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

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

By James Pomfret and Venus Wu

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

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

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

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

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

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

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

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

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

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

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

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

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

“MOST URGENT” PROTEST IN YEARS

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

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

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

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

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

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

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

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

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

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

 

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

China ‘outraged’ by $1.42 billion planned U.S. arms sales to Taiwan

FILE PHOTO: U.S. President Donald Trump welcomes Chinese President Xi Jinping at Mar-a-Lago state in Palm Beach, Florida, U.S., April 6, 2017. REUTERS/Carlos Barria/File Photo

BEIJING (Reuters) – China urged the United States to revoke immediately its “wrong decision” to sell Taiwan $1.42 billion worth of arms, saying it contradicted a “consensus” President Xi Jinping reached with his counterpart, Donald Trump, in talks in April in Florida.

The sales would send a very wrong message to “Taiwan independence” forces, China’s embassy in Washington said in a statement. A U.S. State Department spokeswoman said on Thursday the administration had told Congress of seven proposed sales to Taiwan, the first under the Trump administration..

“The Chinese government and Chinese people have every right to be outraged,” the embassy said.

China regards self-ruled Taiwan as a wayward province and has never renounced the use of force to bring it under its control. China’s Nationalists fled to the island after losing the civil war with China’s Communists in 1949.

The United States is the sole arms supplier to Taiwan.

“The wrong move of the U.S. side runs counter to the consensus reached by the two presidents in and the positive development momentum of the China-U.S. relationship,” the embassy said.

China’s Defense Ministry said Taiwan was the “most important, most sensitive core issue in Sino-U.S. ties”, warning the United States to end such sales to avoid further damaging peace and stability in the Taiwan Strait.

Trump was critical of China during his successful 2016 presidential campaign but his meeting at his Mar-a-Lago resort in Florida with Xi raised hopes for warmer relations.

Trump later played up his personal relationship with Xi, calling him a “good man”, and stressed the need for China’s help in reining in a defiant North Korea’s development of nuclear weapons and missiles.

China’s anger over the U.S. plan to supply Taiwan with weapons risks undermining Trump’s attempts to press China to help on North Korea.

The proposed U.S. package for Taiwan includes technical support for early warning radar, high speed anti-radiation missiles, torpedoes and missile components.

Beijing’s relationship with Taiwan has been frosty since President Tsai Ing-wen took power in Taipei last year. Tsai leads an independence-leaning party that refuses to recognized Beijing’s “one China” policy.

Tsai’s office said on Friday the planned sales increased Taiwan’s confidence and ability to maintain peace and stability across the Taiwan Strait.

Asked about the sales at an event on Thursday evening in Washington, Chinese Ambassador Cui Tiankai said the United States was “incorrigible” when it came to Taiwan, the official Chinese Communist Party People’s Daily newspaper reported on its website.

“But we should still continue to instruct (them) and continue advancing on the right track of China-U.S. relations because this is what truly fits for both countries’ long term interests,” the paper quoted Cui as saying.

The sales, which require congressional approval, would be the first since a $1.83 billion sale that former President Barack Obama announced in December 2015, also to China’s dismay.

The previous package included two navy frigates in addition to anti-tank missiles and amphibious attack vehicles.

(Reporting by Christian Shepherd and Ben Blanchard; Editing by Paul Tait and Nick Macfie)

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

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

By Matt Spetalnick

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Exclusive: South Korea president calls on China’s Xi to do more on North Korea nuclear program

South Korean President Moon Jae-in attends an interview with Reuters at the Presidential Blue House in Seoul, South Korea, June 22, 2017. REUTERS/Kim Hong-Ji

By Jean Yoon and Soyoung Kim

SEOUL (Reuters) – South Korean President Moon Jae-in said on Thursday China should do more to rein in North Korea’s nuclear program and he would call on President Xi Jinping to lift measures against South Korean companies taken in retaliation against Seoul’s decision to host a U.S. anti-missile defense system.

In an interview with Reuters ahead of his trip to Washington next week for a summit with U.S. President Donald Trump, Moon said ‘strong’ sanctions should be imposed if North Korea tests an intercontinental ballistic missile (ICBM) or conducts a sixth nuclear test.

“It must be sufficiently strong enough that it would prevent North Korea from making any additional provocations, and also strong enough that it will make North Korea realize that they are going down the wrong path,” Moon said.

The comments mark the toughest warning yet by the liberal former human rights lawyer, who was elected in May after campaigning for a more moderate approach to the North and engaging the reclusive country in dialogue. As a candidate, he said, sanctions alone have failed to impede Pyongyang’s defiant pursuit of nuclear weapons and ballistic missiles.

North Korea will acquire the technology to deploy a nuclear-tipped ballistic missile capable of hitting the mainland United States “in the not too distant future,” Moon said.

EXERT MORE PRESSURE

“I believe China is making efforts to stop North Korea from making additional provocations, yet there are no tangible results as of yet,” Moon told Reuters at the sprawling Blue House presidential compound.

“China is North Korea’s only ally and China is the country that provides the most economic assistance to North Korea,” Moon said. “Without the assistance of China, sanctions won’t be effective at all.”

Moon’s remarks echoed that of U.S. President Donald Trump, who said in a tweet on Tuesday Chinese efforts to persuade North Korea to rein in its nuclear program have failed. Top U.S. officials pressed China on Wednesday to exert more economic and diplomatic pressure on North Korea-level in talks with their counterparts in Washington on Wednesday.

“Maybe President Trump believes that there is more room for China to engage North Korea and it seems that he is urging China to do more. I can also sympathize with that message,” Moon said.

China accounts for 90 percent of world trade with North Korea. Diplomats say Beijing has not been fully enforcing existing international sanctions on its neighbor, and has resisted tougher measures, such as an oil embargo and bans on the North Korean airline and guest workers.

Washington has considered imposing “secondary sanctions” against Chinese banks and other firms doing business with North Korea.

G20 MEETING

South Korea and the United States agreed to deploy the Terminal High Altitude Area Defense (THAAD) system in response to the growing missile threat from North Korea.

But the move has angered China, which says the system’s powerful radar will look deep into its territory and undermine regional security. China has pressured South Korean businesses via boycotts and bans, such as ending Chinese group tours to South Korea and closing most of South Korean conglomerate Lotte Group’s Lotte Mart retail stores in China.

Lotte handed over a golf course it owned in southern South Korea so the THAAD battery could be installed there.

Moon said that while China has never officially acknowledged economic retaliation, many South Korean businesses face difficulties in China, and he hopes to hold talks with Xi at the G20 summit in Hamburg, Germany next month to address the issue.

“If I have the chance to meet President Xi, I will ask for him to lift these measures. This is the agenda that we cannot evade,” Moon said.

“If we were to link political and military issues to economic and cultural exchanges, this could lead to some hindrance to the development of our friendly relationship between our two countries.”

Moon said he wants to sit down with as many world leaders as possible in Hamburg — including Xi, Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin — where he expects the North’s nuclear program will top the agenda.

THAAD MYSTERIOUSLY ACCELERATED

Moon, who pledged to review the controversial decision to deploy THAAD during his election campaign and delayed full deployment of the system this month to review how the system will affect the area’s environment, said it was important to ensure domestic law and regulations are properly enforced.

“But for some reason that I do not know, this entire THAAD process was accelerated.”

In the first disclosure of the details of the schedule of the THAAD deployment agreed by the two countries last year, Moon said the original agreement was to deploy one launcher by the end of 2017 and the remaining five launchers next year.

In a surprise pre-dawn operation, the U.S. military moved two launchers into the deployment site in late April just days before the election. In addition, four more launchers had been brought into the country, which Moon called “very shocking.”

JAPAN’S WARTIME PAST

Japan is an important partner in the effort to resolve the North Korean crisis but Tokyo’s refusal to fully own up to its wartime past, its claims to the disputed islands between the two countries as well as its growing military spending are concerning, Moon said.

“If Japan were to show its strong resolve in looking back on its past history and sending a message that such actions will never happen again… then I believe that this will go a long way in further developing its relations with not only Korea but also with many other Asian nations,” he said.

Moon has said many South Koreans did not accept a deal reached by his conservative predecessor and Japan’s Abe in 2015 to resolve the issue of Korean “comfort women” — a euphemism for women forced to work in the Japanese military’s wartime brothels.

“Japan does not make full efforts to resolve issues of history between our two countries, including the comfort women issue,” Moon said.

Moon said he has “high expectations” for the upcoming summit with Trump next week and said the priority the two leaders have placed on North Korea has raised the possibility the nuclear issue will be resolved.

“I’m very glad that President Trump has made the resolution of North Korea’s nuclear issue as top of his priority list on his foreign affairs agenda.”

(Additional reporting by Jack Kim, Christine Kim, Heekyong Yang and Haejin Choi in Seoul; Editing by Bill Tarrant)

Trump says China tried but failed to help on North Korea

U.S. President Donald Trump (L) and China's President Xi Jinping walk along the front patio of the Mar-a-Lago estate after a bilateral meeting in Palm Beach, Florida, U.S., April 7, 2017. REUTERS/Carlos Barria

By Steve Holland and Michael Martina

WASHINGTON/BEIJING (Reuters) – Chinese efforts to persuade North Korea to rein in its nuclear program have failed, President Donald Trump said on Tuesday, ratcheting up the rhetoric over the death of an American student who had been detained by Pyongyang.

Trump has held high hopes for greater cooperation from China to exert influence over North Korea, leaning heavily on Chinese President Xi Jinping for his assistance. The two leaders had a high-profile summit in Florida in April and Trump has frequently praised Xi while resisting criticizing Chinese trade practices.

“While I greatly appreciate the efforts of President Xi & China to help with North Korea, it has not worked out. At least I know China tried!” Trump wrote on Twitter.

It was unclear whether his remark represented a significant shift in his thinking in the U.S. struggle to stop North Korea’s nuclear program and its test launching of missiles or a change in U.S. policy toward China.

“I think the president is signaling some frustration,” Christopher Hill, a former U.S. ambassador to South Korea, told MSNBC. “He’s signaling to others that he understands this isn’t working, and he’s trying to defend himself, or justify himself, by saying that at least they tried as opposed to others who didn’t even try.”

China’s Foreign Ministry said on Wednesday that China had made “unremitting efforts” to resolve tensions on the Korean peninsula, and that it had “always played and important and constructive role”.

“China’s efforts to resolve the peninsula nuclear issue is not due to any external pressure, but because China is a member of the region and a responsible member of the international community, and because resolving the peninsula nuclear issue is in China’s interests,” ministry spokesman Geng Shuang told a daily news briefing.

On Tuesday, a U.S. official, who did not want to be identified, said U.S. spy satellites had detected movements recently at North Korea’s nuclear test site near a tunnel entrance, but it was unclear if these were preparations for a new nuclear test – perhaps to coincide with high-level talks between the United States and China in Washington on Wednesday.

“North Korea remains prepared to conduct a sixth nuclear test at any time when there is an order from leadership but there are no new unusual indications that can be shared,” a South Korean Defense Ministry official said, speaking on the condition of anonymity.

Seoul was in close consultation with Washington over the matter, the official added.

North Korea last tested a nuclear bomb in September, but it has conducted repeated missile test since and vowed to develop a nuclear-tipped missile capable of hitting the U.S. mainland, putting it at the forefront of Trump’s security worries.

U.S.-CHINA DIALOGUE

The Trump statement about China was likely to increase pressure on Beijing ahead of Wednesday’s Diplomatic and Security Dialogue, which will pair U.S. Secretary of State Rex Tillerson and Defense Secretary James Mattis with China’s top diplomat, State Councilor Yang Jiechi, and General Fang Fenghui, chief of joint staff of the People’s Liberation Army.

The State Department says the dialogue will focus on ways to increase pressure on North Korea, but also cover such areas as counter-terrorism and territorial rivalries in the South China Sea.

The U.S. side is expected to press China to cooperate on a further toughening of international sanctions on North Korea. The United States and its allies would like to see an oil embargo and bans on the North Korean airline and guest workers among other moves, steps diplomats say have been resisted by China and Russia.

In a sign that U.S.-Chinese relations remain stable, a White House aide said Trump’s daughter Ivanka Trump and her husband, White House senior adviser Jared Kushner, were invited by the Chinese government to visit the country later this year.

Trump has hardened his rhetoric against North Korea following the death of Otto Warmbier, a University of Virginia student who died on Monday in the United States after returning from captivity in North Korea in a coma.

“A DISGRACE”

In a White House meeting with visiting Ukraine President Petro Poroshenko, Trump criticized the way Warmbier’s case was handled in the year since his arrest, appearing to assail both North Korea and his predecessor, President Barack Obama.

“What happened to Otto is a disgrace. And I spoke with his family. His family is incredible … but he should have been brought home a long time ago,” Trump said.

State Department spokeswoman Heather Nauert said the United States holds North Korea accountable for Warmbier’s “unjust imprisonment” and urged Pyongyang to release three other Americans who are detained.

Chinese state-run newspaper the Global Times, published by the official People’s Daily, said Chinese officials must be wary that Warmbier’s death might push Washington to put greater pressure on Beijing.

“China has made the utmost efforts to help break the stalemate in the North Korean nuclear issue. But by no means will China, nor will Chinese society permit it to, act as a ‘U.S. ally’ in pressuring North Korea,” the Global Times said in an editorial.

If Washington imposes sanctions on Chinese enterprises, it would lead to “grave friction” between the two countries, said the paper, which does not represent Chinese government policy.

Trump’s tweet about China took some advisers by surprise. A senior administration official, speaking on condition of anonymity, said the United States had limited options to rein in North Korea without Chinese assistance.

White House spokesman Sean Spicer said a meeting between Trump and North Korean leader Kim Jong Un is less likely following Warmbier’s death.

Spicer said Trump would be willing to meet Kim under the right conditions, but “clearly we’re moving further away, not closer to those conditions.”

For graphic on Americans detained by North Korea, click: http://tmsnrt.rs/2r5xYpB

(Additional reporting by David Brunnstrom, David Alexander and John Walcott in Washington and Jack Kim in Seoul; Editing by Howard Goller, Leslie Adler and Lincoln Feast)

U.S. urges bigger Chinese role to combat global terrorism

China's President Xi Jinping waits to greet Brazil's Foreign Minister Aloysio Nunes (not seen), Russia's Foreign Minister Sergey Lavrov (not seen), South Africa's Foreign Minister Maite Nkoana-Mashabane (not seen) and Indian Minister of External Affairs Vijay Kumar Singh (not seen) as he meets with foreign affairs officials from the BRICS countries at the Great Hall of the PeopleÕs Fujian Room in Beijing on June 19, 2017. REUTERS/Nicolas Asfouri/Pool

By David Brunnstrom

WASHINGTON (Reuters) – The United States wants China to become more involved in supporting the global fight against terrorism and efforts to defeat Islamic State, including in Iraq, a senior U.S. official said on Monday ahead of high-level security talks with Beijing.

Susan Thornton, the U.S. acting assistant secretary of state for East Asia, said that China has taken only a limited role in counter-terrorism efforts, although it appeared to be becoming more interested.

“We would like to see them step up and take more responsibility,” Thornton told reporters as Washington and China’s diplomatic and defense chiefs prepared for a meeting in the U.S. capital on Wednesday.

“They have a lot of interests, for example in Iraq, and we think they should be doing to more to contribute to the efforts of the international coalition to defeat ISIS (Islamic State),” she said.

Thornton said Beijing, which is not a member of the 68-member coalition, was increasingly affected by terrorism, as was seen by the recent killing of two Chinese nationals in Pakistan.

Beijing has sent out “early feelers” about getting more involved, Thornton said.

“We’d like to have a good discussion with them about what more we think they can do, certainly in the way of providing resources to governments that are battling against terrorism and trying to help with capacity-building for governments and security forces in various places,” she added.

Chinese Foreign Ministry spokesman Geng Shuang told a regular press briefing in Beijing on Tuesday that China and the United States were both victims of terrorism.

“Cooperation is in the interests of both sides,” he said, without elaborating.

Wednesday’s talks will involve U.S. Secretary of State Rex Tillerson, Secretary of Defense Jim Mattis as well as China’s top diplomat, State Councilor Yang Jiechi, and General Fang Fenghui, chief of state of the People’s Liberation Army.

The State Department says they will focus on ways to step up pressure on North Korea to give up its nuclear and missile programs, but also cover areas such as counter-terrorism and territorial rivalries in the strategic South China Sea.

The United States has been at odds with China over the latter’s building and fortifying of islands in the disputed waterway.

Thornton said now that there were moves towards agreeing a code of conduct over the South China Sea, Washington would like to see a freeze on all such construction activity.

She reiterated a call on China to fully implement U.N. sanctions on North Korea and, while praising Beijing for imposing a ban on North Korean coal imports, added: “We would like to see China do more.”

(Reporting by David Brunnstrom; Additional reporting by David Alexander in Washington and Christian Shepherd in Beijing; Editing by Paul Simao and Nick Macfie)

Duterte says China’s Xi threatened war if Philippines drills for oil

Chinese President Xi Jinping shakes hands with Philippines President Rodrigo Duterte in Beijing. REUTERS/Etienne Oliveau/Pool

By Manuel Mogato

MANILA (Reuters) – Philippine President Rodrigo Duterte said on Friday Chinese counterpart China Xi Jinping had warned him there would be war if Manila tried to enforce an arbitration ruling and drill for oil in a disputed part of the South China Sea.

In remarks that could infuriate China, Duterte hit back at domestic critics who said he has gone soft on Beijing by refusing to push it to comply with an award last year by the Permanent Court of Arbitration in The Hague, which ruled largely in favor of the Philippines.

Duterte said he discussed it with Xi when the two met in Beijing on Monday, and got a firm, but friendly warning.

“We intend to drill oil there, if it’s yours, well, that’s your view, but my view is, I can drill the oil, if there is some inside the bowels of the earth because it is ours,” Duterte said in a speech, recalling his conversation with Xi.

“His response to me, ‘we’re friends, we don’t want to quarrel with you, we want to maintain the presence of warm relationship, but if you force the issue, we’ll go to war.”

Duterte has long expressed his admiration for Xi and said he would raise the arbitration ruling with him eventually, but needed first to strengthen relations between the two countries, which the Philippines is hoping will yield billions of dollars in Chinese loans and infrastructure investments.

The Hague award clarifies Philippine sovereign rights in its 200-mile Exclusive Economic Zone to access offshore oil and gas fields, including the Reed Bank, 85 nautical miles off its coast.

It also invalidated China’s nine-dash line claim on its maps denoting sovereignty over most of the South China Sea.

Duterte has a reputation for his candid, at times incendiary, remarks and his office typically backpeddles on his behalf and blames the media for distorting his most controversial comments.

Duterte recalled the same story about his discussion with Xi on oil exploration in a recorded television show aired moments after the speech.

He said Xi told him “do not touch it”.

He said Xi had promised that the arbitration ruling would be discussed in future, but not now.

Duterte said China did not want to bring up the arbitral ruling at a time when other claimant countries, like Vietnam, might also decide to file cases against it at the arbitration tribunal.

It was not the first time the firebrand leader has publicly discussed the content of private meetings with other world leaders.

His remarks came the same day that China and the Philippines held their first session in a two-way consultation process on the South China Sea.

They exchanged views on “the importance of appropriately handling concerns, incidents and disputes involving the South China Sea”, the Chinese Foreign Ministry said in a statement that gave few details.

(Additional reporting by Ben Blanchard in Beijing; Editing by Martin Petty)

South Korea urges ‘parallel’ talks and sanctions to rein in North Korea

South Korean President Moon Jae-in speaks with Chinese President Xi Jinping by telephone at the Presidential Blue House in Seoul, South Korea in this handout picture provided by the Presidential Blue House and released by Yonhap on May 11, 2017. Blue House/Yonhap via REUTERS

By Ju-min Park and Christine Kim

SEOUL (Reuters) – South Korea’s new president launched international efforts to defuse tension over North Korea’s weapons development on Thursday, urging both dialogue and sanctions while also aiming to ease Chinese anger about a U.S. anti-missile system.

Moon Jae-in, a liberal former human rights lawyer, was sworn in on Wednesday and said in his first speech as president he would immediately address security tensions that have raised fears of war on the Korean peninsula.

Moon first spoke to Chinese President Xi Jinping and later to Japanese Prime Minister Shinzo Abe, with how to respond to North Korea’s rapidly developing nuclear and ballistic missile programs, in violation of U.N. Security Council resolutions, dominating talks.

“The resolution of the North Korean nuclear issue must be comprehensive and sequential, with pressure and sanctions used in parallel with negotiations,” Moon’s spokesman, Yoon Young-chan, quoted Moon as telling Xi.

“Sanctions against North Korea are also a means to bring the North to the negotiating table aimed at eliminating its nuclear weapons,” Yoon told a briefing, adding that Xi indicated his agreement.

Moon has taken a more conciliatory line with North Korea than his conservative predecessors and advocates engagement. He has said he would be prepared to go to Pyongyang “if the conditions are right”.

Regional experts have believed for months that North Korea is preparing for its sixth nuclear test and was working to develop a nuclear-tipped missile capable of reaching the United States, presenting U.S. President Donald Trump with perhaps his most pressing security issue.

Trump told Reuters in an interview last month major conflict with North Korea was possible though he would prefer a diplomatic outcome.

North Korea says it needs its weapons to defend itself against the United States which it says has pushed the region to the brink of nuclear war.

“Threats from North Korea’s nuclear and missile development have entered a new stage,” Japan’s Abe told Moon in their telephone call, according to Japanese Deputy Chief Cabinet Secretary Koichi Hagiuda.

“How to respond to North Korea … is an urgent issue. I would like to closely cooperate with the president to achieve the denuclearization of North Korea,” Abe told Moon.

But Abe also said “dialogue for dialogue’s sake would be meaningless” and he called on North Korea to demonstrate “sincere and concrete action”, Hagiuda said, adding that Moon shared Abe’s views.

Japan has been concerned that Moon will take a tough line on feuds stemming from the bitter legacy of its 1910-1945 colonization of the Korean peninsula and could fray ties at a time when cooperation on North Korea is vital.

Moon told Abe to “look straight at history” and not make the past “a barrier”, though he raised South Korea’s dissatisfaction with a 2015 agreement meant to put to rest a dispute over Japanese compensation for South Korean women forced to work in Japanese brothels before and during World War Two, Korea’s presidential office said.

(For a graphic on South Korea’s presidential election, click tmsnrt.rs/2p0AyLf)

‘IMPROVE UNDERSTANDING’

While South Korea, China and Japan all share worry about North Korea, ties between South Korea and China have been strained by South Korea’s decision to install a U.S. anti-missile system in defense against the North.

China says the Terminal High Altitude Area Defense (THAAD) undermines its security as its powerful radar can probe deep into its territory.

China says the system does little to curb the threat posed by North Korea’s nuclear and missile programs, which it has been pressing ahead with in defiance of U.S. pressure and UN sanctions.

The deployment of THAAD was agreed last year by South Korea’s previous administration after North Korea conducted a long-range rocket launch that put an object into space.

Moon came to power with a promise to review the system and he told Xi that North Korea must cease making provocations before tension over the deployment could be resolved, officials said.

In the first direct contact between the South Korean and Chinese leaders, Xi explained China’s position, Yoon, the South Korean presidential spokesman said, without elaborating.

“President Moon said he understands China’s interest in the THAAD deployment and its concerns, and said he hopes the two countries can swiftly get on with communication to further improve each other’s understanding,” Yoon told a briefing.

South Korea and the United States began deploying the THAAD system in March and it has since become operational.

Xi told Moon South Korea and China should respect each other’s concerns, set aside differences, seek common ground and handle disputes appropriately, China’s foreign ministry said in a statement.

As well as clouding efforts to rein in North Korea’s nuclear ambitions, the THAAD deployment has also led to recriminations from Beijing against South Korean companies.

Moon explained the difficulties faced by South Korean companies that were doing business in China and asked for Xi’s “special attention” to ease those concerns, Yoon said.

China has also denied it is doing anything to retaliate against South Korean businesses.

(Additional reporting by Ben Blanchard in BEIJING and Kiyoshio Takenaka in TOKYO; Writing by Jack Kim; Editing by Paul Tait, Robert Birsel)

Russia showcases Arctic hardware in Red Square military parade

Moscow - Russia - 09/05/2017 - Russian servicemen march during the parade marking the World War II anniversary in Moscow. REUTERS/Maxim Shemetov

MOSCOW (Reuters) – Russia rolled out air defense systems built to operate in sub-zero Arctic conditions on Tuesday as it showcased its military might at a parade on Moscow’s Red Square.

The parade, an annual event commemorating the Soviet Union’s victory over Nazi Germany in World War Two, took place under gray skies as President Vladimir Putin looked on from a platform alongside Soviet war veterans.

The Kremlin has been flexing its military muscle in the hydrocarbon-rich Arctic region, as it vies for dominance with rivals Canada, the United States and Norway.

“Lessons of the past war remind us to be vigilant, and the Armed Forces of Russia are capable of repelling any potential aggression,” Putin told the parade.

“But for an effective battle with terrorism, extremism, neo-Nazism and other threats the whole international community needs to be consolidated. … We are open for such cooperation.”

An aerial show by Russia’s air force, including warplanes that have flown missions to support Syrian President Bashar al-Assad’s army, was canceled because of low visibility.

Smaller parades were held in cities across Russia, in Ukraine’s Crimea Peninsula, which Russia annexed three years ago, as well as at Russia’s Hmeimim air base in Syria.

Moldovan President Igor Dodon was the only foreign dignitary to attend the Moscow parade. In prior years, leaders including German Chancellor Angela Merkel and Chinese President Xi Jinping had attended.

Tuesday’s parade was the first time Russia had showcased its Tor-M and Pantsir SA air defense systems, painted in the white and black colors of the country’s Arctic forces.

Also on display were columns of troops, tanks and Russia’s Yars intercontinental ballistic missile system.

Putin said: “The Russian soldier today, as in all times, showing courage and heroism, is ready for any feat, for any sacrifice for the sake of his motherland and people.”

(Reporting by Dmitry Solovyov, Alexander Winning and Denis Dyomkin; editing by Ralph Boulton)

China urges all sides in North Korea standoff to ‘stop irritating’ one another

People watch a TV broadcasting of a news report on North Korea's missile launch, at a railway station in Seoul, South Korea. REUTERS/Kim Hong-Ji

By Ben Blanchard

BEIJING (Reuters) – China on Wednesday called on all parties in the Korean standoff to stay calm and “stop irritating each other” a day after North Korea said the United States was pushing the region to the brink of nuclear war.

The United States has urged China, reclusive North Korea’s lone major ally, to do more to rein in its neighbor’s nuclear and missile programs which have prompted an assertive response from the Trump administration, warning that the “era of strategic patience” is over.

The United States has sent a nuclear-powered aircraft carrier to Korean waters and a pair of strategic U.S. bombers flew training drills with the South Korean and Japanese air forces in another show of strength this week.

Chinese Foreign Ministry spokesman Geng Shuang, asked about the bomber flights, the drills and North Korea’s response, stressed that the situation was “highly complex” and sensitive.

“The urgent task is to lower temperatures and resume talks,” he told reporters.

“We again urge all relevant parties to remain calm and exercise restraint, stop irritating each other, work hard to create an atmosphere for contact and dialogue between all sides, and seek a return to the correct path of dialogue and negotiation as soon as possible.”

The flight of the two bombers came as U.S. President Donald Trump raised eyebrows when he said he would be “honored” to meet North Korean leader Kim Jong Un in the right circumstances, and as his CIA director landed in South Korea for talks.

North Korea said the bombers conducted “a nuclear bomb dropping drill against major objects” in its territory at a time when Trump and “other U.S. warmongers are crying out for making a preemptive nuclear strike” on the North.

“The reckless military provocation is pushing the situation on the Korean peninsula closer to the brink of nuclear war,” the North’s official KCNA news agency said on Tuesday.

Tension on the Korean peninsula has been high for weeks, driven by concern that the North might conduct its sixth nuclear test in defiance of U.N. Security Council resolutions.

In a telephone call with his Philippine counterpart Rodrigo Duterte, Chinese President Xi Jinping urged all sides to exercise restraint and return to the correct path of talks as soon as possible, state radio reported.

CHINA OPPOSES THAAD

The U.S. military’s THAAD anti-missile defense system has reached initial operational capacity in South Korea, U.S. officials told Reuters, although they cautioned that it would not be fully operational for some months.

China has repeatedly expressed its opposition to the system, whose powerful radar it fears could reach inside Chinese territory, just as Trump has praised Chinese President Xi Jinping for his efforts to rein in North Korea.

It was widely feared North Korea could conduct a nuclear test on or around April 15 to celebrate the anniversary of the birth of the North’s founding leader, Kim Il Sung, or on April 25, the 85th anniversary of the foundation of its Korean People’s Army.

The North has conducted such tests or missile launches to mark significant events in the past.

Instead, North Korea held a big military parade featuring a display of missiles on April 15 and then a large, live-fire artillery drill 10 days later.

Trump drew criticism in Washington on Monday when he said he would be “honored” to meet North Korea’s young leader.

“If it would be appropriate for me to meet with him, I would absolutely, I would be honored to do it,” Trump told Bloomberg News.

Trump did not say what conditions would be needed for such a meeting to occur or when it could happen.

“Clearly conditions are not there right now,” White House spokesman Sean Spicer said.

Trump warned in an interview with Reuters on Thursday that a “major, major conflict” with North Korea was possible, while China said last week the situation on the Korean peninsula could escalate or slip out of control.

Trump has stepped up outreach to allies in Asia to secure their cooperation to pressure North Korea, and over the weekend he spoke with the leaders of Thailand, Singapore and the Philippines in separate phone calls.

The U.S. ambassador to Indonesia, Joseph R. Donovan, told reporters Indonesia was among several countries that the United States was urging take a “fresh look” at their North Korea ties.

He declined to go into details of what action the United States wanted, but said: “We are hoping that countries will look at what they can be doing to bring North Korea around to meaningful steps to end its nuclear and missile programs.”

Trump’s calls to the Asian leaders came after North Korea test-launched a missile that appeared to have failed within minutes, its fourth successive failed launch since March. It has conducted two nuclear tests and a series of missile-related activities at an unprecedented pace since the beginning of last year.

The North is technically still at war with the South after their 1950-53 conflict ended in a truce, not a treaty, and it regularly threatens to destroy the United States, Japan and South Korea.

Trump and Russian President Vladimir Putin on Tuesday meanwhile spoke by telephone about Syria and “about how best to resolve the very dangerous situation in North Korea”, the White House said.

(Additional reporting by Steve Holland in WASHINGTON and Tom Allard in JAKARTA; Writing by Nick Macfie; Editing by Robert Birsel)