White House official says North Korea is test for U.S.-China relations

A combination of file photos showing Chinese President Xi Jinping (L) at London's Heathrow Airport, October 19, 2015 and U.S. President Donald Trump posing for a photo in New York City, U.S., May 17, 2016. REUTERS/Toby Melville/Lucas Jackson/File Photos

By Steve Holland and Roberta Rampton

WASHINGTON (Reuters) – U.S. President Donald Trump will discuss how to rein in North Korea’s nuclear program with Chinese President Xi Jinping later this week in what a senior White House official said on Tuesday would be a test for the U.S.-Chinese relationship.

Trump and Xi are to meet on Thursday and Friday at Trump’s Mar-a-Lago retreat on the Atlantic coast in Palm Beach, Florida. It will be their first face-to-face meeting since Trump took office on Jan. 20, and trade and security issues are to figure prominently in their talks.

“We would like to work on North Korea together,” the official said in a briefing for reporters. “This is a test for the relationship.”

Trump wants China to do more to exert its economic influence over unpredictable Pyongyang to restrain its nuclear and missile programs, while Beijing has said it does not have that kind of influence.

In an interview with the Financial Times last weekend, Trump held out the possibility of using trade as a lever to secure Chinese cooperation.

In the same interview, Trump was quoted as telling the FT that Washington was ready to address the North Korean threat alone, if need be.

The White House official — speaking just as North Korea fired a projectile believed by South Korea’s military to be a ballistic missile into the sea — said the situation had become more urgent.

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

Trump does not plan to give in to Chinese pressure for the United States to withdraw its THAAD anti-missile system in South Korea, which Beijing considers destabilizing.

Trump has said he expects the meeting to be a difficult one given his belief that China has taken advantage of U.S. trade policies to help its economy and hurt U.S. job creation.

He plans to discuss with Xi a new “elevated” and streamlined framework for a U.S.-Chinese dialogue with “clear deadlines for achieving results,” the senior White House official said.

He will discuss significant trade and economic concerns with Xi in what the official called a “candid and productive manner.”

(Reporting by Steve Holland and Roberta Rampton; Editing by Sandra Maler)

North Korea test-fires missile into sea ahead of Trump-Xi summit

FILE PHOTO: A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

By Ju-min Park and Jack Kim

SEOUL (Reuters) – North Korea test-fired a ballistic missile into the sea off its east coast on Wednesday, South Korea’s military said, ahead of a summit between U.S. and Chinese leaders who are set to discuss Pyongyang’s increasingly defiant arms program.

The missile flew about 60 km (40 miles) from its launch site at Sinpo, a port city on North Korea’s east coast, the South Korean Office of the Joint Chiefs of Staff said in a statement. Sinpo is home to a North Korean submarine base.

The launch comes just a day before the start of a summit between U.S. President Donald Trump and Chinese President Xi Jinping, where talks about adding pressure on the North to drop its arms development will take center stage.

“The launch took place possibly in consideration of the U.S. -China summit, while at the same time it was to check its missile capability,” a South Korean official told Reuters about the military’s initial assessment of the launch.

The missile was fired at a high angle and reached an altitude of 189 km (117 miles), the official said.

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.

The launch drew swift condemnation from Japan, with Prime Minister Shinzo Abe saying further provocative action was possible.

Japan’s Chief Cabinet Secretary Yoshihide Suga described the launch as “extremely problematic” and said Tokyo had lodged a strong protest.

South Korea’s foreign ministry also condemned the launch as a blunt challenge to a series of U.N. Security Council resolutions targeting North Korea’s nuclear and missile program. Seoul called a National Security Council meeting and vowed to respond strongly in case of further provocations.

In a terse statement, U.S. Secretary of State Rex Tillerson said: “The United States has spoken enough about North Korea. We have no further comment.”

Trump wants China to do more to exert its economic influence over unpredictable Pyongyang to restrain its nuclear and missile programs.

China has denied it has any outsized influence on Pyongyang and Foreign Ministry spokeswoman Hua Chunying ruled out the chance of a link between the launch and the summit, saying, “I can’t see any certain connection between these two things.”

Ahead of the U.S.-China summit in Florida, Trump had threatened to use crucial trade ties with China to pressure Beijing into more action on North Korea.

A senior U.S. White House official said Trump wanted to work with China and described the discussions over North Korea as a test for the U.S.-Chinese relationship.

ICBM THREAT

North Korea could choose to continue with missile-related activities through next week, when the isolated and impoverished country celebrates the 105th anniversary of the birth of the state’s founder, Kim Il Sung.

It has used the anniversary in previous years to test-fire the intermediate-range Musudan ballistic missile and to launch long-range rockets to try to put satellites into orbit.

An expert on the North’s political strategy warned against reading too much political significance into the timing of the tests ahead of the U.S-China summit.

“They may have taken the summit into account to pick a day but, to me, it is more likely to catch up with its own missile development roadmap for their technical needs,” said Kim Dong-yub, a military expert at Kyungnam University’s Institute of Far Eastern Studies in Seoul.

North Korea failed in an attempt to launch a ballistic missile from its east coast two weeks ago. Earlier in March, it fired four missiles towards Japan, some of which came as close as 300 km (190 miles) to the Japanese coast.

It has also conducted two nuclear weapons tests since January 2016, all in defiance of U.N. sanctions.

The U.S. and South Korean militaries said initial assessments indicated the latest launch was of a KN-15 medium-range ballistic missile, which would be the same kind North Korea test-launched in February.

Pyongyang tested a new type of medium- to long-range ballistic missile in February, which it later said was an upgraded, extended-range version of its submarine-launched ballistic missile (SLBM).

North Korea has carried out several SLBM tests near Sinpo.

“While it is entirely possible it was the land-based KN-15, it very well could have been a test of their SLBM system that was conducted on land,” said Dave Schmerler, an expert at the California-based James Martin Center for Nonproliferation Studies.

The North is believed to be developing an intercontinental ballistic missile (ICBM) that could hit the United States and its leader, Kim Jong Un, has vowed to test-launch one at any time.

Experts and officials in the South and the United States believe Pyongyang is still some time away from mastering all the technology needed for an operational ICBM system, such as re-entry into the atmosphere and subsequent missile guidance.

– For a graphic on ‘North Korea’s missile launch’ click : https://tinyurl.com/mb6ennc

– For a graphic on ‘Nuclear North Korea’ click : https://tinyurl.com/mpxs45r

(Additional reporting by James Pearson in Seoul, Kaori Kaneko in Tokyo and Idrees Ali in Washington; Editing by Lincoln Feast and Clarence Fernandez)

China downplays tensions with U.S. as Xi prepares to meet Trump

Chinese President Xi Jinping and U.S. President Donald Trump. REUTERS/File Photos

By Ben Blanchard and David Lawder

BEIJING/WASHINGTON (Reuters) – Beijing sought to play down tensions with the United States and put on a positive face on Friday, as the U.S. administration slammed China on a range of business issues ahead of President Xi Jinping’s first meeting with President Donald Trump.

Trump set the tone for what could be a tense meeting at his Mar-a-Lago retreat next week by tweeting on Thursday that the United States could no longer tolerate massive trade deficits and job losses.

Trump said the highly anticipated meeting, which is also expected to cover differences over North Korea and China’s strategic ambitions in the South China Sea, “will be a very difficult one.”

Ahead of the meeting, Trump will sign executive orders on Friday aimed at identifying abuses that are causing massive U.S. trade deficits and clamping down on non-payment of anti-dumping and anti-subsidy duties on imports, his top trade officials said.

Separately, the U.S. Trade Representative’s office, controlled by the White House, said Beijing’s industrial policies and financial support for industries such as steel and aluminum have resulted in over-production and a flood of exports that have distorted global markets and undermined competitive companies.

Seeking to downplay the rift, Chinese Foreign Ministry spokesman Lu Kang reiterated a desire for cooperation on trade.

“With regard to the problems existing between China and the United States in trade relations, both sides should in a mutual respectful and mutual beneficial way find appropriate resolutions, and ensure the stable development of Sino-U.S. trade relations,” he told a daily news briefing.

The leaders of the world’s two largest economies are scheduled to meet next Thursday and Friday for the first time since Trump assumed office on Jan. 20.

Speaking earlier at a briefing on the Xi-Trump meeting, Chinese Vice Foreign Minister Zheng Zeguang acknowledged the trade imbalance, but said it was mostly due to differences in their two economic structures and noted that China had a trade deficit in services.

“China does not deliberately seek a trade surplus. We also have no intention of carrying out competitive currency devaluation to stimulate exports. This is not our policy,” Zheng said.

CONCILIATORY TONE

State news agency Xinhua also struck a conciliatory tone.

“Of course, it would be naive to believe that the two sides can bridge their differences in a single diplomatic meeting,” it said in an English language commentary on Friday.

“Yet as long as the two nations can maintain their good faith, which they have shown recently, to talk and to make concessions based on mutual respect, then no difference would be too difficult to iron out.”

Trump has frequently accused China of keeping its currency artificially low against the dollar to make Chinese exports cheaper, and “stealing” American manufacturing jobs.

The yuan fell 6.5 percent last year in its biggest annual loss against the dollar since 1994, knocked by pressure from sluggish economic growth and a broadly strong U.S. currency.

Trump has resisted acting on a campaign promise to declare China a currency manipulator on his first day in office, but tensions have persisted over how his administration’s China policy would evolve.

While apprehensive about a trade war, the American business community in China has grown more vocal.

Fear of retaliation had once made business lobbies eschew more forceful U.S. trade policies toward China, but such groups have increasingly urged the Trump administration to take targeted action to address market access imbalances.

Zheng said domestic consumption in China will increase as it pursues economic reforms, helping to raise demand for foreign goods and services, including those from the United States.

“This also helps ameliorate the trade imbalance between China and the United States,” he said.

The trade imbalance could be resolved by improved cooperation, Zheng said, urging Washington to lift restrictions on civilian technology exports to China and create better conditions for Chinese investment in the United States.

The USTR report, however, accused China of using a range of measures to engineer the transfer of foreign technology to local firms. It said these include denying financial or regulatory approvals to companies using foreign-owned intellectual property or that do not conduct research or manufacture products in China.

The report also brought up longstanding complaints about online piracy of movies, books, music, video games and software in China as well as a ban on U.S. beef that has been in place since 2003.

(Additional reporting by Christian Shepherd and Michael Martina in BEIJING; Editing by Lincoln Feast)

China’s Xi to meet Trump in Florida next week

China's President Xi Jinping attends the opening session of the Chinese People's Political Consultative Conference in Beijing. REUTERS/Jason Lee

BEIJING (Reuters) – Chinese President Xi Jinping will travel to the United States to meet President Donald Trump at his Mar-a-Lago retreat in Florida on April 6-7, China’s Foreign Ministry said on Thursday, its first official confirmation of the highly anticipated summit.

It will be Xi’s first meeting with Trump, whose presidency began on Jan. 20, and comes as the two sides face pressing issues, ranging from North Korea and the South China Sea to trade disputes.

Ministry spokesman Lu Kang made the announcement at a daily news briefing.

He did not give any more details of the meeting agenda, but spoke of the need to see the big picture while fostering mutual interests in trade relations.

“The market dictates that interests between our two countries are structured so that you will always have me and I will always have you,” Lu said.

“Both sides should work together to make the cake of mutual interest bigger and not simply seek fairer distribution,” he said in response to a question about trade frictions.

Beijing had previously said that preparatory work for the meeting was underway. But it had not yet confirmed the trip, despite western media reports on a scheduled meeting and an announcement by the Finnish government that Xi would make a brief stop in Finland on April 5.

The summit will follow a string of other recent U.S.-China meetings and conversations aimed at mending ties after strong criticism of China by Trump during his election campaign.

U.S. Secretary of State Rex Tillerson ended a trip to Asia this month in Beijing, agreeing to work together with China on North Korea and stressing Trump’s desire to enhance understanding.

China has been irritated at being repeatedly told by Washington to rein in North Korea’s nuclear and missile programs and by the U.S. decision to base an advanced missile defense system in South Korea.

Beijing is also deeply suspicious of U.S. intentions towards self-ruled Taiwan, which China claims as its own.

During his election campaign, Trump accused China of unfair trade policies, criticized its island-building in the strategic South China Sea, and accused it of doing too little to constrain North Korea.

Trump also incensed Beijing in December by taking a phone call from Taiwanese President Tsai Ing-wen and later saying the United States did not have to stick to the so-called “one China” policy.

He later agreed in a phone call with Xi to honor the long-standing policy and has also written to Xi since seeking “constructive ties.”

(Reporting by Christian Shepherd; Writing by Michael Martina; Editing by Simon Cameron-Moore)

China’s Xi tells Israel that peaceful Middle East good for all

Chinese President Xi Jinping and Israeli Prime Minister Benjamin Netanyahu shake hands ahead of their talks at Diaoyutai State Guesthouse in Beijing, China March 21, 2017. REUTERS/Etienne Oliveau/Pool

BEIJING (Reuters) – Chinese President Xi Jinping told visiting Israeli Prime Minister Benjamin Netanyahu on Tuesday that peaceful coexistence with the Palestinians would be good for both sides.

Xi, whose country has traditionally played little role in Middle East conflicts or diplomacy despite its reliance on the region for oil, said a peaceful and stable Middle East was in everyone’s interests.

He said that China had increasingly close relations with countries in the region, according to a statement from China’s Foreign Ministry about his meeting with Netanyahu.

It has, for example, tried to help in efforts to end Syria’s civil war. Beijing-based diplomats say it portrays itself as an honest broker without the historical baggage the Americans and Europeans have in the region.

“A peaceful, stable, developing Middle East accords with the common interests of all, including China and Israel,” the statement paraphrased Xi as saying.

“China appreciates Israel’s continuing to take the ‘two state proposal’ as the basis for handling the Israel-Palestine issue,” he added.

Peaceful coexistence between Israel and Palestine would be good for both parties and the region and is what the international community favors, Xi said.

Chinese envoys occasionally visit Israel and the Palestinian Territories, but Chinese efforts to mediate or play a role in that long-standing dispute have never amounted to much.

China also has traditionally had a good relationship with the Palestinians.

An Israeli government statement quoted Netanyahu as telling Xi that Israel admires China’s capabilities, its position on the world stage and in history.

“We have always believed, as we discussed on my previous visit, that Israel can be a partner, a junior partner, but a perfect partner for China in the development of a variety of technologies that change the way we live, how long we live, how healthy we live, the water we drink, the food we eat, the milk that we drink – in every area,” he said.

Netanyahu’s trip comes just days after China hosted Saudi Arabia’s King Salman and signed deals worth as much as $65 billion with Riyadh.

The Middle East, however, is fraught with risk for China, a country that has little experience navigating the religious and political tensions that frequently rack the region.

China also has close ties with Iran, whose nuclear program has seriously alarmed Israel.

(Reporting by Ben Blanchard; Additional reporting by Luke Baker in Jerusalem; Editing by Tom Heneghan)

As Trump stresses ‘America First’, China plays the world leader

Xi Jinping, China's President

By Ben Blanchard

BEIJING (Reuters) – China is calmly mapping out global leadership aspirations from trade to climate change, drawing distinctions between President Xi Jinping’s steady hand and new U.S. President Donald Trump, whose first days have been marked by media feuds and protests.

Just days ahead of Trump taking office, a self-assured Xi was in Switzerland as the keynote speaker at the World Economic Forum in Davos, offering a vigorous defense of globalization and signaling Beijing’s desire to play a bigger role on the world stage.

Even on the thorny issue of the South China Sea, Beijing did not rise to the bait of White House remarks this week about “defending international territories” in the disputed waterway. Instead, China stressed its desire for peace and issued a restrained call for Washington to watch what it says.

“You have your ‘America first’, we have our ‘community of common destiny for mankind’,” Retired Major-General Luo Yuan, a widely read Chinese military figure best known for his normally hawkish tone, wrote on his blog this week.

“You have a ‘closed country’, we have ‘one belt, one road’,” he added, referring to China’s multi-billion dollar new Silk Road trade and investment program.

And while China has repeatedly said it does not want the traditional U.S. role of world leadership, a senior Chinese diplomat accepted this week it could be forced upon China.

“If anyone were to say China is playing a leadership role in the world I would say it’s not China rushing to the front but rather the front runners have stepped back leaving the place to China,” said Zhang Jun, director general of the Chinese Foreign Ministry’s international economics department.

STEPPING UP

That message was reinforced this week when Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal, distancing America from its Asian allies. Several remaining TPP members said they would now look to include China in a revised pact, or pursue Beijing’s alternative free trade agreements.

“At many important multilateral forums, China’s leader has put forward Chinese proposals, adding positive impetus to world development,” Su Xiaohui a senior researcher at the Foreign Ministry-backed China Institute of International Studies, wrote of the U.S. TPP decision in the overseas edition of the People’s Daily.

“In the economic integration process of the Asia Pacific, compared to certain countries who constantly bear in mind their leadership role, what China pays even more attention to is ‘responsibility’ and ‘stepping up’,” Su said.

China’s hosting of an international conference on its “One Belt, One Road” initiative in May is one opportunity for Beijing to showcase its leadership of global infrastructure and investment.

A diplomatic source familiar with preparations said China was likely to hold it at the same glitzy convention center used to host the Asia Pacific Economic Cooperation summit in 2014, setting the stage for Xi’s most high profile diplomatic event of the year.

“China’s pretty much inviting everyone,” the diplomat said.

Another area where China is keen to be seen as leading the way is climate change. Trump has in the past dismissed climate change as a “hoax” and vowed during his presidential campaign to pull the United States out of the Paris Climate Agreement.

Li Junhua, head of the Chinese Foreign Ministry’s Department of International Organizations and Conferences, said world was worried about climate change and whether countries would honor their Paris commitments.

“As far as China is concerned, my president has made it extremely clear, crystal clear, China will do its part,” Li told reporters.

LEARNING PROCESS

It’s not always been this way. China has been through a long, tough learning process to become a more responsible power.

In 2013, China, angered with Manila over the long dispute on the South China Sea, only stumped up meager aid to the Philippines after it was hit by Super Typhoon Haiyan, prompting rare dissent in the influential Chinese state-run tabloid the Global Times that Beijing’s international image would be hit.

It also will not be plain sailing. On certain key core issues including the self-ruled island of Taiwan, China will not back down.

In its first official reaction to Trump taking office, China’s Foreign Minister urged his administration to fully understand the importance of the “one China” principle, which Trump has called into doubt and under which Washington acknowledges China’s position of sovereignty over Taiwan.

China also expects that under the Trump administration it will be left alone on one issue that has long dogged ties with Washington – human rights.

The WeChat account of the overseas edition of the ruling Communist Party’s official People’s Daily noted with approval on Saturday that Trump’s inaugural speech neither mentioned the words “democracy” nor “human rights”.

“Perhaps looking back, these things have been hyped up too much” by U.S. politicians, it added.

(Editing by Lincoln Feast)

China’s Xi says to build new relations with United States

Xi Jinping, China's president

By Tom Miles and Stephanie Nebehay

GENEVA (Reuters) – China will build a new model of relations with the United States as part of its creation of a “circle of friends” around the world, President Xi Jinping said in a speech at the United Nations in Geneva on Wednesday.

His speech, the finale of a Swiss trip that included a state visit and topping the bill at the World Economic Forum in Davos, was intended to highlight a Chinese interest in playing a cooperative role in international affairs.

“We always put people’s rights and interests above everything else and we have worked hard to develop and uphold human rights,” he said. “China will never seek expansion, hegemony or sphere of influence.”

Human rights groups and Western governments have accused China of widespread human rights abuses. Beijing has also been accused by smaller neighbors of expansionist ambitions in the South China Sea but denies such charges.

“Big countries should treat smaller countries as equals instead of acting as a hegemon imposing their will on others.

“We will strive to build new model of major country relations with the United States, a comprehensive strategic partnership of coordination with Russia, a partnership for peace, growth, reform and among different civilizations,” he said.

U.S. President-elect Donald Trump was particularly critical of China during his election campaign, accusing it of exploiting the United States economically. He also raised concern by taking a telephone call after his election from the president of Taiwan which Beijing regards as a renegade province.

Xi called for unity on climate change and the fight against terrorism, as well as nuclear disarmament.

“The Paris agreement is a milestone in the history of climate governance. We must ensure this endeavor is not derailed…China will continue to take steps to tackle climate change and fully honor its obligations,” Xi said.

China itself suffers serious air pollution but has pushed hard to develop “green” energy systems. President-elect Trump has cast doubt on accepted scientific wisdom that carbon emissions are driving a rise in global temperatures.

The deep sea, the polar regions, outer space and the Internet should be new frontiers for cooperation rather than a wrestling ground for competition, he said.

(Reporting by Tom Miles and Stephanie Nebehay; Editing by Ralph Boulton)

After shoddy China economic data, Xi says to persevere with reform

Xi Jinping

BEIJING (Reuters) – China will push forward supply-side reform and increase the number of middle-income earners, state television quoted President Xi Jinping as saying on Monday, after economic data for April fueled doubts about the economy’s health.

Xi’s speech to a meeting of top government economic regulators underscores the importance, and pressure, of managing China’s economic shift as growth has cooled to 25-year lows.

Investment, factory output and retail sales in the world’s second-largest economy all grew more slowly than expected in April.

The main thrust is to reduce ineffective supply and increase effective supply, Xi said, according to the official Xinhua news agency.

The government has made reducing the capacity glut one of its top priorities, and has vowed to put “zombie” companies out of business. But economists expect authorities to move slowly to avoid a sharp jump in unemployment.

In some regions there had not been forceful action on government policies, Xi was quoted as saying by Xinhua. At the same time, some policies need to be further researched and drawn up.

For the state and society to remain stable over the long-term, the government must realize its goal of meeting people’s needs and expanding the number of middle-income earners, he said.

China must push forward reform of state-owned enterprises, accelerate change in how government functions and deepen the fundamental reforms of pricing, taxation, finance and social insurance, said Xi.

The government must also improve China’s income distribution system and strengthen people’s property protections, he said.

Separately, China’s State Council plans to encourage private investment, a major foundation of a stable economy, in part by removing hidden barriers, Xinhua said on Monday.

To that end, the State Council will send teams to government departments and provincial governments to inspect progress on promoting private investment, said Xinhua.

(Reporting by Beijing Monitoring Desk, Elias Glenn and Paul Carsten, Editing by Ed Osmond)

China Still Trying to Hack U.S. Firms, Despite Denials

Despite a recent pact between Chinese President Xi Jinping and President Obama to stop cyber war, security services provider, CrowdStrike, has reported that several Chinese state-backed hackers have been carrying out cyberattacks on several U.S. companies, according to NBC.

CrowdStrike claims that they have blocked every attack that they have come across so far and that the hackers seem to be targeting the networks of U.S. technology and pharmaceutical companies.

Just a few weeks ago, Xi visited the United States, promising leaders of American technology companies that the cyber attacks would stop. He also signed an agreement with President Obama that China and the United States would refrain from continued hacks that were aimed at obtaining company trade secrets for commercial advantage.

But two days after the agreement there were two attacks on technology companies, and more hacking attempts have happened since then.

“Seven of the companies are firms in the technology or pharmaceuticals sectors, where the primary benefit of the intrusions seems clearly aligned to facilitate theft of intellectual property and trade secrets, rather than to conduct traditional national-security related intelligence collection which the Cyber agreement does not prohibit,” CrowdStrike wrote in a blog post Monday.

If the cyberattacks continue it could lead to sanctions being placed against Chinese companies according to the agreement made between Xi and Obama.

The U.S. has also been accused of attempting to hack the networks of Chinese companies. Edward Snowden, former NSA contractor, came forward with information on how the U.S. hacked Chinese company, Huawei last year. Government officials continue to state that the reason for the hack was for national security purposes, not economic advantages.

The Chinese government has not made any comments regarding these attacks at this time.