ZeroFox Physical Security Intelligence Daily Brief - November 11, 2024

ZeroFox Physical Security Intelligence Daily Brief - November 11, 2024

ZeroFox physical security experts collect, curate, and analyze information derived from open and proprietary sources for comprehensive context of the circumstances surrounding global events. Here is today’s daily roundup of major developments.

Brief Highlights

• Biden Administration Lifts Ban on American Military Contractors Operating in Ukraine
• The Philippines Enacts Two Laws on Sea Rights Likely Deepening Conflict with China
• China Unveils USD 1.4 Trillion Local Debt Relief Package

Biden Administration Lifts Ban on American Military Contractors Operating in Ukraine

The Biden administration has lifted the de facto ban on American military contractors deploying to Ukraine. The new policy would allow the U.S. Department of Defense (DoD) to provide contracts to American companies operating inside Ukraine for the first time since Russia's full-scale invasion of Ukraine began in 2022. DoD officials say the department is soliciting bids from a few contractors to help Ukraine repair and maintain U.S.-provided equipment. Officials insist contractors would not be engaging with Russian forces and would be located "far from the front lines." The Biden administration likely hopes this policy will help Ukraine maintain existing weapons systems even if President-elect Donald Trump reduces aid to Ukraine.

The Philippines Enacts Two Laws on Sea Rights Likely Deepening Conflict with China

Philippine President Ferdinand R. Marcos Jr. has signed two laws asserting Philippine maritime claims, drawing criticism from China as the South China Sea tensions escalate. Marcos signed the Maritime Zones Act, which defines the extent and boundaries of the Philippine maritime zones abiding by the United Nations Convention on the Law of the Sea (UNCLOS), reaffirming the Philippine maritime entitlements and invalidating China’s sweeping claims in the South China Sea. The president also enacted the Archipelagic Sea Lanes Act, which establishes a system through which foreign vessels and aircraft shall exercise the right of passage. The laws aim to secure Philippine rights in the South China Sea and provide legal instruments to solidify its territory and enhance its capabilities to protect against foreign infringement. China has strongly condemned the two laws and summoned the Philippine ambassador to express its objection, stating that the Maritime Zones Law illegally includes most of China's Huangyan Islands(Scarborough Shoal) and Nansha Islands(Spratly Islands).

China Unveils USD 1.4 Trillion Local Debt Relief Package

China’s top legislature announced a total of RMB 10 trillion (USD 1.4 trillion) bond quota to relieve local government hidden debt and stabilize the struggling economic growth as the National People’s Congress Standing Committee concluded a week-long session. The debt-swap measures aim to ease local governments’ liquidity pressure and free up resources for economic development. However, since the money is for repairing municipal balance sheets as a long-term objective and does not create new workflows, the support to growth is indirect. The financial positions of Chinese local governments have worsened over the years as revenues declined due to property crises and interest-repayment pressure. Chinese central government pledged more fiscal support measures would be announced next year, and it is likely because they need to know about the new U.S. trade policy after Donald Trump was elected as the next president of the United States this week.