November 26th, 2024: NATO Prepares For ‘Wartime Scenario’ & North Korean Missiles Contain Western Parts

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What is NATO's warning for businesses?

Mike Baker 0:39
It's Tuesday, 26 November. Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. All right, let's get briefed. Today, we'll start things off with an alarming warning from a top NATO commander who's urging businesses to prepare for a, quote, wartime scenario, basically advising companies to adjust Western production to be less vulnerable to adversarial nations like Russia.

How is North Korea involved in missile production?

Mike Baker 1:09
Later, satellite imagery shows North Korea ramping up its production of short-range missiles for use by Russia, some of which contain components sourced from the West. And then you have to ask yourself, is there nothing that Kim Jong-un won't do for his comrade-in-arms, Vladimir Putin? Plus, a surprising cybersecurity risk. Chinese-made cranes used in American ports, responsible basically for 80% of U.S. container operations, could pose a national security threat. Oh, well, you could add that to a long list of other items, including telecoms equipment that U.S. regional providers have been installing for years. And, oh, then there's TikTok.

What cybersecurity threats do Chinese-made cranes pose?

Mike Baker 1:53
And in today's back of the brief, a troubling report on how Mexican cartels are exploiting the CBP One app used by migrants while the cartels are using it to track potential kidnap victims. But first, today's PDB Spotlight. We'll begin in Europe, where NATO's top military official is warning the alliance to prepare for a wartime scenario, as France and the UK reportedly consider putting boots on the ground in Ukraine. Now, honestly, I didn't have World War III on my 2025 bingo card, but there it is. In remarks during an event hosted by the European Policy Center think tank on Monday, Dutch Admiral Rob Bauer, chair of NATO's military committee, asked businesses to prepare for a major conflict in Europe, urging them to bring their production and distribution lines back home in order to avoid blackmail or sabotage by Russia and China. That's according to a report from Reuters.

What are the implications of NATO's preparations for wartime?

Mike Baker 2:56
Bauer said increasing global instability caused by belligerent powers has left their supply chains vulnerable and time is running short, he said, to protect European interests from adversaries in the East. Okay, frankly, I can't spot the lie in any of that. Bauer said, quote, if we can make sure that all crucial services and goods can be delivered, no matter what, then that's a key part of our deterrence. He added that while, quote, it may be the military who wins battles, it's the economies that win wars, end quote. Bauer is particularly concerned about China's outsized influence over critical global resources. He noted that 60% of all rare earth materials are produced in China and more than 90% of rare earth minerals are processed or refined there. He also noted that the West is still disproportionately reliant on China for the chemical ingredients for basic pharmaceutical products such as sedatives, antibiotics, anti-inflammatories, and blood pressure medications.

How are Mexican cartels exploiting technology?

Mike Baker 4:00
Yes, and of course, if the West didn't learn that lesson during the pandemic, then I'm not sure that a NATO official raising this concern will sink in. Bauer warned, quote, we are naive if we think the Communist Party will never use that power. Business leaders in Europe and America need to realize, he said, that the commercial decisions they make have strategic consequences for the security of their nations, end quote. The warning comes at a time of unprecedented escalation between Russia, Ukraine, and the broader NATO alliance.

What is the significance of NATO's military committee chair's remarks?

Mike Baker 4:35
As we covered last week on the PDB, President Biden authorized the use of long-range American-made missiles for strikes inside Russian territory, removing restrictions that have long limited Kyiv's offensive options. Similarly, the UK gave Kiev the nod to start using British-made Storm Shadow cruise missiles inside Russia last Tuesday.

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