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The North Korean defectors who became YouTube stars | CNN

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The North Korean defectors who became YouTube stars | CNN



CNN
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Rising up in North Korea, Kang Na-ra had by no means used the web.

Even the privileged few of her compatriots who had been allowed smartphones might entry solely the nation’s tightly restricted intranet. YouTube, Instagram, and Google had been totally alien ideas.

At present, Kang is a YouTube star with greater than 350,000 subscribers. Her hottest movies have raked in tens of millions of views. Her Instagram account, with greater than 130,000 followers, boasts sponsored advertisements for main manufacturers together with Chanel and Puma.

She’s amongst an rising variety of North Korean defectors who, after escaping into South Korea, have made what may appear unlikely careers as YouTubers and social media influencers.

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Dozens have adopted an identical path up to now decade, their movies and accounts giving a uncommon glimpse into life within the hermit kingdom – the meals North Koreans eat, the slang they use, their every day routines.

Some channels provide extra political content material, exploring North Korea’s relationships with different international locations; others dive into the wealthy and – for these newly defected, totally novel – worlds of popular culture and leisure.

However for a lot of of those influencers, who’ve fled one of many world’s most remoted and impoverished nations for one among its most technologically superior and digitally linked, this profession path isn’t as unusual as it could appear.

Defectors and specialists say these on-line platforms provide not solely a path to monetary independence – however a way of company and self-representation as they assimilate to a frightening new world.

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Defectors are a comparatively latest phenomena; they started getting into South Korea “in vital numbers” up to now 20 years, most fleeing over North Korea’s prolonged border with China, stated Sokeel Park, the South Korea nation director for worldwide nonprofit Liberty in North Korea.

Since 1998, greater than 33,000 folks have defected from North to South Korea, in line with Seoul’s Unification Ministry, with the numbers peaking at 2,914 in 2009.

Kang, now 25, is among the many many to have made the journey – one laden with dangers, equivalent to being trafficked in China’s intercourse commerce, or being caught and despatched again to North Korea, the place defectors can face torture, imprisonment and even loss of life.

Kang fled to the South in 2014 as a young person, becoming a member of her mom who had already defected.

It was powerful at first; like many others, she confronted loneliness, tradition shock, and monetary pressures. The South’s notoriously aggressive job market is even harder for defectors, who should modify to each capitalist society and hostility from some locals.

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As of 2020, 9.4% of defectors had been unemployed – in comparison with 4% of the final inhabitants, in line with the Unification Ministry.

For Kang, a turning level got here when she began receiving counseling and joined a college with different defectors. But it surely wasn’t till she appeared in a South Korean TV present that life actually “grew to become attention-grabbing,” she stated.

Within the 2010s, rising public fascination with North Koreans gave rise to a brand new style of tv often called “defector TV,” through which defectors had been invited to share their experiences.

Among the best-known exhibits embrace “Now On My Approach To Meet You,” which first aired in 2011, and “Moranbong Membership,” which aired in 2015.

Kang appeared on each – and it was round this time that she first laid eyes on YouTube, the place she was particularly drawn to movies about make-up, magnificence and trend.

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By 2017, she had created her personal channel, leveraging her rising fame and “recording my every day life for individuals who appreciated me from TV exhibits.”

Kang Na-ra is seen on a camera monitor in a studio in Seoul, South Korea, on September 5, 2019.

Lots of her YouTube movies discover variations between the 2 Koreas in a cheerful, conversational type, equivalent to contrasting magnificence norms. “In North Korea, when you have large breasts, that’s thought-about to be not good!” she laughs in a single video, recalling her shock at discovering padded bras and breast implants within the South.

Different movies reply frequent questions on escaping North Korea, equivalent to what defectors carry with them (salt for luck, a household picture for consolation, and rat poison in case they get caught – for “when you already know that you will die.”)

Ultimately the channel grew so standard that she landed illustration from three administration businesses, employed video producers, and commenced attracting purchasers for sponsored Instagram content material.

“I’ve a gentle movement of revenue now,” she stated. “I should purchase and eat what I would like, and I can relaxation after I wish to.”

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A video on Kang Na-ra's YouTube channel.

This mannequin of success – echoed by different defector YouTubers, equivalent to Kang Eun-jung, with greater than 177,000 subscribers; Jun Heo, with greater than 270,000 earlier than he took down his channel this yr; and Park Su-Hyang, with 45,000 – has impressed many others to affix YouTube.

A part of their success, in line with Sokeel Park, of Liberty in North Korea, is that defectors “are fairly entrepreneurial.”

“I feel a consider that’s that you simply’re in management, you’re not being ordered round by a South Korean boss, and having to emphasize a few South Korean work tradition,” he stated.

“It could be a wrestle, however folks have company … You’re your personal boss, by yourself schedule.”

Defector TV might have helped supercharge the recognition of a few of these influencers – nevertheless it has additionally drawn controversy among the many defector group.

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Some view it as “imperfect” however useful in giving the South Korean public better publicity to their Northern friends, Park stated. However many others criticize the discuss exhibits as being sensationalist, exaggerated, outdated and inaccurate.

For example, the exhibits usually use cartoon graphics, elaborate background units and sound results – equivalent to mournful music that performs whereas defectors recall their previous.

On the finish of the day, these are leisure exhibits, not documentaries, Park stated, including: “(The exhibits are) made by South Korean TV producers and writers … clearly (the defectors) don’t have editorial management.”

Park Su-hyang, a North Korean defector, records a YouTube video at home in Seoul, South Korea on May 19, 2018.

This frustration with how North Koreans are represented in mainstream media, and their need to inform their tales on their very own phrases, is one main motive why so many defectors have turned to social media.

Many defectors really feel “that South Koreans have solely a really shallow understanding of North Korea, or that they’ve sure stereotypes about North Korean those that must be challenged,” Park stated.

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YouTube permits “a really totally different stage of management and company, to have the ability to simply arrange a digicam in your house or wherever you may movie, and simply communicate on to an viewers.”

However for a lot of defector YouTubers there may be one other, loftier objective apart from incomes an impartial revenue by telling their very own tales: bridging the hole between the 2 Koreas.

It’s a tall job, particularly in recent times as relations have deteriorated on account of disagreements over the North’s weapons testing and the South’s joint army drills with america.

However some say these tensions are precisely why it’s vital to humanize and join Koreans from both sides.

“I imagine letting folks know concerning the hardship of North Koreans by way of YouTube could be useful for my folks in North Korea,” stated Kang Eun-jung, 35, who fled North Korea in 2008 and began her YouTube channel in 2019.

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For her, YouTube is a approach to “preserve reminding myself about my id, who I’m and the place I got here from” – in addition to to show folks about defectors’ experiences.

“If the 2 Koreas get united, I wish to interview many individuals in North Korea,” she added.

Nonetheless, there’s an issue for these hoping to bridge the divide: their audiences are getting older, probably as a result of their content material appeals most to the technology that lived by way of the Korean Battle of the Nineteen Fifties and its aftermath.

“The technology that remembers North and South Korea as one nation is passing away,” Park stated.

That makes constructing bridges among the many youthful technology extra pressing.

Most of Kang Eun-jung’s viewers are of their 50s or older, whereas Kang Na-ra’s are principally of their 30s – comparatively excessive age brackets on the planet of social media.

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A part of the issue could also be that younger South Koreans know subsequent to nothing about their friends on the opposite facet of the demilitarized zone, as a substitute being bombarded with ominous information headlines concerning the safety state of affairs, political rhetoric and army saber-rattling.

Consequently, Park stated, “younger South Koreans know American folks higher than North Korean folks. They know Japanese folks higher than North Korean folks, they know Chinese language folks (higher than North Korean folks).”

“So having the ability to resume some type of people-to-people contact, understanding, and empathy – if that’s North Koreans making their very own YouTube channels – then that’s nice.”

For Kang Na-ra, who left behind many buddies in North Korea and as soon as even thought-about returning to the repressive regime, that distance feels private.

“I wish to have extra (subscribers of their) teenagers and other people of their 20s as a result of I would like extra younger folks to care about unification and be serious about North Korea,” she stated.

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“Wouldn’t it elevate the potential of me going again to my hometown earlier than I die? If extra younger folks need unification of the Koreas, couldn’t it come true?”

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The company planning a successor to Concorde makes its first supersonic test

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The company planning a successor to Concorde makes its first supersonic test

Boom Supersonic’s XB-1 breaks the sound barrier on Jan. 28.

Boom Supersonic


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Boom Supersonic

A private company aiming to build the first supersonic airliner since the Concorde retired more than two decades ago achieved its first sound-barrier-busting flight over California’s Mojave desert on Tuesday.

Denver-based Boom Supersonic’s XB-1 demonstrator plane, with Chief Test Pilot Tristan “Geppetto” Brandenburg at the controls, hit Mach 1.122, or 750 mph, at an altitude of about 35,000 feet. Brandenburg brought the plane to a successful landing at the end of the approximately 34-minute flight.

Founder and CEO Blake Scholl described the flight as “phenomenal.”

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“We’re ready to scale up. We’re ready to build the passenger supersonic jet that will pick up where Concorde left off and ultimately allow the rest of us to fly supersonic,” Scholl said.

The Mach 1 milestone was reached on the 12th test flight of the XB-1. The company says it plans to incorporate what it learns from the XB-1 into a supersonic passenger jet known as Overture that can carry up to 80 passengers. The new passenger plane is designed to maintain a cruising speed of Mach 1.7, or roughly twice as fast as current commercial jet airliners.

According to Boom, United, American and Japan Airlines have all expressed interest in purchasing the Overture. In a statement emailed to NPR, United Airlines said that in 2021, it “reached a conditional, non-binding purchase agreement” with the company to buy 15 of the airliners, with “options for up to an additional 35 aircraft.”

Boom says it expects Overture to be ready for commercial flights by 2030. The plane is expected to be capable of transoceanic flights at altitudes up to 60,000 feet — much higher than conventional jet airlines, “high enough to see the curvature of the earth below,” according to the company. “Flying at supersonic speeds tends to be smoother than subsonic flight because at 60,000 feet, you’re flying above most turbulence,” it says.

Unlike Concorde, which proved uneconomical to operate, Boom says airlines should be able to make a profit selling seats on Overture at fares similar to those for first and business class seats on current commercial airliners.

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“The biggest problem with Concorde was it was just simply too expensive to operate,” Scholl said. “So the single most important problem to solve is not to break the sound barrier, but to break the economic barrier.”

Concorde made its first operational flight from London to Washington, D.C., in 1976. Developed jointly by Britain and France, Concorde was operated for nearly three decades by Air France and British Airways.

However, the jet was criticized for its inefficiency. Compared to a Boeing 747, the delta-wing Concorde guzzled four times as much fuel and carried only one-fifth as many passengers — around 100. The plane was also the subject of complaints about noise from its loud turbojet engines and its sonic booms.

Scholl says Concorde had very loud, converted military engines, but Overture will be “dramatically quieter, and that means around an airport, Overture will be no louder than the subsonic airplanes that are flying today.”

In 1996, Concorde set a speed record of just 2 hours, 52 minutes, and 59 seconds between New York and London. In 2000, a Concorde was involved in a fiery crash shortly after takeoff from Paris Charles de Gaulle Airport that killed all 100 passengers and nine crew aboard France Air Flight 4590. The supersonic planes were grounded but eventually returned to service. Always a money-loser, the Concorde was eventually retired in 2003.

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Kash Patel’s Loyalty to Trump Raises Doubts Over F.B.I.’s Independence

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Kash Patel’s Loyalty to Trump Raises Doubts Over F.B.I.’s Independence

Kash Patel spent years ingratiating himself with Donald J. Trump — regularly popping into the Oval Office in the first term, writing a children’s book starring “King Donald” during the interregnum, trailing him to rallies, banquets and bus tours on the bumpy ride back to power.

Few practitioners of the audience-of-one strategy have been quite so successful at translating loyalty and proximity to Mr. Trump into real influence. Fewer still are poised to be rewarded as significantly as Mr. Patel, 44, Mr. Trump’s pick to run the F.B.I., an agency with vast powers that he has vowed to radically overhaul.

What binds Mr. Trump and Mr. Patel is the shared conviction that the bureau has been weaponized against conservatives, including both of them. They argue it is politicized and the only way to fix it is to empower an outsider willing to faithfully execute the Trump agenda — a sharp divergence from the bureau’s historical norms and the decades-long practice of directors’ limiting contact with presidents.

The issue of Mr. Patel’s independence, or lack thereof, will be a flashpoint at a confirmation hearing scheduled for Thursday.

Mr. Patel’s embrace of Jan. 6 conspiracy theories and unflinching fealty are the coin of the realm in Mr. Trump’s orbit. But in the view of his many critics (and even some who publicly sing his praises), Mr. Patel’s oft-stated loyalty to the president poses one of the most significant challenges to the independence of the F.B.I. in the century since J. Edgar Hoover, its founding director, built an investigative citadel whose autonomy created leverage, and abuses of power.

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Nominating Mr. Patel as F.B.I. chief is, above all, a defining example of Mr. Trump’s approach to exerting power in his second term. Not content to simply install subordinates to help enact an ideological agenda, the president is pushing hard to expand the post-Watergate limits on presidential authority. During his first term, demanding personal loyalty from appointees did not always work; making sure the top jobs are stocked with loyalists is the strategy now.

At the F.B.I., this entails bucking the bureau’s long institutional history, starting with Mr. Hoover and extending through James B. Comey’s rejection of Mr. Trump’s first-term demands for obeisance, a stance that prevented it from becoming the instrument of presidential whim.

Critics say Mr. Trump’s and Mr. Patel’s grievance that the bureau has been “politicized” against Republicans is an excuse to turn the F.B.I., whose agents have often tilted right, into a political weapon for Mr. Trump.

“Hoover would have been appalled at Patel’s sycophancy of Donald Trump,” said Beverly Gage, a professor at Yale and the author of a biography of Mr. Hoover.

“What’s new and alarming about Patel?” she added. “He’s so close to Donald Trump and is making no secret that he will use the bureau to punish Mr. Trump’s enemies. He’s coming in openly hostile to the institution. At the F.B.I., this is potentially earth-shattering.”

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The president and Mr. Patel share not only a worldview, but also an enemies list. In 2022, Mr. Patel published a roster of 60 people he suggested should be investigated, prosecuted or otherwise reviled. It includes Christopher A. Wray, who stepped down this month as F.B.I. director before Mr. Trump could fire him, former Attorney General Merrick B. Garland, former Attorney General William P. Barr and a host of other federal officials and politicians he does not like.

Mr. Patel’s spokesman did not respond to questions.

But his defenders downplay his promises to rain hell as campaign-season fireworks, and say the list he published in his book “Government Gangsters” was just a litany of people he did not like, respect or trust. Behind closed doors, he has sought to reassure senators he intended only to underscore the need to reform the bureau and will run it responsibly if confirmed, according to people briefed on the interactions.

In at least one conversation, he has acknowledged that he amped up the verbiage in his polemical memoir for dramatic effect. In another, he apologized for the book, which served as a pugilistic takedown of government officials at the very institution he is eager to run.

“Like me, Kash Patel uses fiery rhetoric and hyperbole to break through,” said Mike Davis, a former Senate Republican staff member who is close to Mr. Patel. “But don’t let that fool anyone. Kash is a very serious, skilled and effective national security operator.”

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The team overseeing Mr. Patel’s confirmation has emphasized his unique experience, particularly his work as a public defender, and varied assignments in national security posts.

Yet some Republicans in the Senate have quietly made it clear they want Mr. Trump to surround Mr. Patel with more conventional officials to offset his shortcomings.

Mr. Patel has given private assurances that his deputy director will be a special agent, with deep experience at the bureau, and not a political appointee, according to a person familiar with the matter.

At least two former F.B.I. veterans have been tapped to advise Mr. Patel, including one who recently served as a staff aide to Representative Jim Jordan. While he is seen as a stabilizing force, his past work for Mr. Jordan’s committee uncovering the so-called weaponization of government is in line with Mr. Patel’s worldview.

Mr. Trump is not likely to abide by norms adopted over the past half-century intended to prevent direct interference into federal law enforcement, regardless of who is on staff.

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Case in point: The director Mr. Trump signaled he would replace, Mr. Wray, never met alone with Mr. Trump, according to people familiar with the situation. That did not stop Mr. Trump from trying to contact him anyway, at the exact moment the bureau was embarking on its investigation into his retention of national security documents.

In a handwritten note dated March 26, 2022, Mr. Trump congratulated Mr. Wray, whom he appointed in 2017, for an appearance on “60 Minutes,” according to a copy viewed by The New York Times.

“CHRIS – GREAT JOB ON 60 MINUTES LAST NIGHT. YOU ARE 100 % CORRECT ON CHINA (RUSSIA IS NOT SO WONDERFUL EITHER!).”

Mr. Trump does not need to use stationery to reach Mr. Patel.

As a senior director at the National Security Council during Mr. Trump’s first term, Mr. Patel seemed to always find himself invited to the Oval Office for meetings. He also had a knack for trolling Mr. Trump’s enemies — threatening, among other things, to sue the news media for unflattering stories. The president, over time, began to reach out to him for advice.

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One former Trump administration official recalled that during the first term, Mr. Patel would head to lunch only to be interrupted by calls from the president to kibitz.

Mr. Patel loved it, the person recalled.

The F.B.I. has had a checkered relationship with politics that precedes Mr. Patel by 101 years.

The official origins of the F.B.I. date back to 1908, but its true inception came in 1924 when Mr. Hoover, then in his late 20s, was appointed director. From the start, its mission placed it at the hazardous intersection of politics and law enforcement: investigating, prosecuting and deporting left-wing radicals and anarchists after World War I.

Over the decades, Mr. Hoover leveraged his cache of investigative files into raw power. Toward the end of his 48-year tenure, he greenlit dozens of investigations of key figures in the civil rights movement — most infamously Martin Luther King Jr. — and offered political intelligence to presidents and their political adversaries.

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Even while presiding over the bureau’s worst excesses, however, Mr. Hoover ensured that the agency remained independent from direct White House control. Directors who served after him sought to maintain that independence by keeping presidents at arm’s length, with the exception of his immediate successor, L. Patrick Gray.

“Integrity and independence make or break an F.B.I. director,” Louis J. Freeh, the bureau director whose relationship with President Bill Clinton turned rancid as he investigated the president and his associates, said in his memoir.

Mr. Clinton groused but did not seek to remove Mr. Freeh. Mr. Trump did both. In private meetings at the White House, Mr. Trump demanded the loyalty of Mr. Comey, a Republican, and suggested he end an investigation into the president’s former national security adviser. Mr. Comey stayed in office for nearly four months without giving it.

Mr. Comey was confident he could undertake investigations into top public figures, including Mr. Trump and Hillary Clinton, while defending the bureau’s integrity. That miscalculation led to a disastrous news conference in July 2016 at which he announced that although Mrs. Clinton had been “extremely careless” in handling classified information, she would not be prosecuted. Many Democrats believe the assertion ultimately contributed to her defeat.

His approach left the F.B.I. reeling, and Mr. Patel and many other Republicans cite Mr. Comey as one of the main reasons the bureau needs to be reshaped and more agents from its headquarters in Washington farmed out to field offices around the country.

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Mr. Wray, who was appointed by Mr. Trump in mid-2017 for a 10-year term, took a much more cautious, conventional approach to Mr. Trump. Nonetheless, their relationship soured almost immediately.

Mr. Trump came close to firing Mr. Wray after he refused, among other things, to embrace the president’s lies about the 2020 election being stolen.

Agents who worked for Mr. Wray described him as fundamentally apolitical, focused on the threat posed by China and other foreign adversaries, and fixated on the minutiae of law enforcement — spending time in briefings on firearms testing, audits of secret surveillance warrants and information technology systems. One former F.B.I. official likened the meetings to watching paint dry, yet the director loved them.

But he could not escape politics. And his commitment to investigating Mr. Trump, including the execution of a search warrant at Mar-a-Lago, effectively doomed his directorship.

On a gray, snow-flecked day at the F.B.I.’s headquarters this month, national security leaders from the United States and Britain gathered to thank Mr. Wray, and to issue barely veiled warnings about what the future might hold if Mr. Trump succeeds in asserting control.

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Former top F.B.I. officials were in attendance, including William H. Webster, who was appointed by President Jimmy Carter.

So was William J. Burns, the C.I.A. director, who said Mr. Wray’s greatest achievement was fulfilling a promise he made at his 2017 confirmation hearing to adhere to the “impartial pursuit of justice.”

When it came time for Mr. Wray to speak, he exhorted agents to stay and conduct their investigations with impartiality.

“That means following the facts wherever they lead, no matter who likes it, or doesn’t,” Mr. Wray said. “Because there’s always someone who doesn’t like it.”

Mr. Patel’s swift ascent in Mr. Trump’s orbit began in 2018. Then a little-known House Republican aide, Mr. Patel investigated the Justice Department’s efforts to obtain a secret surveillance warrant for a Trump adviser believed to be conspiring with the Russians during the 2016 campaign.

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From there, he landed a succession of national security posts in rapid succession, serving his longest stint on the National Security Council (20 months) and the shortest as a top aide at the Pentagon (three months). He often communicated with the president directly, to the chagrin of his nominal superiors.

By the spring of 2020, Mr. Trump was eager to dismiss Mr. Wray, replace him with a senior intelligence official and install Mr. Patel as his top deputy in charge, a post typically reserved for a senior agent in a work force of 38,000.

Mr. Barr, then the attorney general, talked Mr. Trump down during a contentious meeting in the Oval Office. Mr. Barr would later write in his memoir that Mr. Patel was deeply unqualified and that the president “showed a shocking detachment from reality.”

People close to Mr. Barr said he was also concerned that Mr. Patel would have been too compliant to challenge Mr. Trump.

Early on, Mr. Wray concluded that limiting contact with the White House, or communicating through intermediaries, could ensure independence, a policy he maintained with Mr. Trump and President Joseph R. Biden Jr.

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After Mr. Trump left office, he tapped Mr. Patel as one of his emissaries to the National Archives, thrusting Mr. Patel into the Trump classified documents investigation.

In August 2022, F.B.I. agents and federal prosecutors obtained a court-authorized warrant to search Mr. Trump’s Florida club and residence, including his bedroom. In his book, Mr. Patel said that the “Mar-a-Lago raid will go down in history as a sign of the destruction of our once great institutions of equal justice and fairness.”

During Mr. Trump’s time out of office, Mr. Patel cultivated relationships with the president’s sons, particularly Donald Trump Jr., and embraced online retail (under the brand “K$H”). He also hawked anti-vaccine diet supplements, pro-Trump T-shirts and a line of children’s books in which he portrayed himself as a wizard, wearing a midnight blue robe. Mr. Trump was depicted with a crown.

Mr. Patel, who is single, likes the nightlife. He was recently spotted posing for poolside photos with bikini-clad conservatives, and his Senate disclosure form revealed that he recently joined the Poodle Room, a members-only club near his residence in Las Vegas that has a $20,000 entry fee.

More than anything, he worked relentlessly to raise his profile in Trump circles, doing nearly 1,000 interviews and podcasts. On his Senate disclosure form, he said he “served as a surrogate” for Mr. Trump’s campaign from November 2022 to November 2024.

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Mr. Trump has always been leery of subordinates who market themselves off their association with him. And his support of Mr. Patel has been somewhat tempered by doubts about his gravitas and experience. Mr. Trump’s 2024 campaign manager and the new White House chief of staff, Susie Wiles, told him the selection was too risky, associates of both men said.

But the only serious alternative to Mr. Patel that emerged, Missouri’s Republican attorney general, Andrew Bailey, seemed too laid-back and lackluster in face-to-face meetings.

Mr. Patel, always loyal — and always around — lobbied furiously for the job, and prevailed.

After his selection, Mr. Patel appeared to become more cognizant of his attack-dog reputation. Off camera he was more muted, self-effacing, funny and willing to compromise, which allayed the concerns of Ms. Wiles and other skeptics.

Moreover — despite Mr. Patel’s inflammatory public statements — his vetting did not reveal a knockout scandal comparable to the one that forced out Matt Gaetz, Mr. Trump’s initial pick for attorney general.

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Mr. Trump did not consult with senators in his own party before nominating Mr. Patel, according to one senator and several aides. Nor did he apparently seek approval from Pam Bondi, his more conventional second choice for attorney general, according to people in his orbit.

The response to Mr. Patel’s appointment among Senate Republicans has been mixed, with some issuing emphatic endorsements and others taking a wait-and-see tack. To allay some concerns, former Representative Trey Gowdy, a former federal prosecutor from South Carolina who is friendly with Mr. Patel, has been furiously working the phones on his behalf, according to people familiar with the situation.

As he has so often done with top aides, Mr. Trump, a former reality TV star, fretted that Mr. Patel lacked the central-casting look the public had come to expect from an F.B.I. director, without either the imposing G-man appearance of a former director like Robert S. Mueller III or the bulldog mien of the bureau’s founder.

“He’s no J. Edgar Hoover,” Mr. Trump told an adviser.

Devlin Barrett and Jonathan Swan contributed reporting.

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Nvidia shares rebound after Wall Street rout on DeepSeek fears

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Nvidia shares rebound after Wall Street rout on DeepSeek fears

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Nvidia shares rebounded on Tuesday, as stocks steadied following a tech rout sparked by Chinese start-up DeepSeek’s advances in artificial intelligence.

Shares rose 5.2 per cent in pre-market trading following a historic fall that wiped $589bn off the US chipmaker’s market value. Monday’s losses, which helped drag down the tech-focused Nasdaq Composite index by 3.1 per cent, came as Wall Street and Silicon Valley panicked over a perceived threat from DeepSeek to the continued dominance of the US in AI and the need to invest hundreds of billions of dollars in underlying infrastructure.

Futures trading indicated that US stocks were set to claw back part of the previous day’s losses. Contracts tracking the Nasdaq 100 were up 0.7 per cent, while the S&P 500 was set to open 0.4 per cent higher, after a 1.5 per cent fall on Monday.

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In Europe, tech shares remained under pressure but broader markets were stable. The continent’s most valuable technology company, ASML, which makes chip manufacturing equipment, fell 1 per cent. Siemens Energy — which fell 20 per cent on Monday as the tech rout deepened — was up 4.7 per cent in early trading.

The Stoxx Europe 600 index climbed 0.7 per cent.

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“Investors have been reminded that even technology stocks need to have a risk premium,” said Guy Miller, chief market strategist at insurer Zurich. “[The tech rout has been] a healthy reminder that nothing in markets, or in technological development, is a straight line.”

Japan’s tech-heavy Nikkei 225 closed down 1.4 per cent as its chipmaking industry companies continued their decline. The broader Topix, which has lower weightings for Japan’s tech exporters, was flat.

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Tokyo-listed shares in SoftBank lost 5.2 per cent, extending their fall this week to about 12 per cent. Analysts said SoftBank was being affected by the overnight 10 per cent drop in shares of Arm Holdings — the US-listed chip design company in which the Japanese group holds an 88 per cent stake.

Line chart of Indices rebased showing DeepSeek has hit Japanese tech stocks and lifted Chinese ones

The US dollar strengthened 0.5 per cent against a basket of currencies, including the Japanese yen and pound sterling, following the news that US Treasury secretary Scott Bessent was pushing to implement “new universal tariffs” starting at 2.5 per cent on US imports.

DeepSeek’s promise of a much lower-cost AI model has raised the question of whether last week’s unveiling of the Stargate joint venture, involving SoftBank, Oracle and OpenAI in a $100bn data centre investment, “marked the peak of the AI capex boom”, said Chris Wood, strategist at Jefferies.

In the commodities market, LME copper, demand for which is partially driven by the construction of data centres, was down 2 per cent on Tuesday to $9,088 per tonne. Nickel fell 0.7 per cent to $15,565 a tonne.

In Hong Kong, shares in Chinese tech companies recorded gains on Tuesday, although chipmaker SMIC closed down 0.4 per cent after falling as much as 2 per cent. The Hang Seng index closed up 0.2 per cent, led higher by mainland Chinese tech companies including Tencent and Baidu, which closed up 1.4 and 3.6 per cent respectively.

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