Peaceful outcome for Korean peninsula still possible: Pence

U.S. Vice President Mike Pence speaks during a media conference with Australia's Prime Minister Malcolm Turnbull at Admiralty House in Sydney, Australia, April 22, 2017. REUTERS/Jason Reed

By Roberta Rampton and Colin Packham

SYDNEY (Reuters) – Denuclearisation of the Korean peninsula can still be achieved peacefully because of Washington’s new engagement with China, U.S. Vice President Mike Pence said on Saturday, despite growing fears North Korea could soon conduct a new nuclear test.

South Korea is on heightened alert ahead of another important anniversary in the reclusive North that could be the trigger for a new nuclear test or launch of ballistic missiles, with a large concentration of military hardware massed on both sides of the border.

Tensions have risen sharply in recent months after Pyongyang conducted two nuclear weapons tests last year and carried out a steady stream of ballistic missile tests in defiance of United Nations resolutions and sanctions.

U.S. President Donald Trump has vowed to prevent North Korea from being able to hit the United States with a nuclear missile but his deputy said in Sydney on Saturday a peaceful outcome was still achievable because of warming ties between Beijing and Washington.

“We truly believe that, as our allies in the region and China bring that pressure to bear, there is a chance that we can achieve a historic objective of a nuclear-free Korea peninsula by peaceful means,” Pence said.

“We are encouraged by the steps that China has taken so far,” he said at a joint news conference with Australian Prime Minister Malcolm Turnbull.

Earlier this week, Trump praised Chinese efforts to rein in “the menace of North Korea” after North Korean state media warned the United States of a “super-mighty preemptive strike”.

Trump hosted Chinese President Xi Jinping at his resort in Florida earlier this month and, while taking a hard line with North Korea, has focused his efforts on trying to convince China to put more pressure on its ally and neighbor.

However, Trump has also ordered what he has described as an “armada” to waters off the Korean peninsula as a warning to North Korea. There was some confusion about the whereabouts of the USS Carl Vinson aircraft carrier strike group earlier this week.

PILOT EJECTS

While it was thought the carrier group had been steaming toward the Korean peninsula, it had in fact been completing a training exercise with the Australian navy.

Pence said the carrier group was now expected to be in waters off the Korean peninsula before the end of the month, “within days”.

On Friday, the U.S. Navy said a pilot from the USS Carl Vinson had ejected safely while conducting a routine flight south of the Philippines.

It said the incident occurred as the F/A-18E was on a final approach to the carrier. The pilot was recovered by helicopter without injury. The statement did not say when the incident occurred.

In the face of the U.S. moves, North Korea said on Friday the state of affairs on the Korean peninsula was “extremely perilous”.

The North will celebrate the 85th anniversary of the foundation of its Korean People’s Army on Tuesday and has marked important events in the past by launching missiles or conducting nuclear tests.

Tuesday’s anniversary also comes as the North finishes winter military drills and as South Korea and the United States wrap up annual joint military exercises.

South Korea’s Unification Ministry spokesman Lee Duk-haeng said on Friday all those military exercises meant there was a lot of military equipment gathered in North Korea, as well as the South.

Satellite imagery analyzed by 38 North, a Washington-based North Korea monitoring project, found some activity under way at North Korea’s Punggye-ri nuclear test site, but the group said it was unclear whether the site was in a “tactical pause” before another test or was carrying out normal operations.

U.S. officials have also said there was an increased level of activity by Chinese bombers, signaling a possible heightened state of readiness. Russian media has denied reports Moscow was building up its forces near the Korean border.

China’s Defence Ministry, however, said its forces were maintaining normal combat preparedness.

North Korea remained defiant.

“Now that we possess mighty nuclear power to protect ourselves from U.S. nuclear threat, we will respond without the slightest hesitation to full-out war with full-out war and to nuclear war with our style of nuclear strike, and we will emerge victor in the final battle with the United States,” the North’s Foreign Ministry said in a statement.

(Additional reporting by Ju-min Park in SEOUL, Ben Blanchard on BEIJING, Phil Stewart in WASHINGTON, and Polina Devitt in MOSCOW; Writing by Paul Tait; Editing by Jacqueline Wong)

Chinese, Iranian firms to sign first nuclear plant redesign contracts

A view of the Arak heavy-water project 190 km (120 miles) southwest of Tehran August 26, 2006. REUTERS/ISNA/Handout

BEIJING (Reuters) – Companies from China and Iran will this weekend sign the first commercial contracts to redesign an Iranian nuclear plant as part of an international deal reached in 2015 over Iran’s nuclear program, China’s Foreign Ministry said on Thursday.

The fate of the Arak reactor in central Iran was one of the toughest sticking points in the long nuclear negotiations that led to the agreement, signed by Iran with the United States, Britain, France, China, Russia and Germany.

In the redesign, the heavy water reactor will be reconfigured so it cannot yield fissile plutonium usable in a nuclear bomb.

Ministry spokesman Lu Kang said the contracts for the plant’s redesign would be signed on Sunday in Vienna with initial agreements having already been reached in Beijing, describing it as an important part of the Iran nuclear deal.

China and the United States are joint heads of the working group on the Arak project, and progress has been smooth, Lu told a daily news briefing.

“The signing of this contract will create good conditions for substantively starting the redesign project,” Lu said.

Iran has said that the 40-megawatt, heavy-water plant is aimed at producing isotopes for cancer and other medical treatments, and has denied that any of its nuclear activity is geared to developing weapons.

The announcement comes as U.S. Secretary of State Rex Tillerson accused Iran of “alarming ongoing provocations” to destabilize countries in the Middle East as the Trump administration launched a review of its policy toward Tehran.

Tillerson said the review would not only look at Iran’s compliance with the 2015 nuclear deal but also its behavior in the region which he said undermined U.S. interests in Syria, Iraq, Yemen and Lebanon.

Lu, while not directly referring to Tillerson’s comments, said China hopes all parties could ensure the nuclear deal was implemented, appropriately handle disagreements and make positive contributions to nuclear non-proliferation and peace and stability in the Middle East.

(Reporting by Ben Blanchard; Editing by Robert Birsel)

Philippines checks report of ‘harassment’ near China-controlled reef

Filipino fishermen past a large Chinese vessel at the disputed Scarborough Shoal April 5, 2017. Picture taken April 5, 2017 REUTERS/Erik De Castro

MANILA (Reuters) – The Philippines has ordered an inquiry into reports that “foreign vessels” near China’s manmade islands harassed Filipino fishermen in the disputed South China Sea, the military chief said on Thursday.

In an interview with reporters, General Eduardo Ano said the armed forces had received sketchy reports of a group of Filipinos being driven away from Union Bank in the Spratlys, near Gaven Reef, on which China has built an island.

A Philippines television channel had earlier reported the fishermen had been fired upon, but the military, in a statement, described the events as “alleged harassment”.

China claims sovereignty over almost the entire South China Sea, through which about $5 trillion worth of goods pass annually. Malaysia, the Philippines, Taiwan and Vietnam also have claims, and occupy some islets and reefs in the Spratly archipelago.

Philippine authorities are trying to locate the fishermen, believed to have returned to land, who have been encouraged to report to police or coastguard officials.

China’s foreign ministry did not immediately respond to a request for comment on whether it was aware of the incident or if the foreign ships in question were Chinese.

Reports of altercations between the Philippines and China have been rare since President Rodrigo Duterte took office last year and sought to patch up differences between the two countries and encourage business ties. He frequently heaps praise on China President Xi Jinping.

Duterte has refrained from criticizing China’s activities in the South China Sea and tends to blame the United States for letting the problem escalate, by failing to stop Beijing from building and arming its artificial islands.

In what appeared to be an olive branch to the Philippines, China’s coastguard in October started allowing Filipino fishermen to return and fish at the strategic Scarborough Shoal, which Beijing seized in June 2012. Chinese in the past have fired water cannon at vessels of other countries in the area.

Reuters journalists visited the coral atoll this month and saw a substantially larger Chinese coastguard and fishing presence than usual, although it was allowing Filipinos to fish inside the shoal for the first time since the blockade.

(Reporting by Manuel Mogato; Additional reporting by Ben Blanchard in Beijing; Editing by Martin Petty and Clarence Fernandez)

Beijing cyber regulators to summon Apple over live streaming: Xinhua

FILE PHOTO: The Apple logo is pictured inside the newly opened Omotesando Apple store at a shopping district in Tokyo June 26, 2014. REUTERS/Yuya Shino/File Photo

BEIJING (Reuters) – Internet regulators in China’s capital plan to summon Apple Inc <APPL.O> to urge the American firm to tighten its checks on software applications available in its Apple Store, the official Xinhua News Agency reported on Wednesday.

The Beijing Cyberspace Administration, together with the Beijing Public Security Bureau and Beijing Cultural Market Administrative Law Enforcement Team, has already met representatives from Apple about the examination of live streaming apps from its app store, Xinhua said.

The U.S. tech firm is turning to selling more apps and services in China amid falling sales and rising competition from domestic smartphone makers.

Apple confirmed this year that it removed the New York Times Co’s <NYT.N> English- and Chinese-language news apps from its iTunes store in China following a request from authorities.

Apple in Beijing could not be reached for comment after normal business hours.

The Beijing Cyberspace Administration and the other two departments separately ordered three domestic live-streaming websites to rectify management loopholes, Xinhua said.

China’s fast-growing live-streaming market produced revenues of more than 30 billion yuan ($4.36 billion) last year, according to investment bank China Renaissance Securities, even as regulators have clamped down on sites that provide illegal content, including pornography.

(Reporting By Matthew Miller and Catherine Cadell; Editing by Robert Birsel)

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)

Pence warns North Korea of U.S. resolve shown in Syria, Afghan strikes

U.S. Vice President Mike Pence looks toward the north from an observation post inside the demilitarized zone separating the two Koreas, in Paju, South Korea,

By Roberta Rampton and Ju-min Park

SEOUL (Reuters) – U.S. Vice President Mike Pence put North Korea on notice on Monday, warning that recent U.S. strikes in Syria and Afghanistan showed that the resolve of President Donald Trump should not be tested.

Pence and South Korean acting president Hwang Kyo-ahn, speaking a day after a failed missile test by the North and two days after a huge display of missiles in Pyongyang, also said they would strengthen anti-North Korea defences by moving ahead with the early deployment of the THAAD missile-defence system.

Pence is on the first stop of a four-nation Asia tour intended to show America’s allies, and remind its adversaries, that the Trump administration was not turning its back on the increasingly volatile region.

“Just in the past two weeks, the world witnessed the strength and resolve of our new president in actions taken in Syria and Afghanistan,” Pence said in a joint appearance with Hwang.

“North Korea would do well not to test his resolve or the strength of the armed forces of the United States in this region,” Pence said.

The U.S. Navy this month struck a Syrian airfield with 59 Tomahawk missiles after a chemical weapons attack. On Thursday, the U.S. military said it had dropped “the mother of all bombs”, the largest non-nuclear device it has ever unleashed in combat, on a network of caves and tunnels used by Islamic State in Afghanistan.

North Korea’s KCNA news agency on Monday carried a letter from leader Kim Jong Un to Syrian President Bashar al-Assad marking the 70th anniversary of Syria’s independence.

“I express again a strong support and alliance to the Syrian government and its people for its work of justice, condemning the United States’ recent violent invasive act against your country,” Kim said.

On a visit to the border between North and South Korea earlier in the day, Pence, whose father served in the 1950-53 Korean War, said the United States would stand by its “iron-clad alliance” with South Korea.

“All options are on the table to achieve the objectives and ensure the stability of the people of this country,” he told reporters as tinny propaganda music floated across from the North Korean side of the so-called demilitarized zone (DMZ).

“There was a period of strategic patience but the era of strategic patience is over.”

ECONOMIC TALKS

Pence is expected to discuss rising tension on the Korean peninsula with Japanese Prime Minister Shinzo Abe on Tuesday when he travels to Tokyo to kick off economic talks with Finance Minister Taro Aso.

Pence will meet business leaders in Seoul before departing – a “listening session” he will reprise at other stops on his tour in Tokyo, Jakarta and Sydney.

His economic discussions will be closely watched to see how hard a line Washington is prepared to take on trade. Trump campaigned for office on an “America First” platform, and has vowed to narrow big trade deficits with nations like China, Germany and Japan.

But Trump has also shown he is willing to link trade to other issues, saying he would cut a better trade deal with China if it exerts influence on North Korea to curb its nuclear ambitions.

Trump acknowledged on Sunday that the softer line he had taken on China’s management of its currency was linked to its help on North Korea.

The United States, its allies and China are working on a range of responses to North Korea’s latest failed ballistic missile test, Trump’s national security adviser said on Sunday, citing what he called an international consensus to act.

China has spoken out against the North’s weapons tests and has supported U.N. sanctions. It has repeatedly called for talks while appearing increasingly frustrated with the North.

But Pence and Hwang said they were troubled by retaliatory economic moves by China against the deployment in South Korea of a U.S. anti-missile system known as the Terminal High Altitude Area Defense (THAAD).

South Korea, which accuses China or discriminating against some South Korean companies working in China, and the United States say the sole purpose of THAAD is to guard against North Korean missiles.

China says its powerful radar can penetrate its territory and undermine its security and spoke out against it again on Monday.

‘RECKLESS’

Chinese Foreign Ministry spokesman Lu Kang told reporters in Beijing the situation on the Korean peninsula was “highly sensitive, complicated and high risk”, adding all sides should “avoid taking provocative actions that pour oil on the fire”.

Russian Foreign Minister Sergei Lavrov said Moscow could not accept North Korea’s “reckless nuclear actions” but the United States should not take unilateral action against it.

Trump’s national security adviser, H.R. McMaster, indicated on Sunday that Trump was not considering military action against North Korea for now, even as a nuclear-powered aircraft carrier strike group was heading for the region.

“It’s time for us to undertake all actions we can, short of a military option, to try to resolve this peacefully,” he said on ABC’s “This Week” programme.

The Trump administration is focusing its strategy on tougher economic sanctions, possibly including an oil embargo, a global ban on its airline, intercepting cargo ships and punishing Chinese banks doing business with Pyongyang.

Tensions have risen as Trump takes a hard rhetorical line with Kim Jong Un, who has rebuffed admonitions from China and proceeded with nuclear and missile programmes seen by Washington as a direct threat.

China says the crisis is between the United States and North Korea. Lu said China efforts to help achieve denuclearization were clear, adding: “China is not the initiator of the Korean peninsula nuclear issue.”

China banned imports of North Korean coal on Feb. 26, cutting off its most important export and Chinese media has raised the possibility of restricting oil shipments to the North if it unleashed more provocations.

Pyongyang has conducted several missile and nuclear tests in defiance of U.N. sanctions, and has said it has developed and would launch a missile that can strike the U.S. mainland.

U.S. officials and experts believe it is some time away from mastering the necessary technology, including miniaturising a nuclear warhead.

(Additional reporting by Jack Kim and James Pearson in SEOUL, Daniel Trotta in NEW YORK, Lucia Mutikani and Caren Bohan in WASHINGTON and Michael Martina in BEIJING:; Writing by Nick Macfie; Editing by Paul Tait and Robert Birsel)

Vice President Pence heads to Seoul as North Korea tensions flare

FILE PHOTO: U.S. Vice President Mike Pence arrives for the swearing-in ceremony of Judge Neil Gorsuch as an Associate Supreme Court Justice in the Rose Garden of the White House in Washington, U.S., April 10, 2017. REUTERS/Joshua Roberts /File Photo

By Roberta Rampton

WASHINGTON (Reuters) – U.S. Vice President Mike Pence will travel to South Korea on Sunday in what his aides said was a sign of the U.S. commitment to its ally in the face of rising tensions over North Korea’s nuclear program.

Pence’s Seoul stop kicks off a long-planned 10-day trip to Asia – his first as vice president – and comes amid concerns that Pyongyang could soon conduct its sixth nuclear test.

President Donald Trump has warned against further provocations, sending an aircraft carrier group to the region as a show of force. His officials have been assessing tougher economic sanctions as well as military options to curb North Korea’s nuclear ambitions.

Pence plans to celebrate Easter with U.S. and Korean troops on Sunday before talks on Monday with acting President Hwang Kyo-ahn.

“We’re going to consult with the Republic of Korea on North Korea’s efforts to advance its ballistic missile and its nuclear program,” a White House foreign policy adviser told reporters, previewing Pence’s trip.

Pence will land in Seoul the day after North Korea’s biggest national day, the “Day of the Sun.” The White House has contingency plans for Pence’s trip should it coincide with a another North Korean nuclear test by its leader Kim Jong Un, the adviser said.

“Unfortunately, it’s not a new surprise for us. He continues to develop this program, he continues to launch missiles into the Sea of Japan,” the adviser said.

“With the regime it’s not a matter of if – it’s when. We are well prepared to counter that,” the adviser said.

‘FREE AND FAIR’ TRADE

Pence expects to talk about the “belligerence” of North Korea at stops in Tokyo, Jakarta and Sydney, the White House adviser said.

But the need for “free and fair trade” will also be a theme, the adviser said.

Trump campaigned on an “America First” trade policy, complaining that trade partners in Asia and elsewhere had taken advantage of the United States.

One of his first acts in office was to remove the United States from the 12-nation Trans-Pacific Partnership (TPP) trade deal negotiated by former President Barack Obama.

“Withdrawing from the TPP shouldn’t be seen as a retreat from the region. On the contrary, our economic presence in the region is enduring,” the adviser said.

On Tuesday, Pence will kick off economic talks with Japan requested by Trump and Prime Minister Shinzo Abe. The discussions will focus more on setting a “framework” for future talks rather than on specific industry issues, a White House official said.

Pence will meet with business leaders at each stop, including in Jakarta, though he was not expected to wade into the weedy details of disputes between the Indonesian government and U.S. companies like mining giant Freeport-McMoRan Inc <FCX.N>.

“We’re going to discuss the business environment in Indonesia in a general sense,” a White House official said.

(Reporting by Roberta Rampton; Editing by Michael Perry)

China says North Korea tension has to be stopped from reaching ‘irreversible’ stage

North Korean leader Kim Jong Un arrives for an opening ceremony of a newly constructed residential complex in Ryomyong street in Pyongyang, North Korea April 13, 2017. REUTERS/Damir Sagolj

By Dominique Patton and Sue-Lin Wong

BEIJING/PYONGYANG (Reuters) – China said on Friday tension over North Korea had to be stopped from reaching an “irreversible and unmanageable stage” as a U.S. aircraft carrier group steamed toward the region amid fears the North may conduct a sixth nuclear weapons test.

Concern has grown since the U.S. Navy fired 59 Tomahawk missiles at a Syrian airfield last week in response to a deadly gas attack, raising questions about U.S. President Donald Trump’s plans for North Korea, which has conducted missile and nuclear tests in defiance of U.N. and unilateral sanctions.

The United States has warned that a policy of “strategic patience” is over. U.S. Vice President Mike Pence travels to South Korea on Sunday on a long-planned 10-day trip to Asia.

China, North Korea’s sole major ally and neighbor which nevertheless opposes its weapons program, has called for talks leading to the denuclearization of the Korean peninsula.

“We call on all parties to refrain from provoking and threatening each other, whether in words or actions, and not let the situation get to an irreversible and unmanageable stage,” Chinese Foreign Minister Wang Yi told reporters in Beijing.

North Korea denounced the United States for bringing “huge nuclear strategic assets” to the region as the Carl Vinson strike group with a flag-ship nuclear-powered aircraft carrier steamed closer, and said it stood ready to strike back.

“The Trump administration, which made a surprise guided cruise-missile strike on Syria on April 6, has entered the path of open threat and blackmail,” the North’s KCNA news agency quoted the military as saying in a statement.

“The army and people of the DPRK will as ever courageously counter those who encroach upon the dignity and sovereignty of the DPRK and will always mercilessly ravage all provocative options of the U.S. with Korean-style toughest counteraction.”

DPRK stands for the North’s official name, the Democratic People’s Republic of Korea.

North Korea, still technically at war with the South after their 1950-53 conflict ended in a truce, not a treaty, has on occasion conducted missile or nuclear tests to coincide with big political events and often threatens the United States, South Korea and Japan.

On Saturday, it marks the “Day of the Sun”, the 105th anniversary of the birth of state founder Kim Il Sung.

U.S. ally South Korea warned against any North Korean “provocation”, such as a nuclear or missile test.

“There is certain to be powerful punitive measure that will be difficult for the North Korean regime to endure,” the South’s Foreign Ministry said in a statement.

WITH OR WITHOUT YOU

While Trump has put North Korea on notice that he will not tolerate any more provocation, U.S. officials have said his administration is focusing its strategy on tougher economic sanctions.

Trump said on Thursday North Korea was a problem that “will be taken care of” and he believed Chinese President Xi Jinping would “work very hard” to help resolve it.

Trump has also said the United States is prepared to tackle the crisis without China, if necessary.

He diverted the Carl Vinson aircraft carrier and its strike group toward the Korean peninsula last weekend in a show of force. (http://tmsnrt.rs/2p1yGTQ)

Worry about North Korean aggression has also led to a deterioration of ties between China and South Korea because China objects to the deployment of a U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system in the South.

“It’s not hard to see that ever since the United States and Republic of Korea decided to deploy THAAD, the situation has not become harmonious but has become more tense,” Chinese Foreign Ministry spokesman Geng Shuang, said in response to a question about the system.

South Korea and the United States say the sole purpose of the THAAD is to guard against North Korean missiles, but China says that its powerful radar could penetrate its territory.

The dollar fell on Friday against a basket of currencies, on track for a losing week as tension over North Korea underpinned the perceived safe-haven Japanese yen.

Japan’s Nikkei business daily said the government had discussed how to rescue an estimated 57,000 Japanese citizens in South Korea as well as how to cope with a possible flood of North Korean refugees coming to Japan, among whom might be spies.

In Pyongyang, retired soldier Ho Song Chol told Reuters that North Korea would win should there be any conflict with the United States.

“We don’t think about other things, we just live in our belief that we will win as long as our Supreme Leader is with us,” Ho said, referring to Kim Jong Un.

Kang Gil-won, a 26-year-old graduate living in Seoul, said his biggest concern was not North Korea, but finding work in a tough job market.

“There’s no concern that war is going to break out tomorrow,” he told Reuters at a “study café” where many young job seekers prepare for interviews.

“Getting a job is a war that I feel in my bones.”

(Additional reporting by Nick Macfie, James Pearson, Ju-min Park and Jack Kim in SEOUL, Natalie Thomas in Pyongyang, Linda Sieg in TOKYO and Michael Martina and Christian Shepherd in BEIJING; Writing by Nick Macfie; Editing by Robert Birsel)

China warns against force as North Korea prepares celebration

North Korean leader Kim Jong Un waves to people cheering during an opening ceremony of a newly constructed residential complex in Ryomyong street in Pyongyang, North Korea April 13, 2017. REUTERS/Damir Sagolj

By Michael Martina and Sue-Lin Wong

BEIJING/PYONGYANG (Reuters) – Military force cannot resolve tension over North Korea, China said on Thursday, while an influential Chinese newspaper urged the North to halt its nuclear programme in exchange for Chinese protection.

With a U.S. aircraft carrier group steaming to the area and tension rising, South Korea said it believed the United States would consult it before any pre-emptive strike against the North.

Fears have been growing that the reclusive North could soon conduct its sixth nuclear test or more missile launches in defiance of U.N. sanctions and stark warnings from the United States that a policy of patience was over.

China, North Korea’s sole major ally and benefactor, which nevertheless opposes its weapons programme, has called for talks leading to a peaceful resolution and the denuclearisation of the peninsula.

“Military force cannot resolve the issue,” Chinese Foreign Minister Wang Yi told reporters in Beijing.

“Amid challenge there is opportunity. Amid tensions we will also find a kind of opportunity to return to talks.”

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* COMMENTARY: North Korea’s Kim knows exactly what he’s doing http://reut.rs/2lDYlnn

While U.S. President Donald Trump has put North Korea on notice that he would not tolerate any provocation, U.S. officials have said his administration was focusing its strategy on tougher economic sanctions.

Trump has diverted the USS Carl Vinson aircraft carrier group towards the Korean peninsula, which could take more than a week to arrive, in a show of force aimed at deterring North Korea from conducting another nuclear test or launching more missiles to coincide with important events and anniversaries.

Speculation about U.S. military action grew after the U.S. Navy fired 59 Tomahawk missiles at a Syrian airfield last week in response to a deadly gas attack.

Wang warned that history would hold any instigator to account.

“Whoever provokes the situation, whoever continues to make trouble in this place, they will have to assume historical responsibility,” Wang said.

South Korean Foreign Minister Yun Byung-se told parliament in Seoul he believed Washington would consult Seoul if it was considering a pre-emptive strike. The United States has about 28,500 troops in South Korea.

A Washington-based think-tank that monitors North Korea, 38 North, said satellite images on Wednesday showed activity around the North’s Punggye-ri nuclear test site on the east coast that indicated it was ready for a new test.

South Korean officials said there were no new signs to indicate a test was more likely, although they also said the North appeared ready to conduct a test at any time.

An influential state-backed Chinese newspaper said the best option for North Korea and its leader, Kim Jong Un, was to give up its nuclear programme, and China would protect it if it did.

“As soon as North Korea complies with China’s declared advice and suspends nuclear activities … China will actively work to protect the security of a denuclearised North Korean nation and regime,” said an editorial in the Global Times, which is published by the Communist party’s People’s Daily.

Japanese Prime Minister Shinzo Abe underscored fears about threats from North Korea, telling parliament in Tokyo that Pyongyang could have the capacity to deliver missiles equipped with sarin nerve gas.

A senior Japanese diplomat said the United States was putting “maximum pressure” on North Korea to resolve issues peacefully while putting responsibility on China to sway its old ally.

“We will watch what action China takes,” the diplomat said.

While Japan did not see a high risk of military action, it expected to be consulted by the United States if it decided to attack. North Korea has about 350 missiles that can hit Japan.

“DAY OF THE SUN”

Scores of foreign journalists gathered in Pyongyang for North Korea’s biggest national day, the “Day of the Sun”, were taken to what officials billed as a “big and important event” early on Thursday.

It turned out to be the opening of a new street in the centre of the capital, attended by leader Kim.

North Korea marks the 105th anniversary of the birth of state founder Kim Il Sung on Saturday. In 2012, it tried but failed to launch a long-range rocket carrying a satellite to mark the date and tested a newly developed intermediate-range missile last year.

North Korea’s official KCNA news agency said early on Thursday that Kim Jong Un had guided training of the army’s special operation forces jumping from aircraft.

On Tuesday, North Korea warned of a nuclear attack on the United States at any sign of American aggression. The North is technically at war with the United States and South Korea after the 1950-53 Korean War ended in a truce and not a peace treaty.

The North regularly threatens to destroy both countries.

U.S. officials said Trump was considering sanctions that could include an oil embargo, banning North Korea’s airline, intercepting cargo ships, and punishing Chinese banks doing business with it.

“There’s a whole host of things that are possible, all the way up to what’s essentially a trade quarantine on North Korea,” one official, speaking on condition of anonymity, told Reuters in Washington.

Customs data in Beijing on Thursday showed that China’s coal imports from North Korea had plunged 51.6 percent in the first three months in 2017 from a year ago.

China suspended issue of permits for coal imports from North Korea on Feb. 18 as part of its effort to implement U.N. sanctions.

Trump and Chinese President Xi Jinping spoke by telephone on Wednesday, just days after they met in the United States for the first time, underscoring the sense of urgency about North Korea.

Trump said on Twitter his call with Xi was a “very good” discussion of the “menace of North Korea”. He said later on Wednesday the United States was prepared to tackle the crisis without China, if necessary.

GRAPHIC: The Carl Vinson Strike Group http://tmsnrt.rs/2p1yGTQ

(Additional reporting by Natalie Thomas in PYONGYANG, Ju-min Park and James Pearson in SEOUL, Christian Shepherd in BEIJING, Linda Sieg in TOKYO, and Matt Spetalnick, David Brunnstrom and Jeff Mason in WASHINGTON; Editing by Paul Tait, Robert Birsel)