologies for terrorist purposes — the so-called “Algeria Guiding Principles”, she said.

    Council Members Concerned Over Terrorists’ Adeptness at Expanding Operations, Attractomg New Recruits

    In the ensuing discussion, Council members expressed concern that, despite decades of counter-terrorism efforts, the phenomenon has transformed adeptly, taking advantage of new technology and financial innovations.  Sierra Leone’s delegate said that ISIL/Da’esh and their affiliates “continue to demonstrate resilience and adapt their modus operandi with extensive propaganda, as well as increased finances, fighters’ expertise and technology”.  14,000 fatalities were recorded on the African continent alone in 2024, he said, noting the impact on women and girls.  A security-centered approach alone is insufficient, he stressed.

    Along similar lines, Algeria’s delegate said that terrorist groups use the lack of development and marginalization to recruit and expand — therefore, security arrangements and development initiatives are equally necessary to combat this.  Highlighting the Sahel, he said that well-equipped armed groups are adopting advancing military strategies as well as using organized crime, narcotic trafficking, kidnapping and new technologies to finance such operations.

    France’s speaker noted that Da’esh, Al-Qaida and their affiliates are misappropriating new technology — such as drones — to carry out more targeted and lethal attacks. “These groups thrive on the soil where basic human rights are being violated, where women are marginalized,” she stated, adding that their use of sexual violence as a means of sowing terror has been documented.

    “Our work is far from complete,” said Somalia’s representative, spotlighting “patterns of expansion” across regions, with groups establishing networks that transcend national borders.  For its part, his Government has successfully conducted military operations with international partners to neutralize foreign Da’esh affiliates and implement joint security initiatives.

    The representative of the United States highlighted her Government’s “precision air strikes” against ISIS in Somalia on 1 February.  Her country “stands ready to find and eliminate terrorists who threaten the United States and our allies,” she said.  She also urged Council members to list more ISIL and Al-Qaida affiliates in the 1267 Sanctions Committee list so that they will be subject to its worldwide assets travel ban and arms embargo.  While the Sahel has become “the global epicenter for fatalities from terrorist attacks”, ISIS-Khorasan is increasing its capabilities to conduct attacks and recruit in Afghanistan and Pakistan, she said.

    Counter-terrorism Policies Must Oppose Double Standards and Selectivity 

    Pakistan’s delegate drew attention to the need to address white supremacy and far-right extremism, as well.  Counter-terrorism policies have so far singled out only one religion — Islam — but they must address the negative impact of stigmatizing Muslims and fanning the flames of Islamophobia, he said.  His country is at the forefront of counter-terrorism efforts, fighting not only Da’esh, but also TTP [Tehrik-e Taliban Pakistan] and Majid Brigade.  Further, “the international community has failed to address State terrorism, including the use of State power to suppress legitimate struggles for self-determination or to continue foreign occupation”, he said.

    It was the North Atlantic Treaty Organization’s (NATO) invasion into Libya and the invasion of Iraq which spawned ISIL, the Russian Federation’s delegate said.  Further, the United Nations’ counter-terrorism officials must “study the facts” on assistance to terrorists provided by Western countries, he said, adding that Ukraine, for instance, has become a logistic hub from which weapons disseminate across the world.  NATO troops who hastily left Afghanistan also abandoned vast quantities of weapons which fell into the hands of ISIL and affiliates, he said.

    The Council should oppose double standards and selectivity in counter-terrorism efforts, China’s representative, Council President for the month, speaking in his national capacity, underscored.  He also voiced concern over the Turkistan Islamic Party in Syria, and called on Damascus to fulfil its counter-terrorism obligations and prevent any terrorist forces from using the Syrian territory to threaten the security of other countries.

    Calls to Ensure Terrorist Groups Do Not Take Advantage of Instability in Syria 

    Several speakers, including the delegates of Denmark and Slovenia, stressed the need to ensure that terrorist groups do not take advantage of the instability in Syria.  Greece’s delegate underlined the need for a political road map in that country that includes constitutional reform, free and fair elections and inclusive governance. “This is the only way towards the eradication not only of Da’esh, but terrorism in general,” he added.  The United Kingdom’s delegate spotlighted the Global Coalition’s efforts to reduce the risk Da’esh poses as Syria embarks on its historical political transition.  However, “we cannot fight terrorism with force alone”, he emphasized, calling for a whole-of-society approach — with the meaningful participation of women — to address the long-term drivers of terrorism.

    Terrorists’ Increased Use of Information and Communications Technology Draws Concern

    Delegates also considered how to tackle terrorist groups’ increased use of information and communications technology (ICT), with Guyana’s representative noting that gaming and social media platforms bolster resources and recruitment.  The Analytical Support and Sanctions Monitoring Team has reported extensively on the increased risk of online radicalization and recruitment targeting youth and minors and the increasing use of cryptocurrencies by Da’esh, she said.

    Also noting Da’esh’s use of cryptocurrencies, Panama’s delegate said:  “Terrorism thrives on secrecy and underground flows of money.”  His country is the only Latin American nation to participate in the Global Coalition against Da’esh and is committed to preventing terrorists from using the Panamanian banking system for their financing.

    The Republic of Korea’s speaker stressed that the international community must respond by leveraging artificial-intelligence-driven analytics to improve threat detection, disrupt terrorist narratives and bolster information integrity.  Seoul’s new “AI and Preventing and Countering Violent Extremism” project, designed in collaboration with the United Nations Office of Counter-Terrorism, seeks to map out how terrorists exploit AI and build States’ capacity to counter these tactics by incorporating AI solutions, he said.

    MIL OSI United Nations News –

  • MIL-OSI USA: John Moisan Studies the Ocean Through the ‘Eyes’ of AI

    Source: NASA

    Name: John Moisan
    Formal Job Classification: Research oceanographer
    Organization: Ocean Ecology Laboratory, Hydrosphere, Biosphere, Geophysics (HBG), Earth Science Directorate (Code 616) – duty station at NASA’s Wallops Flight Facility on Virginia’s Eastern Shore
    What do you do and what is most interesting about your role here at Goddard? How do you help support Goddard’s mission?
    I develop ecosystem models and satellite algorithms to understand how the ocean’s ecology works. My work has evolved over time from when I coded ocean ecosystem models to the present where I now use artificial intelligence to evolve the ocean ecosystem models.
    How did you become an oceanographer?
    As a child, I watched a TV series called “Sea Hunt,” which involved looking for treasure in the ocean. It inspired me to want to spend my life scuba diving.
    I got a Bachelor of Science in marine biology from the University of New England in Biddeford, Maine, and later got a Ph.D. from the Center for Coastal Physical Oceanography at Old Dominion University in Norfolk, Virginia.
    Initially, I just wanted to do marine biology which to me meant doing lots of scuba diving, maybe living on a sailboat. Later, when I was starting my graduate schoolwork, I found a book about mathematical biology and a great professor who helped open my eyes to the world of numerical modeling. I found out that instead of scuba diving, I needed instead to spend my days behind a computer, learning how to craft ideas into equations and then code these into a computer to run simulations on ocean ecosystems.
    I put myself through my initial education. I went to school fulltime, but I lived at home and hitchhiked to college on a daily basis. When I started my graduate school, I worked to support myself. I was in school during the normal work week, but from Friday evening through Sunday night, I worked 40 hours at a medical center cleaning and sterilizing the operating room instrument carts. This was during the height of the AIDS epidemic.
    What was most exciting about your two field trips to the Antarctic?
    In 1987, I joined a six-week research expedition to an Antarctic research station to explore how the ozone hole was impacting phytoplankton. These are single-celled algae that are responsible for making half the oxygen we breathe. Traveling to Antarctica is like visiting another planet. There are more types of blue than I’ve ever seen. It is an amazingly beautiful place to visit, with wild landscapes, glaciers, mountains, sea ice, and a wide range of wildlife. After my first trip I returned home and went back in a few months later as a biologist on a joint Polish–U.S. (National Oceanic and Atmospheric Administration) expedition to carry out a biological survey and measure how much fast the phytoplankton was growing in different areas of the Southern Ocean. We used nets to measure the amounts of fish and shrimp and took water samples to measure salinity, the amount of algae and their growth rates. We ate well, for example the Polish cook made up a large batch of smoked ice fish.
    What other field work have you done?
    While a graduate student, I helped do some benthic work in the Gulf of Maine. This study was focused on understanding the rates of respiration in the muds on the bottom of the ocean and on understanding how much biomass was in the muds. The project lowered a benthic grab device to the bottom where it would push a box core device into the sediments to return it to the surface. This process is sort of like doing a biopsy of the ocean bottom.
    What is your goal as a research oceanographer at Goddard?
    Ocean scientists measure the amount and variability of chlorophyll a, a pigment in algae, in the ocean because it is an analogue to the amount of algae or phytoplankton in the ocean. Chlorophyll a is used to capture solar energy to make sugars, which the algae use for growth. Generally, areas of the ocean that have more chlorophyll are also areas where growth or primary production is higher. So, by estimating how much chlorophyll is in the ocean we can study how these processes are changing with an aim in understanding why. NASA uses the color of the ocean using satellites to estimate chlorophyll a because chlorophyll absorbs sunlight and changes the color of the ocean. Algae have other kinds of pigments, each of which absorbs light at different wavelengths. Because different groups of algae have different levels of pigments, they are like fingerprints that can reveal the type of algae in the water. Some of my research aims at trying to use artificial intelligence and mathematical techniques to create new ways to measure these pigments from space to understand how ocean ecosystems change.
    In 2024, NASA plans to launch the Plankton, Aerosol, Cloud, ocean Ecosystem (PACE) satellite, which will measure the color of the ocean at many different wavelengths. The data from this satellite can be used with results from my work on genetic programs and inverse modeling to estimate concentrations of different pigments and possibly concentrations of different types of algae in the ocean.
    You have been at Goddard over 22 years. What is most memorable to you?
    I develop ecosystem models. But ecosystems do not have laws in the same way that physics has laws. Equations need to be created so that the ecosystem models represent what is observed in the real world. Satellites have been a great source for those observations, but without a lot of other types of observations that are collected in the field, the ocean, it is difficult to develop these equations. In my time at NASA, I have only been able to develop models because of the great but often tedious work that ocean scientists around the world have been doing when they go on ocean expeditions to measure various ocean features, be it simple temperature or the more complicated measurements of algal growth rates. My experience with their willingness to collaborate and share data is especially memorable. This experience is also what I enjoyed with numerous scientists at NASA who have always been willing to support new ideas and point me in the right direction. It has made working at NASA a phenomenal experience.

    Related Article: NASA Researcher’s AI ‘Eye’ Could Help Robotic Data-Gathering

    What are the philosophical implications of your work?
    The human capacity to think rapidly, to test and change our opinions based on what we learn, is slow compared to that of a computer. Computers can help us adapt more quickly. I can put 1,000 students in a room developing ecosystem model models. But I know that this process of developing ecosystem models is slow when compared what a computer can do using an artificial intelligence approach called genetic programming, it is a much faster way to generate ecosystem model solutions.
    Philosophically, there is no real ecosystem model that is the best. Life and ecosystems on Earth change and adapt at rates too fast for any present-day model to resolve, especially considering climate change. The only real ecosystem model is the reality itself. No computer model can perfectly simulate ecosystems. By utilizing the fast adaptability that evolutionary computer modeling techniques provide, simulating and ultimately predicting ecosystems can be improved greatly.
    How does your work have implications for scientists in general?
    I do evolutionary programming. I see a lot of possibility in using evolutionary programming to solve many large problems we are trying to solve. How did life start and evolve? Can these processes be used to evolve intelligence or sentience?
    The artificial intelligence (AI) work answers questions, but you need to identify the questions. This is the greater problem when it comes to working with AI. You cannot answer the question of how to create a sentient life if you do not know how to define it. If I cannot measure life, how can I model it? I do not know how to write that equation. How does life evolve? How did the evolutionary process start? These are big questions I enjoy discussing with friends. It can be as frustrating as contemplating “nothing.”
    Who inspires you?
    Many of the scientists that I was fortunate to work with at various research institutes, such as Scripps Institution of Oceanography at the University of California, San Diego. These are groups of scientists are open to always willing to share their ideas. These are individuals who enjoy doing science. I will always be indebted to them for their kindness in sharing of ideas and data.
    Do you still scuba dive?
    Yes, I wish I could dive daily, it is a very calming experience. I’m trying to get my kids to join me.
    What else do you do for fun?
    My wife and I bike and travel. Our next big bike trip will hopefully be to Shangri-La City in China. I also enjoy sailing and trying to grow tropical plants. But, most of all, I enjoy helping raise my children to be resilient, empathic, and intelligent beings.
    What are your words to live by?
    Life. So much to see. So little time.

    Conversations With Goddard is a collection of Q&A profiles highlighting the breadth and depth of NASA’s Goddard Space Flight Center’s talented and diverse workforce. The Conversations have been published twice a month on average since May 2011. Read past editions on Goddard’s “Our People” webpage.

    MIL OSI USA News –

  • MIL-OSI Asia-Pac: Director of Hong Kong and Macao Work Office of CPC Central Committee and Hong Kong and Macao Affairs Office of State Council Mr Xia Baolong inspects Hong Kong Park of Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone

    Source: Hong Kong Government special administrative region

         The Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee and the Hong Kong and Macao Affairs Office (HKMAO) of the State Council, Mr Xia Baolong, visited the Hong Kong Park (the Park) of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and the Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone yesterday (February 9).  During his inspection, Mr Xia hosted a discussion session in Qianhai and was briefed by the Hong Kong Special Administrative Region (HKSAR) Government on its work plans on the economy and financial services. 

         In the morning, Mr Xia, accompanied by the Acting Chief Executive, Mr Chan Kwok-ki, and the Financial Secretary, Mr Paul Chan, paid an on-site visit to the Park. Mr Xia listened to presentations by the Secretary for Development, Ms Bernadette Linn, on the overall planning and development overview of the Northern Metropolis, as well as by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, on the the latest development progress and the key foci of work for the Park.

         Thereafter, Mr Xia inspected the Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone, and hosted a discussion session in which Mr Paul Chan introduced work and focus by the HKSAR Government in 2025 to advance the economy. The session lasted for nearly four hours, with in-depth discussions about how Hong Kong could further understand, respond to and embrace changes under the new circumstances, accelerate reforms to foster progress, enhance cooperation between Guangdong and Hong Kong, and better integrate into the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The Secretary for Constitutional and Mainland Affairs, Mr Erick Tsang Kwok-wai; the Secretary for Financial Services and the Treasury, Mr Christopher Hui; the Secretary for Commerce and Economic Development, Mr Algernon Yau; Ms Linn; Professor Sun; the Secretary for Transport and Logistics, Ms Mable Chan; and the Acting Secretary for Culture, Sports and Tourism, Mr Raistlin Lau, attended the session. 

         At the discussion session, Mr Xia recognised the work of the HKSAR Government under the leadership of the Chief Executive. He hoped that the HKSAR Government would thoroughly implement the spirit of the important speeches by President Xi in Macao and the Third Plenary Session of the 20th Central Committee of the Communist Party of China, and continue to be bold in reform, dare to break new ground, and to innovate continuously; and that there would be more reciprocal co-operation and collaborative development within the GBA.

         Mr Paul Chan stated that under the leadership of the Chief Executive, the HKSAR Government team will firmly uphold the principle of “one country” while leveraging the advantages of “two systems”. The Government team is determined to undertake reforms, dare to be innovative, and actively integrate into the national development and align with national development strategies. In face of a complex external environment, Hong Kong will co-ordinate development and security, maintain financial and economic security, whilst promoting the acceleration of economic progress. As the country further deepens reforms, promotes high-quality development and advances high-level opening up, Hong Kong will leverage its unique advantages and functions of connecting with both the Mainland and the world, as well as its strong international character.  Hong Kong will reinforce traditional advantageous industries such as financial services, trade and shipping, while also exploring new development areas. At the same time, Hong Kong will focus on nurturing new quality productive forces and new economic growth points, and continue to make systematic investments in innovation and technology. Hong Kong will harness platforms such as the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and the Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone, and strengthen collaboration with sister cities in the Guangdong-Hong Kong-Macao Greater Bay Area, seeking to play to the comparative strengths of the cities and elevate their economic development. 

         The Governor of Guangdong Province and Deputy Head of the Office of the Leading Group on Construction of the GBA of Guangdong Province, Mr Wang Weizhong; Executive Deputy Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee and the HKMAO of the State Council, Mr Zhou Ji; Deputy Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee and Director of the Liaison Office of the Central People’s Government in the HKSAR (LOCPG), Mr Zheng Yanxiong; Deputy Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee and the HKMAO of the State Council, Mr Nong Rong, Deputy Director of LOCPG, Mr Qi Bin, joined the inspection and discussion session.

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: International Co-Operation in Tourism Sector

    Source: Government of India

    Posted On: 10 FEB 2025 5:19PM by PIB Delhi

    The Government of India works with other countries to promote tourism through bilateral and multilateral arrangements that encourage information sharing, ease of travel, and other areas of cooperation for the promotion and development of tourism. India is also a member of global tourism organizations like the United Nations World Tourism Organization (UNWTO), Association of Southeast Asian Nations (ASEAN), Group of Twenty (G20), Group of Seven (G7), South Asian Association for Regional Cooperation (SAARC), BRICS (Brazil, Russia, India, China, and South Africa), etc. helping shape tourism policies and support sustainable travel. These efforts are to attract more tourists to India and also to strengthen cultural and economic ties with other nations, contributing to India’s vision of sustainable and inclusive tourism initiatives.

    India is promoted as a holistic tourism destination by showcasing its diverse offerings, including heritage, culture, spirituality, wellness, adventure and eco-tourism. To promote tourism, the Ministry undertakes several initiatives in international and domestic markets, including media campaigns, social media promotions, webinars and participation in promotional events. Additionally, Indian Missions abroad conduct various activities to attract global travelers to India’s diverse tourist destinations, contribute to strengthening India’s position as a preferred travel destination on the global map.

    This information was given by Union Minister for Tourism and Culture Shri Gajendra Singh Shekhawat in a written reply in Lok Sabha today.

    ***

    Sunil Kumar Tiwari

    tourism4pib[at]gmail[dot]com

    (Release ID: 2101368) Visitor Counter : 68

    MIL OSI Asia Pacific News –

  • MIL-Evening Report: Google has dropped its promise not to use AI for weapons. It’s part of a troubling trend

    Source: The Conversation (Au and NZ) – By Zena Assaad, Senior Lecturer, School of Engineering, Australian National University

    Ziv Lavi/Shutterstock

    Last week, Google quietly abandoned a long-standing commitment to not use artificial intelligence (AI) technology in weapons or surveillance. In an update to its AI principles, which were first published in 2018, the tech giant removed statements promising not to pursue:

    • technologies that cause or are likely to cause overall harm
    • weapons or other technologies whose principal purpose or implementation is to cause or directly facilitate injury to people
    • technologies that gather or use information for surveillance violating internationally accepted norms
    • technologies whose purpose contravenes widely accepted principles of international law and human rights.

    The update came after United States President Donald Trump revoked former President Joe Biden’s executive order aimed at promoting safe, secure and trustworthy development and use of AI.

    The Google decision follows a recent trend of big tech entering the national security arena and accommodating more military applications of AI. So why is this happening now? And what will be the impact of more military use of AI?

    The growing trend of militarised AI

    In September, senior officials from the Biden government met with bosses of leading AI companies, such as OpenAI, to discuss AI development. The government then announced a taskforce to coordinate the development of data centres, while weighing economic, national security and environmental goals.

    The following month, the Biden government published a memo that in part dealt with “harnessing AI to fulfil national security objectives”.

    Big tech companies quickly heeded the message.

    In November 2024, tech giant Meta announced it would make its “Llama” AI models available to government agencies and private companies involved in defence and national security.

    This was despite Meta’s own policy which prohibits the use of Llama for “[m]ilitary, warfare, nuclear industries or applications”.

    Around the same time, AI company Anthropic also announced it was teaming up with data analytics firm Palantir and Amazon Web Services to provide US intelligence and defence agencies access to its AI models.

    The following month, OpenAI announced it had partnered with defence startup Anduril Industries to develop AI for the US Department of Defence.

    The companies claim they will combine OpenAI’s GPT-4o and o1 models with Anduril’s systems and software to improve US military’s defences against drone attacks.

    Defending national security

    The three companies defended the changes to their policies on the basis of US national security interests.

    Take Google. In a blog post published earlier this month, the company cited global AI competition, complex geopolitical landscapes and national security interests as reasons for changing its AI principles.

    In October 2022, the US issued export controls restricting China’s access to particular kinds of high-end computer chips used for AI research. In response, China issued their own export control measures on high-tech metals, which are crucial for the AI chip industry.

    The tensions from this trade war escalated in recent weeks thanks to the release of highly efficient AI models by Chinese tech company DeepSeek. DeepSeek purchased 10,000 Nvidia A100 chips prior to the US export control measures and allegedly used these to develop their AI models.

    It has not been made clear how the militarisation of commercial AI would protect US national interests. But there are clear indications tensions with the US’s biggest geopolitical rival, China, are influencing the decisions being made.

    A large toll on human life

    What is already clear is that the use of AI in military contexts has a demonstrated toll on human life.

    For example, in the war in Gaza, the Israeli military has been relying heavily on advanced AI tools. These tools require huge volumes of data and greater computing and storage services, which is being provided by Microsoft and Google. These AI tools are used to identify potential targets but are often inaccurate.

    Israeli soldiers have said these inaccuracies have accelerated the death toll in the war, which is now more than 61,000, according to authorities in Gaza.

    Google removing the “harm” clause from their AI principles contravenes the international law on human rights. This identifies “security of person” as a key measure.

    It is concerning to consider why a commercial tech company would need to remove a clause around harm.

    Avoiding the risks of AI-enabled warfare

    In its updated principles, Google does say its products will still align with “widely accepted principles of international law and human rights”.

    Despite this, Human Rights Watch has criticised the removal of the more explicit statements regarding weapons development in the original principles.

    The organisation also points out that Google has not explained exactly how its products will align with human rights.

    This is something Joe Biden’s revoked executive order about AI was also concerned with.

    Biden’s initiative wasn’t perfect, but it was a step towards establishing guardrails for responsible development and use of AI technologies.

    Such guardrails are needed now more than ever as big tech becomes more enmeshed with military organisations – and the risk that come with AI-enabled warfare and the breach of human rights increases.

    Zena Assaad does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Google has dropped its promise not to use AI for weapons. It’s part of a troubling trend – https://theconversation.com/google-has-dropped-its-promise-not-to-use-ai-for-weapons-its-part-of-a-troubling-trend-249169

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Sen. Scott Questions USTR Nominee Jamieson Greer

    US Senate News:

    Source: United States Senator for South Carolina Tim Scott

    WASHINGTON — U.S. Senator Tim Scott (R-S.C.), member of the Senate Finance Committee, questioned President Trump’s nominee to serve as U.S. Trade Representative, Jamieson Greer, at his confirmation hearing. Senator Scott and Mr. Greer discussed a range of topics, including market access for U.S. exports, specifically South Carolina products, the strategies behind tariffs, China’s unfair trade practices, and economic tools to strengthen American national security.

    Excerpts from Senator Scott’s questioning can be found below:

    On market access for U.S. exports… 
    “Expanding market access for American made goods is critical to our economic strength, frankly, and our competitiveness. Ninety-five percent of our customers are outside of our nation as we represent about five percent of the world’s population. [In] South Carolina, we have about $36.4 billion of manufactured goods and products that leave our state, supporting 112,000 jobs that find a home someplace around the world. [For] our agricultural goods – $1.2 billion – access to the world’s market is incredibly important. We believe that they create good paying jobs in South Carolina. We also believe they create great paying jobs across this country as we took the aggregate value of those goods and services in other states. How do you plan to secure this market access with other countries in the first 100 days?” 

    On President Trump’s approach to tariffs… 
    “So, it seems to me that the president’s tariffs approach… has to do with punishment. The other has to do with the right sizing our approach to a global economy. And both seem to have the American consumer in mind and our national security in mind, as well. And the more efforts we see from the president in this direction, it seems like his ability to recalibrate the global system and, frankly, to make it more responsive to Americans [is a] net positive long-term.”

    On China and unfair trade practices… 
    “It also seems to me that there are countries like China – I’m not sure the politically right way to say this – but they lie, they cheat, they steal. And yet with the World Trade Organization, they still have a most favored nation status. What should we do about that?” 

    On our national security… 
    “From my perspective, our first weapon for national security ought to be an economic weapon, a non-kinetic option. And to the extent that we deploy that weapon in the most effective way possible, we keep more Americans safe, keep our soldiers at home, and frankly, it recalibrates or repositions America as a city on the hill. And I hope that we engage in the most effective approach and use of that economic weapon that we possibly can.”

    Watch Senator Scott’s full questioning here. 

    MIL OSI USA News –

  • MIL-OSI USA: Treasurer Steiner Issues Statement On Destabilizing Financial Impact Of Trump Administration Tariffs On Oregon Households

    Source: US State of Oregon

    regon State Treasurer Elizabeth Steiner called on the Trump administration to take costly tariffs off the table and maintain the integrity of the federal payment system to preserve the financial stability of Oregonians and all Americans.

    In a statement Treasurer Steiner said:

    “Oregonians are doing better financially than most Americans, according to a new report just released by the Oregon State Treasury, but recent actions by the White House are threatening the financial stability and security of many Oregon households.

    The annual cost of the administration’s suddenly proposed tariffs on Canada, Mexico and China amount to an expense that nearly half of Oregon households are not prepared to absorb. According to new data compiled for the Oregon State Treasury by Oregon State University (OSU) researchers, nearly 1 in 2 Oregonians cannot afford an emergency expense of more than $500. Yet, the cost of the proposed Trump administration tariffs on Canada, Mexico and China would increase costs to the typical American consumer by amounts ranging from $800 to $1,200 per year, according to independent economists.

    At a time when the cost of living remains a major source of worry for Oregonians, this price hike is an unnecessary expense that many Oregon families cannot afford. While the administration has paused tariffs on Canada and Mexico, Oregon consumers should not have to worry about having to pay more for groceries, gas, clothes, cars and other items they use each day.

    In addition, I am deeply concerned about other actions the White House has taken in recent days that could also harm the financial well-being of Oregonians. Last week, the administration tried to freeze more than $40 billion in funding that the federal government contributes to Oregon’s state budget (and hundreds of millions more that flow directly to universities and non-profits serving Oregon communities). The administration also has sent repeated messages to Oregon’s 17,500 civilian federal employees – who care for veterans, provide Social Security payments, operate dams, provide air traffic control, manage public lands, and provide other vital services – urging them to resign. The White House has given unvetted temporary staff at the Department of Governmental Efficiency (DOGE) access to the federal Treasury’s payment system – potentially freezing trillions of dollars in federal funds and compromising the information privacy of Americans.

    I urge the White House to abandon its costly tariff plans, maintain the integrity of the federal payment system, and ensure the uninterrupted flow of funds to Oregon and other states. Oregonians cannot afford to bear the financial cost of these fiscally reckless actions.”

    MIL OSI USA News –

  • MIL-OSI USA: Ban on DeepSeek AI for Government Devices

    Source: US State of New York

    Governor Kathy Hochul today announced a statewide ban to prohibit the DeepSeek Artificial Intelligence application from being downloaded on ITS-managed government devices and networks. DeepSeek is an AI start-up founded and owned by High-Flyer, a stock trading firm based in the People’s Republic of China. Serious concerns have been raised concerning DeepSeek AI’s connection to foreign government surveillance and censorship, including how DeepSeek can be used to harvest user data and steal technology secrets.

    “Public safety is my top priority and we’re working aggressively to protect New Yorkers from foreign and domestic threats,” Governor Hochul said. “New York will continue fighting to combat cyber threats, ensure the privacy and safety of our data, and safeguard against state-sponsored censorship.”

    New York State Chief Cyber Officer Colin Ahern said, “Safeguarding New Yorker’s critical infrastructure, privacy, freedom from censorship are central pillars of Governor Hochul’s security and resilience agenda. This action today demonstrates we will continue to defend New York from cyber threats.”

    New York State Office of Information Technology Services Chief Information Officer and Director Dru Rai said, “The decision by Governor Hochul to prevent downloads of DeepSeek is consistent with the State’s Acceptable Use of Artificial Intelligence Technologies policy that was established at her direction over a year ago to responsibly evaluate AI systems, better serve New Yorkers, and ensure agencies remain vigilant about protecting against unwanted outcomes. I commend the Governor for recognizing that this must continue to be the highest priority.”

    Today’s announcement builds on the Governor’s 2024 issuance of statewide guidance for AI use in government, which established that through the responsible use of AI, State agencies can drive innovation, increase operational efficiencies and better serve New Yorkers while protecting privacy, managing risk and promoting accountability, safety and equity.

    That guidance — which included provisions on the proper use of AI, human oversight, fairness and equity, transparency, risk assessment and management, privacy and security — offered a comprehensive policy for the use of AI in State government.

    MIL OSI USA News –

  • MIL-OSI Global: There isn’t enough ‘sustainable’ aviation fuel to make a dent in our emissions – and there won’t be for years

    Source: The Conversation – UK – By Ben Purvis, Research Associate, Sustainability Assessment, University of Sheffield

    Most of this fuel is currently made from used cooking oil. Scharfsinn / shutterstock

    The UK chancellor, Rachel Reeves, has described so-called sustainable aviation fuel (SAF) as a “game changer”. As she announced government support for a series of airport expansions, she said that the fuel “can reduce carbon emissions from flying by 70%”.

    This number is misleading. Optimistic estimates do suggest that fully replacing fossil jet fuel with its sustainable alternative could lead to total savings of around 70%. But it will be hard to produce enough SAF to make a difference on that sort of scale. Even if the UK meets its ambitious targets, an annual saving of 7% by 2030 is more plausible.

    SAF is synthetic liquid fuel derived from something other than fossil fuels. These inputs have to be processed into a liquid that can be burned safely while also storing a lot of energy for its weight, since minimising weight is crucial. This is why long-haul electric battery-powered planes are unlikely to take off any time soon.

    The UK classifies three major pathways for creating sustainable aviation fuel. It can be derived from oils or fats, including used cooking oil or tallow. It can come from other sorts of material, such as municipal solid waste, agricultural residues, or sewage. Or it can be made from hydrogen and captured carbon using renewable electricity.

    SAF can also be produced from bioenergy crops, and products such as palm oil. However the UK won’t certify it as sustainable, due to concerns about land use and impacts on wildlife.

    Emissions that would have occurred anyway

    Burning SAF actually emits a similar amount of CO₂ to fossil jet fuel. Instead, most savings come from how we account for the waste and renewable energy that is used to produce it.

    Waste emits greenhouse gases anyway, sustainable fuel supporters argue. So why not have those emissions do something useful, like power a plane?
    Jenya Smyk/shutterstock

    SAF fundamentally relies on assumptions that if waste or energy crops were not used to make this fuel, they would be incinerated, would degrade, or would in some way release their embodied carbon anyway. In the case of fuel derived from renewable energy and captured carbon, it assumes that carbon came from the atmosphere in the first place. This allows these emissions to be deducted from the total impact of SAF, leading to lower emissions than conventional aviation fuel.

    Is sustainable aviation fuel even sustainable?

    Estimates of how much greenhouse gas SAF could cut vary greatly due to the many different ways it can be produced, and the complexities of accounting for emissions across the entire life cycle from waste, to fuel production, to plane engine. A 2023 review by the Royal Society illustrates this nicely. It found SAF could at best produce effectively negative emissions (a 111% reduction), while at worst it could be more carbon intensive than fossil kerosene jet fuel (a 69% increase).

    While policy incentives are likely to encourage increased production, there remain serious concerns that will need to be addressed before SAF can become a serious competitor for conventional jet fuel. There are hard limits to the amount of used cooking oil available for instance, and the use of other feedstocks is still in its infancy.

    Meanwhile any renewable energy used to make the fuel will have to compete with growing demand from electric vehicles, AI data centres and more. And there are big worries the industry simply won’t be profitable enough to attract initial capital investment, let alone take on its well-established rival.

    UK SAF production

    Coming into effect in January, the UK’s SAF mandate sets legal obligations for aviation fuel suppliers in the UK to progressively increase proportions of sustainable fuel, from 2% of total jet fuel in 2025 to 10% in 2030, and 22% in 2040.

    This is one of a growing number of commitments globally, including RefuelEU, and the US SAF grand challenge, which seek to increase demand and encourage more investment in production.

    As of 2023, 97% of the UK’s supply is derived from used cooking oil, with the rest from food waste. Only 8% of this cooking oil is sourced from the UK, with most being imported from China and Malaysia. The UK also comprises 16% of the global SAF market, despite representing only 1% of total passengers.

    Currently, the only commercial producer of SAF in the UK is the Phillips 66 Humber Refinery which processes used cooking oil. The previous government allocated £135 million of funding to nine projects, aiming to have five plants under construction by 2025. Despite several projects selecting sites, at the time of writing none appear to be under construction.

    In an industry with razor-thin profit margins, SAF remains considerably more expensive than conventional aviation fuel. With potential producers filing for bankruptcy and companies including Shell pulling out due to profitability concerns, the market is looking rocky.

    A 7% saving is more plausible

    Let us assume that Rachel Reeves’ 70% saving is deliverable if fossil jet fuel was fully replaced with SAF. That’s optimistic in itself, but not beyond the realms of possibility.

    Getting hold of that much sustainable fuel is less plausible, however – the total demand for jet fuel in the UK is more than ten times the current global production of SAF. But let’s assume that the rocky global market can deliver the UK’s ambitious demand of 10% SAF use by 2030.

    Reeves’ figure then becomes an optimistic value of 7% savings across the UK industry. If we then correct for anticipated growth of passenger numbers, assuming plans for airport expansion, those savings are likely to vanish.

    While SAF has a role to play in decarbonisation, growth sits in clear opposition to its impacts and potential. If the UK has any hope of meeting its climate targets, it should instead be seeking alternatives to flying where possible.

    Don’t have time to read about climate change as much as you’d like?

    Get a weekly roundup in your inbox instead. Every Wednesday, The Conversation’s environment editor writes Imagine, a short email that goes a little deeper into just one climate issue. Join the 40,000+ readers who’ve subscribed so far.

    Ben Purvis receives funding from the Grantham Foundation for the Protection of the Environment.

    – ref. There isn’t enough ‘sustainable’ aviation fuel to make a dent in our emissions – and there won’t be for years – https://theconversation.com/there-isnt-enough-sustainable-aviation-fuel-to-make-a-dent-in-our-emissions-and-there-wont-be-for-years-249270

    MIL OSI – Global Reports –

  • MIL-OSI USA: Durbin Warns Defense Secretary Hegseth Against Politicization Of U.S. Military After Numerous Concerning Actions By Trump Administration

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin
    February 10, 2025
    “I am deeply alarmed that these actions may not only erode trust in our military as an institution, but also dangerously distract from where our focus ought to be on foreign adversaries and their capabilities,” Durbin wrote in his letter to Secretary Hegseth
    WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), a member of the Senate Appropriations Subcommittee on Defense (SACD), yesterday sent a letter to Secretary of Defense Pete Hegseth to warn him against the politicization of the Department of Defense (DoD).  Durbin’s letter comes after several thinly-veiled political orders by the Trump Administration related to the nation’s military, including removing protection from former Chairman of the Joint Chiefs of Staff General Mark Milley, using the military for immigration enforcement, and impounding congressional approved DoD funding.
    “I write to express my concern that President Trump’s personal agenda is counter to defending against our country’s serious national security threats.  Since the President’s inauguration less than one month ago, the Trump Administration has pursued several dubious executive actions that threaten our military’s long-standing ethos to remain nonpartisan and promote merit, both of which you spoke to the importance of during your hearing before the Senate Armed Services Committee (SASC) prior to your confirmation,” Durbin began his letter.
    “I am deeply alarmed that these actions may not only erode trust in our military as an institution, but also dangerously distract from where our focus ought to be on foreign adversaries and their capabilities,” Durbin wrote.  “With China rapidly building its nuclear and naval forces, Russia fighting a war of aggression on the border of the North Atlantic Treaty Organization, and North Korea and Iran pursuing nuclear weapons and destabilizing actions, these erratic pursuits distract from the real threats to our nation.”
    Durbin then laid out the troublesome and political actions that the Trump Administration has taken since January 20. 
    Durbin referenced the “targeting [of] military officers such as… former Chairman of the Joint Chiefs of Staff General Mark Milley… as part of an effort to go after individuals unceremoniously deemed unfit or considered political adversaries.” 
    In January, Secretary Hegseth removed General Milley’s security detail despite ongoing threats related to the 2020 drone strike that killed Iranian General Qusem Soleimani.  DoD also announced that there will be an investigation into General Milley for “undermining the chain of command,” but there has been no clear indication of what conduct would be investigated.  Rather, the investigation and threat of demotingGeneral Milley’s four-star rank appears to be a political reaction to General Milley’s public comments about being photographed at Lafayette Square after President Trump cleared the area of protestors using National Guard troops.  Similarly, Coast Guard Commandant Linda Fagan, the first woman to lead a  military service, was removed from her post on President Trump’s second day in office without warning and ahead of her scheduled departure.  
    Durbin also emphasized that the Trump Administration is “diverting DoD resources and critical warfighting personnel for contentious immigration enforcement, compromising our military assets and distracting from national security threats.” 
    Immediately upon being sworn in, President Trump signed an executive order stating that DoD would deploy troops to the southern border despite federal law prohibiting the use of military for law enforcement.  At the end of January, DoD announced that Immigration and Customs Enforcement (ICE) would use facilities at Buckley Space Force Base in Aurora, Colorado, as a detention center forundocumented immigrants.  Further, military planes typically used for missions such as providing security assistance to Ukraine and Israel or hunting Russian and Chinese submarines have been used to deport immigrants and provide surveillance on our southern border.  In addition, in an unprecedented move, the Trump administration began flying migrants on military aircraft from the U.S. for detention at Naval Station Guantanamo Bay.  
    In addition, Durbin decried the administration’s efforts to freeze congressionally-appropriated funding for programs such as defense medical research, which supports lifesaving treatment and prevention of illnesses for service members, veterans, and the civilian population.  Since Fiscal Year 2015, Durbin has boosted defense medical research funding by more than $1.4 billion or 82 percent through SACD.  
    Durbin also noted that administration efforts to overturn policies that “remove barriers and enhance opportunities for qualified recruits” ultimately “[undermines] force strength and readiness—in the midst of unprecedented recruitment and retention challenges.”  On January 27, President Trump issued an Executive Order effectively banning transgender troops from the military.  And on January 31, the Pentagon eliminated a Biden-era policy that would provide reimbursements for service members who travel out of state to get reproductive health care after the Supreme Court’s overturning of Roe v. Wade. 
    “America’s national security depends on the Department of Defense functioning as a stable institution that supports its personnel rather than being thrown into disarray.  Further, increasing politicization of our military risks diminishing the role of the United States on the international stage, sending a dangerous signal to our allies and adversaries alike,” Durbin said.
    “In the spirit of your promise before SASC to be a faithful partner to Congress, I urge you to defend the principles of the Department of Defense,” Durbin concluded his letter.
    Prior to Secretary Hegseth’s confirmation, Durbin made his concerns about his nomination clear.  In January, Durbin delivered a speech on the Senate floor explaining his objections to Hegseth’s nomination, including his inability to articulate a defense strategy in addressing threats to the U.S., his disparaging comments about women serving in the military, and troubling reports of financial mismanagement, alcohol abuse, and personal misconduct.
    The full text of the letter can be found here and below:
    February 9, 2025
    Dear Secretary Hegseth,
    I write to express my concern that President Trump’s personal agenda is counter to defending against our country’s serious national security threats.  Since the President’s inauguration less than one month ago, the Trump Administration has pursued several dubious executive actions that threaten our military’s long-standing ethos to remain nonpartisan and promote merit, both of which you spoke to the importance of during your hearing before the Senate Armed Services Committee (SASC) prior to your confirmation.  I am deeply alarmed that these actions may not only erode trust in our military as an institution, but also dangerously distract from where our focus ought to be on foreign adversaries and their capabilities.  With China rapidly building its nuclear and naval forces, Russia fighting a war of aggression on the border of the North Atlantic Treaty Organization, and North Korea and Iran pursuing nuclear weapons and destabilizing actions, these erratic pursuits distract from the real threats to our nation.
    The Trump Administration’s troubling actions have included, but are not limited to:
    Targeting military officers such as Coast Guard Commandant Admiral Linda Fagan and former Chairman of the Joint Chiefs of Staff General Mark Milley, as well as civilian federal government employees within the Department of Defense (DoD), such as the Senate-confirmed Inspector General, as part of an effort to go after individuals unceremoniously deemed unfit or considered political adversaries;
    Diverting DoD resources and critical warfighting personnel for contentious immigration enforcement, compromising our military assets and distracting from national security threats;
    Unconstitutionally impounding congressionally approved DoD funding from a myriad of programs that protect and support our service members, including projects that boost defense medical research, reduce civilian casualties, provide infrastructure grants to municipalities near military installations, and promote investments in critical technologies, sowing mass confusion and chaos; and
    Undermining force strength and readiness—in the midst of unprecedented recruitment and retention challenges—by arbitrarily weaponizing programs and policies designed to remove barriers and enhance benefits and opportunities for qualified recruits.
    As you know, DoD is the largest federal government agency in the United States.  Your responsibilities include overseeing a nearly $900 billion budget, more than 3.5 million service members and civilian employees, and 750 military installations around the world.  America’s national security depends on the Department of Defense functioning as a stable institution that supports its personnel rather than being thrown into disarray.  Further, increasing politicization of our military risks diminishing the role of the United States on the international stage, sending a dangerous signal to our allies and adversaries alike.
    In the spirit of your promise before SASC to be a faithful partner to Congress, I urge you to defend the principles of the Department of Defense. 
    Sincerely,
    -30-

    MIL OSI USA News –

  • MIL-OSI Economics: Tech titans surge while legacy giants stumble in 2024, reveals GlobalData

    Source: GlobalData

    Tech titans surge while legacy giants stumble in 2024, reveals GlobalData

    Posted in Business Fundamentals

    The latest analysis of top market value gainers and losers has uncovered intriguing trends in the stock market. Notably, there is a significant surge in investor appetite for technology stocks, charting divergent market trajectories compared to other industries. During the evaluation period from 31 January 2024 to 31 January 2025, the top gainer in market value was Santa Clara-based GPU maker NVIDIA while the top loser was the Saudi Arabian Oil Company (Saudi Aramco), reveals the Company Profiles Database of GlobalData, a leading data and analytics company

    NVIDIA reportedly added a staggering $1.4 trillion to achieve a market capitalization of $2.9 trillion by the end of the review period. In stark contrast, Saudi Aramco witnessed its market value decline by $182.1 billion to reach $1.8 trillion.

    Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “NVIDIA’s explosive growth is largely attributed to its dominance in artificial intelligence (AI) chips, cloud computing, and data center expansion. As the primary supplier of AI GPUs, NVIDIA capitalized on the AI boom, securing massive contracts with cloud service providers and enterprises investing in machine learning.

    On the other side, Saudi Aramco witnessed a downturn in its stock value due to the ongoing global transition to renewable energy, lower demand from China, and the diminishing reliance on fossil fuels.

    Apple Inc, despite being the largest company by market value at $3.5 trillion, recorded a relatively modest growth of $697.8 billion. This highlights the challenges even tech giants face in maintaining exponential growth at such a massive scale.

    Grandhi continues: “Pharmaceutical companies, once considered recession-proof, have faced significant headwinds. Moderna Inc. saw its market value plummet to $15.2 billion, a decline of $23.4 billion, primarily due to the waning demand for COVID-19 vaccines and rising competition within the biotech sector. Denmark-based Novo Nordisk faced an $87.7 billion drop in valuation, attributed to regulatory scrutiny and intensifying competition in the weight-loss drug market. Meanwhile, Merck & Co., Inc. and Regeneron Pharmaceuticals Inc. experienced declines of $56.1 billion and $28.8 billion, respectively, as concerns over drug patent expirations and pricing pressures weighed on investor sentiment.”

    Samsung Electronics lost $114 billion in market cap due to weak consumer electronics demand and struggles to compete in the AI chip market. Intel shed $98 billion amid supply chain disruptions and intensifying competition. Adobe declined by $88.8 billion as software subscriptions slowed and AI-driven creative tools gained traction. AMD lost $82.7 billion due to softening semiconductor sales. ASML fell $37 billion, impacted by reduced chipmaker demand and the US sanctions restricting sales of advanced lithography equipment to China, limiting its access to one of its key markets.

    Grandhi concludes: “The coming months of 2025 will be highly volatile, driven by renewed tariff wars, interest rate cuts, and the divide between booming tech and struggling traditional industries. Geopolitical tensions, energy transitions, and inflation concerns will add uncertainty. While AI and renewables fuel investor optimism, supply chain disruptions and policy shifts pose risks. Businesses must embrace adaptability and diversification to navigate an unpredictable financial and economic landscape.”

    MIL OSI Economics –

  • MIL-OSI Global: Power vacuum in west Africa’s Sahel: 3 ways China could fill the gap as west exits

    Source: The Conversation – Africa – By Abdul-Gafar Tobi Oshodi, Faculty member, Department of Political Science, Lagos State University

    With France fast losing its influence in west Africa’s Sahel region and an unpredictable US president in power, will China fill the vacuum?

    The Sahel region covers 10 countries: Burkina Faso, Cameroon, Chad, The Gambia, Guinea, Mali, Mauritania, Niger, Nigeria and Senegal.

    French troops have been expelled from three of these – Mali, Burkina Faso and Niger – after military coups. Chad, Senegal and Ivory Coast have also expelled French troops. The troops were there because of the security threat from extremist groups like Boko Haram and Islamic State West Africa Province.

    Niger also ended an agreement to keep about 1,000 US troops involved in a counter-terrorism mission. Niger’s military government described the US as having a “condescending attitude”.

    While it has been rightly argued that the presence of the western powers did not resolve the security challenges of the region, their withdrawal creates a vacuum.

    I am a political science and international relations researcher who has been studying China-Africa relations for over a decade.

    I argue that Beijing could take advantage of the vacuum in the Sahel in at least three ways: expansion of investments in critical minerals; resolution of the Ecowas crisis (when Niger, Burkina Faso and Mali exited the regional bloc); and increased arms sales.

    This is especially so as China is not new to the Sahel region of west Africa. For instance, China is constructing a US$32 million headquarters for Ecowas in Abuja, Nigeria.

    Three ways China could benefit

    First, China could expand its influence – and the next four years hold enormous opportunities in this regard.

    US president Donald Trump’s likely transactional and unpredictable approach to international relations may force African countries to look to China. For instance, they may need China to help fill the void created by the US decision to dismantle USAID and freeze international development aid.

    Nigeria joined Brics as a partner country a few days before the inauguration of Trump. Brics is a group of emerging economies determined to act as a counterweight to the west and to whittle down the influence of global institutions. It was established in 2006 and initially composed of Brazil, Russia, India, and China. This decision by the largest economy in the Sahel is an expression of its commitment to China – with potential implications for other Sahelian countries.

    The vacuum offers Beijing the opportunity to strengthen its investment and position as a top beneficiary of the critical minerals, such as gold, copper, lithium and uranium, in the Sahel region.

    In 2024, west African gold production was estimated to be 11.83 million ounces. Ghana, Burkina Faso, the Republic of Guinea and Mali were the major contributors.

    Second, China is in a unique position to push for a resolution of the Ecowas crisis.

    Following military coups, the Ecowas regional economic bloc sanctioned Mali, Burkina Faso and Niger. Ecowas even threatened Niger with a military invasion. The three countries then decided to leave Ecowas to form the Alliance of Sahel States.

    As a neutral actor whose non-interference policy accommodates both civil and military regimes, Beijing is in a position to bring Ecowas and the Alliance of Sahel States into negotiation before the final departure date of 29 July 2025.

    If it succeeds, China would look more like a peaceful power, an image that is contested by others.

    Building on its soft power projects like the Confucius Institutes and scholarships, China would look like the “saviour” of Ecowas integration.

    This is what it did in the case of the Tazara railway project, where China supported Tanzania and Zambia to build a railway line together. It supported the African countries when the US and Europe had failed, were reluctant or were not interested.

    Third is Chinese arms sales.

    Chinese arms are already in the Sahel. In 2019, Nigeria signed a US$152 million contract with the China North Industries Corporation Limited (Norinco) to provide some of the weapons needed to fight the Boko Haram terror group. Since then, Chinese drones and other equipment have become a feature in Nigeria’s counter-terrorism response.

    The Chinese arms market could receive a major boost beyond Nigeria with the withdrawal of western countries from the Sahel. Western countries are likely to be reluctant to sell arms to the countries that have evicted their military.

    Sanctions on Russia have also increased the likelihood of Chinese arms in the Sahel.

    For example, a few months after France and the US left the region, some reports suggested that Russian mercenaries in the Sahel region were using Chinese weapons. Norinco – China’s top arms manufacturer and seventh largest arms supplier in the world – has opened sales offices in Nigeria and Senegal.

    In June 2024, Burkina Faso received 100 tanks from China. Three months after, Mali signed an agreement with Norinco to bolster its fight against terrorism.

    Bumpy road ahead

    China’s non-interference can accommodate both civil and military governments in the Sahel. This is an advantage for Beijing in some ways. But it could also have unexpected impacts.

    There are competing local interests in the Sahel and Beijing’s deepening involvement could be (mis)interpreted as supporting one over the other.

    This could make Chinese interests a target in the violence.

    It is also unclear if China is capable or willing to fill the vacuum created by the evicted western powers. But it looks as though China can benefit from the situation in the Sahel in the short term.

    Abdul-Gafar Tobi Oshodi has previously received research funding or travel support from organisations like the KU Leuven, Research Foundation Flanders (FWO), Social Science Research Council (SSRC), Centre of African Studies at the University of Edinburgh, Lagos State University, Chatham House (i.e. Robert Bosch Stiftung), Centre for Population and Environmental Development (CPED), Think Tank Initiative, the Carnegie Corporation of New York, Coimbra Group Scholarship Programme, Tertiary Education Trust Fund (TetFund), Global Challenge Research Fund (GCRF), American Council of Learned Societies’ African Humanities Program (ACLS-AHP), Merian Institute of Advanced Studies in Africa (MIASA), Development Studies Association (DSA) UK, Collective for the Renewal of Africa (CORA), Ford Foundation, Centre for Democracy and Development (CDD), and Economic Community for West African States (ECOWAS). However, I must clearly and strongly state that none of these funders have at any time sought to influence or influenced my writings or public engagement. Thus, this article is one of my many expressions of my academic freedom.

    – ref. Power vacuum in west Africa’s Sahel: 3 ways China could fill the gap as west exits – https://theconversation.com/power-vacuum-in-west-africas-sahel-3-ways-china-could-fill-the-gap-as-west-exits-248353

    MIL OSI – Global Reports –