China’s Xi urges peaceful resolution of North Korea tension in call with Trump

A general view of an annual central report meeting in this undated photo released by North Korea's Korean Central News Agency

By Michael Martina and Christian Shepherd

BEIJING (Reuters) – Chinese President Xi Jinping called for a peaceful resolution of rising tension on the Korean peninsula in a telephone conversation with U.S. President Donald Trump on Wednesday, as a U.S. aircraft carrier strike group steamed towards the region.

Trump, in an early morning note on Twitter, said the call with Xi, just days after they met in the United States, was a “very good” discussion of the “menace of North Korea”. The call came as an influential state-run Chinese newspaper warned that the Korean peninsula was the closest it has been to a “military clash” since North Korea’s first nuclear test in 2006.

The communication between the leaders underscored the sense of urgency as tension escalates amid concern that reclusive North Korea could soon conduct a sixth nuclear test, or more missile launches, and Trump’s threat of unilateral action to solve the problem.

Trump ordered the USS Carl Vinson aircraft carrier group to head to the Korean peninsula in an attempt to deter North Korea’s nuclear and long-range missile ambitions, which it is developing in defiance of U.N. resolutions and sanctions.

He pressed Xi to do more to curb North Korea’s nuclear programme when the two leaders held their first face-to-face meeting in Florida last week.

Trump said on Twitter on Tuesday that North Korea was “looking for trouble” and the United States would “solve the problem” with or without China’s help.

Xi stressed in their telephone call that China “is committed to the target of denuclearization on the peninsula, safeguarding peace and stability on the peninsula, and advocates resolving problems through peaceful means”, Chinese state broadcaster CCTV said.

Chinese Foreign Ministry spokesman Lu Kang, who said Trump had initiated the call, urged everyone to lower the tension.

“We hope that the relevant parties do not adopt irresponsible actions. Under the current circumstances, this is very dangerous,” Lu told reporters at a regular press briefing.

China’s Global Times newspaper said in an editorial that North Korea should halt any plan for nuclear and missile activities “for its own security”. While widely read in China and run by the ruling Communist Party’s official People’s Daily, the Global Times does not represent government policy.

The newspaper noted Trump’s recent decision to launch 59 Tomahawk missiles at a Syrian airfield in response to a deadly gas attack last week.

“Not only is Washington brimming with confidence and arrogance following the missile attacks on Syria, but Trump is also willing to be regarded as a man who honours his promises,” it said.

“The U.S. is making up its mind to stop the North from conducting further nuclear tests. It doesn’t plan to co-exist with a nuclear-armed Pyongyang,” it said. “Pyongyang should avoid making mistakes at this time.”

The Global Times said if North Korea made another provocative move, “Chinese society” might be willing to back unprecedented sanctions, “such as restricting oil imports”.

The aircraft carrier USS Carl Vinson (CVN 70) transits the South China Sea, April 8, 2017

The aircraft carrier USS Carl Vinson (CVN 70) transits the South China Sea, April 8, 2017. Photo taken April 8, 2017. U.S. Navy photo by Mass Communication Specialist 3rd Class Matt Brown/Handout via Reuters

‘NOT AFRAID’

North Korean state media warned on Tuesday of a nuclear attack on the United States at any sign of American aggression.

Officials from the North, including leader Kim Jong Un, have indicated an intercontinental ballistic missile test or something similar could be coming.

North Korea launched a long-range rocket carrying a satellite on April 13, 2012, marking the anniversary of the birth of North Korea’s founding president Kim Il Sung.

Saturday will be the 105th anniversary of his birth.

In the North Korean capital, residents thronged boulevards on a sunny spring morning, some practising for a parade to be held on the weekend, with no visible sign of the tension.

“So long as we are with our supreme leader Marshall Kim Jong Un we are not afraid of anything,” a woman who gave her name as Ri Hyon Sim told Reuters journalists, who were escorted by North Korean officials.

Russia has said it is worried about the possibility of a U.S. attack on North Korea and it would raise the issue with visiting U.S. Secretary of State Rex Tillerson, Russian media quoted Deputy Foreign Minister Sergei Ryabkov as saying.

Earlier on Wednesday, two sources in Tokyo said Japan’s navy planned exercises with the Carl Vinson carrier group in a joint show of force.

Japan’s Maritime Self Defence Force and the U.S. Navy could conduct helicopter landings on each other’s ships, as well as communication drills, they said.

A senior Japanese diplomat said it appeared the U.S. position was to put maximum pressure on North Korea to reach a solution peacefully and diplomatically.

“At least, if you consider overall things such as the fact that the U.S. government has not put out warnings to its citizens in South Korea, I think the risk at this point is not high,” said the diplomat, who declined to be identified.

South Korea’s acting president, Hwang Kyo-ahn, has warned of “greater provocations” by North Korea and ordered the military to intensify monitoring.

China’s Defence Ministry, in a one-line statement posted on its website, dismissed foreign media reports about a build-up of Chinese troops on its border with North Korea as “pure fabrication”.

The North fired a liquid-fuelled Scud missile this month, the latest in a series of tests that have displayed its ability to launch attacks and use hard-to-detect solid-fuel rockets.

North Korea remains technically at war with the United States and its ally South Korea after the 1950-1953 Korean conflict ended in a truce, not a peace treaty. It regularly threatens to destroy both countries.

GRAPHIC: The Carl Vinson strike group http://tmsnrt.rs/2p1yGTQ

(Additional reporting by Ju-min Park in SEOUL, Sue-Lin Wong and Natalie Thomas in PYONGYANG, Nobuhiro Kubo, Tim Kelly in TOKYO, and Philip Wen in BEIJING; Writing by Michael Perry; Editing by Paul Tait, Robert Birsel, Frances Kerry)

China draft cyber law mandates security assessment for outbound data

BEIJING (Reuters) – China’s top cyber authority on Tuesday released a draft law that would require firms exporting data to undergo an annual security assessment, in the latest of several recent safeguards against threats such as hacking and terrorism.

Any business transferring data of over 1000 gigabytes or affecting over 500,000 users will be assessed on its security measures and on the potential of the data to harm national interests, showed the draft from the Cyberspace Administration of China (CAC).

The law would ban the export of any economic, technological or scientific data whose transfer would pose a threat to security or public interests. It would also require firms to obtain the consent of users before transmitting data abroad.

The proposed law, which focuses on personal information security, comes just a day after state media reported government rewards of $1,500 to $73,000 for citizens who report suspected spies.

It is also an extension of legislation passed in November formalizing a range of controls over firms that handle data in industries the government deems critical to national interests.

Business groups have criticized the November law, which is effective from June, calling rules “vague” and claiming they unfairly target foreign companies with stringent requirements.

Chinese officials denied that the November law targets foreign firms.

Under the rules released on Tuesday, sensitive geographic data such as information on marine environments would also be subject to scrutiny. Destination countries and the likelihood of oversees tampering would also be factored in to any assessments.

The draft is open for public comment until May 11.

(Reporting by Cate Cadell; Editing by Christopher Cushing)

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

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

By Steve Holland

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DIFFERING PERSONALITIES

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

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

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

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

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

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

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

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

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

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

NO GRAND BARGAIN ON TRADE

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

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

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

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

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

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

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

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

By Joseph Menn

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By Tim Kelly and Ju-min Park

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

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

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

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

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

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

Swift said a military response remained among those options.

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

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

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

“DANGEROUS PROVOCATION”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By Steve Holland and Matt Spetalnick

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

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

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

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

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

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

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

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

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

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

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

DIFFERING PERSONALITIES

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

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

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

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

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

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

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

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

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

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

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

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

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

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)