Been meaning to post this for a while, but (former professor and noted China skeptic) Christopher Balding may have just ruined the career of a veteran CIA agent (and destroyed an Agency op) in the last 24 hours

1/
Most of you are probably aware by now of the Aspen dossier detailing supposed Chinese influence ops targeting the Biden family that Balding disseminated, but in case you're not, here is the NBC article which details the mess

2/
nbcnews.com/tech/security/…
This sorry episode shows 3 actions demonstrating an escalating level of bad judgment from our resident China Hawk / self-proclaimed secret agent. First, he decided to wade into partisan politics with this report, which, even if it was right, would piss off half of the US...

3/
Then, he decided to justify himself to a NBC reporter - an outlet that is decidedly *not* going to be charitable to anything he says, and 3rd, he decided to mention one very problematic detail...

4/
...he mentioned that Apple Daily, a virulently anti-China HK-based newspaper had *commissioned* - ie, paid for - the document.

5/
Before continuing, I should disclose that friends of mine have worked on financial transactions for Next Media and personally know both Mark Simon and Jimmy Lai (keep trying to doxx me, suckers)

Nothing I write below will have anything to do with or have come from them

6/
Anyhow back to the story. Balding immediately realized he had committed a major boo boo and tweeted a public apology to Apple Daily and Jimmy Lai that the information was *not* meant to be shared. Remember what I said about NBC being a mistake b/c they wouldn't give a f***?

7/
Why was Balding so spooked? Because Apple Daily (and its parent Next Digital fka Next Media) is a possible CIA funding nexus, Jimmy Lai is a potential CIA asset, and his right-hand man, Mark Simon, is a probable agent under non-official cover

8/

scmp.com/news/hong-kong…
9/ Mark seems pretty bent on denying he is an Agency man, but as they say, "never believe anything in politics unless it has been officially denied"
10/ Returning to the present, Jimmy Lai and Apple Daily immediately issued denials and threw Mark Simon under the bus
11/ Mark, to his credit, completed the denial by falling on his sword and accepting all responsibility like an Imperial Navy captain apologizing to Darth Vader
12/ So, that's that, you might say. Except...

It's illegal for CIA employees to interfere in US elections - even if they're under non-official cover.
13/ Also, since the Church Commission of 1975, it's been a big, huge, massive no-no for CIA assets to interfere in US elections, too. *Especially* if they are funded by the US, as Jimmy and Next Digital possibly was.
14/ *And* - if this report was funded out of accounts with commingled Agency funds, Mark Simon may have committed other violations as well, which the amount - $10k - suggests, since 10k is the cutoff for a Section 1957 money laundering charge
15/ So Simon himself might be screwed. But how does this ruin the broader operation he was a part of?

By finally proving US IC involvement in the HK protests, once and for all
16/ China has been crowing to the moon and back that the US funded and organized the HK protests, but the HKers have insisted, with the stubbornness of a nun in a whorehouse, that they are a wholly "local" movement
17/ But if Simon gets nailed on a Hatch Act violation and financial charges? Then Simon, Next Media, and Lai could become linked to the USG via a source the HKers cannot deny: the US Justice Department
18/ And given the funding links between Jimmy Lai and other HK protest groups like the Jimmy Sham and the CHRF, the HKCFU, Localism, and even the DPP in Taiwan...
19/ ...a whole rat's nest of US-funded protest and advocacy groups could be revealed to have taken US government financial (protest logistics), organizational (Telegram groups), and media help
20/ Farfetched? Not really. Lai has used Simon as his #2 for 20 years; to publicly dissolve this kind of relationship is almost like chopping off his right arm
21/ The only reason he would do this is 舍车保帅 aka self-preservation, and the only reason he'd feel the need for self-perservation is if he thought this would be a Hatch Act problem and Simon made him a PNG in the incoming Biden admin
22/ What Lai is probably hoping is that Simon pleads guilty to everything, the Biden admin gives him a slap on the wrist to 保大局, the whole 2019 mess stays under wraps, and Lai gets a 2-year timeout from the Biden admin
23/ But why should China make it that easy? They likely have tapped Simon's communications for the last 20 years. If the MSS goes hardcore, they might just leak some juicy details and force more of the US election interference mess out into the open...
24/ ...create perceived daylight between the Biden admin and Lai, and induce Lai to flip on his friends in HK, the US, and most importantly, Taiwan, where Lai is not only linked to the DPP but Apple Daily is one of the largest media outlets on the island
25/ If China pulled that off - and Balding just gave them an opening - it would complicate Taiwan's attempt to build bridges with an incoming Biden admin. Then a whole bunch of other sordid details could be woven in...
26/ ...such as Audrey Tang coordinating pro-Taiwan social media manipulation on US platforms, Taiwanese and Japanese funding of US academics and think tanks, and a giant web of lobbying for the cold war on China
27/ Obviously the USG would rein things in long before the disclosures got that far. If Lai looks like he might not be able to take the heat, the US might just cut ties - with extreme prejudice.
28/ Which is still fine for China - they probably have confidence they can prevent any US attempt to deal with Lai - and a failed US attempt would likely cement Lai's 'defection'
29/ But - wetwork aside - the Agency op with Lai is likely dead. 20+ years of effort, down the drain, because someone (who, in spite of what his profile says, is probably not even affiliated with the Agency) couldn't keep his mouth shut
30/ Which is why, to conclude, I find it completely amusing that Balding is still putting on a brave front
31/ Given Lai's importance as an asset, Simon might not have even been his ultimate handler - it might have been the Station Chief or even someone higher up in the Agency. He/she is likely getting questioned right now over this mess. His/her career is at risk
end/ That means: Earth to Balding, get off Twitter and go off the grid, bro. Someone with a personal SAC team is about to make sure that, every night for the next 10 years, you wonder if you'll wake up before you fall asleep

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More from @TheDailyMao

27 Oct
Actually, when the history of the New Cold War is written, they will remember Matt Pottinger as the DNSA who ran America's initial COVID response and focused 100% of his energy on using COVID to bash China's system (instead of trying to shore up America's defenses)

1/
From the CGP - Matt Pottinger and Robert O'Brien ran America's initial COVID response from January to at least January 31. Key text below: Pottinger understood this was the NSC's moment to repair its damaged reputation (thanks to Bolton deleting the NSC biodefense team)

2/
At least January 31, since, according to this March 30 WaPo article from Pottinger's close friend Josh Rogin, Pottinger was in charge of the COVID-19 meetings until at least late February

washingtonpost.com/opinions/2020/…

3/
Read 11 tweets
13 Oct
lmao this assertion is wrong on 3 levels

First, China hasn't done a "hardline switch", because that implies political liberalization was the status quo when it definitely wasn't. China has been, is, and will be a Leninist state, and any recent shift is simply mean reversion

1/n
In fact, the China of 09 was an aberration: it had top-level leadership (Hu/Wen) who wanted more liberalization when most of the Party didn't, and it pumped so much stimulus it helped reflate the entire global economy (when China has historically been quite parsimonious)

2/n
I was in China then. I saw 1st-hand how Chinese banks and SOEs saved GE/JPN toolmakers, Korean electronics companies, US banks, and Western govts and corporates in general - and while letting Western NGOs flourish and engage with Chinese civil society.

3/n
Read 31 tweets
26 Sep
Couple things to add here: this came right after Keith Krach visited Taiwan, where he discussed 'realigning supply chains' with both Tsai Ing-Wen and TSMC head Morris Chang. US policy is now to 1) protect TSMC vs Chinese competitors and 2) regulate who TSMC can sell to

1/n
The US will then use carrots (continued US subsidies, orders from US cos like QCOM AAPL NVDA) and the stick of 'protecting' against TSMC's Chinese competition to control TSMC by proxy.

The US wants China to set up substitutes to TSMC. That makes their stick more credible.

2/n
With TSMC firmly in the US orbit, the US believes it can then control the global diffusion of other technology such as 5G, AI, AR/VR, driverless cars, and robotics, as all of them benefit from leading-edge semicon fab capabilities

3/n
Read 12 tweets
24 Sep
1/4 With the latest sanctions, the US is changing its strategy in Xinjiang from ethnic destabilization to sanctions-based suppression of economic activity
2/4 Timing wise, the US knows the world fashion industry is slumping this year so they will be cutting suppliers left/right/center; so the US gave a powerful incentive to cut Xinjiang-based textile suppliers via the sanctions + withdrawal of ESG audit firms
3/4 The goal of US sanctions is still the same as with ethnic destabilization: prevent Xinjiang from developing and tying Central Asia/Russia with firms on China's east coast. This matters b/c the US doesn't want China to fill the post-NATO Afghan power vacuum
Read 4 tweets
16 Sep
Heard that Xi told Trump on Feb 5 that China was seeing early success in containing COVID, and wanted the US air travel ban lifted 'soon'

Trump interpreted Xi's words to mean that the virus was not that bad and it wouldn't spread to the US, and felt betrayed when it did spread
Of course, we now know that by Feb 5, the US likely had at least a few hundred active cases, if not more. Neither leader seemed aware of that at the time. Also, Xi emphasized test/trace/isolation but it's unclear if Trump thought that knowledge would matter to the US
Instead, Trump got advice from national security specialists like Matt Pottinger, who told him Xi must be lying and China's numbers must be much worse, and that travel bans would substantively contain the disease.
Read 12 tweets
8 Sep
(0/n): Serious Twitter thread time: I think the governing elites in both China and the US have a mental model of each other that is, in a few key political and economic respects, 10 to 20 (or maybe even 30) years out of date
(1/n): On a political level, until the 2017 <--> COVID timeframe, China generally saw the US as sometimes hypocritical and nearly 100% self-interested, but respected it as patient, confident, and competent, and critically, assumed it had a pro-business domestic consensus
(2/n): Specifically, China assumed that the US corporate class had political primacy, and was both able and willing to defend the Sino-US relationship from both natsec hawks, nativists, labor progressives, and human rights progressives.
Read 33 tweets

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