Analysis: Trump’s hostility to help keep Iran’s Rouhani in office, but make his life harder

Iran President

By Parisa Hafezi

ANKARA (Reuters) – Donald Trump’s bellicose rhetoric towards Iran now appears likely to help keep President Hassan Rouhani in office for another term, but will make it harder for the Iranian leader’s team of moderates to govern.

With an election due in three months and a hostile new administration in the White House, Iran’s hardliners seem to have backed off from trying to reclaim the presidency for their faction, at least for now.

No single candidate has emerged as a potential hardline champion to challenge the relative moderate Rouhani in the vote. Instead, officials speak of ideological rivals uniting behind him as best suited to deal with a Trump presidency.

“To protect the Islamic Republic against foreign threats we need to put aside our disputes and unite against our enemy,” said a senior official speaking on condition of anonymity like other figures within Iran contacted for this story.

“Under the current circumstances, Rouhani seems the best option for the establishment.”

Still, Rouhani’s supporters worry that even though hardliners no longer seem intent on removing him, they will take advantage of confrontation with the Trump administration to weaken the president at every turn.

“To cement their grip in power, hardliners will do whatever they can to provoke Trump. From missile tests to fiery speeches,” said a former senior official, close to Rouhani.

“By making Rouhani a lame-duck president, they will try to prevent any change in the balance of power in Iran.”

Rouhani, elected in a landslide in 2013 on a pledge to reduce Iran’s isolation, is the face of Tehran’s deal with the Obama administration to curb Iran’s nuclear program in return for the lifting of U.S. and European sanctions.

Trump and other U.S. Republicans have frequently disparaged that deal, as have hardliners in Iran.

For now, the Iranian hardliners appear to have concluded that they still need Rouhani in office, if only so Washington rather than Tehran will be blamed if the deal collapses, said Iran analyst Ali Vaez of the International Crisis Group.

“With the deal in jeopardy, the system will be in vital need of Rouhani’s team of smiling diplomats and economic technocrats to shift the blame to the U.S. and keep Iran’s economy afloat,” said Vaez.

But ultimately, said analyst Meir Javedanfar, any atmosphere of heightened tension with Washington benefits the hardliners and weakens the moderates in Iran.

“Now with Trump in charge, Iran’s hardliners can sleep easy as they thrive on threats and intimidation from the U.S., it feeds their narrative,” said Javedanfar, an Iranian-born Israeli lecturer on Iran at Israel’s Interdisciplinary Center Herzliya.

PRESERVATION

Under Iran’s theocratic governing system, the elected president is subordinate to the unelected supreme leader, 77-year-old Ayatollah Ali Khamenei, a hardliner in power since succeeding revolutionary founder Ruhollah Khomeini in 1989.

A hardline watchdog body can control the elected government by vetting candidates before they stand and by vetoing policies.

Khamenei uses anti-American sentiment as the glue to hold together the faction-ridden leadership, but he will not risk a total collapse in relations with Washington that might destabilize Iran, say Iranian officials.

“The leader’s top priority has always been preserving the Islamic Republic … A hardline president might intensify tension between Tehran and America,” said an official close to Khamenei’s camp.

Rouhani’s efforts to open up Iran to less hostile relations with the West still have to be couched in the rhetoric of anti-Americanism that has been a pillar of Iranian rule since the Islamic Revolution of 1979.

On Friday, hundreds of thousands marked the anniversary of the revolution, taking to the streets chanting slogans that include “Death to America”. At such events, Rouhani can strike a note that sounds as hardline as anyone. [ID:nL5N1FV1SX]

“We all are followers of our leader Khamenei,” Rouhani said in a speech that cast his own re-election bid as an opportunity for Iranians to demonstrate their defiance of Washington. “Our nation will give a proper answer to all those threats and pressures in the upcoming election.”

For his part, Khamenei said in a speech earlier this week that Trump had shown “the real face of America”, echoing the hardline Iranian criticism of the Obama administration’s comparatively accommodating stance as insincere or devious.

Khamenei dismissed a Trump administration threat to put Iran “on notice” for carrying out missile tests. But he also avoided signaling a break with the nuclear accord, and the speech was interpreted as a sign that he will stick by Rouhani for now.

“The leader’s speech showed that the leadership has agreed on a less confrontational line. They prefer to wait and see Trump’s actions and not to act based on his rhetoric,” said Tehran-based political analyst Saeed Leylaz.

Ordinary Iranian voters also seem inclined to keep Rouhani in power. Many complain that they have still seen few economic benefits from the lifting of sanctions, and those who hoped Rouhani would reform restrictive social policies say they are disappointed by the lack of meaningful change so far.

Nevertheless, there seems to be little appetite to reverse course at the election and restore power to a confrontational hardliner like Rouhani’s predecessor Mahmoud Ahmadinejad.

“I did not want to vote. Nothing has changed under Rouhani. But now I have to choose between bad and worse in Iran. We cannot afford a hardline president when Trump is in power,” said high-school teacher Ghamze Rastgou in Tehran.

(Editing by Peter Graff)

U.S., China military planes come inadvertently close over South China Sea

China Air Force

WASHINGTON (Reuters) – A U.S. Navy P-3 plane and a Chinese military aircraft came close to each other over the South China Sea in an incident the Navy believes was inadvertent, a U.S. official told Reuters on Thursday.

The official, speaking on condition of anonymity, said the aircraft came within 1,000 feet (305 meters) of each other on Wednesday in the vicinity of the Scarborough Shoal, between the Philippines and the Chinese mainland.

The official added that such incidents involving Chinese and American aircraft are infrequent, with only two having taken place in 2016.

The U.S. aircraft was “on a routine mission operating in accordance with international law,” U.S. Pacific Command told Reuters in a statement.

“On Feb. 8, an interaction characterized by U.S. Pacific Command as ‘unsafe’ occurred in international air space above the South China Sea, between a Chinese KJ-200 aircraft and a U.S. Navy P-3C aircraft,” it said.

The KJ-200 is a propeller airborne early warning and control aircraft based originally on the old Soviet-designed An-12.

“The Department of Defense and U.S. Pacific Command are always concerned about unsafe interactions with Chinese military forces,” Pacific Command added.

“We will address the issue in appropriate diplomatic and military channels.”

In Beijing, China’s defense ministry told state media the Chinese pilot responded with “legal and professional measures”.

“We hope the U.S. side keeps in mind the present condition of relations between the two countries and militaries, adopts practical measures, and eliminates the origin of air and sea mishaps between the two countries,” the Global Times cited an unnamed defense ministry official as saying.

Separately, China’s Defense Ministry said in a statement on Friday three ships had left port for drills taking in the South China Sea, eastern Indian Ocean and Western Pacific.

China’s blockade of Scarborough Shoal, 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, which refused to take part.

While the court last year largely rejected China’s claims, new Philippine president Rodrigo Duterte has sought to mend ties with Beijing and the situation around the shoal has largely calmed down.

China is deeply suspicious of any U.S. military activity in the resource-rich South China Sea.

In December, a Chinese naval vessel picked up a U.S. underwater drone in the South China Sea near the Philippines, triggering a U.S. diplomatic protest. China later returned it.

The United States has previously criticized what it called China’s militarization of its maritime outposts in the South China Sea, and stressed the need for freedom of navigation with periodic air and naval patrols nearby, angering Beijing.

(Reporting by Idrees Ali; Additional reporting by Ben Blanchard and Michael Martina in Beijing; Editing by Clarence Fernandez)

Good food is worth waiting for – China media welcomes Trump letter

Donald Trump

BEIJING (Reuters) – Chinese state media on Friday broadly welcomed U.S. President Donald Trump’s letter to Chinese President Xi Jinping belatedly wishing a happy Lunar New Year, saying it was a positive sign and that “good food is worth waiting for”.

In a brief statement, the White House said that Trump told Xi he looked forward to working with him to develop relations, though the pair haven’t spoken directly since Trump took office last month.

“The letter conveys the reassuring message that bilateral relations are still on the right track despite the speculation that has arisen with Trump’s victory in the November election,” the official China Daily said in an editorial.

Trump upset China in December by taking a phone call from Taiwan President Tsai Ing-wen. China considers Taiwan a wayward province with no right to formal diplomatic relations with any other country.

In his Senate confirmation hearing, U.S. Secretary of State Rex Tillerson said China should not be allowed access to islands it has built in the disputed South China Sea. The White House also vowed to defend “international territories” in the strategic waterway.

“Against this backdrop, the letter, though terse and issued nearly three weeks after Trump’s inauguration, is still a positive signal, as it suggests that reason still prevails in the White House,” the China Daily added.

Even the normally hawkish tabloid the Global Times, published by the ruling Communist Party’s official People’s Daily and which had railed against Trump, struck an upbeat tone.

“Over the past few weeks, more positive signs have emerged between China and the U.S., making people re-evaluate the trajectory of the bilateral relationship under Trump,” it said in an editorial.

Chinese officials have downplayed the significance of Trump breaking with recent precedent and not sending greetings for the Lunar New Year, which began late last month, though state media was pleased his daughter Ivanka Trump went to a Lunar New Year reception at the Chinese embassy in Washington.

Diplomatic sources say China has also not been in a rush to have a telephone call with the unpredictable Trump, in case the call went badly, embarrassing Xi.

In a front page commentary, the overseas edition of the People’s Daily said the letter was an opening to help manage friction.

“There’s a saying in China – good food is worth waiting for.”

(Reporting by Ben Blanchard; Editing by Michael Perry)

Trump breaks ice with China’s Xi in letter seeking ‘constructive’ ties

China's president xi jinping

By Ben Blanchard and Eric Walsh

BEIJING/WASHINGTON (Reuters) – U.S. President Donald Trump has broken the ice with Chinese President Xi Jinping in a letter that said he looked forward to working with him to develop relations, although the pair haven’t spoken directly since Trump took office.

The letter thanked Xi for his congratulatory note on Trump’s inauguration and wished the Chinese people a prosperous Lunar New Year of the Rooster, the White House said in a statement on Wednesday.

“President Trump stated that he looks forward to working with President Xi to develop a constructive relationship that benefits both the United States and China,” it said.

China said on Thursday it attached great importance to China-U.S. ties.

“We highly appreciate President Trump’s holiday greetings to President Xi Jinping and the Chinese people,” Chinese Foreign Ministry spokesman Lu Kang said at a daily press briefing.

Asked whether it was a snub that Trump had held calls with many other world leaders as president, but not Xi, Lu said: “This kind of remark is meaningless.”

He reiterated that China and the U.S. had maintained “close communication” since Trump took office and that cooperation was the “only correct choice”.

“China is willing to work with the United States in adhering to the principles of non-confrontation, mutual respect and mutual benefit to promote cooperation, control disputes, and on a healthy and stable foundation, promote greater development in China-U.S. ties,” Lu said.

Trump and Xi have yet to speak directly since Trump took office on Jan. 20, although they did talk soon after Trump won the U.S. presidential election in November.

Diplomatic sources in Beijing say China has been nervous about Xi being left humiliated in the event a call with Trump goes wrong and the details are leaked to the U.S. media.

Last week, U.S. ties with staunch ally Australia became strained after the Washington Post published details about an acrimonious phone call between Trump and Prime Minister Malcolm Turnbull. [nL4N1FN0JR]

“That is the last thing China wants,” a source familiar with China’s thinking on relations with the United States told Reuters. “It would be incredibly embarrassing for President Xi and for Chinese people, who value the concept of face.”

A senior non-U.S. Western diplomat said China was unlikely to be in a rush to set up such a call.

“These things need to happen in a very controlled environment for China, and China can’t guarantee that with the unpredictable Trump,” the diplomat said.

“Trump also seems too distracted with other issues at the moment to give too much attention to China.”

TAIWAN, YUAN IN FOCUS

There are a number of contentious areas where China fears Trump could go off script, the diplomat said, pointing in particular to the issue of self-ruled Taiwan, as well as trade.

Trump upset China in December by taking a phone call from Taiwan President Tsai Ing-wen. China considers Taiwan a wayward province with no right to formal diplomatic relations with any other country.

Trump has also threatened to slap tariffs on Chinese imports, accusing Beijing of devaluing its yuan currency and stealing U.S. jobs.

In his Senate confirmation hearing, U.S. Secretary of State Rex Tillerson said China should not be allowed access to islands it has built in the disputed South China Sea. The White House also vowed to defend “international territories” in the strategic waterway.

China has repeatedly said it has smooth contacts with the Trump team. The Foreign Ministry in Beijing said last week the two countries were remaining “in close touch”.

That contact has been led by China’s top diplomat, State Councillor Yang Jiechi, who outranks the foreign minister.

Yang told Michael Flynn, Trump’s National Security Advisor, last week that China hopes it can work with the United States to manage and control disputes and sensitive problems. [nL4N1FO364]

The source familiar with China’s thinking said Trump’s administration was “very clear” about China’s position on Taiwan. Trump has yet to mention Taiwan since he took office.

Chinese state media has wondered whether Trump has a China policy at all.

On Thursday, the widely read Global Times tabloid, published by the ruling Communist Party’s official People’s Daily, noted that Trump had not immediately confronted China as had been expected because he had realized upsetting Beijing would backfire badly.

“He has probably realized that real tough action against China would result in a complex chain reaction, even beyond his control,” the paper said in an editorial.

Wang Yiwei, a professor of international relations at Beijing’s elite Renmin University, said the letter suggested the new U.S. administration wanted to signal the importance it attached to the U.S.-China relationship without risking being confronted on specific issues.

“Trump has sent many messages that makes the world confused, like on the South China Sea and ‘One China’ policy, so if he makes a phone call President Xi will ask ‘what do you mean?’,” Wang said. “He wants to avoid this so he just sends a letter for the first step.”

(Reporting by Ben Blanchard in BEIJING and Eric Walsh in WASHINGTON; Additional reporting by Beijing newsroom and Michael Martina; Editing by Paul Tait and Nick Macfie)

Eight countries sign up to counter Trump’s global anti-abortion move

Sweden's Deputy Prime Minister

STOCKHOLM (Reuters) – Eight countries have joined an initiative to raise millions of dollars to replace shortfalls caused by President Donald Trump’s ban on U.S.-funded groups around the world providing information on abortion, Sweden’s deputy prime minister said.

Isabella Lovin told Reuters a conference would be held on March 2 in Brussels to kick-start the funding initiative to help non-governmental organizations whose family planning projects could be affected.

The Netherlands announced in January the launch of a global fund to help women access abortion services, saying Trump’s “global gag rule” would cause a funding shortfall of $600 million over the next four years.

Sweden, Denmark, Belgium, Luxemburg, Finland, Canada and Cape Verde have all lent their support, Lovin said.

“(The gag order) could be so dangerous for so many women,” said Lovin who posed for a photograph this month with seven other female officials signing an environmental bill, in what was seen a response to a photograph of Trump signing the gag order in the White House with five male advisors.

The global gag rule, which affects U.S. non-governmental organizations working abroad, is one that incoming presidents have used to signal their positions on abortion rights. It was created under U.S. President Ronald Reagan in 1984.

Trump signed it at a ceremony in the White House on his fourth day in office. Barack Obama lifted the gag rule in 2009 when he took office.

“If women don’t have control over their bodies and their own fate it can have very serious consequences for global goals of gender rights and global poverty eradication,” Lovin said.

(Reporting by Alistair Scrutton; Editing by Robin Pomeroy)

Islamic State links to Philippine militants ‘very strong’: minister

Philippine Defence Secretary

By Martin Petty and Manuel Mogato

MANILA (Reuters) – The Philippines is certain of “very strong” links between Islamic State and home-grown militants and is concerned about regional repercussions from tension between China and the new U.S. administration, Manila’s defense minister said on Thursday.

Intelligence from various sources had shown Muslim rebels in the southern Philippines had been communicating with Islamic State, and funds were being transferred via mechanisms commonly used by Filipino workers in the Middle East, Defense Secretary Delfin Lorenzana told Reuters.

“Before, what we suspected was the ISIS group would come here but now we are certain that the connections are very strong between home-grown terrorists here and ISIS in the Middle East,” he said in an interview, referring to Islamic State.

“Also there’s quite an amount of money being sent here from the Middle East.”

He said communications via social media, telephone and text messages had been intercepted and funds were being transferred that were difficult to detect due to the large numbers of Filipinos who regularly remit income from places like Saudi Arabia and the smaller Gulf states.

He said there was no indication governments of those countries were involved.

The Philippines did not consider ties with longtime ally the United States to be strained, he said, despite President Rodrigo Duterte’s fierce rebukes of Washington.

Some statements about China by advisers to U.S. President Donald Trump were “very troubling”, he said, adding that an Enhanced Defense Cooperation Agreement (EDCA) with the United States would make U.S. troops based temporarily in the Philippines “magnets for retaliation” if things turned hostile.

CAUGHT IN THE MIDDLE

“We are concerned if war breaks out and it is near us we will be involved whether we like it or not,” he said, adding that if a conflict looked likely, the Philippines would consider scrapping the EDCA, to avoid a repeat of World War Two, when his country was badly affected.

There were no signs of any new Chinese reclamation in the Spratly Islands in the South China Sea, he said, and he had been given assurances repeatedly by China’s ambassador that it would not do any dredging in the disputed Scarborough Shoal.

Despite warming ties with Beijing, the Philippines still “would like to know more the thinking of China” regarding its end-game in building artificial islands equipped with military hardware, he said.

The Philippines was in no rush to pressure China to abide by last year’s ruling by the Permanent Court of Arbitration, which largely rejected Beijing’s claims in the South China Sea.

After the Philippines won the award, the United States had wanted it to push China to comply, Lorenzana said, but it had offered no guarantees of support.

“If we assert our right, our award, it was never going to do any good for us,” he said. “Would the Americans have backed us?”

He said internal security threats were growing and his ministry would next year request a doubling of its budget, or more, to address them.

The army’s involvement in Duterte’s war on drugs, following his decision to suspend police from the campaign, would be limited to assisting the Philippine Drug Enforcement Agency (PDEA) on a case-by-case basis in hostile situations.

“They go there if they are asked by PDEA and they need firepower, then we will assist, that’s our job, that’s all,” he said.

(Editing by Robert Birsel)

Tillerson stresses cooperation in calls with Australia, Japan, South Korea

Secretary of State Rex Tillerson

By David Brunnstrom and Lesley Wroughton

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson has underscored Washington’s intent to strengthen ties with Australia, Japan and South Korea, the State Department said on Tuesday, a move aimed at reassuring allies unnerved by the campaign rhetoric of new President Donald Trump.

In separate calls with counterparts from the three long-time allies, they agreed to work closely to tackle threats from North Korea’s nuclear ambitions and increased tensions in the East and South China seas, State Department spokesman Mark Toner said,

“Secretary Tillerson reiterated the Administration’s intent to strengthen our military alliances, our economic partnerships, and our diplomatic cooperation,” he said in a statement.

Tillerson expressed interest in early meetings with his counterparts “and expressed his deep respect for their nations’ contributions to regional security, global prosperity, democratic institutions, and the rule of law,” it said.

The calls come at a time of raised concerns in the Asia-Pacific about Trump’s attitude to the region.

During his election campaign, Trump appeared to question U.S. alliances with Tokyo and Seoul and complained that they were not sharing enough of the cost of the U.S. security umbrella. Trump has also criticized Japan’s trade policies as damaging to U.S. jobs.

More recently ties with Australia were strained after details of an acrimonious phone call between Trump and Australian Prime Minister Malcolm Turnbull emerged and the former described a deal between the two nations on refugee resettlement as “dumb.”

Japanese Prime Minister Shinzo Abe is due to visit Washington for a two-day summit with Trump from Friday that is expected to focus on security ties in the face of a rising China and trade.

Earlier on Tuesday, Japan’s Kyodo news agency quoted Japanese Foreign Minister Fumio Kishida as saying that Tillerson had confirmed that a long-standing commitment by Washington to defend Japanese territory applies to the Senkakus, a group of small islands that China claims and calls the Diaoyus.

The State Department declined to comment on the Kyodo report but U.S. Defense Secretary Jim Mattis reaffirmed America’s commitment to its mutual defense treaty with Japan on Friday when he met Abe in Tokyo and in a call with Abe in late January. Trump said the U.S. security commitment was “ironclad.

Turnbull’s leadership was questioned after he was berated by Trump and an opinion poll published on Monday showed support for his coalition had slipped to its lowest level since he took power 17 months ago and that his Liberal-National coalition would easily fall if an election were held now.

(Reporting by Lesley Wroughton and David Brunnstrom; editing by Diane Craft, Bernard Orr)

Iran leader rebuffs Trump’s warning on missiles

Iran's Supreme Leader

By Bozorgmehr Sharafedin

DUBAI (Reuters) – Ayatollah Ali Khamenei dismissed Donald Trump’s warning to Iran to stop its missile tests, saying the new U.S. president had shown the “real face” of American corruption.

In his first speech since Trump’s inauguration, Iran’s supreme leader called on Iranians to respond to Trump’s “threats” on Feb. 10, the anniversary of Iran’s 1979 Islamic revolution. Trump had tried but failed to frighten Iranians, Khamenei said.

“We are thankful to (Trump) for making our life easy as he showed the real face of America,” Khamenei told a meeting of military commanders in Tehran, according to his website.

The White House has said the last week’s missile test was not a direct breach of Iran’s 2015 nuclear pact with six world powers, but that it “violates the spirit of that”..

In remarks published on Tuesday, Iranian Foreign Minister Mohammad Javad Zarif said Tehran would not agree to renegotiate its nuclear agreement.

“I believe Trump will push for renegotiation. But Iran and European countries will not accept that,” Mohammad Javad Zarif told Ettelaat newspaper. “We will have difficult days ahead.”

On the campaign trail, Trump repeatedly promised to tear up the nuclear deal. While his Secretary of State, Rex Tillerson, has not called for an outright rejection of the accord, he has suggested a “full review” of it.

The supreme leader, Iran’s top authority, also said Trump has “confirmed what we have been saying for more than 30 years about the political, economic, moral and social corruption in the U.S. ruling system.”

Trump responded to a Jan. 29 Iranian missile test by saying “Iran is playing with fire” and slapping fresh sanctions on individuals and entities, some of them linked to Iran’s elite Revolutionary Guards.

“No enemy can paralyze the Iranian nation,” Khamenei said. “(Trump) says ‘you should be afraid of me’. No! The Iranian people will respond to his words on Feb. 10 and will show their stance against such threats.”

A U.N. Security Council resolution underpinning the pact urges Iran to refrain from testing missiles designed to be able to carry nuclear warheads, but imposes no obligation.

Under the accord, Iran agreed to curb its nuclear program in exchange for relief from some U.S., European and U.N. economic sanctions. Critics of Iran said the deal emboldened Tehran to increase its involvement in wars in Arab countries, a charge Tehran denies.

President Hassan Rouhani said on Tuesday that, in contrast to Trump’s view, the nuclear deal was a “win-win” accord, and could be used as a stepping stone to defuse tension in the region.

(Reporting by Bozorgmehr Sharafedin; Writing by William Maclean; Editing by Robin Pomeroy and Raissa Kasolowsky)

Merkel urges Putin to help end violence in eastern Ukraine

Tanks seen in Ukraine

BERLIN (Reuters) – German leader Angela Merkel urged Russia’s Vladimir Putin in a telephone call on Tuesday to use his influence on separatists in eastern Ukraine to stop the violence there, and the two agreed on the need for new ceasefire efforts, a German government spokesman said.

Ukrainian forces and pro-Russian separatists have both blamed each other for the latest flare-up in a conflict that has killed some 10,000 people since April 2014.

“The German Chancellor and the Russian President agreed that new efforts must be made to secure a ceasefire and asked foreign ministers and their advisers to remain in close contact,” government spokesman Steffen Seibert said.

Merkel and French President Francois Hollande have long tried to broker an end to the conflict but the two-year-old Minsk peace deal has merely locked the two sides in a stalemate.

The United States and European Union have imposed sanctions on Russia. Ukraine and NATO accuse the Kremlin of fuelling the conflict by supporting separatists with troops and weapons – a charge it denies.

The Kremlin, in its description of the Merkel-Putin call, said “serious concerns were expressed in connection with the escalation of the armed conflict resulting in human losses”.

Kiev is nervous that U.S. President Donald Trump will shift the political balance in Russia’s favour and that he may consider lifting sanctions against Moscow.

The fighting in eastern Ukraine broke out a month after Russia annexed the Crimean peninsula from Ukraine in March 2014. The statement from Merkel’s spokesman made no mention of Crimea, although the Chancellor does regularly repeat sharp criticism of the annexation.

(Reporting by Madeline Chambers; Editing by Paul Carrel and Mark Trevelyan)

China, United States cannot afford conflict: Chinese foreign minister

Chinese Foreign minister speaking on how U.S. and China need to work together

By Colin Packham

SYDNEY (Reuters) – There would be no winner from conflict between China and the United States, Chinese Foreign Minister Wang Yi warned on Tuesday, seeking to dampen tension between the two nations that flared after the election of U.S. President Donald Trump.

Relations between China and United States have soured after Trump upset Beijing in December by taking a telephone call from Taiwan President Tsai Ing-wen and threatened to impose tariffs on Chinese imports.

China considers Taiwan a wayward province, with no right to formal diplomatic relations with any other country.

But China is committed to peace, Wang said, after meeting Australia’s Foreign Minister Julia Bishop.

“There cannot be conflict between China and the United States, as both sides will lose and both sides cannot afford that,” he told reporters in the Australian capital of Canberra.

While seeking to reduce tension, Wang called on global leaders to reject protectionism, which Trump has backed with his “America First” economic plans.

“It is important to firmly commit to an open world economy,” Wang added. “It is important to steer economic globalisation towards greater inclusiveness, broader shared benefit in a more sustainable way.”

Just days ahead of Trump taking office, Chinese President Xi Jinping was in Switzerland as the keynote speaker at the World Economic Forum in Davos, offering a vigorous defence of globalisation and signalling Beijing’s desire to play a bigger role on the world stage.

Wang said that China does not want to lead or replace anyone, and that as its national strength is still limited it must focus on its own development, according to comments carried on the Chinese Foreign Ministry’s website.

“We must remain clear headed about the various comments demanding China play a ‘leadership role’,” Wang said.

While Trump’s trade policies have spurred concern the United States is entering a period of economic protectionism, China has previously accused Australia of adopting a similar practice by blocking the sale of major assets to Chinese interests.

Bishop urged China to consider joining a pan-Pacific trade pact abandoned last month by Trump, who has said he prefers bilateral deals.

“I want to encourage China to consider the agreement,” Bishop said, referring to the Trans-Pacific Partnership.

As China called on nations to be open to offshore investment, Wang said Beijing would link its “One Belt, One Road” (OBOR) policy with Australia’s plan to develop its remote northern region.

The programme announced by Xi in 2013 envisages investments by China in infrastructure projects, including railways and power grids in central, west and southern Asia, as well as Africa and Europe.

Australia has ambitious plans to develop its Northern Territory, a frontier region with little infrastructure, but efforts have largely stalled for lack of investment.

(This story has been refiled to replace “influence” with “national strength” in ninth paragraph, adds dropped word in first paragraph.)

(Additional reporting by Ben Blanchard in Beijing; Editing by Clarence Fernandez and Pritha Sarkar)