North Korea says can test-launch ICBM at any time: official news agency

File photo of ballistic missile

SEOUL (Reuters) – North Korea declared on Sunday it could test-launch an intercontinental ballistic missile (ICBM) at any time from any location set by leader Kim Jong Un, saying a hostile U.S. policy was to blame for its arms development.

Kim said on Jan. 1 that his nuclear-capable country was close to test-launching an ICBM.

“The ICBM will be launched anytime and anywhere determined by the supreme headquarters of the DPRK,” an unnamed Foreign Ministry spokesman was quoted as saying by the official KCNA news agency, using the acronym for the country’s name.

The North is formally known as the Democratic People’s Republic of Korea.

U.S. Defence Secretary Ash Carter said on Sunday that North Korea’s nuclear weapons capabilities and ballistic missile defence programs constituted a “serious threat” to the United States and that it was prepared to shoot down a North Korean missile launch or test.

“We only would shoot them down … if it was threatening, that is if it were coming toward our territory or the territory of our friends and allies,” Carter said during an appearance on NBC’s “Meet the Press” program.

The United States said on Jan. 5 that North Korea had demonstrated a “qualitative” improvement in its nuclear and missile capabilities after an unprecedented level of tests last year.

North Korea has been testing rocket engines and heat-shields for an ICBM while developing the technology to guide a missile after re-entry into the atmosphere following a liftoff, experts have said.

While Pyongyang is close to a test, it is likely to take some years to perfect the weapon, according to the experts.

Once fully developed, a North Korean ICBM could threaten the continental United States, which is around 9,000 km (5,500 miles) from the North. ICBMs have a minimum range of about 5,500 km (3,400 miles), but some are designed to travel 10,000 km (6,200 miles) or farther.

On Monday, South Korean defence ministry spokesman Moon Sang-gyun called North Korea’s statement a “provocative announcement” and told a regular news briefing that Pyongyang would face stronger sanctions if it were to launch an ICBM. Unification Ministry spokesman Jeong Joon-hee said there were no signs of any launch preparations.

U.S. President-elect Donald Trump responded to Kim’s comments on an ICBM test by declaring in a tweet last week: “It won’t happen!”

Asked for comment on Sunday, the White House referred to Jan. 3 comments by White House press secretary Josh Earnest in which he said the U.S. military believed it could protect against the threat emanating from North Korea.

In that briefing, Earnest also touted the defensive measures the United States had taken to guard against the threat, such as anti-ballistic missile facilities that had been installed around the Pacific region and diplomatic pressure to discourage North Korea from pursuing its nuclear program.

A U.S. State Department spokesman said last week that the United States did not believe that North Korea was capable of mounting a nuclear warhead on a ballistic missile.

North Korea has been under U.N. sanctions since 2006 over its nuclear and ballistic missile tests. The sanctions were tightened last month after Pyongyang conducted its fifth and largest nuclear test on Sept. 9.

“The U.S. is wholly to blame for pushing the DPRK to have developed ICBM as it has desperately resorted to anachronistic policy hostile toward the DPRK for decades to encroach upon its sovereignty and vital rights,” KCNA quoted the spokesman as saying.

“Anyone who wants to deal with the DPRK would be well advised to secure a new way of thinking after having clear understanding of it,” the spokesman said, according to KCNA.

Here is an interactive guide to North Korea’s nuclear and ballistic missile programmes produced by the Reuters graphics team.(http://tmsnrt.rs/2inl1WO)

(Reporting by Jack Kim and Ju-min Park; Additional reporting by Julia Harte in Washington; Editing by Angus MacSwan and Peter Cooney)

U.S. intelligence study warns of growing conflict risk

US Soldier walks in front of tank in Iraq

By Jonathan Landay

WASHINGTON (Reuters) – The risk of conflicts between and within nations will increase over the next five years to levels not seen since the Cold War as global growth slows, the post-World War Two order erodes and anti-globalization fuels nationalism, said a U.S. intelligence report released on Monday.

“These trends will converge at an unprecedented pace to make governing and cooperation harder and to change the nature of power – fundamentally altering the global landscape,” said “Global Trends: Paradox of Progress,” the sixth in a series of quadrennial studies by the U.S. National Intelligence Council.

The findings, published less than two weeks before U.S. President-elect Donald Trump takes office on Jan. 20, outlined factors shaping a “dark and difficult near future,” including a more assertive Russia and China, regional conflicts, terrorism, rising income inequality, climate change and sluggish economic growth.

Global Trends reports deliberately avoid analyzing U.S. policies or choices, but the latest study underscored the complex difficulties Trump must address in order to fulfill his vows to improve relations with Russia, level the economic playing field with China, return jobs to the United States and defeat terrorism.

The National Intelligence Council comprises the senior U.S. regional and subject-matter intelligence analysts. It oversees the drafting of National Intelligence Estimates, which often synthesize work by all 17 intelligence agencies and are the most comprehensive analytic products of U.S intelligence.

The study, which included interviews with academic experts as well as financial and political leaders worldwide, examined political, social, economic and technological trends that the authors project will shape the world from the present to 2035, and their potential impact.

‘INWARD-LOOKING WEST’

It said the threat of terrorism would grow in coming decades as small groups and individuals harnessed “new technologies, ideas and relationships.”

Uncertainty about the United States, coupled with an “inward-looking West” and the weakening of international human rights and conflict prevention standards, will encourage China and Russia to challenge American influence, the study added.

Those challenges “will stay below the threshold of hot war but bring profound risks of miscalculation,” the study warned. “Overconfidence that material strength can manage escalation will increase the risks of interstate conflict to levels not seen since the Cold War.”

While “hot war” may be avoided, differences in values and interests among states and drives for regional dominance “are leading to a spheres of influence world,” it said,

The latest Global Trends, the subject of a Washington conference, added that the situation also offered opportunities to governments, societies, groups and individuals to make choices that could bring “more hopeful, secure futures.”

“As the paradox of progress implies, the same trends generating near-term risks also can create opportunities for better outcomes over the long term,” the study said.

THE HOME FRONT

The report also said that while globalization and technological advances had “enriched the richest” and raised billions from poverty, they had also “hollowed out” Western middle classes and ignited backlashes against globalization. Those trends have been compounded by the largest migrant flows in seven decades, which are stoking “nativist, anti-elite impulses.”

“Slow growth plus technology-induced disruptions in job markets will threaten poverty reduction and drive tensions within countries in the years to come, fueling the very nationalism that contributes to tension between counties,” it said.

The trends shaping the future include contractions in the working-age populations of wealthy countries and expansions in the same group in poorer nations, especially in Africa and South Asia, increasing economic, employment, urbanization and welfare pressures, the study said.

The world will also continue to experience weak near-term growth as governments, institutions and businesses struggle to overcome fallout from the Great Recession, the study said.

“Major economies will confront shrinking workforces and diminishing productivity gains while recovering from the 2008-09 financial crisis with high debt, weak demand, and doubts about globalization,” said the study.

“China will attempt to shift to a consumer-driven economy from its longstanding export and investment focus. Lower growth will threaten poverty reduction in developing counties.”

Governance will become more difficult as issues, including global climate change, environmental degradation and health threats demand collective action, the study added, while such cooperation becomes harder.

(Reporting by Jonathan Landay; Editing by John Walcott and Peter Cooney)

Philippines says South China Sea ruling not on agenda at ASEAN summit

Philippine President

MANILA (Reuters) – An arbitration court ruling that rejected China’s claims to the South China sea and strained Chinese relations with the Philippines will not be on the agenda of this year’s Southeast Asian summit, a senior Philippine official said on Thursday.

Philippine President Rodrigo Duterte reiterated last month he wanted to avoid confrontation with China and saw no need to press Beijing to abide by the July ruling that went in favor of the Philippines.

“The Hague ruling will not be on the agenda in the sense that it’s already part of international law,” Foreign Affairs Undersecretary Enrique Manalo told reporters ahead of the Association of Southeast Asian Nations (ASEAN) meeting chaired by the Philippines in April.

“So we really can’t discuss the ruling. It’s there.”

The July 2016 ruling rejected China’s territorial claims over much of the South China Sea. Beijing declared the decision as “null and void”, but called on countries involved in the dispute to start talks again to peacefully resolve the issue.

What the 10-member ASEAN will focus on is the completion of a framework for a code of conduct to ease tension in the disputed waters, Manalo said.

“We hope we will have a pleasant scenario during our chairmanship. We will talk to China in a way we will put forth our interest just as we expect china will put forth theirs,” Manalo said.

Since 2010, China and the ASEAN have been discussing a set of rules aimed at avoiding conflict. China claims most of the energy-rich waters through which about $5 trillion in ship-borne trade passes every year. Neighbors Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

At the ASEAN summit last year, China’s closest ASEAN ally, Cambodia, blocked any mention of the court ruling against Beijing in a joint statement.

Duterte made a stunning U-turn in foreign policy a few months ago when he made overtures toward China and started berating traditional ally the United States.

(Reporting by Karen Lema; Editing by Nick Macfie)

China says aircraft carrier testing weapons in South China Sea drills

Chinese aircraft carrier in South China Sea

BEIJING (Reuters) – A group of Chinese warships led by its sole aircraft carrier is testing weapons and equipment in exercises this week in the South China Sea that are going to plan, China’s foreign ministry said Wednesday.

Exercises by the ships, in particular the aircraft carrier Liaoning, since last month have unnerved China’s neighbors, especially at a time of heightened strain with self-ruled Taiwan, which Beijing claims as its own, and given long-running territorial disputes in the South China Sea.

China says the Soviet-built Liaoning and the other ships conduct routine exercises that comply with international law.

“The Liaoning aircraft carrier group in the South China Sea is carrying out scientific research and training, in accordance with plans,” Chinese foreign ministry spokesman Geng Shuang told a regular news briefing.

“The purpose is to test the performance of weapons and equipment,” he said.

The People’s Liberation Army Navy said on its official microblog this week that the aircraft carrier conducted drills in the South China Sea with its fighter jets and helicopters.

U.S. warships have also been conducting what they call “freedom of navigation” patrols through the South China Sea over the past year as concern grows about Chinese construction of air strips and docks on disputed reefs and islands.

The group of warships sailed through waters south of Japan and then rounded east and south of Taiwan late last month on their way to the south China province of Hainan.

Taiwan’s defence minister warned at the time that “the threat of our enemies is growing day by day”.

Taiwan media have reported that the Liaoning could sail north up the median line of the Taiwan Strait, the narrow body of water separating Taiwan and China, on its way to its home port of Qingdao.

Taiwan’s defence ministry said the talk about the timing and northward route of the Liaoning was speculation, and it would make preparations based on the situation and “maintain its grasp of the movements” of the ship.

Business relations between mainland China and Taiwan have grown significantly over the past decade but tension has increased since the island elected a president from an independence-leaning party last year.

China distrusts President Tsai Ing-wen and has stepped up pressure on her following a protocol-breaking phone call between her and U.S. President-elect Donald Trump last month.

Beijing suspects Tsai wants to push for the island’s formal independence, a red line for the mainland, which has never renounced the use of force to bring what it deems a renegade province under its control.

Tsai says she wants to maintain peace with China.

(Reporting by Michael Martina; Additional reporting by J.R. Wu in Taipei)

Lithuania said found Russian spyware on its government computers

A man types on a computer keyboard in this illustration picture

By Andrius Sytas

VILNIUS (Reuters) – The Baltic state of Lithuania, on the frontline of growing tensions between the West and Russia, says the Kremlin is responsible for cyber attacks that have hit government computers over the last two years.

The head of cyber security told Reuters three cases of Russian spyware on its government computers had been discovered since 2015, and there had been 20 attempts to infect them this year

“The spyware we found was operating for at least half a year before it was detected – similar to how it was in the USA,” Rimtautas Cerniauskas, head of Lithuanian Cyber Security Centre said.

The Kremlin did not immediately respond to a Reuters written request for comments over the Lithuanian claims. But Russia has in the past denied accusations of hacking Western institutions.

Fears of cyber attacks have come to the fore since the U.S. election campaign when hacking of Democratic Party emails led to allegations from U.S. intelligence that Russia was involved.

Lithuania, Estonia and Latvia, all ruled by Moscow in communist times, have been alarmed by Russia’s annexation of Ukraine’s Crimea peninsula in 2014 and its support for pro-Russian separatists in eastern Ukraine.

In what Baltic officials say was a wake-up call, Estonia was hit by cyber attacks on extensive private and government Internet sites in 2007. State websites were brought to a crawl and an online banking site was closed.

Lithuanian intelligence services, in their annual report, say cyber attacks have moved from being mainly targeted at financial crimes to more political spying on state institutions.

Russian spyware was transferring all documents it could find, as well as all passwords entered on websites such as GMail or Facebook, to an internet address commonly used by Russian spy agencies, Cerniaukas said.

“This only confirms that attempts are made to infiltrate our political sphere,” said Cerniaukas.

PREPARATIONS

Germany’s domestic intelligence agency reported earlier this month a striking increase in Russian targeted cyber attacks against political parties and propaganda and disinformation campaigns aimed at destabilizing German society.

The domestic intelligence chief said Russia may seek to interfere in its national elections next year.

Although no Russian cyber meddling was detected in the run up and during the Lithuanian general election in October, Cerniauskas said his country needs to understand it is vulnerable to such meddling.

“Russians are really quite good in this area. They have been using information warfare since the old times. Cyberspace is part of that, only more frowned upon by law than simple propaganda”, he said.

“They have capacity, they have the attitude, they are interested, and they will get to it – so we need to prepare for it and we need to apply countermeasures.”

Lithuanian officials targeted by the Russian spyware held mid-to-low ranking positions at the government, but their computers contained a stream of drafts for government decisions of its positions on various matters, said Cerniauskas.

The head of the Lithuanian counter-intelligence agency Darius Jauniskis said Russia tried to sow chaos in Lithuania by orchestrating a cyber attack in 2012 against the Lithuanian central bank and its top online news website.

“It is all part of psychological warfare,” he told Reuters earlier this month.

(Reporting By Andrius Sytas; Editing by Alistair Scrutton)

Kremlin says almost all dialogue with U.S. frozen: RIA

Kremlin spokesman

MOSCOW/WASHINGTON (Reuters) – The Kremlin said on Wednesday almost all communications channels between Russia and the United States have been frozen but the U.S. State Department disputed that statement.

Kremlin spokesman Dmitry Peskov said Russia did not expect the incoming U.S. administration to quickly reject enlargement of the North Atlantic Treaty Organization and that almost all communication with the United States had ceased, according to Russia’s RIA news agency.

U.S. President-elect Donald Trump questioned during his election campaign whether the U.S. should protect allies seen as spending too little on defense, raising fears he could withdraw funding for NATO at a time of heightened tensions with Moscow. Russia has said it would take countermeasures in response to any expansion of the 28-member military alliance.

“Almost every level of dialogue with the United States is frozen,” RIA quoted Peskov as saying. “We don’t communicate with one another, or (if we do) we do so minimally.”

State Department spokesman John Kirby quickly rejected Peskov’s statement.

‎”It’s difficult to know exactly what is meant by this comment, but diplomatic engagement with Russia continues across a wide range of issues,” Kirby said in an emailed statement to Reuters. “That we have significant differences with Moscow on some of these issues is well known, but there hasn’t been a break in dialogue.”

U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov spoke by phone on Tuesday regarding the situation in Syria, Kirby said.

Separately, the Pentagon said it had held a video conference with counterparts at the Russian defense ministry to ensure the two sides’ air operations do not come into conflict with each other in Syria. Such discussions with Russia are held regularly as U.S. warplanes conduct daily air strikes against Islamic State in Syria.

RIA, citing an interview it said Peskov gave to Russia’s Mir TV station, quoted him as saying he did not know whether President Vladimir Putin would seek re-election in 2018.

“Everyone’s heads are aching because of work and with projects and nobody is thinking or talking about elections,” Peskov said.

Most Kremlin-watchers expect Putin to run for the presidency again.

(Reporting by Peter Hobson in Moscow and Yeganeh Torbati and Lesley Wroughton in Washington; Editing by Andrew Osborn and Richard Chang)

U.S. ready to confront Beijing on South China Sea: admiral

Guided missile destroyer in South China Sea

By Colin Packham

SYDNEY (Reuters) – The United States is ready to confront China should it continue its overreaching maritime claims in the South China Sea, the head of the U.S. Pacific fleet said on Wednesday, comments that threaten to escalate tensions between the two global rivals.

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

The United States has called on China to respect the findings of the arbitration court in The Hague earlier this year which invalidated its vast territorial claims in the strategic waterway.

But Beijing continues to act in an “aggressive” manner, to which the United States stands ready to respond, Admiral Harry Harris, head of the U.S. Pacific Command, said in a speech in Sydney.

“We will not allow a shared domain to be closed down unilaterally no matter how many bases are built on artificial features in the South China Sea,” he said. “We will cooperate when we can but we will be ready to confront when we must.”

The comments threaten to stoke tensions between the United States and China, already heightened by President-elect Donald Trump’s decision to accept a telephone call from Taiwan’s president on Dec. 2 that prompted a diplomatic protest from Beijing.

Asked about Harris’s remarks, Chinese Foreign Ministry spokesman Geng Shuang said the situation in the South China Sea was currently stable, thanks to the hard work of China and others in the region.

“We hope the United States can abide by its promises on not taking sides on the sovereignty dispute in the South China Sea, respect the efforts of countries in the region to maintain peace and stability in the South China Sea region and do more to promote peace and stability there,” he told a daily news briefing.

The United States estimates Beijing has added more than 3,200 acres (1,300 hectares) of land on seven features in the South China Sea over the past three years, building runways, ports, aircraft hangars and communications equipment.

In response, the United States has conducted a series of freedom-of-navigation operations in the South China Sea, the latest of which came in October.

The patrols have angered Beijing, with a senior Chinese official in July warning the practice may end in “disaster”.

Harris said it was a decision for the Australian government whether the U.S. ally should undertake its own freedom-of-navigation operations, but said the United States would continue with the practice.

“The U.S. fought its first war following our independence to ensure freedom of navigation,” said Harris. “This is an enduring principle and one of the reasons our forces stand ready to fight tonight.”

(Additional reporting by Ben Blanchard in Beijing; Editing by Lincoln Feast and Jacqueline Wong)

Iran to work on nuclear-powered boats after U.S. ‘violation’ of deal

Iranian President

By Bozorgmehr Sharafedin

BEIRUT (Reuters) – Iran’s President Hassan Rouhani ordered scientists on Tuesday to start developing systems for nuclear-powered boats, in reaction to what he called the United States’ violation of a global atomic deal.

The announcement marked Iran’s first concrete response to a U.S. Congress decision last month to extend legislation making it easier for Washington to reimpose sanctions on Tehran.

Rouhani described the technology as a “nuclear propeller to be used in marine transportation,” but did not say whether that meant just ships or possibly also submarines. Iran said in 2012 that it was working on its first nuclear-powered sub. http://reut.rs/2gVr80g

His words will stoke tensions with Washington, already heightened by comments from U.S. president elect Donald Trump who has vowed to scrap the deal, under which Iran agreed to curb its nuclear activities in exchange for lifted sanctions.

There was no immediate reaction from the Vienna-based International Atomic Energy Agency, which monitors Iran’s nuclear work.

“The United States has not fully delivered its commitments in the Joint Comprehensive Plan of Action (the nuclear deal),” Rouhani wrote in a letter published by state news agency IRNA.

“With regards to recent (U.S. congress) legislation to extend the Iran Sanctions Act, I order the Atomic Energy Organization of Iran to … plan the design and construction of a nuclear propeller to be used in marine transportation to be used in marine transportation.”

U.S. Congress members have said the extension of the bill does not violate the nuclear deal agreed last year to assuage Western fears that Iran is working to develop a nuclear bomb. The act, Congress added, only gave Washington the power to reimpose sanctions on Iran if it violated the pact.

Washington says it has lifted all the sanctions it needs to under the deal between major powers and Iran.

But Iran’s Supreme Leader, Ayatollah Ali Khamenei said last month that the extension was a definite breach and Iran would “definitely react to it”.

Iran always argued its nuclear program was for peaceful purposes.

(Reporting by Bozorgmehr Sharafedin; Additional reporting by Shadia Nasralla in Vienna; editing by John Stonestreet and Andrew Heavens)

North Korea’s Kim guides special operations drill targeting South

Combat Drills in North Korea

SEOUL (Reuters) – North Korean leader Kim Jong Un guided a special operations drill targeting the South, the North’s media reported on Sunday, as rival South Korea remained on alert for any attempt by the North to take advantage of political turmoil in the South.

The North’s KCNA state news agency report did not say when North Korean forces conducted the combat exercise, nor did it mention the South Korean parliament’s vote on Friday to impeach its president, Park Geun-hye.

Pictures in a Sunday report on the exercise in the North’s Rodong Sinmun newspaper showed what appeared to be a mockup of South Korea’s presidential Blue House as a target.

Park will remain in the Blue House, though her powers have been suspended and assumed by the South’s prime minister while the Constitutional Court weighs parliament’s impeachment vote.

South Korean Prime Minister Hwang Kyo-ahn has urged a high state of military alert in case of any provocation by North Korea, including possible cyber attacks.

“We are ready to retaliate if North Korea makes any provocations and we condemn its malicious threat,” a South Korean military official told Reuters.

Tension on the divided Korean peninsula has been high this year after two North Korean nuclear tests and an unprecedented flurry of ballistic missile tests.

The North’s tests have brought tighter U.N. Security Council sanctions but no indication North Korea and its young leader Kim are willing to compromise on its nuclear and missile programmes.

The Rodong Sinmun pictures included one of Kim observing the exercise through binoculars.

“Watching the brave service personnel independently and pro-actively perform their combat duty destroying specified targets of the enemy, he said with a broad smile on his face: ‘Well done, the enemy troops will have no space to hide themselves, far from taking any counteraction’,” KCNA cited Kim saying.

(Reporting by Ju-min Park and Yun Hwan Chae; Writing by Tony Munroe; Editing by Robert Birsel)

Exclusive: Risking Beijing’s ire, Vietnam begins dredging on South China Sea reef

Vietnam begins building in South China Sea

By Lincoln Feast and Greg Torode

SYDNEY/HONG KONG (Reuters) – Vietnam has begun dredging work on a disputed reef in the South China Sea, satellite imagery shows, the latest move by the Communist state to bolster its claims in the strategic waterway.

Activity visible on Ladd Reef in the Spratly Islands could anger Hanoi’s main South China Sea rival, Beijing, which claims sovereignty over the group and most of the resource-rich sea.

Ladd Reef, on the south-western fringe of the Spratlys, is completely submerged at high tide but has a lighthouse and an outpost housing a small contingent of Vietnamese soldiers. The reef is also claimed by Taiwan.

In an image taken on Nov. 30 and provided by U.S.-based satellite firm Planet Labs, several vessels can be seen in a newly dug channel between the lagoon and open sea.

While the purpose of the activity cannot be determined for certain, analysts say similar dredging work has been the precursor to more extensive construction on other reefs.

“We can see that, in this environment, Vietnam’s strategic mistrust is total … and they are rapidly improving their defences,” said Trevor Hollingsbee, a retired naval intelligence analyst with Britain’s defence ministry.

“They’re doing everything they can to fix any vulnerabilities – and that outpost at Ladd Reef does look a vulnerability.”

Reuters reported in August that Vietnam had fortified several islands with mobile rocket artillery launchers capable of striking China’s holdings across the vital trade route.

Vietnam’s foreign ministry did not respond to a request for comment.

The vessels at Ladd Reef cannot be identified in the images, but Vietnam would be extremely unlikely to allow another country to challenge its control of the reef.

Greg Poling, a South China Sea expert at Washington’s Center for Strategic and International Studies (CSIS), said it remained unclear how far the work on Ladd Reef would go. Rather than a reclamation and a base, it could be an attempt to simply boost access for supply ships and fishing boats.

Ladd could also theoretically play a role in helping to defend Vietnam’s nearby holding of Spratly Island, where a runway is being improved and new hangars built, he said.

“Vietnam’s knows it can’t compete with China but it does want to improve its ability to keep an eye on them,” Poling said.

Vietnam has long been fearful of renewed Chinese military action to drive it off its 21 holdings in the Spratlys – worries that have escalated amid Beijing’s build-up and its anger at the recent Philippines legal action challenging its claims.

China occupied its first Spratlys possessions after a sea battle against Vietnam’s then weak navy in 1988. Vietnam said 64 soldiers were killed as they tried to protect a flag on South Johnson reef – an incident still acutely felt in Hanoi.

BUILDING BURST

The United States has repeatedly called on claimants to avoid actions that increase tensions in the South China Sea, through which some $5 trillion in world trade is shipped every year.

Vietnam has emerged as China’s main rival in the South China Sea, actively asserting sovereignty over both the Paracel and the Spratly groupings in their entirety and undergoing its own naval modernisation. Taiwan also claims both, but its position is historically aligned with Beijing’s.

The Asia Maritime Transparency Initiative, run by the CSIS, says Vietnam has added about 120 acres (49 hectares) of land to its South China Sea holdings in recent years.

Regional military attaches say Vietnam’s key holdings are well fortified, some with tunnels and bunkers, appearing geared to deterring easy invasion.

Vietnam’s reclamation work remains modest by Chinese standards, however.

The United States, which has criticized China for militarizing the waterway, estimates Beijing has added more than 3,200 acres (1,300 hectares) of land on seven features in the South China Sea over the past three years, building runways, ports, aircraft hangars and communications equipment.

Beijing says it is entitled to “limited and necessary self-defensive facilities” on its territory and has reacted angrily to “freedom of navigation” operations by U.S. warships near Chinese-held islands.

CHINESE RECLAMATION WORK DAMAGED

In another image provided by Planet Labs, reclamation work in the Chinese-held Paracel Island chain appears to have been damaged by recent storms.

China began dredging and land filling earlier this year at North Island, about 12 km (7 miles) north of Woody Island, where it has a large military base and this year stationed surface-to-air missiles.

Satellite images in February and March showed dredging vessels working to build a 700 meter (2,300 ft) sand bridge connecting low-lying North Island with neighboring Middle Island.

But images taken after two powerful storms spun through the region in October show the narrow sand strip has been largely swept away.

The Paracels have been under Chinese control for more than 40 years after a battle towards the end of the Vietnam War, when Chinese forces removed the then-South Vietnamese navy. Analysts say they play a key part in protecting China’s nuclear armed submarine fleet on Hainan Island, to the north.

China has not commented publicly on the work at North Island and the foreign ministry did not respond to requests for comment.

(Additional reporting by Martin Petty and Ben Blanchard; Editing by Alex Richardson)