Tag Archives: China

Britain and Australia urge China to do more on North Korea threat

North Korean soldiers watch the south side as the United Nations Command officials visit after a commemorative ceremony for the 64th anniversary of the Korean armistice at the truce village of Panmunjom in the Demilitarized Zone (DMZ) dividing the two Koreas July 27, 2017. REUTERS/Jung Yeon-Je/Pool

SYDNEY (Reuters) – Britain and Australia urged China on Thursday to do more to persuade North Korea to drop its nuclear and missile programs.

Earlier this month North Korea, which has warned Australia could be the target of a strike, said it had conducted its first test of an intercontinental ballistic missile, which experts say could reach Alaska.

The United States and other countries have indicated frustration that China, North Korea’s sole major ally, has not done more to rein in the regime of Kim Jung Un.

“With international influence comes responsibility. It is now for Beijing to use the influence it has over the North Korean regime to get it to abandon its program,” British Defence Secretary Michael Fallon told reporters in Sydney.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs and the Security Council has ratcheted up measures in response to five nuclear weapons tests and two long-range missile launches.

Fallon said North Korea continues to receive help in developing its missile and nuclear ambitions as he called on enforcement of the sanctions.

North Korea’s missile and nuclear program was a central element of the fourth annual meeting of Australia and British ministers.

“We are seeing a level of uncertainty that we have not witnessed in a very long time,” Australian Foreign Minister Julie Bishop told reporters in Sydney.

“It is more important than ever before for like-minded countries to find common cause in supporting that international rules-based order.”

Earlier, Bishop told the Australian Broadcasting Corp’s Radio National that China “has much more leverage over North Korea than it claims.”

“The export relationship with North Korea, the provision of remittance to workers, the foreign investment flows, the technology flows – these are all in China’s hands,” she said.

The United States could impose new sanctions on Chinese firms doing business with Pyongyang, senior U.S. officials have said.

China has rejected the criticism and urged a halt to what it called the “China responsibility theory”, saying all parties needed to pull their weight.

(Reporting by Swati Pandey; Additional reporting by Colin Packham; Editing by Richard Pullin and Neil Fullick)

U.S. likely to target more Chinese entities over North Korea ‘fairly soon’: official

FILE PHOTO: North Korean soldiers chat as they stand guard behind national flags of China (front) and North Korea on a boat anchored along the banks of Yalu River, near the North Korean town of Sinuiju, opposite the Chinese border city of Dandong, June 10, 2013. REUTERS/Jacky Chen

By David Brunnstrom

WASHINGTON (Reuters) – New U.S. sanctions aimed at curbing North Korean’s weapons programs, including measures aimed at Chinese financial institutions, can be expected “fairly soon,” a senior U.S. official said on Tuesday.

Asked when such sanctions could be expected and whether they could come within 30 days, Susan Thornton, the acting assistant secretary of state for East Asia, told a Senate sub-committee hearing:

“We have been working on coming up with a new list of entities that we think are violating … I think you’ll see something fairly soon, yes.”

Thornton said the United States would prefer to cooperate with China in going after entities doing business with North Korea in violation of U.N. sanctions.

“But we are perfectly prepared to act on our own,” she said.

“I think the Chinese are now very clear that we’re going to go after Chinese entities if need be, if we find them to be in violation, and if the Chinese feel they can’t cooperate in going after those targets.”

Thornton also said Washington was still considering whether to add North Korea back to the U.S. list of state sponsors of terrorism, from which it was removed in 2008 in exchange for progress in denuclearization talks.

“We are reviewing that issue right now … We are looking at the issue of designation,” she said, adding that she could not give a time frame for a decision.

Thornton said the United States had offered customs assistance to China to help stem illicit trade over its border with North Korea. “We are working on that with them, as are some of our like-minded allies in the region,” she said.

She said sanctions had affected North Korea’s ability to get materials for its weapons programs, but had not slowed its missile testing, as a lot of the production for this program was now indigenous.

“We are continuing to talk to China about that,” she said. “We’re continuing to try to impinge on sources of, particularly, hard currency, financing, but … it’s become harder and harder to stop this kind of activity in North Korea.”

U.S. officials said on Tuesday they had seen increased activity at a site in the western city of Kusong that could be preparations for another missile test within days.

U.S. officials told Reuters this month the Trump administration could impose new sanctions on small Chinese banks and other firms doing business with Pyongyang within weeks.

China’s Ambassador to Washington Cui Tiankai said on Tuesday secondary sanctions on Chinese firms were “unacceptable” and had “severely impaired” cooperation on North Korea.

(Reporting by David Brunnstrom and Matt Spetalnick; Editing by James Dalgleish)

U.S. says progress with China on N.Korea U.N. sanctions, true test is Russia

U.S. Ambassador to the United Nations Nikki Haley directs comments to the Russian delegation at the conclusion of a U.N. Security Council meeting to discuss the recent ballistic missile launch by North Korea at U.N. headquarters in New York.

By Michelle Nichols

UNITED NATIONS (Reuters) – The United States is making progress in talks with North Korean ally China on imposing new United Nations sanctions on Pyongyang over its latest missile test, but Russia’s engagement will be the “true test,” U.S. Ambassador to the U.N. Nikki Haley said on Tuesday.

The United States gave China a draft resolution nearly three weeks ago to impose stronger sanctions on North Korea over the July 4 missile launch. Haley had been aiming for a vote by the 15-member Security Council within weeks, senior diplomats said.

“We’re constantly in touch with China … Things are moving but it’s still too early to tell how far they’ll move,” Haley told reporters, adding that she was pleased with China’s initial response to the U.S. proposal because it showed “seriousness.”

“We know that China’s been sharing and negotiating with Russia, so as long as they are doing that, we’re going to continue to watch this closely to make sure it is a strong resolution,” she said.

China’s U.N. Ambassador Liu Jieyi told reporters: “We are making progress, it requires time, but we’re working very hard.”

Traditionally, the United States and China have negotiated sanctions on North Korea before formally involving other council members, though diplomats said Washington informally keeps Britain and France in the loop. Along with Russia, those five countries are veto-wielding Security Council members.

“The true test will be what (the Chinese) have worked out with Russia (and whether) Russia comes and tries to pull out of that,” said Haley.

The United States and Russia have waged rival campaigns at the Security Council over the type of ballistic missile fired by North Korea. Western powers have said it was an intercontinental ballistic missile (ICBM), while Russia said the missile fired was only medium-range.

Diplomats say China and Russia only view a long-range missile test or nuclear weapon test as a trigger for further possible U.N. sanctions.

“Everyone that we have dealt with acknowledges that it’s an ICBM. Whether they are willing to put it in writing or not is going to be the real question,” Haley said.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs and the Security Council has ratcheted up the measures in response to five nuclear weapons tests and two long-range missile launches.

President Donald Trump’s administration has been frustrated that China has not done more to rein in North Korea and senior officials have said Washington could impose new sanctions on Chinese firms doing business with Pyongyang.

When asked how long Washington was willing to negotiate with China at the United Nations before deciding to impose its own secondary sanctions, Haley said: “We’re making progress … We’re going to see what the situation is.”

“We want China and every other country to see it as serious and we’re going to keep moving forward that way,” she said.

China’s Ambassador to Washington Cui Tiankai said on Tuesday that Beijing objected to secondary sanctions. In June, the United States blacklisted two Chinese citizens and a shipping company for helping North Korea’s nuclear and missile programs.

“Such actions are unacceptable. They have severely impaired China-U.S. cooperation on the Korean nuclear issue, and give rise to more questions about the true intention of the U.S.,” he told the Institute for China-America Studies in Washington.

(Additional reporting by David Brunstrom in Washington; Editing by James Dalgleish)

Chinese jets intercept U.S. surveillance plane: U.S. officials

FILE PHOTO: A U.S. Navy EP-3E Aries signals reconnaissance aircraft, escorted by an EA-18G Growler electronic warfare aircraft, performs a flyby over aircraft carrier USS Harry S. Truman in the Arabian Gulf April 24, 2016. U.S. Navy/Mass Communication Specialist 3rd Class Bobby J Siens/Handout/File Photo via REUTERS

By Idrees Ali

WASHINGTON (Reuters) – Two Chinese fighter jets intercepted a U.S. Navy surveillance plane over the East China Sea at the weekend, with one jet coming within about 300 feet (91 meters) of the American aircraft, U.S. officials said on Monday.

The officials, speaking on condition of anonymity, said initial reports showed one of the Chinese J-10 aircraft came close enough to the U.S. EP-3 plane on Sunday to cause the American aircraft to change direction.

One of the officials said the Chinese jet was armed and the interception happened 80 nautical miles (148 km) from the Chinese city of Qingdao.

The Pentagon said the encounter between the aircraft was unsafe, but added that the vast majority of interactions were safe.

China’s Defence Ministry said the actions of its pilots were “legal, necessary and professional” and performed “in accordance with the law and the rules”.

“Close-in reconnaissance by U.S. aircraft threatens China’s national security, harms Sino-U.S. maritime and air military safety, endangers the personal safety of both sides’ pilots and is the root cause of unexpected incidents,” it said.

The United States should immediately stop these military activities, which are unsafe, unprofessional and unfriendly, it added.

Incidents such as Sunday’s intercept are relatively common.

In May, two Chinese SU-30 aircraft intercepted a U.S. aircraft designed to detect radiation while it was flying in international air space over the East China Sea.

China closely monitors any U.S. military activity around its coastline.

In 2001, an intercept of a U.S. spy plane by a Chinese fighter jet resulted in a collision that killed the Chinese pilot and forced the American plane to make an emergency landing at a base on Hainan.

The 24 U.S. air crew members were held for 11 days until Washington apologized for the incident. That encounter soured U.S.-Chinese relations in the early days of President George W. Bush’s first term in office.

Separately, the Pentagon said the U.S. military would soon carry out another test of it’s Terminal High Altitude Area Defense (THAAD) system.

“These tests are done as a routine measure to ensure that the system is ready and… they are scheduled well in advance of any other real world geopolitical events going on,” Pentagon spokesman Captain Jeff Davis told reporters.

The director of the Missile Defense Agency, Lieutenant General Sam Greaves, said in a statement that a test would be carried out at the Pacific Spaceport Complex in Alaska.

Last month the United States shot down a simulated, incoming intermediate-range ballistic missile similar to the ones being developed by countries like North Korea, in a test of the nation’s THAAD missile defenses.

The United States deployed THAAD to South Korea this year to guard against North Korea’s shorter-range missiles. That has drawn fierce criticism from China, which says the system’s powerful radar can penetrate deep into its territory.

(Reporting by Idrees Ali; Additional reporting by Michael Martina in BEIJING; Editing by Grant McCool and Clarence Fernandez)

China says reforms have made military more nimble

Chinese President Xi Jinping attends a news conference at the Chancellery in Berlin, Germany, July 5, 2017. REUTERS/Fabrizio Bensch

BEIJING (Reuters) – China’s military is more nimble and technologically proficient following reforms to make it more compact and responsive, rather than just relying on strength of numbers, state media on Tuesday cited President Xi Jinping as saying.

China’s armed forces, the world’s largest, are in the midst of an ambitious modernization program, from restructuring to troop cuts and investment in technology and equipment upgrades, such as acquiring stealth fighters and aircraft carriers.

Speaking to the ruling Communist Party’s elite Politburo, Xi called for all-out efforts to drive military reform, the official Xinhua news agency said.

“After the reforms, our military’s scale is smaller, but it is more capable, its structure is more optimized, its formation more scientific,” the report paraphrased Xi, who is head of the military, as saying.

This has changed the model of the armed forces, which once depended for victory on strength of numbers, but are now making great strides to becoming a high-quality, effective and technologically proficient military, Xi added.

China’s military has not fought a war in decades and the government insists it has no hostile intent, simply needing the ability to properly defend what is now the world’s second-largest economy.

But China has rattled nerves around the Asian region with its increasingly assertive stance in the East and South China Seas and its military equipment modernization plan.

Xi, who made the comments ahead of the 90th anniversary of the founding of the People’s Liberation Army on Aug. 1, called the reforms unprecedented in the history of Communist China.

“A strong military is an important strategic prop for a strong country, and is also an important strategic mission for our party,” Xi said.

The reforms have not been uncontroversial, with unease in particular about the 300,000 troop cuts Xi announced in 2015.

Xi appeared to allude to those cuts by saying government officials must “make every effort to help officers and soldiers resolve worries about the future consequences”.

The report did not elaborate.

(Reporting by Ben Blanchard; Editing by Clarence Fernandez)

U.S. Navy chief asks Chinese counterpart for help on North Korea

Chief of U.S. Naval Operations Admiral John Richardson poses after speaking to reporters on the pier of the USS Coronado, a littoral combat ship, at the Changi Naval Base in Singapore, May 16, 2017. REUTERS/Himani Sarkar

WASHINGTON (Reuters) – The U.S. Navy’s top officer asked his Chinese counterpart to exert influence on North Korea to help rein in its advancing nuclear and missile programs, a U.S. official said on Thursday.

Chief of U.S. Naval Operations Admiral John Richardson spoke with his Chinese counterpart Vice Admiral Shen Jinlong via a video teleconference.

“Richardson voiced his concern about the nuclear and missile programs and emphasized that China should use its unique influence over North Korea,” said the official, speaking on condition of anonymity.

The call lasted for an hour and the two talked about the need to “work together to address the provocative and unacceptable military behavior by North Korea,” the U.S. Navy said in a statement.

Last month U.S. President Donald Trump said Chinese efforts to persuade North Korea had failed.

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

North Korea recently said it conducted its first test of an intercontinental ballistic missile, and that it had mastered the technology to mount a nuclear warhead on the missile.

The United States has remained technically at war with North Korea since the 1950-53 Korean War ended in an armistice rather than a peace treaty. The past six decades have been punctuated by periodic rises in antagonism as well as rhetoric that has stopped short of a resumption of active hostilities.

Tensions rose sharply after North Korea conducted two nuclear weapons tests last year and carried out a steady stream of ballistic missile tests.

(Reporting by Idrees Ali; Editing by Jeffrey Benkoe)

Case of missing China scholar rattles compatriots at U.S. colleges

Chinese student Yingying Zhang is seen in a still image from security camera video taken outside an MTD Teal line bus in Urbana, Illinois, U.S. June 9, 2017. University of Illinois Police/Handout via REUTERS

By Julia Jacobs

CHICAGO(Reuters) – For many of the 300,000 Chinese students at U.S. colleges and their parents back home, the presumed kidnapping of a visiting scholar at the University of Illinois confirmed their worst fears about coming to America to study.

Xinyi Zhang, a 21-year-old student from China who is studying accounting at the same Illinois school that the missing woman was attending, said the case has stirred deep anxiety for her and her family in China.

She said she had tried to shield her parents from details of the disappearance of Yingying Zhang, 26, who came to Illinois several months ago to study photosynthesis and crop productivity. But the Chinese media had covered the story too closely to keep them in the dark.

“I just don’t want them to be panicked,” said Xinyi Zhang, who is not related to the missing woman. “I am the only child they have, and the risk of losing me is just too huge to handle.”

The business school student, who is home for the summer before returning to Illinois next month for her senior year, said her parents worry about her going back to her off-campus apartment. They have even suggested she apply to graduate school in a different country.

The case came to a head this month when a 28-year-old former Illinois graduate student, Brendt Christensen, was charged with kidnapping Zhang, who went missing on June 9. Authorities believe she is dead, though no body has been found.

Her misfortune has become a near-obsession with many of the 300,000 Chinese international students at U.S. colleges and their parents half a world away, lighting up social media and animating long-distance phone calls.

State-sponsored Chinese news media outlets have framed the case as emblematic of a security problem in the United States. The People’s Daily, the Chinese Communist Party’s official newspaper, wrote earlier this month that the kidnapping shows that China is “much safer” than America.

On Weibo, a Chinese blogging site, commenters have repeatedly questioned the Federal Bureau of Investigation’s effectiveness in investigating the case, said Berlin Fang, a Chinese newspaper columnist based in the United States.

Xiaotong Gui, a 20-year-old math student at Pomona College outside Los Angeles, said reading about the case made her feel unsafe on her own campus nearly 2,000 miles (3,200 km) from the Illinois university, which draws thousands of students from China.

On Johns Hopkins University’s Baltimore campus, Luorongxin Yuan, a 20-year-old biology student from outside Nanjing, said the fact that the accused kidnapper was a graduate student has made her mother particularly anxious. “She doesn’t trust anyone here anymore,” Yuan said.

Before Christensen’s arrest, federal agents put him under surveillance and heard him say that he had kidnapped Zhang, court documents show. A search of the suspect’s cellphone revealed that he had visited a website that included threads on “perfect abduction fantasy.”

His attorney has said his client is still presumed innocent. If convicted, Christensen could face up to life in prison.

Shen Qiwen, a spokesman for the Chinese consulate in Chicago, said Chinese officials hoped the FBI would step up efforts to find the missing scholar. The FBI is involved in the case because kidnapping is a federal crime. A spokeswoman for the U.S. attorney’s office did not respond to requests for comment.

Illinois business student Xinyi Zhang said many Chinese students are hoping for a miracle.

“That could be me,” she said. “For some reason I’m still holding my hope, though, that there’s a tiny, tiny chance that she’s alive right now.”

(Reporting by Julia Jacobs; editing by Frank McGurty and Jonathan Oatis)

South Korea’s new government proposes military talks with North Korea

A South Korean security guard stands guard on an empty road which leads to the Kaesong Industrial Complex (KIC) at the South's CIQ (Customs, Immigration and Quarantine), just south of the demilitarised zone separating the two Koreas, in Paju, South Korea, February 11, 2016. The Korean characters on the gateway reads "Inter-Korean Transit Office".

By Christine Kim

SEOUL (Reuters) – South Korea on Monday proposed military talks with North Korea, the first formal overture to Pyongyang by the government of President Moon Jae-in, to discuss ways to avoid hostile acts near the heavily militarized border.

There was no immediate response by the North to the proposal for talks later this week. The two sides technically remain at war but Moon, who came to power in May, has pledged to engage the North in dialogue as well as bring pressure to impede its nuclear and missile programs.

The offer comes after the North claimed to have conducted the first test of an intercontinental ballistic missile (ICBM) earlier this month, and said it had mastered the technology to mount a nuclear warhead on the missile. South Korea and the United States, its main ally, dispute the claim.

“Talks and cooperation between the two Koreas to ease tension and bring about peace on the Korean peninsula will be instrumental for pushing forth a mutual, virtuous cycle for inter-Korea relations and North Korea’s nuclear problem,” the South’s Unification Minister Cho Myoung-gyon told a news briefing.

The South Korean defense ministry proposed talks with the North on July 21 at Tongilgak to stop all activities that fuel tension at the military demarcation line.

Tongilgak is a North Korean building at the Panmunjom truce village on the border used for previous inter-Korea talks. The last such talks were held in December 2015.

Cho also urged the restoration of military and government hotlines across the border, which had been cut by the North last year in response to the South imposing economic sanctions after a nuclear test by Pyongyang. In all, the North has conducted five nuclear tests and numerous missile tests.

The South also proposed separate talks by the rival states’ Red Cross organizations to resume a humanitarian project to reunite families separated during the 1950-53 Korean War in closely supervised events held over a few days.

The South Korean Red Cross suggested talks be held on Aug. 1, with possible reunions over the Korean thanksgiving Chuseok holiday, which falls in October this year.

The last such reunions were held in October 2015 during the government of Moon’s predecessor under a futile push for reconciliation following a sharp increase in tension over border incidents involving a landmine blast and artillery fire.

 

BEIJING IN FAVOR

China, which has close ties to Pyongyang despite Beijing’s anger over North Korea’s missile and nuclear tests, welcomed the proposal, saying cooperation and reconciliation between the two Koreas was good for everyone and could help ease tensions.

“We hope that North and South Korea can work hard to go in a positive direction and create conditions to break the deadlock and resume dialogue and consultation,” Chinese Foreign Ministry spokesman Lu Kang told a daily news briefing.

The proposals come after Moon said at the G20 summit in Hamburg earlier this month that he was in favor of dialogue with the North despite the “nuclear provocation” of its latest missile test.

When Moon visited Washington after being elected president, he and U.S. President Donald Trump said they were open to renewed dialogue with North Korea but only under circumstances that would lead to Pyongyang giving up its weapons programs.

“The fact that we wish to take on a leading role in resolving this (North Korean) issue has already been understood at the summit with the United States and the Group of 20 summit meetings,” Cho said on Monday.

In the proposal for talks, South Korea did not elaborate on the meaning of hostile military activities, which varies between the two Koreas. South Korea usually refers to loudspeaker propaganda broadcasts by both sides, while the North wants a halt to routine joint U.S.-South Korea military drills.

Moon suggested earlier this month hostile military activities at the border be ended on July 27, the anniversary of the 1953 armistice agreement that ended the Korean War. Since no truce was agreed, the two sides remain technically at war.

When asked if South Korea was willing to “be flexible” on military drills with the United States should North Korea be open to talks, Cho said the government had not discussed the matter specifically.

Pyongyang has repeatedly said it refuses to engage in all talks with the South unless Seoul turns over 12 waitresses who defected to the South last year after leaving a restaurant run by the North in China.

North Korea says the South abducted the 12 waitresses and the restaurant manager and has demanded their return, but the South has said the group decided to defect of its own free will. Cho said this matter is not included on the talks agenda.

In an act to rein in the North, the United States is preparing new sanctions on Chinese banks and firms doing business with Pyongyang possibly within weeks, two senior U.S. officials said last week.

 

(Additional reporting by Ben Blanchard in BEIJING; Editing by Raju Gopalakrishnan)

 

Asserting sovereignty, Indonesia renames part of South China Sea

Indonesia's Deputy Minister for Maritime Affairs Arif Havas Oegroseno points at the location of North Natuna Sea on a new map of Indonesia during talks with reporters in Jakarta, Indonesia, July 14, 2017. REUTERS/Beawiharta

By Tom Allard and Bernadette Christina Munthe

JAKARTA (Reuters) – Indonesia renamed the northern reaches of its exclusive economic zone in the South China Sea as the North Natuna Sea on Friday, the latest act of resistance by Southeast Asian nations to China’s territorial ambitions in the maritime region.

Seen by analysts as an assertion of Indonesian sovereignty, part of the renamed sea is claimed by China under its contentious maritime boundary, known as the ‘nine-dash line’, that encompasses most of the resource-rich sea.

Several Southeast Asian states dispute China’s territorial claims and are competing with China to exploit the South China Sea’s abundant hydrocarbon and fishing resources. China has raised the ante by deploying military assets on artificial islands constructed on shoals and reefs in disputed parts of the sea.

Indonesia insists it’s a non-claimant state in the South China Sea dispute but has clashed with China over fishing rights around the Natuna Islands, detaining Chinese fishermen and expanding its military presence in the area over the past 18 months.

Unveiling the new official map, the deputy of maritime sovereignty at the Ministry of Maritime Affairs, Arif Havas Oegroseno, noted the northern side of its exclusive economic zone was the site of oil and gas activity.

“We want to update the naming of the sea [and] we gave a new name in line with the usual practice: the North Natuna Sea,” he told reporters.

In Beijing, Chinese Foreign Ministry spokesman Geng Shuang said he didn’t know anything about the details of the issue, but said the name South China Sea had broad international recognition and clear geographic limits.

“Certain countries’ so-called renaming is totally meaningless,” he told a daily news briefing. “We hope the relevant country can meet China halfway and properly maintain the present good situation in the South China Sea region, which has not come easily.”

‘CLEAR MESSAGE’

I Made Andi Arsana, an expert on the Law of the Sea from Indonesia’s Universitas Gadjah Mada, said the renaming carried no legal force but was a political and diplomatic statement.

“It will be seen as a big step by Indonesia to state its sovereignty,” he told Reuters. “It will send a clear message, both to the Indonesian people and diplomatically speaking.”

Euan Graham, director of the international security program at the Lowy Institute, said Indonesia’s action followed renewed resistance to Chinese territorial claims by other Southeast Asian states.

“This will be noticed in Beijing,” he said.

Last week, Vietnam extended an Indian oil concession off its coast while a joint venture led by state-owned PetroVietnam commenced drilling further south. China has a territorial claim in both areas.

Meanwhile, the director of the Philippines Energy Resource Development Bureau, Ismael Ocampo, said on Wednesday that the country could lift a suspension on oil and gas drilling on the Reed Bank by December. The underwater mountain, lying 85 nautical miles off the Philippines coast, is also claimed by China.

Exploration activity was suspended in late 2014 as the Philippines sought an international ruling on China’s territorial claim. The Philippines won the case in the Permanent Court of Arbitration in the Hague one year ago.

China refused to recognize the decision. Philippines President Rodrigo Duterte, who took office on June 30 last year, expressed reluctance about enforcing the decision at the time, as he sought deeper diplomatic and economic ties with China.

However, the Philippines lately has become more assertive about its sovereignty.

More than two dozen oil, gas and coal blocks, including additional areas in disputed waters, may be offered during the December bidding, Ocampo said on Wednesday.

(Reporting by Tom Allard and Bernadette Christina Munthe; Additional reporting by Ben Blanchard in Beijing; Editing by Bill Tarrant)

Exclusive: U.S. prepares new sanctions on Chinese firms over North Korea ties – officials

FILE PHOTO: Flags of U.S. and China are placed for a meeting in Beijing, China June 30, 2017. REUTERS/Jason Lee

By Matt Spetalnick and David Brunnstrom

WASHINGTON (Reuters) – Frustrated that China has not done more to rein in North Korea, the Trump administration could impose new sanctions on small Chinese banks and other firms doing business with Pyongyang within weeks, two senior U.S. officials said.

The U.S. measures would initially hit Chinese entities considered “low-hanging fruit,” including smaller financial institutions and “shell” companies linked to North Korea’s nuclear and missile programs, said one of the officials, while declining to name the targets.

It would leave larger Chinese banks untouched for now, the official said.

The timing and scope of the U.S. action will depend heavily on how China responds to pressure for tougher steps against North Korea when U.S. and Chinese officials meet for a high-level economic dialogue in Washington on Wednesday, the administration sources told Reuters.

President Donald Trump and his top aides have signaled growing impatience with China over North Korea, especially since Pyongyang last week test-launched its first intercontinental ballistic missile, which experts say could put all of Alaska in range for the first time.

U.S. officials have also warned that China could face U.S. trade and economic pressure – something Trump has held in abeyance since taking office in January – unless it does more to restrain its neighbor.

The so-called “secondary sanctions” now being considered are a way for the United States to apply targeted economic pressure on companies in countries with ties to North Korea by denying them access to the U.S. market and financial system.

Word of the sanctions plan comes as U.S. ambassador to the United Nations Nikki Haley seeks to overcome resistance from China and Russia to a U.N. Security Council resolution imposing stiffer international sanctions on Pyongyang.

The targets now being weighed for sanctions would come from a list of firms numbering “substantially more than 10” that Trump shared with Chinese President Xi Jinping at a Florida summit in April and which U.S. experts have continued to compile for review, according to one of the officials.

The administration has yet to see what it considers a sufficient response from China.

“The president is losing patience with China,” the official said, adding that there would be a “more aggressive approach to sanctioning Chinese entities … in the not-too-distant future.”

China’s embassy in Washington did not respond immediately to a request for comment. The White House declined comment.

HALEY’S WARNING

Though the sources stressed that no final decisions had been made, they said China, North Korea’s main trading partner, was crucial to pressuring Pyongyang to prevent it from achieving the capability of striking the United States with a nuclear-tipped missile.

During a U.N. Security Council meeting last week, Haley threatened secondary sanctions if the council could not agree on new sanctions – though she did not cite China by name.

In late June, Washington imposed secondary sanctions on two Chinese citizens and a shipping company for helping North Korea’s nuclear and missile programs and accused a regional Chinese bank, the Bank of Dandong, of laundering money for Pyongyang.

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Fresh U.S. sanctions would be aimed at sending a message to Beijing of Washington’s resolve to act further on its own.

But they would stop short, at least for now, of the kind of broad “sectoral” sanctions Trump’s predecessor, Barack Obama, secured through unilateral and international action against Iran to pressure it into negotiations to curb its nuclear program.

Cui Tiankai, China’s ambassador to Washington, said on Monday that secondary sanctions were “not acceptable.”

“Such actions are obstructing cooperation between China and the U.S. and lead to questions about the real intentions of the U.S. side,” according to a transcript of his remarks from the Chinese embassy.

The threat of further secondary sanctions on Chinese companies could complicate next week’s U.S.-China Comprehensive Economic Dialogue, an important forum for narrowing differences between the world’s two biggest economies.

While preparations for fresh sanctions are moving forward, tangible new steps by China could prompt Washington to put the measures on hold, the U.S. sources said.

“They’d have to show they’re really serious,” the second official said. “We’re not going to be paralyzed into inaction.”

U.S. and U.N. sanctions have so far failed to deter Pyongyang from pursuing its nuclear and missile programs.

Trump pledged repeatedly during his election campaign to get tough on Chinese trade practices deemed unfair to the United States, but his rhetoric softened after the friendlier-than-expected April summit with Xi.

Shortly after their meeting, Trump said he had told Xi that China would get a better trade deal if it reined in North Korea.

But in recent weeks, Trump has fired off tweets denouncing China’s trade with North Korea and cast doubt on whether Beijing was doing enough to counter Pyongyang.

Reflecting growing concern about North Korea on Capitol Hill, two members of the U.S. Senate Banking Committee, Democrat Chris Van Hollen and Republican Pat Toomey, announced on Wednesday they would soon introduce legislation for North Korea modeled on the Iran secondary sanctions laws passed by Congress.

(Reporting by David Brunnstrom and Matt Spetalnick, additional reporting by Michelle Nichols in New York and Patricia Zengerle in Washington; Editing by Yara Bayoumy and Ross Colvin)