Tag Archives: Xi Jinping

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)

China tightens rules on online news, network providers

A map of China is seen through a magnifying glass on a computer screen showing binary digits in Singapore in this January 2, 2014 photo illustration. REUTERS/Edgar Su/File Photo

BEIJING (Reuters) – China on Tuesday issued tighter rules for online news portals and network providers, the latest step in President Xi Jinping’s push to secure the internet and maintain strict party control over content.

Xi has made China’s “cyber sovereignty” a top priority in his sweeping campaign to bolster security. He has also reasserted the ruling Communist Party’s role in limiting and guiding online discussion.

The new regulations, released by the Cyberspace Administration of China (CAC) on its website, extend restrictions on what news can be produced and distributed by online platforms, requiring all services to be managed by party-sanctioned editorial staff.

The rules, which come into effect on June 1, apply to all political, economic, military, or diplomatic reports or opinion articles on blogs, websites, forums, search engines, instant messaging apps and all other platforms that select or edit news and information, the administration said.

All such platforms must have editorial staff who are approved by the national or local government internet and information offices, while their workers must get training and reporting credentials from the central government, it said.

Editorial work must be separate from business operations and only public funds can be used to pay for any work, it added.

Under the rules, editorial guidance measures used for the mainstream media will be applied to online providers to ensure they too adhere to the party line, such as requiring “emergency response” measures to increase vetting of content after disasters.

The rules also stipulate that a domestic business that wants to set up a joint venture with a foreign partner, or accept foreign funding, must be assessed by the State Internet Information Office.

Content on China’s internet has never been free of government censorship, though a number of internet companies run news portals that produce relatively independent reporting and opinion pieces.

A number of these platforms were shut down last year, after Xi in April called in a speech for better regulation of China’s internet.

The CAC separately on Tuesday released another set of rules that on June 1 will require “network providers and products” used by people who might touch upon “national security and the public interest” go through a new round of security reviews.

Beijing adopted a cyber security law last year that overseas critics say could shut foreign businesses out of various sectors in China.

(Reporting by Christian Shepherd; Editing by Robert Birsel)

U.S. says ‘major conflict’ with North Korea possible, China warns of escalation

A U.S. Navy MH-60R Sea Hawk helicopter from the "Blue Hawks" of Helicopter Maritime Strike Squadron 78 fires chaff flares during a training exercise near the aircraft carrier USS Carl Vinson (CVN 70) in the Philippine Sea. U.S. Navy/Mass Communication Specialist 2nd Class Sean M. Castellano/via REUTERS

By Steve Holland and David Brunnstrom

WASHINGTON (Reuters) – U.S. President Donald Trump said a “major, major conflict” with North Korea was possible over its nuclear and ballistic missile programmes, while China said the situation on the Korean peninsula could escalate or slip out of control.

Trump, speaking to Reuters on Thursday, said he wanted to resolve the crisis peacefully, possibly through the use of new economic sanctions, although a military option was not off the table.

“There is a chance that we could end up having a major, major conflict with North Korea,” Trump said in an interview at the Oval Office.

“We’d love to solve things diplomatically but it’s very difficult,” he said, describing North Korea as his biggest global challenge.

Chinese Foreign Minister Wang Yi said there was a danger that the situation on the Korean peninsula could escalate or slip out of control, his ministry said.

Wang made the comments in a meeting at the United Nations with a Russian diplomat on Thursday, the ministry said in a statement.

China, the only major ally of North Korea, has been increasingly uncomfortable in recent months about its neighbour’s pursuit of nuclear weapons and long-range ballistic missiles in violation on U.N. resolutions.

The United States has called on China to do more to rein in Pyongyang and Trump lavished praise on Chinese President Xi Jinping for his efforts, calling him “a good man”.

“I believe he is trying very hard. I know he would like to be able to do something. Perhaps it’s possible that he can’t. But I think he’d like to be able to do something,” Trump said.

U.S. Secretary of State Rex Tillerson said on Thursday that China had asked North Korea not to conduct any more nuclear tests. Beijing had warned Pyongyang it would impose unilateral sanctions if it went ahead, he added.

Tillerson did not say when China made the threat. He is due to chair a meeting with U.N Security Council foreign ministers on Friday, where he said he would stress the need for members to fully implement existing sanctions as well as possible next steps.

Chinese Foreign Ministry spokesman Geng Shuang, asked about Tillerson’s remarks, would not say what actions China might take if there were a new nuclear test and would not comment directly on what Tillerson had said.

“We oppose any behaviour that goes against Security Council resolutions. I think this position is very clear. This is what we have told the United States. I think North Korea is also very clear about this position,” Geng told reporters.

China banned imports of North Korean coal in February, cutting off its most important export, and Chinese media this month raised the possibility of restricting oil shipments to the North if it unleashed more provocations.

Geng said Friday’s UN meeting should not fixate on new sanctions.

“If the meeting only focuses on increasing sanctions and pressure, I think this will not only lose a rare opportunity, it may also exacerbate the confrontation between all sides and may damage efforts to promote peace and talks,” he said.

MISSILE DEFENCE, CARRIER GROUP

In a show of force, the United States is sending the USS Carl Vinson aircraft carrier group to waters off the Korean peninsula, where it will join the USS Michigan, a nuclear submarine that docked in South Korea on Tuesday. South Korea’s navy has said it will hold drills with the U.S. strike group.

Admiral Harry Harris, the top U.S. commander in the Pacific, said on Wednesday the carrier was in the Philippine Sea, within two hours’ striking distance of North Korea if needs be.

Harris also said a U.S. missile defence system being deployed in South Korea to ward off any North Korean attack would be operational in coming days.

China has been angered by the deployment of the Terminal High Altitude Area Defense (THAAD), complaining that its radar can see deep into China and undermines its security.

Trump said in the interview he wants South Korea to pay the cost of the THAAD, which he estimated at $1 billion. South Korea, one of Washington’s most crucial allies in the region, said the United States would have to bear the cost, pointing to possible friction ahead.

Trump’s remarks came as South Korea heads into a presidential poll on May 9 that will likely elect liberal frontrunner Moon Jae-in, who has said the next administration in Seoul should have the final say on THAAD.

Trump has vowed to prevent North Korea from being able to hit the United States with a nuclear missile, a capability experts say Pyongyang could have some time after 2020.

North Korea has conducted five nuclear tests and numerous missile tests, including one this month, a day before a summit between Trump and Xi in Florida.

North Korea, technically still at war with the South after their 1950-53 conflict ended in a truce, not a treaty, regularly threatens to destroy the United States and says it will pursue its nuclear and missile programmes to counter perceived U.S. aggression.

“It is just the U.S. which has pushed the situation on the peninsula to the brink of nuclear war by staging the largest-ever aggressive joint military drills against the DPRK for the past two months after bringing all sorts of nuclear strategic assets to south Korea,” the North’s KCNA state news agency said in a commentary.

DPRK stands for the Democratic People’s Republic of Korea.

“…The nuclear force of the DPRK is a treasure sword of justice and reliable war deterrent to defend the sovereignty and dignity of the country and global peace from the nuclear war threat posed by the U.S.”

Trump, asked if he considered North Korean leader Kim Jong Un to be rational, said he was operating from the assumption that he is rational. He noted that Kim had taken over his country at an early age.

In Moscow, Russian President Vladimir Putin and visiting Japanese Prime Minister Shinzo Abe called on North Korea and other countries on Thursday to avoid behaviour or rhetoric that could increase tension.

(Additional reporting by Phil Stewart, Matt Spetalnick, Eric Beech and Patricia Zengerle in Washington, Denis Pinchuk and Vladimir Soldatkin in Moscow, Ben Blanchard and Vincent Lee in Beijing and Ju-min Park in Seoul; Writing by Raju Gopalakrishnan and Nick Macfie; Editing by Robert Birsel)

China launches first home-built aircraft carrier amid South China Sea tension

China's first domestically built aircraft carrier is seen during its launching ceremony in Dalian, Liaoning province, China, April 26, 2017. REUTERS/Stringer

By Michael Martina

BEIJING (Reuters) – China launched its first domestically built aircraft carrier on Wednesday amid rising tension over North Korea and worries about Beijing’s assertiveness in the South China Sea.

State media has quoted military experts as saying the carrier, China’s second and built in the northeastern port of Dalian, is not expected to enter service until 2020, once it has been kitted out and armed.

Foreign military analysts and Chinese media have for months published satellite images, photographs and news stories about the second carrier’s development. China confirmed its existence in late 2015.

The launch “shows our country’s indigenous aircraft carrier design and construction has achieved major step-by-step results”, Xinhua news agency said.

State television showed the carrier, its deck lined in red flags, being pushed by tug boats into its berth.

Fan Changlong, a vice chairman of China’s powerful Central Military Commission, presided over the ceremony, Xinhua said, during which a bottle of champagne was broken on the bow.

The launch follows China’s celebration on Sunday of the 68th birthday of the founding of the Chinese navy, and comes amid renewed tensions between North Korea and the United States over Pyongyang’s nuclear and missile programs.

Little is known about China’s aircraft carrier program, which is a state secret.

But the government has said the new carrier’s design draws on experiences from the country’s first carrier, the Liaoning, bought second-hand from Ukraine in 1998 and refitted in China.

The new conventionally powered carrier will be able to operate China’s Shenyang J-15 fighter jets.

Unlike the U.S. navy’s longer-range nuclear carriers, both of China’s feature Soviet-design ski-jump bows, intended to give fighter jets enough lift to take off from their shorter decks. But they lack the powerful catapult technology for launching aircraft of their U.S. counterparts.

“NO NEED” TO MATCH THE UNITED STATES

China’s navy has been taking an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and new Chinese warships popping up in far-flung places.

The Liaoning has taken part in military exercises, including in the South China Sea, but is expected to serve more as a training vessel. State media has said the new carrier will be more dedicated to military and humanitarian operations.

China claims almost all the South China Sea, believed to have huge deposits of oil and gas, through which about $5 trillion in ship-borne trade passes every year, and has been building up military facilities like runways on the islands it controls.

Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

Taiwan, claimed by Beijing as its own, has said China is actually building two new aircraft carriers, but China has not officially confirmed the existence of another carrier.

Chinese state media has quoted experts as saying that the country needs at least six carriers. The United States operates 10 and plans to build two more.

Major General Chen Zhou, a researcher at the Academy of Military Science, told reporters in March that China would not exceed the United States in carrier groups. “China has no need for this,” he said.

Sam Roggeveen, a senior fellow at the Sydney-based Lowy Institute, said that by the time China had half that number, it could go toe-to-toe with the U.S. navy in the Asia-Pacific.

“Given that the Americans have global obligations and responsibilities but China doesn’t, then effectively by that point they would be evenly matched,” Roggeveen said.

Most experts agree that developing such a force will be a decades-long endeavor but the launch of the second carrier holds a certain prestige value for Beijing, seen by many analysts as keen to eventually erode U.S. military prominence in the region.

“With two aircraft carriers you could say without much fear of contradiction that China, other than the United States, is the most powerful maritime force in the Asia-Pacific,” Roggeveen said.

(Additional reporting by Ben Blanchard; Editing by Michael Perry and Nick Macfie)

China’s Xi restructures military, consolidates control

Chinese President Xi Jinping waves as he reviews the army, at the beginning of the military parade marking the 70th anniversary of the end of World War Two, in Beijing, China, September 3, 2015. REUTERS/Damir Sagolj

BEIJING (Reuters) – Chinese President Xi Jinping has announced a military restructure of the People’s Liberation Army (PLA) to transform it into a leaner fighting force with improved joint operations capability, state media said.

Centered around a new, condensed structure of 84 military units, the reshuffle builds on Xi’s years-long efforts to modernize the PLA with greater emphasis on new capabilities including cyberspace, electronic and information warfare.

As chair of the Central Military Commission, Xi is also commander-in-chief of China’s armed forces.

“This has profound and significant meaning in building a world-class military,” Xi told commanders of the new units at the PLA headquarters in Beijing, according to the official Xinhua news agency report late on Tuesday.

All 84 new units are at the combined-corps level, which means commanders will hold the rank of major-general or rear-admiral, the official China Daily reported Wednesday, adding that unit members would likely be regrouped from existing forces given the Chinese military was still engaged in cutting its troops by 300,000, one of the wide-ranging military reforms introduced by Xi in late 2015.

Those reforms include establishing a joint operational command structure by 2020 and rejigging existing military regions, as well as streamlining troop numbers particularly in non-combat facing roles.

The previous seven military area commands were regrouped into five, and the four military departments – staff, politics, logistics and armaments – were reorganized into 15 agencies last year. The 84 units will come under the 15 agencies.

Retired PLA Major-General Xu Guangyu, a senior researcher at the Beijing-based China Arms Control and Disarmament Association, said the restructure represented the second major phase of Xi’s reforms.

“Since military reforms started it has been one step at a time,” Xu told Reuters. “The high-level framework is now in place, now this is the second phase targeting the entire mid-ranking levels of the military.”

Beijing has been moving rapidly to upgrade its military hardware as it grows increasingly assertive about its sovereignty claims in the South China Sea and as it seeks to expand its military prowess overseas.

Chinese media reports have speculated that the country’s second aircraft carrier – and its first built at home – will be launched on Sunday, the navy’s founding anniversary.

Xi has also made rooting out deeply entrenched corruption in the military a top priority. Dozens of senior officers have been investigated and jailed.

(Reporting by Philip Wen; Editing by Michael Perry)

China to gather friends for biggest summit of year on New Silk Road

China's President Xi Jinping during the official welcoming ceremony in front of the Presidential Palace, in Helsinki, Finland April 5, 2017. Lehtikuva/Martti Kainulainen/via REUTERS

By Ben Blanchard

BEIJING (Reuters) – China will gather its friends and allies together for its biggest diplomatic event of the year in May, a summit on its New Silk Road plan, with most Asian leaders due to attend but only one from a G7 nation, the Italian prime minister.

President Xi Jinping has championed what China formally calls the “One Belt, One Road” or OBOR, initiative to build a new Silk Road linking Asia, Africa and Europe, a landmark program to invest billions of dollars in infrastructure projects including railways, ports and power grids.

China has dedicated $40 billion to a Silk Road Fund and the idea was the driving force behind the establishment of the $50 billion China-backed Asian Infrastructure Investment Bank.

Foreign Minister Wang Yi announced on Tuesday a list of those attending the conference, including some of China’s most reliable allies – Russian President Vladimir Putin, Pakistani Prime Minister Nawaz Sharif and Cambodian Prime Minister Hun Sen.

Myanmar’s Aung San Suu Kyi, Kazakh President Nursultan Nazarbayev, Malaysian Prime Minister Najib Razak and Indonesian President Joko Widodo are coming too, all generally good partners of China.

“One Belt, One Road is to date the most important public good China has given to the world, first proposed by China but for all countries to enjoy,” Wang said.

“The culture and historical genes of One Belt, One Road come from the old Silk Road, so it takes Eurasia as its main region,” he said, adding that representatives of 110 countries would attend.

While China says the New Silk Road is not political, it has run into opposition from India due to a section of it in Pakistan, known as the China-Pakistan Economic Corridor, where some projects run through the disputed Kashmir region.

Wang dismissed those concerns, saying the Pakistan project had no direct connection to the dispute and India was welcome to participate in the New Silk Road.

“Indian friends have said to us that One Belt, One Road is a very good suggestion,” he said.

Nevertheless, India Prime Minister Narendra Modi was not on the list of leaders attending.

Wang also made no mention of any attendance of officials from Japan, South Korea or North Korea, all countries with which China has strained ties. Nor was there mention of Australia, a strong U.S. ally that has close trade links with China.

The list included only one leader from the Group of Seven (G7) industrialised nations, Italian Prime Minister Paolo Gentiloni.

Diplomatic sources in Beijing said China had hoped for at least some senior Western leaders to attend, including British Prime Minister Theresa May, to burnish the plan’s credentials and make it less China-centric.

British finance minister Philip Hammond will come as May’s representative, while Germany and France are having elections at the time and will send high-level representatives, Wang said.

Wang confirmed Philippine President Rodrigo Duterte as among 28 leaders coming, along with the Spanish, Greek, Hungarian, Serb and Polish prime ministers and Swiss and Czech presidents.

“This is a positive, cooperative agreement, and we don’t want to politicize it,” Wang told reporters when asked if China was upset at the absence of most major Western leaders.

“This is an economic cooperation forum, an international cooperation platform that everyone is paying attention to, supports and hopes to participate in,” he said.

GLOBAL FRIEND

China is sensitive to any suggestion that what it sees as its benign intentions do not have a receptive global audience, especially in Western capitals.

China was privately upset in 2015 after most Western leaders rebuffed invitations to attend a big military parade marking 70 years since the end of World War Two. Western leaders were unhappy that the guest list that included Putin and wary of the message China would send with the show of strength.

While China has portrayed the New Silk Road as a genuine effort to share the bounty of China’s economic development and to fund infrastructure gaps, many Western countries are concerned about a lack of detail and transparency in the project and are suspicious about China’s broader political intents.

Diplomatic sources said the presence of Putin and other leaders from countries with dubious human rights records, like the Philippines and Central Asian states, had contributed to a reluctance among Western leaders to attend.

Still, at a time of uncertainty about the U.S. place in the world following President Donald Trump’s pledges to put America first, China sees an opportunity to become more of a global leader and has found a receptive audience for its New Silk Road.

Leaders from countries that would appear to have little, if any, connection so far to the plan are coming to the summit, including Chile and Argentina.

“Everyone wants to be China’s friend now with Trump in office,” said a senior Asian diplomat in Beijing.

A senior Indonesian government official said China was aiming for a “spectacular” summit.

“The Chinese are gunning for … global leadership so I think this OBOR summit is going to be huge,” the official said.

(Additional reporting by John Chalmers in Jakarta; Editing by Robert Birsel)

China’s Xi urges trade cooperation in first meeting with Trump

U.S. President Donald Trump and First Lady Melania Trump welcome Chinese President Xi Jinping and first lady Peng Liyuan at Mar-a-Lago estate in Palm Beach, Florida, U.S., April 6, 2017. REUTERS/Carlos Barria

By Steve Holland

PALM BEACH, Fla. (Reuters) – Chinese President Xi Jinping urged cooperation with the United States on trade and investment on Thursday, inviting President Donald Trump to visit China in a cordial start to their first meeting likely to broach sensitive security and commercial issues.

Trump has said he wants to raise concerns about China’s trade practices and press Xi to do more to rein in North Korea’s nuclear ambitions during his two-day visit to the Spanish-style Mar-a-Lago resort in Palm Beach, Florida, though no major deals on either issue are expected.

The two sides should promote the “healthy development of bilateral trade and investment” and advance talks on a bilateral investment agreement, Xi said, according to a statement on China’s Foreign Ministry website.

“We have a thousand reasons to get China-U.S. relations right, and not one reason to spoil the China-U.S. relationship,” Xi told Trump.

Trump accepted Xi’s invitation to China later this year, state news agency Xinhua news agency cited officials as saying on Friday.

Xi and his wife, Peng Liyuan, joined Trump and his wife, Melania, at a long table in an ornate candle-lit private dining room festooned with red and yellow floral centerpieces, where they dined on pan-seared Dover sole and New York strip steak.

Trump, a New York real estate magnate before he ran for office, joked before dinner: “We’ve had a long discussion already, and so far I have gotten nothing, absolutely nothing. But we have developed a friendship – I can see that – and I think long term we are going to have a very, very great relationship and I look very much forward to it.”

The fanfare over the summit on Thursday was overshadowed by another pressing foreign policy issue: the U.S. response to a deadly poison gas attack in Syria. As Trump and Xi were wrapping up dinner, U.S. forces fired dozens of cruise missiles at a Syrian airbase from which it said the chemical weapons attack was launched this week, an escalation of the U.S. military role in Syria that swiftly drew sharp criticism from Russia.

In Beijing, China’s Foreign Ministry urged all parties in Syria to find a political settlement.

Trump and Xi were expected to get into more detailed discussions about trade and foreign policy issues on Friday, concluding their summit with a working lunch.

Trump promised during the 2016 presidential campaign to stop what he called the theft of American jobs by China and rebuild the country’s manufacturing base. Many blue-collar workers helped propel him to his unexpected election victory in November and Trump wants to deliver for them.

“We have been treated unfairly and have made terrible trade deals with China for many, many years. That’s one of the things we are going to be talking about,” Trump told reporters ahead of the meeting.

The bilateral investment treaty mentioned by Xi, talks on which began during former president George W. Bush’s administration and resumed under Barack Obama, has received little attention since Trump took office.

Trump is still finding his footing in the White House and has yet to spell out a strategy for what his advisers called a trade relationship based on “the principle of reciprocity.”

He brought his top economic and national advisers to Florida for the meeting, including Defense Secretary Jim Mattis, Treasury Secretary Steven Mnuchin, and Commerce Secretary Wilbur Ross.

“Even as we share a desire to work together, the United States does recognize the challenges China can present to American interests,” said Secretary of State Rex Tillerson, also in Florida for the meeting.

Trump’s daughter, Ivanka, and her husband, Jared Kushner, who both work at the White House, also were among the dinner guests.

DIFFERING PERSONALITIES

The summit brings together two leaders who could not seem more different: the often stormy Trump, prone to angry tweets, and Xi, outwardly calm, measured and tightly scripted, with no known social media presence.

What worries the protocol-conscious Chinese more than policy clashes is the risk that the unpredictable Trump could publicly embarrass Xi, after several foreign leaders experienced awkward moments with the new U.S. president.

“Ensuring President Xi does not lose face is a top priority for China,” a Chinese official said.

The most urgent problem facing Trump and Xi is how to persuade nuclear-armed North Korea to halt unpredictable behavior like missile test launches that have heightened tensions in South Korea and Japan.

North Korea is working to develop an intercontinental ballistic missile capable of hitting the United States.

Trump has threatened to use trade to try to force China to exert influence over Pyongyang.

“I think China will be stepping up,” Trump told reporters on Thursday. Beijing says its influence is limited and that it is doing all it can.

The White House is reviewing options to pressure Pyongyang economically and militarily, including “secondary sanctions” against Chinese banks and firms that do the most business with Pyongyang.

A long-standing option of pre-emptive strikes remains on the table, but despite the tougher recent U.S. talk, the internal review “de-emphasizes direct military action,” the U.S. official said, speaking on condition of anonymity.

Analysts believe any military action would likely provoke severe North Korean retaliation and massive casualties in South Korea and Japan and among U.S. troops stationed there.

NO GRAND BARGAIN ON TRADE

On trade, U.S. labor leaders say Trump needs to take a direct, unambiguous tone in his talks with Xi.

“President Trump needs to come away from the meeting with concrete deliverables that will restore production and employment here in the U.S. in those sectors that have been ravaged by China’s predatory and protectionist practices,” said Holly Hart, legislative director for the United Steelworkers union.

A U.S. administration official told Reuters that Washington expects to have to use legal tools to fight for U.S. companies, such as pursuing World Trade Organization lawsuits.

“I don’t expect a grand bargain on trade. I think what you are going to see is that the president makes very clear to Xi and publicly what we expect on trade,” a U.S. official told Reuters, speaking on condition of anonymity.

Trump has often complained Beijing undervalues its currency to boost trade, but his administration looks unlikely to formally label China a currency manipulator in the near term – a designation that could come with penalties.

(Additional reporting by David Brunnstrom, Matt Spetalnick, Roberta Rampton, Ayesha Rascoe and Mohammad Zargham in Washington, Gui Qing Koh in New York, Michael Martina in Beijing and William Mallard in Tokyo; Editing by Lisa Shumaker, James Dalgleish and Nick Macfie)

U.S. trade group hacked with Chinese software ahead of Xi summit

FILE PHOTO: A man types on a computer keyboard in front of the displayed cyber code in this illustration picture taken on March 1, 2017.REUTERS/Kacper Pempel/Illustration/File Photo

By Joseph Menn

SAN FRANCISCO (Reuters) – A sophisticated hacking group that pursues Chinese government interests broke into the website of a private U.S. trade group ahead of Thursday’s summit between U.S. President Donald Trump and Chinese President Xi Jinping, according to researchers.

The hackers left a malicious link on web pages where members of the National Foreign Trade Council (NFTC) register for upcoming meetings, according to researchers at Fidelis Cybersecurity and a person familiar with the trade group.

The nonprofit NFTC is a prominent advocate on international trade policy, with corporate members including Wal-Mart Stores Inc <WMT.N>, Johnson & Johnson <JNJ.N>, Amazon.com Inc <AMZN.O>, Ford Motor Co <F.N> and Microsoft Corp <MSFT.O>.

The malicious link deployed a spying tool called Scanbox, which would have recorded the type and versions of software running on the computers of those exposed to it, said Fidelis researcher John Bambenek. Such reconnaissance is typically followed by new attacks using known flaws in the detected software, especially older versions.

Scanbox has only been used by groups associated with the Chinese government, Fidelis said, and was recently seen on a political site aimed at Uyghurs, an ethnic minority under close government scrutiny in China.

The breach was detected about five weeks ago by a NFTC director who is a customer of Fidelis, the security company said. Both the Federal Bureau of Investigation and the NFTC were notified and the malicious link removed, and Fidelis said it had no evidence of NFTC members being infected.

The FBI and the NFTC declined to comment. A spokesman for the Chinese foreign ministry did not respond to a request for comment.

Bambenek said he believed the attack was classic espionage related to international trade talks, rather than a violation of a 2015 agreement between former U.S. President Barack Obama and Xi to end spying for commercial motives.

The summit starting on Thursday is the first meeting between Xi and Trump, who blamed China on the campaign trail for the loss of many U.S. jobs and vowed to confront the country’s leaders on the matters of trade and currency manipulation.

“I think it’s traditional espionage that happens ahead of any summit,” said Bambenek. “They would like to know what we, the Americans, really care about and use that for leverage.”

Other security firms agreed that wholesale theft of U.S. intellectual property has not returned.

Instead, FireEye Inc <FEYE.O> and BAE Systems Plc <BAES.L> said that the hacking group identified by Fidelis, called APT10, has recently attacked government and commercial targets in Europe.

FireEye researcher John Hultquist said heavy industries in Nordic countries have been hacked more often as Beijing switches priorities.

“They are certainly taking those resources and pushing them to other places where they can still get away with this behavior,” Hultquist said.

(Reporting by Joseph Menn in San Francisco; Addtional reporting by Dustin Volz in Washington; Editing by Bill Rigby)

Little progress reining in North Korea, U.S. commander says before Trump-Xi summit

An underwater test-firing of a strategic submarine ballistic missile. KCNA via REUTERS

By Tim Kelly and Ju-min Park

TOKYO/SEOUL (Reuters) – Diplomatic and economic measures taken to rein in North Korea’s missile program have not had the desired effect, a senior U.S. military commander said on Thursday after the North’s latest test triggered a flurry of calls among world leaders.

U.S President Donald Trump led calls with leaders and senior officials from Japan and South Korea on Thursday to discuss the latest provocation from Pyongyang, hours before Trump begins a much-anticipated summit with Chinese counterpart Xi Jinping.

“Up to this point I think it is fair to say … that economic and diplomatic efforts have not supported the progress people have been anticipating and looking forward to,” U.S. Pacific Fleet Commander Admiral Scott Swift said in Tokyo, where he was meeting Japanese Self Defence Force commanders and foreign ministry officials.

North Korea’s nuclear and missile programs will be high on the agenda when Trump and Xi meet at Trump’s Mar-a-Lago resort in Florida later on Thursday, with anger in Beijing simmering over the deployment of an advanced U.S. anti-missile system in South Korea.

Analysts have said Wednesday’s launch of a ballistic missile from North Korea’s east coast probably took place with the Trump-Xi summit in mind as the reclusive state presses ahead in defiance of United Nations resolutions and sanctions.

In a phone call with Japanese Prime Minister Shinzo Abe on Thursday, Trump again said that all options were on the table when it came to North Korea’s continued missile tests.

Swift said a military response remained among those options.

“That decision would be up to the president,” he told reporters. “The military was always an option.”

Tensions on the Korean peninsula and the Trump-Xi summit began to worry markets on Thursday, with the dollar and Wall Street shares slipping.

“The market is only starting to factor in recent developments regarding North Korea, and it now wants to figure out the geopolitical implications of the U.S.-China summit,” said Shusuke Yamada, a senior strategist at Bank of America Merrill Lynch in Tokyo.

“DANGEROUS PROVOCATION”

Abe said the two leaders had agreed that North Korea’s latest ballistic missile launch was “a dangerous provocation and a serious threat”.

He told reporters at his Tokyo residence he was watching to see how China would respond to Pyongyang after Xi meets Trump.

The White House said in a statement after the Abe call Trump “made clear that the United States would continue to strengthen its ability to deter and defend itself and its allies with the full range of its military capabilities”.

Trump has repeatedly said he wants China to do more to exert its economic influence over its unpredictable ally in Pyongyang to restrain its nuclear and missile programs, but China denies it has any overriding influence on North Korea.

On Sunday, Trump held out the possibility of using trade as a lever to secure Chinese cooperation, while suggesting Washington might deal with Pyongyang’s nuclear and missile programs on its own if need be.

Any launch of objects using ballistic missile technology is a violation of U.N. Security Council resolutions. The North has defied the ban, saying it infringes on its sovereign rights to self-defense and the pursuit of space exploration.

In another call on Thursday, Trump’s national security adviser H.R. McMaster told his South Korean counterpart that Washington remained committed to the deployment of the Terminal High Altitude Area Defense (THAAD) system in South Korea.

South Korea and the United States say the sole purpose of the THAAD system is to defend against missile launches from North Korea but China says the system’s powerful radar could penetrate into its territory.

The United States began deploying the first elements of the THAAD system in South Korea last month, despite angry opposition from China.

South Korean officials said McMaster discussed the North’s latest missile launch and the Trump-Xi summit in a call with his counterpart in Seoul, Kim Kwan-jin.

“Both sides agreed to pursue … plans in order to substantially strengthen the international community’s sanctions and pressure on North Korea,” South Korea’s presidential Blue House said in a statement.

” … both agreed to push forward the deployment of THAAD by U.S. forces in Korea,” it said.

U.S. officials said the missile launched on Wednesday appeared to be a liquid-fueled, extended-range Scud missile that only traveled a fraction of its range before spinning out of control.

They said it flew about 60 km (40 miles) from its launch site near Sinpo, a port city on the North’s east coast where a submarine base is located.

As well as a growing list of ballistic missile launches, North Korea has also conducted two nuclear weapons tests since January 2016. (For a graphic on North Korea’s missile launches, see: http://tmsnrt.rs/2m9l4oj)

(This story has been refiled to correct spelling of Bank of America Merrill Lynch strategist’s first name to Shusuke in paragraph 10)

(Additional reporting by William Mallard, Kiyoshi Takenaka and Shinichi Saoshiro in TOKYO Eric Beech in WASHINGTON; Editing by Paul Tait)

Trade, North Korea pose challenges as Trump prepares to meet China’s Xi

Donald Trump and Chinese President Xi Jinping. REUTERS/Jonathan Ernst/Aly Song

By Steve Holland and Matt Spetalnick

WASHINGTON (Reuters) – U.S. President Donald Trump holds his first meeting with Chinese President Xi Jinping on Thursday facing pressure to deliver trade concessions for some of his most fervent supporters and prevent a crisis with North Korea from spiraling out of control.

The leaders of the world’s two biggest economies are to greet each other at the president’s Mar-a-Lago retreat in Palm Beach, Florida, late in the afternoon and dine together with their wives, kicking off a summit that will conclude with a working lunch on Friday.

Trump promised during the 2016 campaign to stop what he called the theft of American jobs by China and rebuild the country’s manufacturing base. Many blue-collar workers helped propel him to his unexpected election victory on Nov. 8 and Trump wants to deliver for them.

The Republican president tweeted last week that the United States could no longer tolerate massive trade deficits and job losses and that his meeting with Xi “will be a very difficult one.”

Trump, a former real estate magnate is still finding his footing in the White House and has yet to spell out a strategy for what his advisers called a trade relationship based on “the principal of reciprocity.”

White House officials have set low expectations for the meeting, saying it will set the foundation for future dealings.

U.S. labor leaders say Trump needs to take a direct, unambiguous tone in his talks with Xi.

“President Trump needs to come away from the meeting with concrete deliverables that will restore production and employment here in the U.S. in those sectors that have been ravaged by China’s predatory and protectionist practices,” said Holly Hart, legislative director for the United Steelworkers union.

International Association of Machinists President Robert Martinez said the United States continued to lose manufacturing jobs to the Chinese, saying: “It’s time to bring our jobs home now.”

Some Democratic lawmakers were eager to pounce on Trump on trade.

“We are eager to understand your plans to correct our current China trade policies and steer a new course,” said Democratic U.S. Representative Jim McGovern of Massachusetts.

DIFFERING PERSONALITIES

The summit will bring together two leaders who could not seem more different: the often stormy Trump, prone to angry tweets, and Xi, outwardly calm, measured and tightly scripted, with no known social media presence.

What worries the protocol-conscious Chinese more than policy clashes is the risk that the unpredictable Trump could publicly embarrass Xi, after several foreign leaders experienced awkward moments with the new U.S. president.

“Ensuring President Xi does not lose face is a top priority for China,” a Chinese official said.

The most urgent problem facing Trump and Xi is how to persuade nuclear-armed North Korea to halt unpredictable behavior like missile test launches that have heightened tensions in South Korea and Japan.

North Korea is working to develop an intercontinental ballistic missile capable of hitting the United States.

Trump has threatened to use trade to try to force China to exert influence over Pyongyang. Beijing says its influence is limited and that it is doing all it can but that it is up to the United States to find a way back to talks with North Korea.

A senior White House official said North Korea was a test for the U.S.-Chinese relationship.

“The clock is very, very quickly running out,” the official said. “All options are on the table for us.”

Trump consulted on Wednesday with Japanese Prime Minister Shinzo Abe, who said he and the president agreed by phone that North Korea’s latest ballistic missile launch was “a dangerous provocation and a serious threat.”

A White House strategy review is focusing on options for pressuring Pyongyang economically and militarily. Among measures under consideration are “secondary sanctions” against Chinese banks and firms that do the most business with Pyongyang.

A long-standing option of pre-emptive strikes remains on the table, but despite the tougher recent U.S. talk, the internal review “de-emphasizes direct military action,” the U.S. official said, speaking on condition of anonymity.

Analysts believe any military action would likely provoke severe North Korean retaliation and massive casualties in South Korea and Japan and among U.S. troops stationed there.

(Additional reporting by David Brunnstrom in Washington, Gui Qing Koh in New York, Ben Blanchard in Beijing and William Mallard in Tokyo; Editing by Caren Bohan and Peter Cooney)