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NATSEC-TECH THURSDAY — September 18, 2025: Every Thursday’s edition of Threat Status highlights the intersection between national security and advanced technology, from artificial intelligence to cyber threats and the battle for global data dominance.

Share the daily Threat Status newsletter and the weekly NatSec-Tech Wrap with friends who can sign up here. Send tips to National Security Editor Guy Taylor

President Trump and British Prime Minister Keir Starmer inked a multibillion-dollar tech pact Thursday boosting cooperation in artificial intelligence, quantum computing and civil nuclear energy.

… Several major U.S. tech companies will be involved, including Nvidia, Google, OpenAI and CoreWeave. 

… National Security Correspondent Bill Gertz has a deep-dive video exploring how dramatically drones have advanced since the long-range unmanned missile carrier era of the early-2000s.

… California-based drone manufacturer Skydio rolled out two new “flying robots” on its product line this week.

… The Australia-U.S. company DroneShield says it has sold more than 4,000 systems worldwide following two Pentagon contracts worth $7.9 million for handheld systems. 

… The U.S. Army has awarded a combined total of $354 million to Anduril and Rivet Industries toward a program that aims to deliver an AI-powered helmet for soldiers.

… Anduril is now ranked 93rd on Defense News’ 2025 list of the world’s top defense companies.

… The U.S.-China Economic and Security Review Commission warns that Beijing is tightening control over the rare earth element industry.

… A recent Threat Status weekly podcast featured an interview with Phoenix Tailings CEO and co-founder Nick Myers examining the risks of China’s rare earth element domination.

… The Center for a New American Security has a new report on how the U.S. can counter China’s “Digital Silk Road” efforts in Saudi Arabia.

… A new report by the East-West Center asserts that Singapore, Malaysia, Indonesia, the Philippines and Vietnam have become a prime target for cyberattacks.

U.S. sanctions Chinese spy balloon maker

In this image released by the Department of Defense on Wednesday, Feb. 22, 2023, a U.S. Air Force U-2 pilot looks down at a suspected Chinese surveillance balloon as it hovers over the United States on Feb. 3, 2023. (Department of Defense via AP) ** FILE **

The Commerce Department’s Bureau of Industry and Security this week placed 32 foreign companies, including 23 in China, on its blacklist of sanctioned firms for activities that threaten America’s security. Among the Chinese entities was the Aerospace Information Research Institute that BIS said in announcing the sanctions is supporting China’s high-altitude spy balloon program.

In 2023, a Chinese surveillance balloon flew undetected over sensitive military and missile bases in the U.S., setting off a U.S. backlash over Chinese spying and violations of sovereignty. The balloon was eventually shot down over the Atlantic near South Carolina by an F-22 jet but not until passing thousands of miles over the country. China claimed it was a harmless weather monitoring craft and denounced the shootdown.

However, an extensive amount of electronic spying gear was recovered from the downed balloon. A report by the legal office of the Pentagon’s Indo-Pacific Command stated that Chinese high-altitude balloon spying operations have violated international law and the sovereignty of more than 40 countries across five continents.

Malicious drone operators pose a rising threat

A drone hovers in airspace outside the safety perimeter surrounding St. Louis Lambert International Airport as an airliner approaches for a landing on March 10, 2025. (AP Photo/Jeff Roberson, File)

The proliferation of drone technology is rapidly outpacing the ability of governments to ensure they are used safely and legally. This was the primary theme of a House Judiciary Subcommittee on Crime and Federal Government Surveillance hearing this week, which also featured testimony on how unmanned aircraft systems are revolutionizing law enforcement operations by providing a cost-effective aerial perspective that can aid in crime scene investigations, search and rescue, and surveillance missions.

With the growth of the cheap and easy-to-operate drone market comes an increasing threat of misuse, whether intentional or negligent, UAS experts testified during the hearing, adding that criminal gangs are using drones to smuggle drugs, weapons and contraband into correctional facilities or across the U.S.-Mexico border.

Rep. Andy Biggs, Florida Republican, asserted during the hearing that drones are also increasingly causing a danger at airports by interfering with normal operations. The Federal Aviation Administration recorded 10,000 UAS airport incursions from January to June 2025 — a 13% increase over the same period last year.

Trump order on NASA seeks to block China

Workers on scaffolding repaint the NASA logo near the top of the Vehicle Assembly Building at the Kennedy Space Center in Cape Canaveral, Fla., May 20, 2020. (AP Photo/John Raoux, File)

Mr. Trump recently designated NASA and several other federal departments as agencies that require national security protection based on their intelligence, counterintelligence and investigative work.

The policy shift makes clear that NASA research is no longer just scientific or exploratory but requires protection under national security controls. Mr. Trump’s move aims to enforce the 2011 Wolf Amendment, named after former Rep. Frank Wolf, Virginia Republican, to a defense appropriations law that blocked NASA and the White House Office of Science and Technology Policy from any cooperation with China or Chinese-owned companies on space matters. The measure became law as a result of cases involving technology theft by China, including theft of advanced U.S. nuclear warhead designs.

The House Select Committee on the Chinese Communist Party last year uncovered multiple Wolf Amendment violations, including more than a thousand NASA-backed publications co-authored by Chinese institutions, many involving the Chinese Academy of Sciences and Chinese defense contractors. Among the compromises was work that provided China with remote sensing technology that helped a military program known as the 863 Program.

Opinion: Keep America’s tankers flying

A U.S. Air Force KC-135 Stratotanker refueling tanker aircraft takes off from the Kadena Air Base airfield in Kadena Town, west of Okinawa, southern Japan, Wednesday, Aug. 30, 2023. (AP Photo/Hiro Komae, File)

Aerial refueling has for more than 70 years been the “silent force multiplier for American power,” according to Robert Wilkie, who writes that “from the Cold War to the fight against terrorism, tankers have allowed U.S. forces to deter aggression in Asia, reassure allies in Europe and strike terrorists in the Middle East with impunity.

“Without tankers, our aircraft are grounded. Without tankers, our global reach evaporates. Without tankers, America is vulnerable,” Mr. Wilkie, who served as secretary of veterans affairs and undersecretary of defense for personnel and readiness in the first Trump administration, writes in an op-ed for The Washington Times.

“Yet today, the U.S. faces an alarming shortfall in this critical capability. The retirement of the KC-10 fleet, our workhorse tanker, has left combatant commands short of options,” he writes. “This is not a minor gap; it is a strategic crisis. Deterrence depends on reach, and reach depends on refueling. If our adversaries believe America cannot respond quickly and decisively, they will test us. That is how wars begin.”

Opinion: How did a Chinese biotech startup court Trump while serving Beijing?

China's biotechnology companies illustration by Linas Garsys / The Washington Times

The technology of a “little-known Silicon Valley firm” called CSBio “has been flagged by U.S. regulators as a dual-use risk capable of producing deadly toxins,” according to L.J. Eads, who writes in an op-ed for The Times that the company has a “Shanghai arm [that] has openly celebrated the People’s Liberation Army and accepted military-civil fusion designations.

“On Sept. 3, CSBio’s Chinese arm celebrated the People’s Liberation Army. The next day,” its leadership was dining with the U.S. president,” writes Mr. Eads, the founder of the CCP BioThreats Initiative. “For U.S. policymakers, the optics should be chilling. How did a mid-tier biotech, openly embedded in China’s defense ecosystem, gain a seat at the most exclusive table in Washington? Was it political donations? Industry lobbying? Or a bid to soften looming export control scrutiny from the Bureau of Industry and Security?

“The irony is glaring. At the exact moment the bureau was tightening controls on peptide synthesizers, a company at the heart of the issue was enjoying White House access. This dual posture — saluting the PLA one day, courting Washington the next — exposes cracks in America’s research security firewall,” he writes, referring to the People’s Liberation Army.

Threat Status Events Radar

• Sept. 19 — Venezuela: Can U.S. Pressure Break Maduro’s Grip? Hudson Institute

• Sept. 24 — Rocket Dreams: Musk, Bezos and the Inside Story of the New, Trillion-Dollar Space Race, American Enterprise Institute

• Sept. 20-21 — AFA National Convention 2025, Air & Space Forces Association

• Sept. 22-23 — Cyber Defense Summit 25, Mandiant & Google Threat Intelligence

• Sept. 23-25 — National Cyber Summit

• Sept. 23-27 and Sept. 29 — U.N. General Assembly 2025: General Debate, United Nations

• Sept. 25 — Building the Space Force We Need and the Intelligence to Support It, Intelligence Studies Project

• Sept. 25 — Counterforce in Contemporary U.S. Nuclear Strategy, Advanced Nuclear Weapons Alliance

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If you’ve got questions, Guy Taylor is here to answer them.