Taiwan warns of increasing threat as Chinese warships conduct drill

A general view shows navy soldiers standing on China's first aircraft carrier "Liaoning" as it is berthed in a port in Dalian, northeast China's Liaoning province,

By J.R. Wu

TAIPEI (Reuters) – Taiwan warned on Tuesday that “the threat of our enemies is growing day by day”, as Chinese warships led by the country’s sole aircraft carrier sailed towards the island province of Hainan through the South China Sea on a routine drill.

China has given few details of what the Soviet-built Liaoning aircraft carrier is up to, save that it is on a routine exercise. Taiwan has said the aircraft carrier skirted waters outside of its eastern air defense identification zone.

The carrier is expected to arrive at a Chinese military base on the southern Chinese island of Hainan late on Tuesday, Taiwan’s defense ministry said.

The drill comes amid renewed tension over Taiwan, which China claims as its own and says is ineligible for state-to-state relations, following U.S. President-elect Donald Trump’s telephone call with the island’s president that upset Beijing.

“The threat of our enemies is growing day by day. We should always be maintaining our combat alertness,” Taiwan Defence Minister Feng Shih-kuan said. “We need to strengthen the training (of our soldiers) so that they can not only survive in battle but also destroy the enemy and accomplish the mission.”

Feng’s remarks were given in a speech Tuesday at a ministry event marking the promotion of senior military officers.

China’s air force conducted long-range drills this month above the East and South China Seas that rattled Japan and Taiwan. China said those exercises were also routine.

China claims most of the South China Sea, through which about $5 trillion in ship-borne trade passes every year. Neighbours Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

The Pentagon did not directly comment on the latest drill but said that the United States recognizes lawful use of sea and airspace in accordance to international law.

“We continue to closely monitor developments in the region. We do not have specific comments on China’s recent naval activities, but we continue to observe a range of ongoing Chinese military activity in the region‎,” Pentagon spokesman Gary Ross told Reuters.

The Liaoning has taken part in previous exercises, including in the South China Sea, but China is years away from perfecting carrier operations similar to those the United States has practiced for decades.

Last December, the defense ministry confirmed China was building a second aircraft carrier but its launch date is unclear. The aircraft carrier program is a state secret.

Beijing could build multiple aircraft carriers over the next 15 years, the Pentagon said in a report last year.

China has claimed sovereignty over Taiwan since 1949, when Mao Zedong’s Communist forces won the Chinese civil war and Chiang Kai-shek’s Nationalists fled to the island.

Beijing has vowed to bring Taiwan under its rule, by force if necessary.

(Reporting by J.R. Wu; Additional reporting by Tim Kelly in Tokyo; Writing by Ben Blanchard; Editing by Nick Macfie)

Taiwan loses another ally, says won’t help China ties

Taiwan diplomats

By J.R. Wu and Ben Blanchard

TAIPEI/BEIJING (Reuters) – Taiwan accused China on Wednesday of using Sao Tome and Principe’s financial woes to push its “one China” policy after the West African state ended ties with the self-ruled island, with Taiwan saying China’s action would not help relations across the Taiwan Strait.

China’s claim to Taiwan have shot back into the spotlight since U.S. President-elect Donald Trump broke diplomatic protocol and spoke with Taiwan President Tsai Ing-wen this month, angering Beijing.

Trump has also questioned the “one China” policy which the United States has followed since establishing relations with Beijing in 1979, under which the United States acknowledges that Taiwan is part of China.

The election of Tsai from the pro-independence Democratic Progressive Party this year infuriated Beijing, which suspects she wants to push for the island’s formal independence, though she says she wants to maintain peace with China.

Taiwan Foreign Minister David Lee said Taipei would not engage in “dollar diplomacy” after Sao Tome’s decision.

“We think the Beijing government should not use Sao Tome’s financing black hole … as an opportunity to push its ‘one China’ principle,” Lee told a news conference in Taipei on Wednesday.

“This behavior is not helpful to a smooth cross-Strait relationship.”

Tsai held emergency meetings with cabinet officials and security advisers on Wednesday, and told her ministers:

“Foreign diplomacy is not a zero-sum game,” according to her office spokesman, Alex Huang.

Tsai’s office said in a statement China’s use of Sao Tome’s financial woes to push its “one China” policy would harm stability across the Taiwan Strait.

“This is absolutely not beneficial to the long-term development of cross-Strait relations,” it said.

China says Taiwan has no right to diplomatic recognition as it is part of China, and the issue is an extremely sensitive one for Beijing.

In Beijing, China welcomed Sao Tome’s decision, without explicitly saying it had established formal relations with the former Portuguese colony or making any mention of a request for financial aid.

“We have noted the statement from the government of Sao Tome and Principe on the 20th to break so-called ‘diplomatic’ ties with Taiwan. China expresses appreciation of this, and welcomes Sao Tome back onto the correct path of the ‘one China’ principle,” the foreign ministry said in a statement.

Ministry spokeswoman Hua Chunying declined to comment when asked when the two countries may exchange ambassadors, and dismissed a question on how much China may have offered Sao Tome to switch ties as being “very imaginative”.

Defeated Nationalist forces fled to Taiwan at the end of a civil war in 1949 and Beijing has never renounced the use of force to bring Taiwan under its control.

In Africa, only Burkina Faso and Swaziland now maintain formal ties with Taiwan. President Tsai will visit Central American allies Honduras, Nicaragua, Guatemala and El Salvador next month.

“We now have 21 allies left. We must cherish them,” Lee said.

China and Taiwan had for years tried to poach each other’s allies, often dangling generous aid packages in front of developing nations.

But they began an unofficial diplomatic truce after signing a series of landmark trade and economic agreements in 2008 following the election of the China-friendly Ma Ying-jeou as Taiwan’s president.

Sao Tome and Principe’s tiny island economy is heavily dependent on cocoa exports but its position in the middle of the oil-rich Gulf of Guinea has raised interest in its potential as a possible oil and gas producer.

Diplomatic sources in Beijing have previously said Sao Tome was likely high on China’s list of countries to lure away from Taiwan.

In 2013, Sao Tome said China planned to open a trade mission to promote projects there, 16 years after it broke off relations over Sao Tome’s diplomatic recognition of Taiwan.

(Editing by Lincoln Feast, Robert Birsel)

China says situation at disputed Scarborough Shoal has not changed

A fisherman look at the fishing boats that just returned from disputed Scarborough Shoal, as they are docked at the coastal village of Cato in Infanta, Pangasinan in the Philippines,

BEIJING/MANILA (Reuters) – China said on Monday the situation at the disputed Scarborough Shoal in the South China Sea “has not changed and will not change”, after the Philippines said Chinese vessels that blocked the area for four years had stopped harassing its fishermen.

Philippine security officials on Sunday said China had scaled down its maritime presence at the shoal since President Rodrigo Duterte’s return from a visit to Beijing aimed at patching-up ties and courting investment.

The disputed territory is significant not only for fishing, but for the broader balance of power in the South China Sea, and the circumstances behind China’s apparent softening of its position are not clear.

Asked about Philippine fishermen entering the area unimpeded, China’s foreign ministry spokeswoman, Hua Chunying, said China always had “normal administration” over the Scarborough Shoal.

“The relevant situation has not changed and will not change,” she told a regular briefing.

Hua said Duterte’s visit to Beijing marked an overall improvement in relations.

“China will make proper arrangements on issues of President Duterte’s interest,” Hua said, without giving details.

China had repelled fishermen since seizing the Scarborough Shoal in 2012.

Philippine boats returned from the area at the weekend with tonnes of fish and said Chinese boats had left them alone.

China’s blockade of what is a prime fishing spot prompted the previous Philippine government to file a legal case in 2013 at the Permanent Court of Arbitration in The Hague, infuriating Beijing.

The tribunal’s July ruling in favor of the Philippines, which China refuses to acknowledge, declared no one country had sovereign rights over the shoal, and as a traditional fishing ground, Chinese, Philippine and Vietnamese were entitled to access it.

A frosty Philippine-China relationship changed dramatically after Duterte took office four months ago and started praising China while denouncing old ally the United States in a reversal of his predecessor’s foreign policy.

Duterte’s national security adviser, Hermogenes Esperon, confirmed there had been no agreement between the two countries about the Scarborough Shoal.

He said the dispute had not been resolved and the Philippines would reassert its rights when bilateral talks resume, although he noted “the climate has changed”.

“The president reiterated that we won in the court, the other leader also reiterated that it is historically their territory, so it was not resolved,” Esperon told reporters, referring to Duterte’s talks with Chinese leaders.

“They have coastguard ships there, there are no more navy ships and our fishermen are no longer accosted, they are not driven away.”

“In short, they are more friendly now.”

(Reporting by Paul Carsten in BEIJING and Manuel Mogato in MANILA; Editing by Robert Birsel)

Philippine police van drives at protesters to break up anti-U.S. demo

SWAT team prepares tear gas in Philippines

MANILA (Reuters) – Philippine police used tear gas to disperse about 1,000 anti-U.S. protesters outside the U.S. embassy in Manila on Wednesday, as television news footage showed a patrol van, which had come under attack, driving at demonstrators.

The rally came as President Rodrigo Duterte visits Beijing to strengthen relations with the world’s second-largest economy amid deteriorating ties with former colonial power the United States, sparked by his controversial war on illegal drugs.

Police made 29 arrests at the rally while at least 10 people were taken to hospital after being hit by the police van, Renato Reyes, secretary general of left-wing activist group Bayan (Nation), told reporters.

The protesters were calling for the removal of U.S. troops in the southern island of Mindanao.

“There was absolutely no justification (for the police violence),” Reyes said. “Even as the president avowed an independent foreign policy, Philippine police forces still act as running dogs of the U.S.”

In a series of conflicting statements, Duterte has insulted U.S. President Barack Obama and the U.S. ambassador in Manila for questioning his war on drugs, which has led to the deaths of 2,300 suspected users and pushers. He told Obama to “go to hell” and alluded to severing ties with Washington.

Then, after weeks of anti-American rhetoric, Duterte said the Philippines would maintain its existing defense treaties and its military alliances.

The comments have left Americans and U.S. businesses in the Philippines jittery about their future.

(Reporting by Ronn Bautista and Neil Jerome Morales; Editing by Nick Macfie)

Exclusive: Top Obama aide to take call for South China Sea calm to Beijing

Chinese vessel in South China

By Matt Spetalnick and David Brunnstrom

WASHINGTON (Reuters) – U.S. National Security Adviser Susan Rice will urge Beijing next week to avoid escalation in the South China Sea when she makes the highest-level U.S. visit to China since an international court rejected its sweeping claims to the strategic waterway.

Even as Washington has sought to keep a lid on the situation, Rice – in an interview with Reuters – vowed that the U.S. military would continue to “sail and fly and operate” in the South China Sea, despite a Chinese warning that such patrols could end “in disaster.”

With less than six months remaining of President Barack Obama’s tenure, Rice’s broader mission in her July 24-27 trip is aimed at keeping overall ties between the world’s two largest economies, which she called “the most consequential relationship we have,” on track at a time of heightened tensions. “I’ll be there to advance our cooperation,” she said.

But the trip, due to be formally announced later on Friday, follows a July 12 ruling by the Permanent Court of Arbitration in The Hague that China has no historic title over the waters of the South China Sea. Beijing has angrily rejected the verdict and pledged to pursue claims that conflict with those of several smaller neighbors.

“I’ve been in communication with our Chinese counterparts over the last couple of weeks … We understand each other’s perspectives clearly,” Rice said when asked what message she would deliver to the Chinese. “We’ll urge restraint on all sides.”

Her trip, to include Beijing and Shanghai, will coincide with visits by U.S. Secretary of State John Kerry to Laos and the Philippines where he is expected to try to reassure Southeast Asian partners of Washington’s commitment.

The United States is also using quiet diplomacy to persuade claimants like the Philippines, Indonesia and Vietnam not to move aggressively to capitalize on The Hague ruling, U.S. officials have said.

TEST OF U.S. CREDIBILITY

How Washington handles the aftermath of the ruling is widely seen as a test of U.S. credibility in a region where it has been the dominant security presence since World War Two but is now struggling to contain an increasingly assertive China.

China has responded to the ruling with sharp rhetoric. But a senior official said, “So far there has not been precipitous action” and Washington was hoping confrontation could be avoided.

“We are not looking to do things that are escalatory,” another senior U.S. official said. “And at the same time we don’t expect that they (the Chinese) would deem it wise to do things that are escalatory.”

Despite that view, two Chinese civilian aircraft conducted test landings at two new military-length airstrips on reefs controlled by China in the Spratly Islands shortly after the arbitration ruling.

And signaling Beijing’s plans to further stake its claim to contested waters, a Chinese state-run newspaper said that up to eight Chinese ships will offer cruises to the South China Sea over the next five years.

China has blamed the United States for stirring up trouble in the South China Sea, a strategic waterway through which more than $5 trillion of trade moves annually.

Citing international rules, the United States has conducted freedom-of-navigation patrols close to Chinese-held islands where China has been bolstering its military presence.

Rice is expected to meet Chinese President Xi Jinping during her visit and her agenda will include North Korea, economic issues and human rights. She will also lay the groundwork for Obama’s talks with Xi at a G20 summit in China in September, U.S. officials said.

But with the South China Sea issue looming large, Rice, who has led U.S. policymaking on China, said the United States and China have “careful work to do to manage our differences.”

She also said the administration would not allow crises in other parts of the world, from Syria to Turkey to Ukraine, to distract from Obama’s signature policy of “rebalancing” toward Asia. “We don’t have the luxury as the world’s leading power to devote our attention to one region and ignore another,” she said.

(Reporting by Matt Spetalnick and David Brunnstrom; Additional reporting by Lesley Wroughton; Editing by Cynthia Osterman)

Heavy rain disrupts trains, flights in Chinese capital

Heavy rainfall in China

BEIJING (Reuters) – Persistent heavy rain on Wednesday caused widespread disruption in the Chinese capital, Beijing, forcing the delay and cancellation of hundreds of flights and the closure of some subway stations.

Beijing’s steamy summer months are often marked by dramatic rainstorms, one of which in 2012 killed 37 people.

At a meeting of the top government body, the Politburo standing committee, President Xi Jinping urged officials to be prepared for rescue work and flood control efforts as China is in its flood season, the official Xinhua news agency said.

The Beijing city government issued an orange alert, the second highest in China’s four-tier warning system, over the rain, and warned it could continue overnight, with a total of 100 mm (3.9 inches) of rain expected in some areas.

More than 200 flights were canceled at Beijing’s main international airport, and a handful of subway stations shut, the government said.

Pictures on social media showed cars making their way slowly through flooded streets in parts of the city.

Some high speed rail services were also delayed, the rail authority said.

There were no reports of any casualties.

Large parts of central and eastern China have been inundated with rain this summer, killing more than 200 people.

Since Monday, 13 people have been killed and 62 have gone missing amid rains in north and northwest China, Xinhua said.

(Reporting by Beijing newsroom; Additional reporting by Jake Spring; Writing by Ben Blanchard; Editing by Clarence Fernandez)

Taiwan, China batten down hatches as super typhoon approaches

Typhoon Nepartak

TAIPEI/BEIJING (Reuters) – Taiwan and China began battening down the hatches on Thursday ahead of the arrival of super Typhoon Nepartak, the first of the year, with fears in China that storm could worsen already severe flooding in the east of the country.

The typhoon is expected to make landfall on Taiwan’s mountainous but sparsely populated east coast in the early hours of Friday, where it will loose much of its strength, before crossing over the Taiwan Strait and hitting China on Saturday.

The typhoon has been labeled a category 5 storm on a scale of 1 to 5 by Tropical Storm Risk making it a super typhoon but it should weaken to a topical storm by the time it reaches China.

In Taiwan, authorities announced financial markets would be shut on Friday as cities across the island, including Taipei, announced work and school closures. Airlines began cancelling flights and the bullet train service was suspended.

The island’s weather authorities estimated wind speeds near Nepartak’s center were at least 200 kph (124 mph).

Widespread flooding across central and southern China over the past week has killed about 130 people, damaged more than 1.9 million hectares of crops and led to direct economic losses of more than 38 billion yuan ($5.70 billion).

The city of Wuhan on the Yangtze River, home to 10 million people, has been particularly badly affected, with flooded subway lines and power cuts.

The typhoon is expected to push more rain into already flooded areas in and around Wuhan, the Xinhua news agency said.

Wuhan is a hub for the auto industry, though automakers including Honda <7267.T>, Nissan <7201.T> and state-owned Dongfeng <0489.HK> reported no disruptions.

Peugeot’s <PEUP.PA> venture there said it launched emergency contingency plans, including deploying a sewage pump truck, but factory operations were uninterrupted and its vehicle warehouse unaffected.

Fujian province, opposite Taiwan, has canceled all ferries to Taiwan and Taiwan-controlled islands, and suspended some trains, while Guangdong province has told fishing boats to return to port, the central government said on its website.

Typhoons are common at this time of year in the South China Sea, picking up strength over warm waters and dissipating over land.

Typhoons used to kill many people in China but the government now enforces evacuations and makes preparations well in advance meaning death tolls in recent years have been much lower.

In 2009, Typhoon Morakot cut a wide path of destruction over southern Taiwan, killing about 700 people and causing $3 billion worth of damage.

(Reporting by Taipei newsroom, Ben Blanchard and Jake Spring; Editing by Robert Birsel)

Tens of thousands protest in Hong Kong as China tensions simmer over booksellers

Protest in China

By Venus Wu

HONG KONG (Reuters) – Tens of thousands of Hong Kong residents marched in protest on the 19th anniversary of the financial hub’s return to Chinese rule on Friday as tensions simmer against Chinese authorities over the abductions of Hong Kong booksellers.

Some waved banners criticizing Beijing for the cross-border abductions as acts of a “totalitarian” regime, as well as calling for the release of leading dissidents, chanting for democracy and for Hong Kong leader Leung Chun-ying to step down.

Several hundred scuffled with police outside Government House, with police using pepper spray to keep them back. Organizers said 110,000 people took part in the march, while police put the figure at 19,300.

The July 1 protests are considered a barometer of public sentiment toward Beijing, with the former British colony due to hold citywide elections in September.

The city has been unnerved over the past year by the disappearances of five booksellers who specialized in works critical of Chinese leaders. One of the men, Lam Wing-kee, who was detained for eight months by Chinese agents and released last month, criticized Beijing for “violating Hong Kong’s rights” through illegal cross-border enforcement operations.

The tactics have raised fears of Communist Party rulers in Beijing eroding the so-called “one country, two systems” formula, granting Hong Kong a high degree of freedom and autonomy since its 1997 return from British to Chinese rule.

China has denied wrongdoing.

“This is a very grave threat to the safety of Hong Kong residents that an unknown force is spying on people,” said pro-democracy lawmaker Cyd Ho at the rally.

“The Hong Kong government has to follow up with the central government on what’s really happening behind the scenes.”

Hundreds of police were also deployed to guard China’s main representative “Liaison Office” in Hong Kong, after activists who advocate independence from China posted plans on social media for a “black mask” evening protest to besiege the skyscraper.

Scores of young people, some dressed in black T-shirts with the words “HK is not China”, were searched by police in the area and roads were blocked off with metal barricades to prevent trouble.

Lam, who had been due to lead the July 1 march that each year draws tens of thousands, pulled out, citing safety concerns after being followed by two unknown strangers, a lawmaker said.

“He feels increasingly concerned about his own personal safety,” said pro-democracy lawmaker Albert Ho.

A senior Chinese official, Wang Guangya, who heads the Hong Kong and Macau Affairs Office in Beijing, said the booksellers had “destroyed” the one country, two systems formula by publishing banned books in mainland China.

Chinese President Xi Jinping, however, said in a speech on Friday that “no matter what the difficulties and challenges, our confidence and determination towards one country, two systems will not waver”.

Xi added Hong Kong would continue to enjoy a high degree of autonomy and Beijing would strictly adhere to the law.

A 79-day “umbrella revolution” in late 2014 demanding Beijing allow full democracy in Hong Kong brought chaos to the streets.

(Additional reporting by Lindsy Long, Sharon Shi and Hera Poon in Hong Kong and Ben Blanchard in Beijing; Writing by James Pomfret; Editing by Nick Macfie)

China brushes off doubts over support on South China Sea, says it is growing

South China Sea

BEIJING (Reuters) – China’s Foreign Ministry on Thursday brushed off doubts about how many countries have offered support for its position in a case brought by the Philippines over Chinese claims in the South China Sea, saying the number of nations was growing daily.

China has stepped up its rhetoric ahead of an expected ruling by the Permanent Court of Arbitration in the Hague on the Philippine case. China refuses to recognize the case and says all disputes should be resolved through bilateral talks.

China says more than 40 countries have offered support for its position, the most recent being Zimbabwe and Sri Lanka.

But only eight countries have come out in public support, including land-locked nations such as Niger and Afghanistan, says Washington’s Center for Strategic and International Studies.

On Wednesday, a senior U.S. official voiced scepticism at China’s claim that dozens of countries were backing its position, saying it was not clear even about what those countries may have agreed to.

Chinese Foreign Ministry spokeswoman Hua Chunying said public reports showed at least 47 countries offering support, though the figure was not complete as some nations’ backing had not been publicly reported.

“The number of people supporting China rises by the day, so I have no way of giving you a precise figure,” she told a daily news briefing, adding that the actual number was not the most important thing.

“As long as you have an objective and impartial position, as long as you understand the main points of the history of the South China Sea and the essence of the so-called ‘arbitration case’, any unbiased country, organization or person will unhesitatingly chose China’s just position,” she said.

China claims almost all of the energy-rich South China Sea, through which more than $5 trillion of maritime trade passes each year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam have overlapping claims.

The Philippines is contesting China’s claim to an area shown on its maps as a nine-dash line stretching deep into the maritime heart of Southeast Asia, covering hundreds of disputed islands and reefs and encompassing a vital global trade route.

The consensus among officials and analysts is that the ruling will go largely against Beijing.

(Reporting by Ben Blanchard; Editing by Clarence Fernandez)

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China could build nuclear plants for South China Sea, paper says

China Made Island in South China Sea

By Ben Blanchard

BEIJING (Reuters) – China is getting closer to building maritime nuclear power platforms that could one day be used to support projects in the disputed South China Sea, a state-run newspaper said on Friday, but the foreign ministry said it had not heard of the plans.

China has rattled nerves with its military and construction activities on the islands it occupies in the South China Sea, including building runways, though Beijing says most of the construction is meant for civilian purposes, like lighthouses.

The Global Times, an influential tabloid published by the ruling Communist Party’s official People’s Daily, said the nuclear power platforms could “sail” to remote areas and provide a stable power supply.

China Shipbuilding Industry Corp, the company in charge of designing and building the platforms, is “pushing forward the work”, said Liu Zhengguo, the head of its general office.

“The development of nuclear power platforms is a burgeoning trend,” Liu told the paper. “The exact number of plants to be built by the company depends on the market demand.”

Demand is “pretty strong”, he added, without elaborating.

Chinese Foreign Ministry spokeswoman Hua Chunying played down the story as a media report, however.

“I’ve not heard here of the relevant situation,” Hua told a daily news briefing, without elaborating.

In January, two Chinese state-owned energy companies, China National Offshore Oil Corporation (CNOOC) and China General Nuclear Power Corporation (CGN), signed a strategic cooperation framework pact on offshore oil and nuclear power.

CGN has been developing a small modular nuclear reactor for maritime use, called the ACPR50S, to provide power for offshore oil and gas exploration and production. It expects to begin building a demonstration project in 2017.

Xu Dazhe, head of China’s atomic safety commission, told reporters in January the floating platforms were in the planning stage and must undergo “strict and scientific demonstrations”.

Chinese naval expert Li Jie told the Global Times the platforms could power lighthouses, defense facilities, airports and harbors in the South China Sea. “Normally we have to burn oil or coal for power,” Li said.

It was important to develop a maritime nuclear power platform as changing weather and ocean conditions presented a challenge in transporting fuel to the distant Spratlys, he added.

China claims almost the entire South China Sea, believed to have huge deposits of oil and gas, and is building islands on reefs to bolster its claims. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims to parts of the waters, through which about $5 trillion in trade is shipped every year.

(Additional reporting by David Stanway; Editing by Clarence Fernandez)