Commerce Secretary Howard Lutnick is warning memory chipmakers that skipping US investment could mean duties up to 100%. If that turns into policy, SSD and RAM prices may climb quickly.

The post Your next PC upgrade could cost more if 100% chip tariffs land appeared first on Digital Trends.

On Thursday, Taiwan Semiconductor Manufacturing Company (TSMC) reported record fourth-quarter earnings and said it expects AI chip demand to continue for years. During an earnings call, CEO C.C. Wei told investors that while he cannot predict the semiconductor industry's long-term trajectory, he remains bullish on AI.

TSMC manufactures chips for companies including Apple, Nvidia, AMD, and Qualcomm, making it a linchpin of the global electronics supply chain. The company produces the vast majority of the world's most advanced semiconductors, and its factories in Taiwan have become a focal point of US-China tensions over technology and trade. When TSMC reports strong demand and ramps up spending, it signals that the companies designing AI chips expect years of continued growth.

"All in all, I believe in my point of view, the AI is real—not only real, it's starting to grow into our daily life. And we believe that is kind of—we call it AI megatrend, we certainly would believe that," Wei said during the call. "So another question is 'can the semiconductor industry be good for three, four, five years in a row?' I'll tell you the truth, I don't know. But I look at the AI, it looks like it's going to be like an endless—I mean, that for many years to come."

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Cyberspace has become a central arena in cross-strait tensions, complementing military maneuvers, diplomatic isolation, and economic pressure.

The post China Launched 2.6M Daily Cyberattacks on Taiwan in 2025 appeared first on TechRepublic.

Cyberspace has become a central arena in cross-strait tensions, complementing military maneuvers, diplomatic isolation, and economic pressure.

The post China Launched 2.6M Daily Cyberattacks on Taiwan in 2025 appeared first on TechRepublic.

OPINION — Out with a “rules-based international order” and in with “U.S. core national interests”, according to the U.S. National Security Strategy (NSS) of 2025. The NSS was not well-received by many of the 32 members of the North Atlantic Treaty Organization (NATO). Indeed, saying good-bye to the U.S. as the guarantor of global order will be difficult for many of our allies and partners, who will be expected to contribute more to their own defense and security.

Europe and the Middle East received lower priority in the NSS, with minimal criticism of Russia. The Western Hemisphere, however, is the primary security region for the U.S., under a modern “Trump Corollary to the Monroe Doctrine”, with a focus on border control, mass migration, narco-trafficking and international crime and terrorism as principal threats to our nation’s security.

The NSS correctly in my view focused on the importance of the Indo-Pacific region. It called for expanding commercial and other relations with India to contribute to Indo-Pacific security. The NSS called on the Quad – Australia, Japan, India and the U.S., — to align its actions with allies and partners to prevent the domination by any single competitor nation. The NSS cited the need for the U.S. to invest in research to preserve and advance our advantage in cutting-edge military and dual-use technology, to include undersea, space, nuclear, AI, quantum computing and autonomous systems and the energy to fuel these domains.

The NSS correctly focused on Taiwan and its dominance of semiconductor production and, also, Taiwan’s direct access to the Second Island Chain, splitting Northeast and Southeast Asia into two distinct theaters, and the one-third of global shipping that passes annually through the South China Sea and its implications for the U.S. economy. The NSS is clear in stating that deterring a conflict over Taiwan is a priority, making it clear that the U.S. does not support any unilateral change to the status quo in the Taiwan Strait.

The NSS calls on our allies and partners to allow the U.S. military greater access to their ports and other facilities, to spend more on their own defense, and most importantly to invest in capabilities aimed at deterring aggression.

Japan and South Korea are encouraged to increase defense spending, with new capabilities to deter adversaries and protect the First Island Chain. The NSS says the U.S. will harden and strengthen our military presence in the Western Pacific. Indeed, preventing conflict requires a vigilant posture in the Indo-Pacific, a renewed defense industrial base, greater military investment from us and from allies and partners, and winning the economic and technological competition over the long run.

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The Indo-Pacific is the source of almost half the world’s GDP and will grow over the century. It will be “among the next century’s key economic and geopolitical battlegrounds.”

The conventional wisdom, as cited in the NSS, is that China duped us into believing that by opening our markets to China and encouraging American business to invest in China, starting in 1979 when China was a poor and backward nation, we would facilitate China’s entry into the so-called “rules-based international order.” And as the NSS mentions: “This did not happen. China got rich and powerful and used its wealth and power to its considerable advantage.”

But there were leaders in China in the 1980s and 1990s who believed in democratization and the rule of law and open elections. Chinese Communist Party General Secretary Zhao Ziyang was removed from his leadership position because he, like his predecessor, Hu Yaobang, believed in democracy and the rule of law. Mr. Zhao was removed in June 1989 because he supported the student demonstrators at Tiananmen, and Mr. Hu was removed, also by Deng Xiaoping, for indulging in bourgeois liberalization and advocating democracy. A few years later, Premiers Wen Jiabao and Zhu Rongji, like Messrs. Hu and Zhao before them, were advocates for democratization and free and fair elections. Currently, there may be other senior officials in China who advocate for democratization and the rule of law.

The NSS is a powerful document, focusing on the Western Hemisphere and the security threat to the U.S. emanating from that region. And the U.S. focus on the Indo-Pacific region and deterring aggression in the First Island Chain while ensuring no unilateral change to the status quo in the Taiwan Strait are clear and unambiguous goals of the Trump Administration. Getting the support of regional allies and partners will be an important part of this national security strategy.

This column by Cipher Brief Expert Ambassador Joseph DeTrani was first published in The Washington Times

SPECIAL REPORT — In a turbulent year, one of the biggest national security stories came in the form of a document.

The administration’s National Security Strategy (NSS), released earlier this month, upends longstanding U.S. policy toward allies and adversaries alike. It ranks drug trafficking and illegal immigration as top threats to U.S. security, places a heavy emphasis on the Western Hemisphere, criticizes Europe and downplays security challenges from China and Russia.

Eight years ago, Trump's first NSS said that “China and Russia challenge American power, influence, and interests, attempting to erode American security and prosperity.” The new NSS doesn’t name Russia as a threat to the U.S. – stating instead that “strategic stability with Russia” is a goal of American policy. Europe is presented as a bigger challenge; the U.S. should “help Europe correct its current trajectory,” which the NSS says has been damaged by immigration and a risk of “civilizational erasure.”

As for China, the document focuses on economic competition – trade, infrastructure, and technology. References to Taiwan and the South China Sea come later, and they include warnings that other Asian nations must carry a greater burden; “the American military cannot, and should not have to, do this alone.”

“The north star of great-power competition with China and Russia—around which the first Trump administration built bipartisan consensus—is gone,” Rebecca Lissner, Senior Fellow for U.S. foreign policy at the Council on Foreign Relations, wrote of the new NSS. The objective now, she said, is a “mutually advantageous economic relationship with Beijing.”

Not surprisingly, European leaders were furious about the pivot to a more Russia-friendly posture, and what the European Council President called “political interference” in the affairs of Europe.

Glenn Corn, a former CIA Senior Executive, called the document’s treatment of Europe a “shock.”

“Europeans are not the enemy,” Corn told The Cipher Brief. “And I doubt the Russians will stand side by side with us on the battlefield and support us the way that our European partners have done.”

The new NSS won praise from at least one global capital. Kremlin spokesman Dmitry Peskov said its emphasis on restoring strategic stability with Moscow “correspond in many ways” to Russia’s own vision.

Infographic with a map of the Americas showing the areas where the United States has carried out attacks against alleged drug trafficking boats in the Caribbean Sea and the Pacific Ocean since September 2, 2025, as well as the number of people killed in these attacks, as of December 16 (Graphic by AFP via Getty Images)

Missiles on the Water

While the focus on narcotrafficking was clear from the early days of Trump’s second term, the heavy U.S. military deployments and air strikes in the Caribbean took experts by surprise. The aerial campaign began with a September missile attack on a small boat that killed 11 people; a second strike that day took the lives of two survivors who were clinging to the upturned vessel. The follow-on strike sparked criticism in Congress – including from Republicans – and charges that it might have violated maritime laws.

As of mid-December, at least 25 strikes had followed, including some in the Pacific, resulting in the deaths of more than 90 people alleged to have been smuggling drugs on the water. The Trump administration justified the attacks as necessary to stem a flow of fentanyl – which Trump labeled “a weapon of mass destruction” that has killed tens of thousands of Americans. Legal experts questioned whether passengers in these boats — even if they were found to have been carrying narcotics — could be considered enemy combatants. Others noted that fentanyl and its precursors are sourced primarily from China and Mexico — not Venezuela.

A separate question loomed, as the year wound down: were the strikes a prelude to military action against Venezuela, and its president, Nicolas Maduro?

Beyond the U.S. military buildup, there were several signs in December that a move against Venezuela may be in the offing: reports that the U.S. was exploring “day-after” scenarios in the event of Maduro’s ouster; the seizure of a Venezuelan tanker that was said to be transporting sanctioned oil to Iran; and President Trump’s December 16 announcement of a naval blockade of sanctioned oil tankers from Venezuela.

Infographic with a map showing the location of strikes carried by Israel against Iran since June 13, 2025, according to data reported by the ISW (Graphic by AFP) (Graphic by VALENTINA BRESCHI,SYLVIE HUSSON,OLIVIA BUGAULT/AFP via Getty Images)

The U.S. and Israel Attack Iran

It would have been unthinkable only two years ago: a U.S.-Israeli war against Iran that provoked almost no meaningful response.

The attacks came in June – Israeli strikes on Iran’s nuclear sites and military infrastructure that were followed by American airstrikes on three nuclear installations. Iran fired missiles at a U.S. base in Qatar but its overall retaliation was minimal, a consequence of earlier Israeli campaigns that weakened Iranian air defenses and its various militias in the Middle East. The 12-day war damaged elements of Iran’s nuclear program and laid bare a tectonic shift in the region: Iran and its “axis of resistance” had been badly weakened.

For decades, war-gaming scenarios had warned that any attack against Iran would carry risks of a conflagration, given the likelihood of a coordinated response from Iran, Hezbollah, Hamas and the Houthi militia in Yemen. Now the paradigm has shifted.

“The U.S. joined Israel in military operations and people thought that had been a red line in the past,” Norman Roule, a former National Intelligence Manager for Iran at ODNI, told The Cipher Brief. “For the nuclear negotiations and other talks going forward, Iran now has to deal with a new world where there is this precedent.”

As the year ended, Iran remained a shell of what it had been, and reports suggested its leaders were conflicted about the way forward. Would the country recognize its weaknesses and move towards a rapprochement with the West — a move that might bring sanctions relief and usher in a new security dynamic in the region? Or would hardliners carry the day, resorting to one of the last levers Iran has – its nuclear program?

“If you're in Iran, you have to make a strategic decision,” Roule said. “‘If we restart the program, will the United States and Israel attack?’ They've got to ask, ‘If we do this, will we survive?’”

U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky meet in the Oval Office at the White House on February 28, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)

Zelensky’s Oval Office Blowup – and the Rollercoaster that Followed

For Ukraine’s President Volodymyr Zelensky, 2025 brought wild swings of fortune, on the battlefield and in the global halls of power.

An Oval Office meeting on February 28 marked the low point – the encounter during which President Trump and Vice President JD Vance berated Zelensky for what they saw as insufficient gratitude towards the U.S. and – in Trump’s words – a failure to understand that Ukraine “has no cards” in the war against Russia.

The meeting “was a horrible disappointment and almost a shock to the system,” former NATO Supreme Allied Commander General Philip Breedlove told us that day. “There was only one winner…and that is Vladimir Putin.”

But fortune’s wheel took turns in Zelensky’s favor. Trump’s subsequent meetings with Zelensky – at the Vatican in April and the June NATO summit – warmed the relationship; the NATO summit itself saw Trump pivot back toward the alliance and its support for Ukraine; and then – in a startling outburst – Trump in July turned his ire towards Russian President Vladimir Putin. “We get a lot of bull**** thrown at us by Putin,” Trump said.

Alas for Zelensky, at year’s end the pendulum looked to have swung back once more. Trump’s envoys were again pushing Russia-friendly peace proposals, which included the surrender of territory beyond what Russia has already occupied. In an interview with Politico, Trump said of Zelensky, “He’s gonna have to get on the ball and start accepting things…cause he’s losing.” It sounded like a gentler version of the treatment Zelensky had gotten on that February day in the Oval Office.

Photo by Wojtek Laski/Getty Images

A Tu-95 bomber aircraft takes off for a night patrol flies out of Engels-2 airbase on August 7, 2008 in Engels, Russia. (Photo by Wojtek Laski/Getty Images)

Operation “Spiderweb” – and What Came After

It was Ukraine’s greatest military success in 2025 – and it happened far from Ukrainian territory. An operation dubbed “Spiderweb” smuggled 117 drone weapons into Russia and unleashed them against several airfields on June 1, damaging or destroying dozens of Russian warplanes. The mission was months in the planning, the drones were smuggled on prefabricated cabins disguised as hunting lodges, and unsuspecting Russians were paid to drive the trucks that moved the cabins.

“Spiderweb” showcased Ukraine's special operations capabilities and was followed by more long-range sabotage. As The Cipher Brief reported, subsequent attacks targeted Russian refineries and other sites tied to the oil sector.

“It’s very impressive,” Balazs Jarabik, a former European Union diplomat and analyst for RPolitik, told The Cipher Brief. The energy-sector attacks, he said, were “making the Russian war effort more expensive, and creating shortages so the Russian people feel the pain of the war.”

By year’s end, Ukraine had carried out an estimated 160 strikes on Russia’s oil sector – the campaign reached as far as the Siberian city of Tyumen, some 1200 miles east of Moscow, and included strikes against vessels alleged to be working in Russia’s so-called "shadow fleet” of tankers carrying sanctioned oil.

“Ukraine’s theory of victory now includes destroying Russia’s energy sector,” Lt. Gen. Ben Hodges, a former commander of U.S. Army Forces in Europe, told The Cipher Brief. “They’ve developed capabilities that can reach great distances with precision, exposing Russia’s vulnerability – its inability to protect critical infrastructure across its vast landscape.”

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Palestinians flock to the Netzarim Corridor to receive limited food supplies as hunger deepens across Gaza amid ongoing Israeli attacks and blockade, on August 4, 2025. (Photo by Hassan Jedi/Anadolu via Getty Images)

A Peace Deal for Gaza

It was President Trump’s signature diplomatic achievement: a truce in Gaza reached just days before the two-year anniversary of Hamas’ October 7, 2023 massacre.

The deal’s first phase took hold, albeit in violent fits and starts – the return of hostages, the freeing of Palestinian prisoners in Israeli jails, and a fresh flow of international aid for Gaza. But that may have been the easy part. As the year drew to a close, there were sporadic breaks in the ceasefire, and the fate of the deal’s next phases remained unclear.

The Trump administration’s plan for Gaza included the deployment of an international stabilization force and creation of an international “Board of Peace” (led by Trump himself) to oversee the implementation of the next phases – the transition of governance to Palestinians not affiliated with Hamas, and the beginning of a multi-billion-dollar reconstruction. The deal also included language offering a conditional pathway to Palestinian autonomy over its territories.

But as of mid-December, the announcement of the Board had been delayed, and the New York Times reported that while the U.S. was pressing other nations to contribute troops to a 8,000-member force for Gaza, it had yet to win any commitments. Countries were said to be worried their troops might be ensnared in fresh fighting; and the UN Security Council resolution to deploy the force gave no precise terms of engagement. Nor was there agreement on the makeup of a transitional government.

As these hurdles appeared, reports suggested Hamas was rebuilding its presence in the territory.

“Who’s really calling the shots there?” Ralph Goff, a former CIA Senior Executive, asked at The Cipher Brief’s annual Threat Conference, speaking of the uncertainty inside Gaza. “I remain pretty pessimistic on the idea of any kind of internal governing force being able to compete with Hamas at this point.”

By year’s end, two things were clear: the Gaza ceasefire itself was a welcome achievement after two years of carnage; and uncertainty hung over the truce’s critical next phases. This was one major story that will continue to unfold — with hope but also apprehension — well into 2026.

The commissioning and flag-presenting ceremony of the Fujian, China's first aircraft carrier equipped with electromagnetic catapults, is held at a naval port in Sanya City, south China's Hainan Province, on Nov. 5, 2025. (Photo by Li Gang/Xinhua via Getty Images)

China's Military Boom

As The Cipher Brief reported, China took a “leap forward” in drone weaponry in 2025: a huge new “stealth endurance drone,” mosquito-sized “micro drones,” and the deployment of a new “drone mothership.” The latter, known as the Jiu Tian, was billed as the world’s largest drone carrier – an 11-ton aircraft that is itself an uncrewed aerial vehicle. According to the South China Morning Post, the Jiu Tian can hold 100 smaller UAVs and carry them more than 4,000 miles.

“They have the production, they have large inventory and now they also have the AI,” Dr. Michael Raska, a professor at the Military Transformation Programme at the S. Rajaratnam School of International Studies, told The Cipher Brief. “With all these combined, they have been experiencing a leap forward in the quality and quantity of all their drones.”

China also made leaps in maritime power. In November, the People’s Liberation Army Navy (PLAN) commissioned the 80,000-ton Fujian, the country’s third aircraft carrier and largest to date. A week later came news that the Sichuan, one of the world’s largest amphibious assault ships, would be ready for deployment next year.

Retired Rear Admiral Mike Studeman, a former Commander of the Office of Naval Intelligence, told The Cipher Brief that China had achieved its longstanding goal of building “a world-class Navy,” which had surpassed the size of the U.S. fleet.

“It's not just not in the numbers, it's in the quality,” RADM Studeman said. “These ships are modern by any standard.”

“It's impressive,” another former Rear Admiral, Mark Montgomery, told The Cipher Brief. “They're building a hundred merchant ships for every one we build, and two warships for every one we build.”

The Trump Administration issued an executive order in April to jumpstart the U.S. shipbuilding industry and restore “American maritime dominance,” but experts said the U.S. faces an uphill road. As The Cipher Brief reported, China is on track to have a 425-ship fleet by 2030, while the U.S. Navy currently has fewer than 300 deployable battle-force vessels – a total which may drop as aging ships are retired faster than new ones are put to water.

Police cars are seen on November 17, 2025 close to the railways that were damaged in an explosion on the rail line in Mika, next to Garwolin, central Poland, after the line presumably was targeted in a sabotage act. (Photo by Wojtek Radwanski/AFP via Getty Images)

Europe Wakes Up to the “Gray-Zone” War

2025 was the year when Europe formally recognized – and began to respond to – a growing threat from the east: the so-called “gray-zone” war attributed to Moscow.

These attacks mushroomed in 2025 – from cyberattacks to railway bombings, the cutting of undersea cables to drone incursions into Poland and the Baltic states, and more. Experts said they were designed to be difficult to trace, and non-kinetic, so as not to draw a military response; as The Cipher Brief reported, the Kremlin was likely “aiming to create disruption without triggering escalation.”

But there were also signs that European leaders were waking up to the gravity of the threat.

NATO’s Secretary General Mark Rutte warned repeatedly of the dangers, and the alliance moved to improve detection and deterrence measures.

Nations took steps of their own. Finland acquired hundreds of drone jammers and outfitted border forces with high-end drone detectors; leaders from Poland, the Czech Republic and the Baltic states said they might shoot down Russian aircraft if Moscow continued its provocations; in a September speech to the United Nations, Polish Foreign Minister Radoslaw Sikorski went so far as to warn Moscow that “if another missile or aircraft enters our space without permission, deliberately or by mistake, and gets shot down and the wreckage falls on NATO territory, please don’t come here to whine about it.”

Even nations far from the Russian frontier were waking up to the dangers; Ireland unveiled a €1.7 billion, five-year defense plan that included systems to counter drones and protect undersea cables from Russian sabotage. And in her first public speech, MI6 chief Blaise Metreweli described the gray-zone threat bluntly: “The new frontline is everywhere,” she said.

Writing in The Cipher Brief, former Senior CIA Executive Dave Pitts stressed the need “to change the risk calculation.”

“We need to think of deterrence and response as a team sport - an Article 5 mindset,” Pitts wrote. “Gray-zone attacks that go unanswered reward our adversaries and reinforce the idea that there are more gains than risk…and encourage more attacks.”

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Heavy trucks haul earth and rock at the construction site of Wubian Xiangshang Reservoir on the top of Pandao Mountain in Zhangye, China, on March 3, 2025. (Photo by Costfoto/NurPhoto via Getty Images)

America’s Rare Earth Crisis

Not long ago, rare earth minerals rarely made global headlines. 2025 was the year when that changed. And for the U.S. government, it was also the year in which rare earths took center stage.

Two basic facts underscored the urgency: rare earths are essential building blocks for everything from smart phones to home appliances to cars to all manner of military equipment and weapon systems; and China now produces an estimated 60 percent of the world’s rare earths and processes nearly 90 percent of them. The U.S. Geological Survey said that in 2024, the U.S. imported more than 95 percent of the total rare earths that it consumed.

Those realities spurred multiple U.S. efforts to change the dynamic: deals with Australia and Japan; negotiations with other resource-rich countries, including Congo, Indonesia, Kazakhstan and Malaysia; and threats to annex mineral-rich Greenland. Even the negotiations with Russia and Ukraine reportedly included plans for U.S. firms to invest in rare-earth extraction in Russia.

China’s imposition of rare-earth export restrictions only heightened the concerns – and while those were lifted as part of a deal with Washington, the message was clear: China’s rare-earths dominance now poses a huge problem for the U.S., and gives China a powerful lever in any future negotiations with Washington.

Susan Miller, a Former Assistant Director of the CIA’s China Mission Center, called the rare earth access “vital” to U.S. technology and national security.

“We democracies must do more to assure we have continuous access to these metals, and we also need to start producing more,” Miller told The Cipher Brief. “All democracies must focus on this issue; we must act now.”

Then-National Security Agency Director General Timothy Haugh, FBI Director Kash Patel, Director of National Intelligence Tulsi Gabbard, Central Intelligence Agency Director John Ratcliffe, and then-Defense Intelligence Agency Director Jeffrey Kruse appear during a Senate Committee on Intelligence Hearing on March 25, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)

The Overhaul of the Intelligence Community

Before his return to the White House, Donald Trump promised to remake the U.S. intelligence community (IC). “We will clean out all of the corrupt actors in our national security and intelligence apparatus,” Trump said soon after the 2024 election.“The departments and agencies that have been weaponized will be completely overhauled.”

In 2025, it was a promise he kept.

There were widespread cuts in staffing at the CIA, FBI, and the Cybersecurity and Infrastructure Security Agency (CISA), and the biggest reductions appeared to come at the Office of the Director of National Intelligence (ODNI), which coordinates the 18 agencies of the IC. Roughly 40% of ODNI staff were cut, including the elimination or consolidation of the Foreign Malign Influence Center and some cyber threat units into other agencies.

Other high-level dismissals drew particular attention: National Intelligence Council acting head Mike Collins was fired after presenting an assessment on Venezuela that contradicted the White House line; and NSA Director Gen. Timothy Haugh lost his job after Trump “influencer” Laura Loomer questioned his loyalty to the administration.

Depending who you asked, the changes were a much-needed streamlining of a bloated intelligence apparatus; a reorganization to focus less on Russia and China and more on border security and drug trafficking; or a Trump-driven retaliation against institutions and individuals he had blamed for investigations or views with which he disagreed.

The high-level firings troubled several experts. Jon Darby, a longtime NSA veteran who served as director of operations, told The Cipher Brief he was “very disheartened” by Gen. Haugh’s ouster. “We need an explanation of the underlying rationale,” he said.

Beth Sanner, a Cipher Brief expert who served as Deputy Director for National Intelligence at ODNI, warned of a broader politicization of the IC.

“The intelligence community is not like asking people to hit the easy button and the ‘I agree with you’ button,” she said. “That's not our role. Our role is to say what we think and why we think it…The intelligence community isn't always right. But when done correctly and behind closed doors, I cannot understand why anybody would say that presenting an intelligence assessment that disagreed with policy needed to stop, or was an example of deep state. It's not. And it's really important.”

All that said, the nature of the IC makes it difficult, even at the end of a tumultuous year for the various agencies, to know precisely what the impact of the “overhaul” has been – or will be in the future.

Fingers on laptop. (Photo by Silas Stein/picture alliance via Getty Images)

A Cybersecurity “Watershed”

It seemed like a headline from a science fiction journal. An artificial intelligence system had conducted a large-scale espionage operation.

But it wasn’t science fiction – or fake news. The AI giant Anthropic confirmed the first real-world case of the use of an AI system to do exactly that.

“Today marks a watershed in cybersecurity,” Jennifer Ewbank, a former Deputy Director of the Central Intelligence Agency for Digital Innovation, told The Cipher Brief. “AI has now crossed from tool to operator,” Ewbank said, “blurring the line between human intent and machine execution...a threshold has been crossed.”

Anthropic said that Chinese state-sponsored hackers had exploited its Claude AI system to carry out cyberattacks on corporations and foreign governments in September, and that the hackers had succeeded with only minimal human oversight. Anthropic’s threat intelligence chief said the campaign had targeted about 30 entities, and represented a new level of AI-enabled hacking. The hackers posed as security auditors and successfully breached several systems, accessing privileged accounts and private data before being blocked.

The good news? The number of breaches and scale of the damage appeared small, and no U.S. government agencies were compromised. But the incident gave ammunition to doomsayers who have warned of AI nightmares – and showed that AI is already a valuable tool for hackers and state-backed cyber operations.

Experts called it the latest code-red warning for securing AI systems and deploying effective cyber defenses. As Ewbank put it, “This is no longer a hypothetical threat being researched in a lab.”

Read more expert-driven national security insights, perspective and analysis in The Cipher Brief.

Taiwanese sticky rice also known as you fan or oil rice in Taiwan. It is a comforting and flavourful recipe made with sticky rice, mushrooms, shallots, and seasoned with soy sauce, hoisin sauce and sesame oil. The rice will be soft, chewy and absorbs all the rich umami flavour from the mushroom and vegetable stock....

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Bitcoin Magazine

Taiwan Reveals It Holds 210 Bitcoin Seized in Criminal Cases, Valued at $18 Million

Taiwan’s Ministry of Justice has disclosed that the government holds more than 210 bitcoin seized through criminal investigations, placing the island among the world’s top government holders of the asset by volume.

The disclosure, confirmed by legislator Ko Ju-chun, shows that judicial authorities held 210.45 BTC as of Oct. 31. At current market prices, their BTC is worth about $18 million. According to data from Bitcoin Treasuries, this would put Taiwan as the 10th-largest government holder of BTC globally.

Ko said the information was released in response to a legislative inquiry and shared an image documenting the total amount held under state custody. The ministry said the bitcoin was confiscated in cases tied to financial crime and illegal digital asset activity.

Back in November, Taiwan’s Premier and Central Bank reportedly agreed to study Bitcoin as a strategic reserve, draft pro-Bitcoin regulations, and pilot BTC treasury holdings, starting with seized BTC that is ‘awaiting auction.’  

While many countries have accumulated BTC through enforcement actions, few have provided clear guidance on custody standards or long-term policy.

Taiwan’s Ministry of Justice did not outline any plans to liquidate, auction, or convert the seized BTC into fiat currency. Officials also did not disclose where or how the BTC is custodied, or whether it is held through self-custody or third-party services.

United States’ bitcoin holdings from seizures 

The United States, which leads global government BTC holdings with more than 328,000 BTC, has seized crypto linked to cybercrime and fraud cases. China and the United Kingdom rank next after the U.S.

Collectively, governments worldwide hold more than 640,000 BTC, or about 3% of bitcoin’s total supply, according to public data. Most of these holdings stem from law enforcement seizures rather than formal reserve strategies.

Taiwan has not announced any intention to adopt BTC as part of its national reserves. 

Still, the disclosure lands amid broader debates in the country over digital asset regulation and the treatment of confiscated crypto. Lawmakers have pressed agencies to clarify whether seized assets should be sold, retained, or managed under a standardized framework.

The Ministry of Justice said the BTC was obtained as part of its broader effort to track and process virtual assets tied to criminal proceedings. 

At the time of writing, the price of Bitcoin is near $88,000.

This post Taiwan Reveals It Holds 210 Bitcoin Seized in Criminal Cases, Valued at $18 Million first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

OPINION — Last week’s Fourth Plenum of the Chinese Communist Party witnessed a purge of China’s senior military leaders, culminating in over two years of the removal of senior military officials once loyal to President Xi Jinping.

The last two defense ministers – Wei Feng he and Li Shangfu – were removed in October 2023 and June 2024. And now, He Wei Dong, Vice Chairman of the Central Military Commission (CMC) was expelled from the Party and Military for “serious violations of Party discipline.” Admiral Miao Hua, Director of the CMC’s Political Work Department (responsible for the political/ideological work in the military) was removed from the CMC in June 2025 and later officially expelled.

The list goes on and on: Lin Xiangyang, Former Commander of the Eastern Theatre Command; Wang Houbin, Former Commander of the PLA Rocket Force; Wang Chunning, Former Commander of the People’s Armed Police. These are just three of eight or nine senior military officers purged in October 2025.

Purges of senior officials are not new to China. On July 1, 1989, Zhao Ziyang was removed as the Party’s General Secretary -- and Vice Chairman of the CMC -- for supporting the students during the June 1989 Tiananmen Square demonstrations, and on July 1, 1987, Hu Yaobang was removed as the Party’s General Secretary for supporting the students who were demanding more democracy. Deng Xiaoping accused Mr. Hu, a former protégé of his, of “bourgeoise liberalization.”

And in 1971, Lin Biao, Vice Chairman of the Chinese Communist Party and his wife, Ye Qun, planned the assassination of Chairman Mao Zedong, to replace Mao as the supreme leader. The plot was discovered and Lin Biao died in an airplane crash as he was fleeing for his life.

Many of the recently purged generals, including He Weidong and Admiral Miao Hua, worked in the 31st Group Army stationed in Fujian Province during the 1970s and 80s. This region is the front line for any potential military operation against Taiwan. In fact, He Weidong later served as commander of the Eastern Theatre Command from 2019 to 2022, the unit responsible for operations concerning Taiwan.

General He was a member of the Communist Party’s Politburo and Vice Chairman of the CMC, the third highest-ranking military official in China. His professional prominence was also due to his association with Xi Jinping, but in October 2025, General He and eight others senior military officers were expelled from the Communist Party and the military. They in fact were referred for criminal prosecution on charges of corruption and “serious violations of discipline and law.”

General He and the other purged generals all had connections to Fujian and the former Eastern Theatre Command commander Lin Xiangyang and Navy Admiral Miao Hua. It would be fair to assume that these senior military officers disagreed with some of Mr. Xi’s policies toward Taiwan.

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Given the importance of Taiwan for Mr. Xi and the Communist Party, a disagreement with seniors in the military over Taiwan could develop into an issue that affects the inner workings of the Party. Mr. Xi has consistently refused to renounce the use of force to bring Taiwan under its control and continues to conduct military exercises near Taiwan. Mr. Xi maintains, however, that “peaceful reunification” is preferable but reserves the option of using force, particularly in response to “external forces” or “separatist activities” in Taiwan.

Hopefully, Mr. Xi will pursue a policy of peaceful reunification with Taiwan and immediately halt military exercises and related activities to intimidate Taiwan.

This column by Cipher Brief Expert Ambassador Joseph DeTrani was first published in The Washington Times

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