The President's Daily Brief - July 3rd, 2025: Chinese Spies Busted on U.S. Soil & U.S. Halts Ukraine Weapons Shipments

Episode Date: July 3, 2025

In this episode of The President's Daily Brief: Two Chinese nationals have been arrested and charged with spying on U.S. Navy personnel and military bases. We’ll break down what they were allegedly doing and who they were working for. The Pentagon halts shipments of key air defense and precision munitions to Ukraine, citing concerns over shrinking U.S. stockpiles. Azerbaijan detains seven individuals tied to a Kremlin-funded media outlet, escalating tensions with Russia following the deaths of two ethnic Azerbaijanis in Russian custody. In today’s Back of the Brief—President Trump announces a new trade deal with Vietnam that includes a 20% tariff on imports and tariff-free access for American goods. To listen to the show ad-free, become a premium member of The President’s Daily Brief by visiting PDBPremium.com. Please remember to subscribe if you enjoyed this episode of The President's Daily Brief. YouTube: youtube.com/@presidentsdailybrief TriTails Premium Beef: Celebrate with steak worth standing for. Get a free ribeye with the Freedom Box at https://Trybeef.com/PDB. True Classic: Upgrade your wardrobe and save on @trueclassic at https://trueclassic.com/PDB #trueclassicpod Birch Gold: Text PDB to 989898 and get your free info kit on gold Learn more about your ad choices. Visit megaphone.fm/adchoices

Own it all. Pay off your home, travel for life, drive a Ferrari. In celebration of the world premiere of the Monopoly Big Board Buckslot Machine by Aristocrat Gaming, Yamava Resort and Casino at San Manuel is giving one person a $1.6 million dream package. The biggest prize in Yamava's history. Club Serrano members can earn daily instant prizes and secure a spot in the finale May 29th.

Don't pass go and own it all. Only at Yamava, celebrating its 40th anniversary. You win? Details at yamava.com must be 21-20. Please gamble responsibly. Monopoly is a trademark of Hasbro. Hasbro is not a sponsor of this promotion. Looking to diversify and protect your hard-earned assets?

Well, schedule a free consultation with Birch Gold Group. The precious metals specialists. Just text PDB to the number 989-89-8. It's that simple. And you'll receive a free, no-obligation information kit. And you'll learn convert an existing IRA or a 401k to a gold IRA. Again, just text PDB to the number 989-89-89. It's Thursday, the 3rd of July.

Welcome to the president's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. And yes, quite clearly, still on the road. You know, at some point, we're going to produce a coffee table book here at the PDB, featuring all the backdrops that I've had over the past couple of years. All right, let's get briefed. We'll start things off with a story that's raising serious alarms inside the Pentagon. Two Chinese nationals that have been arrested and charged with spy.

on U.S. Navy bases and service members. We'll break down what they were doing, who they were working for, oh, here's a hint, they're Chinese nationals, and how the FBI caught them. Later in the show, the Fetgaunt hits pause on key military to Ukraine, including air defense systems and precision munitions. Concerns over dwindling U.S. stockpiles are driving the decision. Plus, a diplomatic rift between Azerbaijan and Russia deepens. Baku, as detained to seven people, tied to a Kremlin-backed media outlet following the deaths of two ethnic Azerbaijanis in Russian custody. And in today's back of the brief, President Trump unveils a new trade deal with Vietnam slapping a 20% tariff on imports while securing tariff-free access to Vietnamese markets for U.S. goods.

But first, today's PDB spotlight. We'll begin in the U.S., with an alarming but frankly not surprising case of Chinese espionage, targeting the U.S. military. It's a timely reminder that Beijing is engaged in an unrelenting effort to undermine America's national security interests from within. Earlier this week, the Department of Justice unsealed charges against two Chinese nationals were allegedly spying on U.S. Navy service members and bases, and attempting to recruit members of the military to carry out tasks on behalf of China's Ministry of State Security or the MSS, the Communist Nations' main foreign intelligence service. The suspects were arrested by FBI agents last Friday for failing to register as foreign agents

as they worked to carry out various clandestine intelligence tasks for the CCP, the Chinese Communist Party, according to our report from Fox News. Now, the infiltrators were identified as 38-year-old Yuan Yuan Xi, 39-year-old Ryan Lai, both of whom now face up the 10 years in prison and fines of a quarter million dollars convicted of the charges. Chen, who resides in Ampe Valley, Oregon, reportedly first arrived in the U.S. back in 2015 on a U.S. visa before becoming a lawful permanent resident, though he wasn't recruited by China's intelligence service until years later. Laid, meanwhile, arrived in Texas earlier this spring on a tourist visa as part of an effort to supervise clandestine espionage operations on behalf of China's MSS, though he had made numerous past trips to the U.S.

Investigators said they believe Lai was the driving force behind the spying campaign and had been developing Chen to become a Chinese intelligence asset since at least mid-2020. According to the DOJ criminal complaint, the two men traveled to Guangzhou, China, in January of 2022, to meet directly with members of the MSS about coordinating the what's called a dead drop payment of at least $10,000 U.S. dollars, which was used to pay other U.S.-based assets of the communist regime. That task involved leaving a backpack with the cash day-use locker, hence the name Dead Drop, in Livermore, California, which was later picked up by unknown agents of the CCP. After the cash drop payment, the pair focused their attention on the U.S. Navy, conducting surveillance

of a Navy recruiting station in California and a Navy base in Washington State in 2022 and also in 23. While monitoring the Recruitment Center in California, Chen took photographs and video footage, including a bulletin board that contained the names and hometowns of Navy recruits of Chinese background. He then sent those photos back to an MSS intelligence officer in China, identifying them as individuals that might be open to working on behalf of the Chinese government. The Chinese intelligence officer sent back instructions to Chen on what to say to potential recruits to lure them into service, including what naval job assignments the MSS would prefer and how the MSS would pay them for their assistance. Eventually, Chen began directly communicating with a naval

employee through social media and later arranged for a tour of the USS Abraham Lincoln in San Diego with his tart. He also sent detailed information about the unidentified naval employee back to his handlers in China. Chen made two more trips back Guangzhou, China, once in April 2020. in March of 2025 to meet with MSS intelligence officers to discuss further payments for specific tasks. As I mentioned, the other suspect, Ryan Lai, returned to the U.S. in April of this year, saying he was visiting contacts in Houston regarding his business as an online retailer. He claimed that he would only be in town for two weeks, but Lai, who by this time was on the radar of the U.S. authorities, was surveilled more than a month later, traveling with an identified

compared from Texas to California, raising further suspicions. Authorities moved to arrest both men on the 27th of June as part of a coordinated counterintelligence and law enforcement operation across multiple states. Officials with the DOJ said the case highlights what they described as active efforts by the Chinese government to secretly collect intelligence about American military capabilities. They warned that the threat remains widespread, as China's intelligence service dedicates years to recruiting individuals and cultivating them as assets. That's absolutely correct.

The Chinese intel apparatus doesn't really concern itself so much with immediate results. They maintain a very long-term perspective on their targeting and collection efforts. In a statement, U.S. Attorney General Pambandi said, quote, this case underscores the Chinese government's sustained and aggressive effort to infiltrate our military and undermine our national security from within. The Justice Department will not stand by, while hostile, nations and bed spies in our country." Meanwhile, China's foreign ministry,

predictably faint ignorance about the case, while slamming the Trump administration, pushing what they described as, quote, unfounded allegations of espionage. Oh, a spokesman said, quote, I am not aware of the specifics, but we have always opposed unfounded hype about so-called Chinese spies.

And then he added, just kidding, we've been stealing your shit for decades. All right, coming up after the break, the Pentagon, by the way, that was a fake quote at the end. Coming up after the break, the Pentagon holds key weapons shipments to Ukraine over stockpile concerns, and tensions spike between Azerbaijan and Russia. I'll be right, Beth. Hey, Mike Baker here, I want to tell you about a great clothing company out there that's producing outstanding gear. You've got to know about them.

It's called True Classic. True Classic goes beyond fit and fabric. Their primary mission is to help men show up with confidence and purpose. Do you want to be able to do both? Their clothing is designed to fit well, feel great, and stay affordable. That's important, so men can look sharp without overspending. And what really sets true classic apart is the intention behind the brand, from supporting underserved communities to helping men feel more confident in their daily lives

and even bringing humor to their messaging, they lead with purpose. Each piece is tailored where it matters and relaxed where it counts, offering a clean, comfortable fit that works for everyday life. There's no stiff fabric. You don't want that. There's no bunching. Nobody wants bunching. Just dependable quality and design. Say goodbye to overpriced designer labels and throw away fast fashion. True Classic is built for comfort, built to last, and built to give back. Find them at Target, at Costco, or just visit True Classic.com slash PDB to learn more and explore their collection. This is Euphoria Calvin Klein, the new elixir collection, featuring three perfume intense scents, inspired by a unique orchid accord, paired with vanilla, each with its own distinct attitude, each with its own universe, bold elixir, sensual, woody, addictive, magnetic elixir, sweet and romantic like a lingering touch, solar elixir, a radiant expression of joy, ultra-concentrated for amplified impact and lasting power, find your euphoria, discover the euphoria elixir collection,

by Calvin Klein. Welcome back to the PDB. The Pentagon has halted shipments of critical air defense and precision munitions to Ukraine, citing concerns that American weapon stockpiles have become dangerously depleted amid growing global commitments. That move initiated by Pentagon Policy Chief Elbridge Colby follows months of internal wrangling over just how thin the U.S. can stretch its arsenals without undermining its own readiness. According to three sources familiar with the map. The review painted a bleak picture. Stocks of interceptors, artillery shells, and precision-guided munitions have fallen to levels that it further drawn down could leave the U.S. flat-footed in the event of a crisis. The pause, which was quietly decided on in early June, is only now taking effect,

coinciding, perhaps inconveniently, well, definitely inconveniently, with one of Russia's most ferocious aerial barrages of the three-year war. As we discussed this week, Moscow unleashed more than 470 drones and 60 missiles over the weekend, pounding civilian infrastructure across Kiev and other urban centers. In a statement defending the move, White House Deputy Press Secretary Kelly said the decision, quote, was made to put America's interests first following a DOD review of our nation's military support and assistance to other countries. She made a point, however, to know that the strength of America's armed forces remains unquestioned, adding, quote, just ask Iran. The freeze impacts weapons drawn from key funding streams, the first being

existing Pentagon stockpiles. The others are deliveries tied to the Ukraine Security Assistance Initiative, which contracts U.S. firms to manufacture new weapons systems. That second pipeline was largely exhausted during the Biden administration, though deliveries have continued as production schedules allow. The remaining drawdown authority is now being administered under President Trump, using leftover funds from the $61 billion Ukraine aid package that was passed last year. A senior Trump administration official said that while under the freeze, the White House will not request any further aid for Ukraine. The remaining funds are sufficient to support Ukraine for several more months. He emphasized that future shipments would depend on strategic need.

Notably, at one point, a memo recommending the munitions freeze reportedly sat on the desk of Defense Secretary Pete Hegset for weeks as Pentagon staff turnover stalled internal consensus. That memo now appears to be shaping a broader realignment of U.S. military aid. Plans are underway to redirect certain weapon systems, particularly artillery shells, tank rounds, and interceptors, either back into domestic depots or toward Israel. On Monday, the Trump administration approved a $5.10 million arms sale to Israel, including bomb guidance, kits, and associated logistical support. Now, the freeze and pivot of aid has not gone unnoticed in Kiev, as you might imagine. On Wednesday, Ukraine's foreign ministry summoned John Ginkle, the deputy chief of mission at the U.S. embassy, seeking clarification.

Ukraine's deputy foreign minister warned that, quote, any delay or slowing down and supporting defense capabilities would only encourage Russia to continue the war and the terror rather than seek peace, and quote. Moscow, meanwhile, welcome the development. Kremlin mouthpiece Dmitri Peskov told reporters that, quote, fewer arms supplied to Ukraine, the closer the end of the special military operation will be. And you have to remember that possibly one of the worst branding exercises ever, Putin has tried to market his three-year-plus bloody war and invasion of another country as a special military operation.

Much like New Coke, nobody bought it. The pause. has drawn some comparison to Trump's 2019 decision to withhold aid to Ukraine. That's a move that critics claim violated budget law, though no legal consequences followed. Legal experts now warn that if Pentagon is now delaying congressionally authorized aid without formal budget notification, it may again leave the Trump administration on uncertain legal ground. Okay, shifting to Azerbaijan, seven people connected to a Kremlin-backed media outlet have been arrested following a raid in Baku, deepening an already growing rip between the two former Soviet allies.

On Monday, masked officers stormed the offices of Sputnik Azerbaijan, that's the local arm of the Russian state media conglomerate. Authorities said the outlet had continued operations through what they described as, quote, illegal financing after losing its license earlier this year. Among the detained are the editor-in-chief, the editorial director, and five others who are now under criminal investigation for fraud, illegal entrepreneurship, and the criminal acquisition of property. The two senior editors face additional charges of conspiracy to launder money and commit fraud. Those offenses carry sentences of up to 12 years. Now, all seven were ordered to be held in pretrial detention for a minimum of four months.

Sputnik's parent company said the rates had effectively, quote, blocked the hour outlets operations and denounced the move as baseless. Russian state media reported staffers' homes were ridded and computers seized, while the Russian consulate has been denied access to its detained citizens. Once again, let's hear from Kremlin spokesman Dmitri Peskov. He's always entertaining. While he chimed in on the complaints, calling the arrest, quote, absolutely not in line with generally accepted rules and norms,

and, quote, inconsistent with the spirit of Russian Azerbaijani relations. Now, I'm not sure if Peskov knows this, but Russia's invasion of Ukraine can also be considered absolutely not in line with generally accepted rules and norms. But I'm starting to think that Dmitri lacks a sense of irony. This wasn't an isolated rupture. Just last week, Russian police in Katarineberg carried out their own raids, targeting ethnic Azerbaijani's cold case murder pro dating back decades. As a result of the raids, two men died in Katerinberg.

That sounds about right for the Russian police. Others were hospitalized and not were detained. Azerbaijan's Prosecutor General launched a criminal investigation, accusing Russian authorities of using violence against men who were, quote, practically helpless and unable to defend themselves. The diplomatic blowback from Baku was swift. Azerbaijani officials canceled the scheduled visit to Moscow, disinvited a Russian deputy prime minister, and pulled the plug on all concerts and exhibitions and other events backed by Russian state institutions. And in an unexpected twist, the president of Azerbaijan received a phone call from Ukrainian President Zelenskyy, offering condolences regarding the raids in a rare show of solidarity.

This diplomatic spat is nothing. Despite sharing a membership in the OPEC Plus Energy Alliance, Azerbaijan has steadily decoupled from Moscow, capitalizing on Russia's growing economic isolation to push into Western energy markets. The major fracture occurred back. in December when a passenger airplane from Azerbaijan was downed over Russian airspace near Chechnya, killing 38 people. The Azerbaijani president blamed the incident on Russia's electronic warfare aimed at Ukrainian drones. Russian leader Putin merely offered condolences, but no admission that it was Moscow's doing. Since then, the chill has only intensified. Azerbaijan's president

skipped out on Russia's Victory Day parade in May, then rolled out the red carpet for a visit from Ukraine's foreign minister. The warm welcome came less than a year after Baku had hosted Putin. Shortly after that visit, Azerbaijani officials lashed out at Ta Putin aids for remarks about the Nagorno-Karabakh region. Now, that territory, long disputed by Armenia and Azerbaijan, was retaken by Baku in a decisive 2023 military campaign. While Russia had long postured as Armenia's protector, its failure to prevent Azerbaijani gains through ire from both sides. Baku accuses the Kremlin of double-dealing and of questioning its territorial claims. Coming up next in the back of the brink.

The White House unfails a new deal with America's top trading partners, announcing U.S. businesses will have free access to Vietnam's market. More on when we come back. Hey, Mike Baker here. Well, one of America's greatest holidays, of course, I am talking about, about the 4th of July is just around the corner. It's basically sitting on our doorstep. And this Independence Day, do your family and your friends

of favor, fire up that grill and declare your freedom from average grocery store beef, right? And you want the best beef for that grill, you gotta make it TriTales. Now, Tritails beef is a real Texas family run ranch. It's not some corporate meat factory. They raise pasture-raised, grain-finished, black Angus cattle, and they ship the beep

straight from their ranch to your front door. It's that simple. There's no middlemen, no shrink-wrap nonsense, just real American beef raised and delivered from folks who still believe in doing things the right way. And right now, when you order their freedom box, they'll throw in a free riboy. Look, it's officially grilling season.

You know that. Do it right with TriTales beef. Go to trybeef.com slash PDB. That's tribeef.com slash PDB. Trytails, because you and your family deserve the best. best. Some follow the noise. Bloomberg follows the money because behind every headline is a bottom line. Whether it's the funds fueling AI or crypto's trillion dollar swings, there's a money side to every story. And when you see the money side, you understand what others miss. Get the money

side of the story. Subscribe now at Bloomberg.com. Hey there. It's Wayfair here, where delivery and setup are as easy as a few taps on your phone. You're relaxing in an old hammock, scrolling Wayfares app, when you spot it, a brand new patio set. Next thing you know, Wayfair delivers it right to your patio and sets it up. Oh, you need a new grill, too? All right, Wayfair's got you covered. With Wayfair's room of choice delivery and fast experts set up on qualifying orders,

life gets a little easier. Visit Wayfair.com or the Wayfair app. Wayfair, every style, every home. In today's back of the brief, President Trump announced a major trade deal with Vietnam on Wednesday, one that will significantly scale back crippling tariffs issued on Vietnamese products earlier this year in exchange for the communist nation opening its markets up to American goods. As a reminder, President Trump issued a slew of tariffs on America's trading partners at the beginning of April, including a 46% blanket tariff on Vietnamese

imports. The tariffs left Vietnam's economy particularly vulnerable as their exports to the U.S. for roughly 30% of their GDP. Shortly after, however, Trump announced a 90-day pause on most of the tariffs, which brought the levy on Vietnam temporarily down to 10%. But with that pause said to expire next week, it appears that leaders in Vietnam were eager to find a long-term resolution. While details of the deal are scarce, Trump outlined the broader terms of the agreement in a post on Truth Social.

The president said Vietnam has agreed to pay a $1,000, 20% tariff on exports to America while giving the U.S. preferential tariff-free access to Vietnamese markets. Trump said such access will be particularly beneficial for U.S. automakers, who had previously faced restrictions on selling large-engine cars like SUVs in the country. Critically, Trump said Vietnam also agreed to a 40% tariff, any goods that originated in another country but were transferred to Vietnam for final shipment to the U.S. Now, that's a practice known as trans-shipping. It's used by other nations as a way to circumvent trade barriers. That's according to a report from CNBC. Now, the new arrangement is, frankly, bad news for China, which has used Vietnam

as a large-scale transshipment hub to avoid U.S. tariffs. But the deal cools tensions with America's 10th biggest trading partner and 6th largest supplier of imports. The Vietnamese government later confirmed, they had reached a new trade framework with the U.S., noting that they'll give preferential access to U.S. goods, but did not confirm the specific tariff levels outlined by Trump. We should note that critics of President Trump's aggressive tariff agenda warned that the new deal will height costs for U.S. importers, which they will likely or could pass on to American consumers. Still, the S&P 500 rose slightly on the news. As far as other trade deals go, uncertainty remains as the tariff.

of deadline approaches. Trump has indicated that he may ignore or revise his self-imposed July deadline, as to date he's only struck revised frameworks with China and the United Kingdom. But administration officials, well, they continue to insist that the U.S. is close to reaching deals with dozens of other countries. And that, my friends, is the president's daily for Thursday the 3rd of July. Now, if you have any questions or comments, please reach out to me at PDB at thefirstTV.com. And, of course, to listen to the show ad-free, just become a premium member of the President's Daily Brief

by visiting PDB Premium.com. Couldn't be simple. And remember, of course, if you get a chance, please take a minute to check out and subscribe to our YouTube channel. You can find that to President's Daily Brief. As the kids say, it's the Cats Pajalas. I don't know if the kids actually say.

I'm Mike Baker, and I'll be back later today with the PDB afternoon bulletin. Until then, stay informed. Stay safe. Stay cool. Wireless can feel like a world of traps, but not with Visible. It's one-line wireless with unlimited data and hotspot. Powered by Verizon for $25 a month, taxes and fees included.

Plus, for a limited time, new members pay just $20 a month for one year on the Visible plan. Using the code Fresh Start. Refresh your wireless with Visible. Tap the banner to switch today. Terms apply limited time offer subject to change. visible.com for plan features and network management details.