In Beijing, Trump presses China on North Korea and trade

In Beijing, Trump presses China on North Korea and trade

By Steve Holland and Christian Shepherd

BEIJING (Reuters) – U.S. President Donald Trump pressed China to do more to rein in North Korea on Thursday and said bilateral trade had been unfair to the United States, but praised President Xi Jinping’s pledge that China would be more open to foreign firms.

On North Korea’s nuclear and missile programs, Trump said “China can fix this problem quickly and easily”, urging Beijing to cut financial links with North Korea and also calling on Russia to help.

Trump was speaking alongside Xi in the Chinese capital to announce the signing of about $250 billion in commercial deals between U.S. and Chinese firms, a display that some in the U.S. business community worry detracts from tackling deep-seated complaints about market access in China.

Xi said the Chinese economy would become increasingly open and transparent to foreign firms, including those from the United States, and welcomed U.S. companies to participate in his ambitious “Belt and Road” infrastructure-led initiative.

Trump made clear that he blamed his predecessors, not China, for the trade imbalance, and repeatedly praised Xi, calling him “a very special man”.

“But we will make it fair and it will be tremendous for both of us,” Trump said.

Xi smiled widely when Trump said he does not blame China for the deficit and also when Trump said Xi gets things done.

“Of course there are some frictions, but on the basis of win-win cooperation and fair competition, we hope we can solve all these issues in a frank and consultative way,” Xi said.

“Keeping opening up is our long-term strategy. We will never narrow or close our doors. We will further widen them,” he said. China would also offer a more fair and transparent environment for foreign firms, including U.S. ones, Xi said.

MODEST PROGRESS

Trump is pressing China to tighten the screws further on North Korea and its development of nuclear weapons in defiance of U.N. sanctions. At least modest progress is hoped for, although there are no immediate signs of a major breakthrough, a U.S. official said earlier.

Referring to Xi, Trump said: “I do believe there’s a solution to that, as do you.”

Xi reiterated that China would strive for the denuclearisation of the Korean peninsula but offered no hint that China would change tack on North Korea, with which it fought side-by-side in the 1950-53 Korean war against U.S.-led forces.

“We are devoted to reaching a resolution to the Korean peninsula issue through dialogue and consultations,” Xi said.

Briefing reporters after the talks, U.S. Secretary of State Rex Tillerson said Trump told Xi: “You’re a strong man, I’m sure you can solve this for me.”

Tillerson said both leaders agreed they could not accept a nuclear-armed North Korea but he acknowledged they had some differences over tactics and timing.

Tillerson pointed out that Trump, in a speech in Seoul, had “invited the North Koreans to come to the table,” in line with the Chinese desire for a negotiated solution. He added, however, that Trump was prepared for a “military response” if he deemed the threat serious enough, but “that’s not his first choice”.

“We are going to work hard on diplomatic efforts as well,” he said, but did not elaborate.

In a show of the importance China puts on Trump’s first official visit, Thursday’s welcoming ceremony outside Beijing’s Great Hall of the People overlooking Tiananmen Square was broadcast live on state television – unprecedented treatment for a visiting leader.

Earlier on Thursday, Xi said he had a deep exchange of views with Trump and reached consensus on numerous issues of mutual concern.

“For China, cooperation is the only real choice, only win-win can lead to an even better future,” he said.

Xi said China and the United States strengthened high-level dialogue on all fronts over the past year and boosted coordination on major international issues, such as the Korean peninsula and Afghanistan.

“Relations between China and the United States are now on a new historical starting point,” Xi said.

Trump and Xi hit it off at their first meeting in April at Trump’s Mar-a-Lago resort in Florida and continued their “bromance” on Wednesday with an afternoon of sightseeing together with their wives. However, divisions persist over trade and North Korea.

And while Xi is riding high after consolidating power at a twice-a-decade Communist Party Congress last month, Trump comes to China saddled with low public approval ratings and dogged by investigations into Russian links to his election campaign.

‘HORRIBLE’ TRADE SURPLUS

Trump has ratcheted up his criticism of China’s massive trade surplus with the United States – calling it “embarrassing” and “horrible” last week – and has accused Beijing of unfair trade practices.

For its part, China says U.S. restrictions on Chinese investment in the United States and on high-tech exports need to be addressed.

Several corporate chief executives were in Beijing as part of a delegation led by U.S. Commerce Secretary Wilbur Ross, with General Electric and semiconductor maker Qualcomm Inc among those announcing billions of dollars in sales to China. [L3N1NF2IA]

But Qualcomm’s agreement to sell $12 billion worth of components to three Chinese mobile phone makers over three years is non-binding, and critics say such public announcements are sometimes more show than substance.

“This shows that we have a strong, vibrant bilateral economic relationship, and yet we still need to focus on leveling the playing field because U.S. companies continue to be disadvantaged doing business in China,” said William Zarit, chairman of the American Chamber of Commerce in China.

Trump railed against China’s trade practices during the 2016 U.S. presidential campaign and threatened to take action once in office. But he has since held back on any major trade penalties, making clear he was doing so to give Beijing time to make progress reining in North Korea.

A U.S. official said both sides were “in sync” about wanting to minimize friction during the visit and recreate the positive tone of the April summit.

Trump was not expected to put much emphasis in his talks with Xi on thorny issues such as the disputed South China Sea and self-ruled Taiwan, claimed by China as its own, although the leaders’ aides may deal with those matters privately, the official told Reuters, speaking on condition of anonymity.

China has repeatedly pushed back at suggestions it should be doing more to rein in North Korea, which does about 90 percent of its trade with China, saying it is fully enforcing U.N. sanctions and that everyone has a responsibility to lower tension and get talks back on track.

(This story was refiled to restore dropped word in paragraph 16.)

(Additional reporting by Matt Spetalnick, Matthew Miller, Philip Wen and John Ruwitch; Writing by Ben Blanchard and Tony Munroe; Editing by Clarence Fernandez and Nick Macfie)

Beijing seen poised for fresh South China Sea assertiveness

Beijing seen poised for fresh South China Sea assertiveness

By Greg Torode and Ben Blanchard

HONG KONG/BEIJING (Reuters) – China has quietly undertaken more construction and reclamation in the South China Sea, recent satellite images show, and is likely to more powerfully reassert its claims over the waterway soon, regional diplomats and military officers say.

With global attention focused on North Korea and Beijing engrossed in its Party Congress, tensions in the South China Sea have slipped from the headlines in recent months.

But with none of the underlying disputes resolved and new images reviewed by Reuters showing China continuing to develop facilities on North and Tree islands in the contested Paracel islands, experts say the vital trade route remains a global flashpoint.

Some expect China to land its first deployments of jet fighters onto its runways in the Spratly islands in coming months, while regional military officers say it is already using the new facilities to expand naval and coast guard deployments deep into Southeast Asia.

“They’ve built these extensive facilities and both Chinese civilian and PLA experts have always made it clear that when the strategic time is right, they’re going to start using them more fully,” said Bonnie Glaser, a China security expert at Washington’s Center for Strategic and International Studies.

“I think it is a question of when, rather than if, China will start to assert its interests more forcefully in the South China Sea … and that is likely to be at a time of China’s choosing,” Glaser told Reuters.

Rival claimant Vietnam, meanwhile, is nearing completion of reclamations and an extended runway on its base on Spratly Island, the satellite images show.

CALM AFTER THE STORM

The build-up of the Spratlys symbolizes China’s growing assertiveness over the South China Sea during President Xi Jinping’s first term and was highlighted in his address to the Communist Party Congress this month.

“Construction on islands and reefs in the South China Sea has seen steady progress,” Xi told the Congress.

The issue is likely to come up during U.S. President Donald Trump’s visit to Asia, which begins this week.

“We remain concerned about tensions in the South China Sea, in particular those caused by land reclamation and militarization of disputed outposts and the willingness of some to resort to coercive tactics to assert their claims,” said Michael Cavey, a spokesman for the U.S. State Department.

“We have consistently called on China, as well as other claimants, to refrain from any further land reclamation, construction of new facilities, and militarization of the disputed features.”

Responding to Reuters’ questions, Chinese Defence Ministry spokesman Ren Guoqiang reiterated the islands were irrefutably Chinese territory.

“You can’t say that the construction on our islands and reefs in the South China Sea and the building of necessary defensive facilities is an expansion of military deployments,” he said.

“We believe that at present the situation in the South China Sea is generally good, and all relevant parties should work hard together to protect the peace and stability of the South China Sea.”

China’s ambassador to Washington, Cui Tiankai, said on Monday the United States should not try to “interfere” in regional efforts to resolve disputes in the South China Sea.

For a graphic on Spratly Islands, click http://fingfx.thomsonreuters.com/gfx/rngs/1/6/12/index.html

China has been seeking to soothe fellow claimant the Philippines and accelerating talks with the wider ASEAN grouping, amid concerns in Washington about the long-term security of the waterway through which some $3 trillion in trade a year passes.

In a speech in Singapore earlier this month, the most senior U.S. military chief in the region said even while Washington pushed Beijing for help on North Korea, it would still hold China accountable for actions that countered international rules and norms.

“We also want Beijing to do more to stop provocative actions in the East China Sea and the South China Sea, where the Chinese are building up combat power and positional advantage in an attempt to assert de-facto sovereignty over disputed maritime features,” Admiral Harry Harris, commander of the U.S. Pacific Command, said.

China claims much of the area through its controversial nine-dash line, which overlaps rival maritime claims by Vietnam, the Philippines, Malaysia, Taiwan and Brunei.

TACTICS NOT STRATEGY

A recent study by the U.S. government-linked RAND Corp weighing the risks of a conflict between the United States and China moved the South China Sea up its list of potential flashpoints.

Placing it above Taiwan but below the Korean peninsula, the study notes the waterway has “become the unanticipated focal point of U.S.-Chinese … rivalry”.

While the Pentagon has embarked on more regular freedom-of-navigation patrols, or FONOPS, to challenge Beijing’s claims, some analysts believe Washington is struggling to counter China’s creeping domination of the area.

“China appears to be pursuing a well-thought out and long-term strategy to achieve dominion over the South China Sea while America responds with ad hoc tactical maneuvers,” said Ian Storey, a South China Sea expert at Singapore’s Yusof Ishak Institute.

“FONOPS are tactics not strategy, and they have not made China rethink its plans for the South China Sea one iota.”

Ni Lexiong, a naval expert at the Shanghai University of Political Science and Law, said there was little need for China to dramatically increase deployments now, but much depended on the actions others.

“As long as others don’t intentionally go and provoke clashes, things will be fine,” he added. “The issue is that some countries, like the United States, go and stir things up.”

(Reporting by Greg Torode and Ben Blanchard; Additional reporting by David Brunnstrom in WASHINGTON and Venus Wu in HONG KONG; Editing by Lincoln Feast)

Exclusive: U.S. warship sails near islands Beijing claims in South China Sea – U.S. officials

USS Chafee, a US Navy destroyer which operates 100 percent on biofuel, sails about 150 miles (241 km) north of the island of Oahu during the RIMPAC Naval exercises off Hawaii July 18,2012. REUTERS/Hugh Gentry

By Idrees Ali

WASHINGTON (Reuters) – A U.S. Navy destroyer sailed near islands claimed by China in the South China Sea on Tuesday, three U.S. officials told Reuters, prompting anger in Beijing, even as President Donald Trump’s administration seeks Chinese cooperation in reining in North Korea’s missile and nuclear programs.

The operation was the latest attempt to counter what Washington sees as Beijing’s efforts to limit freedom of navigation in the strategic waters. But it was not as provocative as previous ones carried out since Trump took office in January.

The officials, speaking on condition of anonymity, said the Chafee, a guided-missile destroyer, carried out normal maneuvering operations that challenged “excessive maritime claims” near the Paracel Islands, among a string of islets, reefs and shoals over which China has territorial disputes with its neighbors.

China’s Defense Ministry said on Wednesday that a warship, two fighter jets and a helicopter had scrambled to warn the U.S. ship away, adding it had infringed upon China’s sovereignty and security with its “provocation”.

China would further strengthen its naval and air defenses, the ministry said.

“We demand the U.S. side earnestly take steps to correct its mistakes,” it added.

Speaking earlier at a daily news briefing in Beijing, Chinese Foreign Ministry spokeswoman Hua Chunying said China had lodged “stern representations” with the United States, and reiterated that the Paracels were Chinese territory.

“China will continue to take resolute measures to protect Chinese sovereign territory and maritime interests. China urges the U.S. to conscientiously respect China’s sovereign territory and security interests, conscientiously respect the efforts regional countries have made to protect peace and stability in the South China Sea, and stop these wrong actions.”

Next month, Trump makes his first visit to Asia as president, including a stop in China, which he has been pressuring to do more to rein in North Korea. China is North Korea’s neighbor and biggest trading partner.

Unlike in August, when a U.S. Navy destroyer came within 12 nautical miles of an artificial island built up by China in the South China Sea, officials said the destroyer on Tuesday sailed close to but not within that range of the islands.

Twelve nautical miles mark internationally recognized territorial limits. Sailing within that range is meant to show the United States does not recognize territorial claims.

The Pentagon did not comment directly on the operation, but said the United States carried out regular freedom-of-navigation operations and would continue to do so.

China’s claims in the South China Sea, through which about $5 trillion in shipborne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

Experts and some U.S. officials have criticized former president Barack Obama for potentially reinforcing China’s claims by sticking to innocent passage, in which a warship effectively recognized a territorial sea by crossing it speedily without stopping.

The U.S. military has a long-standing position that its operations are carried out throughout the world, including in areas claimed by allies, and that they are separate from political considerations.

The United States has said it would like to see more international participation in freedom-of-navigation operations in the South China Sea.

NORTH KOREA ISSUE

Trump’s trip to Asia will likely be dominated by the North Korean nuclear threat. He will also visit South Korea, Japan, Vietnam and the Philippines.

In recent weeks, North Korea has launched two missiles over Japan and conducted its sixth nuclear test, all in defiance of U.N. Security Council resolutions, and may be fast advancing toward its goal of developing a nuclear-tipped missile capable of hitting the U.S. mainland.

Trump’s visit to China will reciprocate a trip to the United States made in April by Chinese President Xi Jinping. The U.S. president’s attempts to get Chinese help with North Korea have met with limited success so far, but he has gone out of his way to thank Xi for his efforts.

(Reporting by Idrees Ali; Additional reporting by Christian Shepherd in BEIJING; Editing by Yara Bayoumy, Peter Cooney and Nick Macfie)

Putin warns North Korea situation on verge of ‘large-scale conflict’

North Koreans watch a news report showing North Korea's Hwasong-12 intermediate-range ballistic missile launch

MOSCOW (Reuters) – Russian President Vladimir Putin warned on Friday that the tense standoff between North Korea and the United States was on the verge of large-scale conflict and said it was a mistake to try to pressure Pyongyang over its nuclear missile program.

Putin, who is due to attend a summit of the BRICS nations in China next week, wrote in an article published on the Kremlin’s web site ahead of his trip that he favored negotiations with North Korea instead.

“It is essential to resolve the region’s problems through direct dialogue involving all sides without advancing any preconditions (for such talks),” Putin wrote.

“Provocations, pressure, and bellicose and offensive rhetoric is the road to nowhere.”

The situation on the Korean Peninsula had deteriorated so much that it was now “balanced on the verge of a large-scale conflict,” said the Russian leader.

North Korea has been working to develop a nuclear-tipped missile capable of hitting the United States and has recently threatened to land missiles near the U.S. Pacific territory of Guam.

On Monday, Pyongyang, which sees joint war games between the United States and South Korea as preparations for invasion, raised the stakes in its stand-off with the United States and its allies by firing an intermediate-range missile over Japan.

“In Russia’s opinion the calculation that it is possible to halt North Korea’s nuclear missile programs exclusively by putting pressure on Pyongyang is erroneous and futile,” Putin wrote.

A road map formulated by Moscow and Beijing, which would involve North Korea stopping work on its missile program in exchange for the United States and South Korea halting large-scale war games, was a way to gradually reduce tensions, wrote Putin.

 

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)

 

Tens of thousands protest in Hong Kong over jailing of democracy activists

Demonstrators march in protest of the jailing of student leaders Joshua Wong, Nathan Law and Alex Chow, who were imprisoned for their participation of the 2014 pro-democracy Umbrella Movement, also known as "Occupy Central" protests, in Hong Kong China August 20, 2017. REUTERS/Tyrone Siu

By Venus Wu

HONG KONG (Reuters) – Tens of thousands of people took to the streets of Hong Kong on Sunday to protest against the jailing of three young democracy activists, with many questioning the independence of the Chinese-ruled city’s judiciary.

Joshua Wong, 20, Nathan Law, 24 and Alex Chow, 27, were jailed for six to eight months on Thursday for unlawful assembly, dealing a blow to the youth-led push for universal suffrage and prompting accusations of political interference.

Thousands of people marched in temperatures above 30 degrees Celsius (86 Fahrenheit) to the Court of Final Appeal, carrying placards and banners denouncing the jailing of the activists.

Former student leader Lester Shum, who helped to organize Sunday’s rally, said the number of protesters was the highest since the “Umbrella Movement” pro-democracy protests in 2014 that paralyzed major roads in the financial center for 79 days.

“This shows that the Hong Kong government, the Chinese Communist regime and the Department of Justice’s conspiracy to deter Hong Kong people from continuing to participate in politics and to protest using harsh laws and punishments has completely failed,” Shum said.

Hong Kong police estimated 22,000 people had shown up at the height of the protest.

Protesters brandished a large banner saying: “It’s not a crime to fight against totalitarianism.” They shouted: “Release all political prisoners. Civil disobedience. We have no fear. We have no regrets.”

Ray Wong, 24, who leads the pro-independence group Hong Kong Indigenous, said outrage over the jailings was helping to unite the pro-democracy opposition camp that has been riven by divisions over the past few years.

“Since the Umbrella movement, the radical and milder forces walked their own path,” he said. “We’re now standing together. It is a good start.”

In Sunday’s protest, some signs said “Shame on Rimsky”, referring to Justice Secretary Rimsky Yuen. Reuters reported that Yuen had overruled other legal officials when they advised against pursuing prison terms for the three activists.

 

NO “POLITICAL MOTIVE”

Wong and his colleagues triggered the 2014 protests, which attracted hundreds of thousands at their peak, when they climbed into a courtyard fronting the city’s government headquarters.

They were sentenced last year to non-jail punishments including community service for unlawful assembly, but the Department of Justice applied for a review, seeking imprisonment.

On Friday, Yuen denied any “political motive” in seeking jail for the trio.

The former British colony returned to China in 1997 under a “one country, two systems” agreement that ensured its freedoms, including a separate legal system. But Beijing has ultimate control and some Hong Kong people are concerned it is increasingly interfering to head off dissent.

The Hong Kong government rejected allegations of political interference.

“There is absolutely no political consideration involved. Further, allegations that the court is under political interference are totally unfounded and groundless,” it said in a statement late on Sunday.

The jail terms for Wong, Law and Chow disqualify them from running for the city’s legislature for the next five years, halting their push for a career in mainstream politics.

Lau Siu-lai, one of six legislators expelled from the legislature this year over the manner in which she took her oath of office, said the sentences were unreasonably harsh.

“It appears to be political suppression to strip away young people’s right to stand in elections,” she said. “I hope people will pay attention … We need to protect Hong Kong’s rule of law.”

Another protester carried a placard of Lady Justice with a red blindfold.

“Hong Kong’s Lady Justice and the rule of law… are now being controlled by communists, and are now being twisted and she is now blind,” said 50-year-old artist Kacey Wong.

While the imposition of tougher sentences on the activists attracted widespread criticism in Hong Kong and overseas, the Hong Kong Bar Association and Law Society defended the court’s decision.

“Unfounded comments that judicial decisions were made or influenced by political considerations originating outside Hong Kong are unjustified and damaging to our legal system, and to Hong Kong as a whole,” they said in a joint statement on Friday.

(This version of the story was refiled to fix spelling of court in 16th paragraph)

 

(Additional reporting by James Pomfret; Writing by Anne Marie Roantree; Editing by Richard Borsuk and David Stamp)

 

Storms disrupt Beijing flights, authorities warn of flash floods, landslides

Tourists hold umbrellas as they visit Tiananmen Square during a rainstorm in Beijing, China August 12, 2017. REUTERS/Stringer

By Josephine Mason and Shu Zhang

BEIJING (Reuters) – Thunderstorms lashed Beijing on Saturday, disrupting hundreds of flights at one of the world’s largest airports, while authorities warned that rain and wind could cause landslides in the area where a 7.0-magnitude earthquake struck this week.

Beijing authorities raised their weather alert level to “orange” from “yellow” early in the afternoon, warning against lightning, hail, wind and as much as 70 mm (3 inches) of rain, threatening flash floods in mountainous areas.

By early afternoon rain subsided in some parts of the capital, but nine roads were still flooded and 171 tourist sites were shut, the official news agency Xinhua said.

At China’s busiest airport, almost 500 flights were listed as canceled from 9 a.m. until midnight and 182 were delayed, the website of Beijing Capital International Airport Co Ltd showed, urging travelers to check for flight updates.

Air China Ltd said on its Weibo social media account that about 137 of its flights in and out of the capital had been canceled by 11 a.m. (0300 GMT).

Torrential rainstorms are fairly frequent in Beijing in the summer months, often causing long delays at the airport.

One user of China’s Twitter-like Weibo said she had been stuck at the airport for eight hours waiting for a flight home.

“There are no free seats, I’m having to sit on the floor, I’m jetlagged and I’m really tired,” said the user, who goes by the handle ‘Vivian not soymilk’.

Other airports affected by the downpours included Shanghai, Nanjing in Jiangsu province, Hangzhou in Zhejiang along the Yangtze River delta.

The others were in northern regions: Shijiazhuang in Hebei, Taiyuan in Shanxi, Lanzhou in Gansu, Xining in Qinghai and Yinchuan in Ningxia.

In a statement, China’s National Meteorological Centre cautioned rescue crews working in Jiuzhaigou, in the southwestern province of Sichuan, to be on alert for landslides and lightning.

Heavy rain was expected across south-eastern China on Saturday, it said.

Widespread flooding hit two towns, Xiangbei and Xiangxi in the southern province of Hunan, Xinhua said. Rainfall across the province ranged from 100 mm (4 inches) to 200 mm (8 inches).

The extreme weather followed a tornado that struck Inner Mongolia on Friday, killing five people, injuring more than 50 and destroying homes in a major city.

(Reporting by Josephine Mason and Shu Zhang; Editing by Eric Meijer)

China set for easy ride from ASEAN on disputed South China Sea

China set for easy ride from ASEAN on disputed South China Sea

By Manuel Mogato

MANILA (Reuters) – Southeast Asian ministers meeting this week are set to avoid tackling the subject of Beijing’s arming and building of manmade South China Sea islands, preparing to endorse a framework for a code of conduct that is neither binding nor enforceable.

The Association of South East Asian Nations (ASEAN) has omitted references to China’s most controversial activities in its joint communique, a draft reviewed by Reuters shows.

In addition, a leaked blueprint for establishing an ASEAN-China code of maritime conduct does not call for it to be legally binding, or seek adherence to the United Nations Convention on the Law of the Sea (UNCLOS).

The two drafts highlight China’s growing regional clout at a time of uncertainty whether the new U.S. administration will try to check Beijing’s assertiveness in the disputed waters.

The South China Sea chapter in the latest draft communique, a negotiated text subject to changes, is a watered-down version of one issued in Laos last year.

ASEAN expressed “serious concern” in that text, and “emphasised the importance of non-militarisation and self-restraint in all activities, including land reclamation.”

But the latest text calls for avoidance of “unilateral actions in disputed features” instead.

The role of the Philippines as 2017 chair of ASEAN has helped China keep a lid on discord.

Once ASEAN’s most vocal critic of China’s conduct, the Philippines, under President Rodrigo Duterte, has put aside disputes in exchange for Chinese funding pledges of $24 billion.

ASEAN ties with the United States, under President Donald Trump, have been in flux, as questions linger over Washington’s commitment to maritime security and trade in Asia, diminishing the grouping’s bargaining power with Beijing.

A legally binding and enforceable code of conduct has been a goal for ASEAN’s claimant members – Brunei, Malaysia, the Philippines and Vietnam – since a 2002 pact to ensure freedom of navigation and overflight and leave rocks and reefs uninhabited.

That pact, the Declaration of Conduct (DOC) of Parties in the South China Sea, has been largely ignored, particularly by China, which reclaimed seven reefs and can now deploy combat planes on three, besides defense systems already in place.

Analysts and some ASEAN diplomats worry that China’s sudden support for negotiating a code of conduct is a ploy to buy time to further boost its military capability.

“We could have done more to push China to agree to a much stronger document, holding claimant states more accountable,” said one ASEAN diplomat.

The agreed two-page framework is broad and leaves wide scope for disagreement, urging a commitment to the “purposes and principles” of UNCLOS, for example, rather than adherence.

The framework papers over the big differences between ASEAN nations and China, said Patrick Cronin of the Center for a New American Security.

“Optimists will see this non-binding agreement as a small step forward, allowing habits of cooperation to develop, despite differences,” he said.

“Pessimists will see this as a gambit favorable to a China determined to make the majority of the South China Sea its domestic lake.”

CONSENSUS CONSTRAINTS

Diplomats say ASEAN’s requirement of consensus in decision-making allows China to pressure some members to disagree with proposals it dislikes. China has long denied interfering.

A separate ASEAN document, dated May and seen by Reuters, shows that Vietnam pushed for stronger, more specific text.

Vietnam sought mention of respect for “sovereignty, sovereign rights and jurisdiction” not only in accordance with international law, but more specifically, UNCLOS.

Sovereign rights cover entitlements to fish and extract natural resources.

Experts say the uncertain future U.S. commitment to Asia leaves Vietnam in the most exposed position, as it has competing claims with China and relies on imports from its neighbor.

Opposition by China has repeatedly disrupted Vietnam’s efforts to exploit offshore energy reserves, most recently in an area overlapping what Beijing considers its oil concessions.

The code of conduct framework was useful to build confidence, said Philippine security expert Rommel Banlaoi, but was not enough to manage and prevent conflict in the South China Sea.

China claims almost the entire South China Sea, through which about $5 trillion in goods pass every year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

(Writing by Martin Petty; Editing by Clarence Fernandez)

Britain and Australia urge China to do more on North Korea threat

North Korean soldiers watch the south side as the United Nations Command officials visit after a commemorative ceremony for the 64th anniversary of the Korean armistice at the truce village of Panmunjom in the Demilitarized Zone (DMZ) dividing the two Koreas July 27, 2017. REUTERS/Jung Yeon-Je/Pool

SYDNEY (Reuters) – Britain and Australia urged China on Thursday to do more to persuade North Korea to drop its nuclear and missile programs.

Earlier this month North Korea, which has warned Australia could be the target of a strike, said it had conducted its first test of an intercontinental ballistic missile, which experts say could reach Alaska.

The United States and other countries have indicated frustration that China, North Korea’s sole major ally, has not done more to rein in the regime of Kim Jung Un.

“With international influence comes responsibility. It is now for Beijing to use the influence it has over the North Korean regime to get it to abandon its program,” British Defence Secretary Michael Fallon told reporters in Sydney.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs and the Security Council has ratcheted up measures in response to five nuclear weapons tests and two long-range missile launches.

Fallon said North Korea continues to receive help in developing its missile and nuclear ambitions as he called on enforcement of the sanctions.

North Korea’s missile and nuclear program was a central element of the fourth annual meeting of Australia and British ministers.

“We are seeing a level of uncertainty that we have not witnessed in a very long time,” Australian Foreign Minister Julie Bishop told reporters in Sydney.

“It is more important than ever before for like-minded countries to find common cause in supporting that international rules-based order.”

Earlier, Bishop told the Australian Broadcasting Corp’s Radio National that China “has much more leverage over North Korea than it claims.”

“The export relationship with North Korea, the provision of remittance to workers, the foreign investment flows, the technology flows – these are all in China’s hands,” she said.

The United States could impose new sanctions on Chinese firms doing business with Pyongyang, senior U.S. officials have said.

China has rejected the criticism and urged a halt to what it called the “China responsibility theory”, saying all parties needed to pull their weight.

(Reporting by Swati Pandey; Additional reporting by Colin Packham; Editing by Richard Pullin and Neil Fullick)

China’s Xi talks tough on Hong Kong as tens of thousands call for democracy

Pro-democracy protesters carry a banner which reads "One Country, Two Systems, a cheating for twenty years. Recapture Hong Kong with democracy and self-determination", during a demonstration on the 20th anniversary of the territory's handover from Britain to Chinese rule, in Hong Kong, China July 1, 2017. REUTERS/Bobby Yip

By James Pomfret and Venus Wu

HONG KONG (Reuters) – Chinese President Xi Jinping swore in Hong Kong’s new leader on Saturday with a stark warning that Beijing won’t tolerate any challenge to its authority in the divided city as it marked the 20th anniversary of its return from Britain to China.

Police blocked roads, preventing pro-democracy protesters from getting to the harbor-front venue close to where the last colonial governor, Chris Patten, tearfully handed back Hong Kong to China in the pouring rain in 1997.

Xi said Hong Kong should crack down on moves towards “Hong Kong independence”.

“Any attempt to endanger China’s sovereignty and security, challenge the power of the central government … or use Hong Kong to carry out infiltration and sabotage activities against the mainland is an act that crosses the red line and is absolutely impermissible,” Xi said.

He also referred to the “humiliation and sorrow” China suffered during the first Opium War in the early 1840s that led to ceding Hong Kong to the British.

Hong Kong has been racked by demands for full democracy and, more recently, by calls by some pockets of protesters for independence, a subject that is anathema to Beijing.

Xi’s speech was his strongest yet to the city amid concerns over what some perceive as increased meddling by Beijing, illustrated in recent years by the abduction by mainland agents of some Hong Kong booksellers and Beijing’s efforts in disqualifying two pro-independence lawmakers elected to the city legislature.

“It’s a more frank and pointed way of dealing with the problems,” said former senior Hong Kong government adviser Lau Siu-kai on Hong Kong’s Cable Television. “The central government’s power hasn’t been sufficiently respected… they’re concerned about this.”

The tightly choreographed visit was full of pro-China rhetoric amid a virtually unprecedented security lockdown close to the scene of pro-democracy protests in 2014 that grabbed global headlines with clashes and tear gas rising between waterfront skyscrapers.

Xi did not make contact with the people in the street or with any pro-democracy voices, forgoing an opportunity to lower the political heat through a softer, more nuanced approach.

The hardening stance of the democrats and Beijing could perhaps widen, spawning greater radicalism, though some activists also concede a spreading disillusionment has sapped momentum among the democracy movement since Xi came to power.

Under the mini-constitution, the Basic Law, Hong Kong is guaranteed wide-ranging autonomy for “at least 50 years” after 1997 under a “one country, two systems” formula praised by Xi. It also specifies universal suffrage as an eventual goal.

But Beijing’s refusal to grant full democracy triggered the nearly three months of street protests in 2014 that posed one of the greatest populist challenges to Beijing in decades.

“MOST URGENT” PROTEST IN YEARS

In the afternoon, tens of thousands gathered in sweltering heat in a sprawling park named after Britain’s Queen Victoria, demanding Xi allow universal suffrage. Organizers put the figure at more than 60,000.

“Xi shouldn’t be interfering in Hong Kong too much,” Peter Lau, a 20-year-old university student, said. “Despite him visiting garrisons and muscle-flexing, Hong Kong people’s confidence will never be shaken. Especially for our generation. We should … fight for our freedom.”

Some demonstrators marched with yellow umbrellas, a symbol of democratic activism in the city, and held banners denouncing China’s Communist “one party rule”.

Others criticized China’s Foreign Ministry which on Friday said the “Joint Declaration” with Britain over Hong Kong, a treaty laying the blueprint over how the city would be ruled after 1997, “no longer has any practical significance”.

At the end of the rally a simple white banner read: “Cry in grief for 20 years.”

[For a link to Reuters handover stories, http://reut.rs/2sje26J]

Xi in the morning addressed a packed hall of mostly pro-Beijing establishment figures, after swearing in Hong Kong’s first female leader, Carrie Lam, who was strongly backed by China.

Xi hinted that the central government was in favor of Hong Kong introducing “national security” legislation, a controversial issue that brought nearly half a million people to the streets in protest in 2003 and ultimately forced former leader Tung Chee-hwa to step down.

A small group of pro-democracy activists near the venue were roughed up by a group of men who smashed up some props in ugly scuffles. Nine democracy protesters, including student leader Joshua Wong and lawmaker “long hair” Leung Kwok-hung, were bundled into police vans while several pro-China groups remained, cheering loudly and waving red China flags.

The activists, in a later statement, said the assailants had been “pro-Beijing triad members”.

 

(Additional reporting by Clare Jim, William Ho, Jasper Ng, Doris Huang and Susan Gao; Editing by Anne Marie Roantree and Nick Macfie)

U.S. to list China among worst human trafficking offenders: sources

FILE PHOTO: A Chinese national flag flutters at Tiananmen Square in Beijing October 20, 2014. REUTERS/Petar Kujundzic

By Matt Spetalnick

WASHINGTON (Reuters) – The United States plans to place China on its global list of worst offenders in human trafficking and forced labor, said a congressional source and a person familiar with the matter, a step that could aggravate tension with Beijing that has eased under President Donald Trump.

The reprimand of China, Washington’s main rival in the Asia-Pacific region, would come despite Trump’s budding relationship with Chinese counterpart Xi Jinping and the U.S. president’s efforts to coax Beijing into helping to rein in North Korea’s nuclear and missile programs.

Secretary of State Rex Tillerson has decided to drop China to “Tier 3,” the lowest grade, putting it alongside Iran, North Korea and Syria among others, said the sources, who have knowledge of the internal deliberations and spoke on condition of anonymity.

The rating is expected to be announced on Tuesday in an annual report published by the State Department’s Office to Monitor and Combat Trafficking in Persons. A State Department official declined to comment on the report’s contents and said the department “does not discuss details of internal deliberations.”

Tier 3 rating can trigger sanctions limiting access to U.S. and international aid, but U.S. presidents frequently waive such action.

While it was unclear what led Tillerson to downgrade China, last year’s report criticized the communist government for not doing enough to curb “state-sponsored forced labor” and concluded it did not meet “minimum standards” for fighting trafficking – though it still said Beijing was making significant efforts.

The Trump administration has also grown concerned about conditions in China for North Korean labor crews that are contracted through Pyongyang and provide hard currency for the North Korean leadership, which is squeezed for cash by international sanctions, said the congressional source.

In Beijing, foreign ministry spokesman Lu Kang said the government was resolute in its resolve to fight human trafficking and the results were plain to see.

“China resolutely opposes the U.S. side making thoughtless remarks in accordance with its own domestic law about other countries’ work in fighting human trafficking,” he told a daily news briefing.

Since taking office, Trump has praised Xi for agreeing to work on the North Korea issue during a Florida summit in April and has held back on attacking Chinese trade practices he railed against during the presidential campaign.

But Trump has recently suggested he was running out of patience with China’s modest steps to pressure North Korea, which is working to develop a nuclear-tipped missile capable of hitting the United States.

The annual report, covering more than 180 countries and territories, calls itself the world’s most comprehensive resource of governmental anti-human trafficking efforts.

It organizes countries into tiers based on trafficking and forced labor records: Tier 1 for nations that meet minimum U.S. standards; Tier 2 for those making significant efforts to meet those standards; Tier 2 “Watch List” for those that deserve special scrutiny; and Tier 3 for countries that fail to comply with the minimum U.S. standards and are not making significant efforts.

For the past three years, China has been ranked “Tier 2 Watch List”.

In Beijing, the Chinese Foreign Ministry did not respond to a request for comment.

In 2015, Reuters reported that experts in the State Department’s Office to Monitor and Combat Trafficking in Persons had sought to downgrade China that year to Tier 3 but were overruled by senior diplomats.

(Reporting by Matt Spetalnick; Additional reporting by Christian Shepherd and Ben Blanchard in BEIJING; Editing by Jason Szep and Tom Brown)