Vietnam seeks South Korean support in South China Sea

South Korea's Foreign Minister Yun Byung-Se (L) is greeted by Vietnam's Prime Minister Nguyen Xuan Phuc in Hanoi, Vietnam March 20, 2017.

HANOI (Reuters) – Vietnam’s Prime Minister sought support for the nation’s stance in the South China Sea when he met South Korea’s foreign minister in Hanoi on Monday.

Vietnam is the country most openly at odds with China over the waterway since the Philippines pulled back from confrontation under President Rodrigo Duterte.

“The Prime Minister proposed that South Korea continue its support over the position of Vietnam and Southeast Asia on the South China Sea issue and to help the country improve its law enforcement at the sea”, the government said in a statement on its website after the meeting between Prime Minister Nguyen Xuan Phuc and South Korea’s Foreign Minister Yun Byung-se.

The statement did not say whether South Korea backed Vietnam’s position on the South China Sea.

Yun did affirm his country’s willingness to promote ties despite instability in South Korea after the ousting of President Park Geun-hye over a graft scandal.

South Korea is Vietnam’s biggest foreign investor thanks to companies like Samsung.

South Korea and China are currently in dispute over deployment of the U.S. anti-missile defense system. South Korea on Monday has complained to the World Trade Organization about Chinese retaliation against its companies over the deployment.

Last week, Vietnam demanded China stop sending cruise ships to the area in response to one of Beijing’s latest moves to bolster its claims to the strategic waterway.

China claims 90 percent of the potentially energy-rich South China Sea. Brunei, Malaysia, the Philippines, Vietnam and Taiwan lay claim to parts of the route, through which about $5 trillion of trade passes each year.

(Reporting by My Pham; Editing by Julia Glover)

U.S., China soften tone, say to work together on North Korea

Chinese Foreign Minister Wang Yi (R) talks with U.S. Secretary of State Rex Tillerson at Diaoyutai State Guesthouse on March 18, 2017 in Beijing, China. REUTERS/ Lintao Zhang/POOL

By Yeganeh Torbati and Ben Blanchard

BEIJING (Reuters) – The United States and China will work together to get nuclear-armed North Korea take “a different course”, U.S. Secretary of State Rex Tillerson said on Saturday, softening previous criticism of Beijing after talks with his Chinese counterpart.

China has been irritated at being repeatedly told by Washington to rein in North Korea’s surging nuclear and ballistic missile programmes, one of a series of hurdles in ties between the world’s two largest economies.

But Chinese Foreign Minister Wang Yi described the talks with Tillerson as “candid, pragmatic and productive”. The two sides appeared to have made some progress or put aside differences on difficult issues, at least in advance of a planned summit between Chinese President Xi Jinping and U.S. President Donald Trump.

On Friday, Tillerson issued the Trump administration’s starkest warning yet to North Korea, saying in Seoul that a military response would be “on the table” if Pyongyang took action to threaten South Korean and U.S. forces.

Tillerson took a softer line after the meeting with Wang. He told reporters both China and the United States noted efforts over the last two decades had not succeeded in curbing the threat posed by North Korea’s weapons programmes.

“We share a common view and a sense that tensions on the peninsula are quite high right now and that things have reached a rather dangerous level, and we’ve committed ourselves to doing everything we can to prevent any type of conflict from breaking out,” Tillerson said.

He said Wang and he agreed to work together to persuade North Korea “make a course correction and move away from the development of their nuclear weapons.”

Wang said U.N. resolutions on North Korea both mapped out sanctions and called for efforts to resume efforts for a negotiated settlement.

“No matter what happens, we have to stay committed to diplomatic means as a way to seek peaceful settlement,” he said.

Wang said he and Tillerson “both hope to find ways to restart the talks”.

“Neither of us are ready to give up the hope for peace,” he said.

Tillerson had said on Friday that any talks on North Korea could only take place after it began the process of unwinding its weapons programmes.

A U.S. official had told Reuters in Washington earlier this week that Tillerson may raise the prospect of imposing “secondary sanctions” on Chinese banks and other firms doing business with North Korea in defiance of U.N. sanctions.

Trump said in a tweet on Friday that North Korea was “behaving very badly” and accused China, Pyongyang’s neighbour and only major ally, of doing little to resolve the crisis.

XI-TRUMP SUMMIT

However, the two sides appear to have toned down differences as they work on finalising a trip by Xi to the United States, possibly next month, for his first summit with Trump.

Wang said the two countries were in “close communication” on arranging the meeting, but gave no details.

The state-run Chinese tabloid the Global Times said on Saturday that it was in China’s interests to stop North Korea’s nuclear ambitions but to suggest China cut the country off completely was ridiculous as it would be fraught with danger.

“Once there is chaos in North Korea, it would first bring disaster to China. I’m sorry, but the United States and South Korea don’t have the right to demand this of China,” it said in an editorial.

A former oil executive with no prior diplomatic experience, Tillerson will meet Xi on Sunday.

North Korea has conducted two nuclear tests and a series of missile launches since the beginning of last year.

Last week, it launched four more ballistic missiles and is working to develop nuclear-tipped missiles that can reach the United States.

Washington has been pressing Beijing to do more to stop North Korea’s nuclear and missile programmes.

China has called for a dual track approach, urging North Korea to suspend its tests and the United States and South Korea to suspend military drills, so both sides can return to talks.

China has also been infuriated by the deployment of the THAAD, or Terminal High Altitude Area Defense, missile defence system in South Korea, which it says will both harm China’s own security and do nothing to ease tensions.

China says the system’s powerful radar will extend into the country’s northeast and potentially track Chinese missile launches, and maybe even intercept them. Russia also opposes THAAD, for the same reasons.

There are other tricky issues too, including the self-ruled island of Taiwan which China claims as its own.

The Trump administration is crafting a big new arms package for Taiwan that could include advanced rocket systems and anti-ship missiles to defend against China, U.S. officials said, a deal sure to anger Beijing.

Wang said Saturday’s talks included discussions on THAAD and Taiwan but did not give details.

(Additional reporting by Elias Glenn; Editing by Raju Gopalakrishnan)

U.S. policy of ‘strategic patience’ with North Korea over: Tillerson

U.S. Secretary of State Rex Tillerson (L) speaks as South Korean Foreign Minister Yun Byung-Se looks on during a news conference in Seoul, South Korea March 17, 2017. REUTERS/JUNG Yeon-Je

By Ju-min Park and James Pearson

SEOUL (Reuters) – A U.S. policy of strategic patience with North Korea has ended, Secretary of State Rex Tillerson said in South Korea on Friday, adding that military action would be “on the table” if North Korea elevated the threat level.

Tillerson began his first Asian visit as secretary of state in Japan on Wednesday and will travel to China on Saturday with a main focus on finding a “new approach” on North Korea after what he described as two decades of failed efforts to denuclearize the insular nation.

“Let me be very clear: the policy of strategic patience has ended. We are exploring a new range of security and diplomatic measures. All options are on the table,” Tillerson told a news conference in Seoul.

He said any North Korean actions that threatened the South would be met with “an appropriate response”.

“If they elevate the threat of their weapons program to a level that we believe requires action, that option is on the table,” Tillerson said when asked about military action.

Tillerson also called on China to implement sanctions against North Korea and said there was no need for China to punish South Korea for deploying an advanced U.S. anti-missile system aimed at defending against North Korea.

China says the Terminal High Altitude Area Defense (THAAD) system’s powerful radar is a threat to its security.

“We believe these actions are unnecessary and troubling,” Tillerson said, referring to what South Korea sees as Chinese retaliation in the form of business restrictions in response to the deployment of the missile system.

“We also believe it is not the way for a regional power to help resolve what is a serious threat for everyone. So we hope China will alter its position on punishing South Korea.”

“We hope they will work with us to eliminate the reason THAAD is required.”

North Korea has conducted two nuclear tests and a series of missile launches since the beginning of last year.

Last week, it launched four more ballistic missiles and is working to develop nuclear-tipped missiles that can reach the United States.

South Korean Foreign Minister Yun Byung-se told the joint news conference the missile system was only intended to defend against North Korea, not any other country.

FACING OFF AT THE DMZ

Earlier, Tillerson visited the Demilitarized Zone, and looked across the heavily fortified border at armed North Korean guards, staring back. He met some of the 28,500 U.S. troops stationed in South Korea.

Tillerson also met South Korean Prime Minister Hwang Kyo-ahn, who is also acting president.

The latest bout of tension with North Korea comes at a time of political turmoil in South Korea. President Park Geun-hye was ousted last week after being impeached in a corruption scandal and an election for a new president will be on May 9.

A liberal opposition politician, Moon Jae-in, who has raised questions about the THAAD deployment, is leading in the opinion polls.

Tillerson, a former oil executive with no prior diplomatic experience, said he expected a new government would “continue to be supportive” of the deployment, adding it was also intended to protect U.S. troops in South Korea.

China resents U.S. pressure to do more on North Korea and says it is doing all it can but will not take steps to threatened the livelihoods of the North Korean people.

China has urged North Korea to stop its nuclear and missile tests and said South Korea and the United States should stop joint military exercises and seek talks instead.

Chinese Foreign Ministry spokeswoman Hua Chunying reiterated that talks were the best way to resolve the problems of the Korean peninsula.

“As a close neighbor of the peninsula, China has even more reason than any other country to care about the situation,” she told a briefing.

Hua also said the THAAD would “upset the regional strategic balance”. Its radar, with a range of more than 2,000 km (1,250 miles), meant it could cover a large part of China, far outside the scope of the threat South Korea faces, Hua said.

“We do not oppose South Korean taking necessary measures to protect its security, but these measures cannot be based upon harming the security interests of South Korea’s friendly neighbor, China,” she said.

(Additional reporting by Ben Blanchard in BEIJING, Christine Kim in SEOUL; Writing by Robert Birsel; Editing by Raju Gopalakrishnan)

China to build on disputed shoal in South China Sea

Boats at Scarborough Shoal in the South China Sea are shown in this handout photo provided by Planet Labs, and captured on March 12, 2016. REUTERS/Planet Labs/Handout via Reuters

BEIJING (Reuters) – China will begin preparatory work this year for an environmental monitoring station on Scarborough Shoal in the South China Sea, an official said, as two U.S. senators introduced a bill to impose sanctions on its activities in the disputed waterway.

Last month, a Philippine minister said Chinese President Xi Jinping had promised his Philippine counterpart China would not build structures on the rocky outcrop both countries claim, but China called the comments “baffling and regrettable”.

China seized the shoal, which is northeast of the Spratly islands, in 2012 and denied access to Philippine fishermen. But after President Rodrigo Duterte visited China last year, it allowed them to return to the traditional fishing area.

This week, Xiao Jie, the mayor of what China calls Sansha City, said China planned to begin preparatory work this year to build environmental monitoring stations on a number of islands, including Scarborough Shoal.

Sansha City is the name China has given to an administrative base for the South China Sea islands and reefs it controls.

The monitoring stations, along with docks and other infrastructure, form part of island restoration and erosion prevention efforts planned for 2017, Xiao told the official Hainan Daily in an interview.

A spokesman for the Philippine foreign ministry, Charles Jose, declined to comment, saying it was trying to verify the reports.

U.S. Secretary of State Rex Tillerson arrives in Beijing on Saturday for a two-day visit, where the South China Sea, almost all of which is claimed by China, is likely to figure.

Brunei, Malaysia, the Philippines, Taiwan and Vietnam also claim parts of the waters, which have rich fishing grounds, along with oil and gas deposits. About $5 trillion worth of trade passes through the waterway each year.

The United States has criticized China’s construction of manmade islands and its build-up of military facilities there, expressing concern they could be used to restrict free movement.

This week, U.S. Senators Marco Rubio and Ben Cardin introduced the South China Sea and East China Sea Sanctions Act that would ban visas for Chinese people contributing to building development projects in the South and East China Seas.

It would also put sanctions on foreign financial bodies that “knowingly conduct or facilitate a significant financial transaction for sanctioned individuals and entities” if China steps up activity at Scarborough Shoal, among other actions.

The senators’ proposal was “extremely grating,” Chinese Foreign Ministry spokeswoman Hua Chunying said on Friday.

“I think the proposal put forward by individual senators shows their arrogance and ignorance,” Hua told a daily news briefing in Beijing.

China resolutely opposes the proposal, which infringes international law and international relations norms, she added.

Tension over the South China Sea reached a flashpoint after the Philippines filed an arbitration case against China in the Hague and as China started militarizing artificial islands it built up on reefs in the region.

China is also involved in a separate dispute with Japan over a group of uninhabited islands in the East China Sea.

(Reporting by Ben Blanchard and Christian Shepherd; Additional reporting by Manuel Mogato in MANILA; Editing by Clarence Fernandez)

North Korea says Malaysia ‘incident’ political scheme by U.S., South Korea

North Korean diplomat Pak Myong Ho attends a news conference in Beijing, China, March 16, 2017. REUTERS/Jason Lee

BEIJING (Reuters) – The recent “incident” that occurred in Malaysia was a political scheme by the United States and South Korea that will only benefit enemy countries, a North Korean diplomat based in the Chinese capital said on Thursday.

The estranged half-brother of North Korean leader Kim Jong Un was murdered on Feb. 13, when Malaysian police say two women – an Indonesian and a Vietnamese – smeared super toxic VX nerve agent on his face at Kuala Lumpur International Airport.

“The recent incident that occurred in Malaysia was clearly a political scheme by the U.S. and South Korea aimed at hurting the DPRK’s reputation and overthrowing the DPRK regime,” diplomat Pak Myong Ho told a news conference, using the country’s formal name, the Democratic People’s Republic of Korea.

“The only parties that will benefit from this incident are the enemy countries.”

(Reporting by Christian Shepherd; Writing by Ben Blanchard and Christine Kim; Editing by Clarence Fernandez)

China pledges firm response if Japan interferes in South China Sea

File photo: Hua Chunying, spokeswoman of China's Foreign Ministry, speaks at a regular news conference in Beijing, China, January 6, 2016. REUTERS/Jason Lee

BEIJING (Reuters) – China on Thursday pledged a firm response if Japan stirs up trouble in the South China Sea, after Reuters reported on a Japanese plan to send its largest warship to the disputed waters.

The Izumo helicopter carrier, commissioned only two years ago, will make stops in Singapore, Indonesia, the Philippines and Sri Lanka before joining the Malabar joint naval exercise with Indian and U.S. naval vessels in the Indian Ocean in July, sources told Reuters.

The trip would be Japan’s biggest show of naval force in the region since World War Two.

“If Japan persists in taking wrong actions, and even considers military interventions that threaten China’s sovereignty and security… then China will inevitably take firm responsive measures,” Foreign Ministry spokeswoman Hua Chunying said at a regular press briefing.

China said on Tuesday that it was waiting for an official word on why Japan plans to send the warship on the tour through the South China Sea, but that it hoped Japan would be responsible.

Hua did not say on Thursday if China had received confirmation of the plan, but said that the South China Sea issue did not involved Japan and that the country should “reflect deeply” on its “disgraceful” past invasion of the Paracel and Spratly Islands.

Japan controlled the islands during World War Two until its surrender in 1945.

China claims almost all the South China Sea and its growing military presence in the waterway has fueled concern in Japan and the West, with the United States holding regular air and naval patrols to ensure freedom of navigation.

Taiwan, Malaysia, Vietnam, the Philippines and Brunei also claim parts of the sea which has rich fishing grounds, oil and gas deposits and through which around $5 trillion of global sea-borne trade passes each year.

Japan does not have any claim to the waters, but has a separate maritime dispute with China in the East China Sea.

China regularly states that the dispute should be resolved without interference from non-claimants.

Beijing has been speaking with 10 members of the Association of South East Asian Nations since 2010 to agree to a set of rules aimed at avoiding conflict in the South China Sea.

Addressing a news conference at the end of the annual meeting of China’s parliament on Wednesday, Chinese Premier Li Keqiang said that China hopes to push forward with the negotiations for the code of conduct to maintain stability.

(Reporting by Beijing Newsroom; Writing by Christian Shepherd; Editing by Nick Macfie)

China begins new work on disputed South China Sea island

Combination of satellite photos shows Chinese-controlled North Island, part of the Paracel Islands group in the South China Sea, on February 15, 2017 (top) and on March 6, 2017. Planet Labs/Handout via REUTERS

By Greg Torode

HONG KONG (Reuters) – China has started fresh construction work in the disputed South China Sea, new satellite images show, a sign that Beijing is continuing to strengthen its military reach across the vital trade waterway.

Regional military attaches and experts believe the work shows China’s determination to build up its network of reefs and islets, even if it is seeking to avoid a fresh confrontation with the new administration of U.S. President Donald Trump.

An image of North Island in the Paracels group taken on March 6 shows recent work including land clearing and possible preparation for a harbor to support what experts believe may be eventual military installations. Initial work was damaged in a typhoon last year.

The pictures, provided by private satellite firm Planet Labs, follow reports in January showing work undertaken on nearby Tree Island and other features in the Paracels, which are also claimed by Vietnam and Taiwan.

Diplomats briefed on latest Western intelligence assessments say Beijing is pursuing efforts to dominate its maritime ‘backyard’, even if it tweaks the timing of moves to avoid being overtly provocative.

“The Paracels are going to be vital to any future Chinese attempt to dominate the South China Sea,” said Carl Thayer, a South China Sea expert at Australia’s Defence Force Academy.

“We can see they are committed to militarization, whatever the official rhetoric tells us, even if they are going to do it bit by bit.”

UNCERTAINTIES OVER TRUMP

The more widely disputed Spratlys archipelago to the south are higher profile but the Paracels are key to China’s presence in the South China Sea,

China has in recent years temporarily based surface-to-air missile launchers and crack jet fighters at long established bases on Woody Island on the Paracels, helping protect its nuclear submarine facilities on Hainan Island.

North Island is part of an arc of reefs that are expected to form a protective screen for Woody, which includes civilian facilities and a listening post.

Zhang Baohui, a mainland security expert at Hong Kong’s Lingnan University, said he believed China was pursuing long-held goals of strengthening its facilities in the Paracels, and had calculated the Trump administration would not over-react given other pressing priorities.

“There’s also uncertainty with this young Trump administration, but this is very important work to the Chinese…the Paracels are vital to defending Hainan, which is in turn important to China’s nuclear deterrent,” he said.

“The calculation here is that it is really only Vietnam that will be rattled by this.”

The Vietnamese Foreign Ministry did not immediately respond to requests for comment.

China’s Defence Ministry said it was “not familiar” with any work at North Island.

“What needs to be stressed is that the Xisha Islands are China’s inherent territory,” it said, using the Chinese name for the Paracels. China fully occupied the Paracels in 1974 after forcing the navy of the-then South Vietnam off its holdings.

News of fresh Chinese activity comes as Rex Tillerson prepares for his first visit to the region as U.S. Secretary of State later this week. Tillerson sparked alarm in Beijing when he said in January China should not be allowed access to islands it has built in the South China Sea.

A U.S. official, speaking on the condition of anonymity, was unable to confirm new construction work on North Island but said it would not be surprising.

“It would be in line with what they have been doing, why else would they clearing land on the islands but for militarization,” the official said. “There is no other reason to have a presence there.”

Diplomatic sources in Beijing say China is not looking for confrontation with the United States over the South China Sea, pointing to China’s low-key reaction to last month’s patrol of a U.S. aircraft carrier strike group in the waters there.

China has recently sought to portray itself as being conciliatory over the disputed waterway, saying it and Southeast Asian nations are committed to a peaceful resolution.

Last week, Chinese Foreign Minister Wang Yi said a draft code of conduct for behavior in the South China Sea had now been completed and that tensions had “distinctly dropped”.

For a graphic of China’s reclamations in the Paracels, click http://fingfx.thomsonreuters.com/gfx/rngs/SOUTHCHINASEA-CHINA/010040500BH/china-paracel.jpg

(Additional reporting by Ben Blanchard in BEIJING and Idrees Ali in WASHINGTON; Editing by Lincoln Feast)

Relief camp in China swells as thousands flee conflict in Myanmar

Refugee who fled fighting in neighbouring Myanmar washes dishes outside the house of a relative in the village of Baiyan near Nansan in the Yunnan province, China

By James Pomfret

NANSAN, China (Reuters) – Within earshot of mortar fire echoing from beyond a ring of hills, a sprawling relief camp in Southwestern China is swelling steadily after fighting erupted last week between a rebel ethnic army in Myanmar and government troops just across the border.

In a recent Reuters visit to the rugged area in southwestern Yunnan province, aid workers and those displaced expressed fears of a more violent and protracted conflict than a previous flare-up in the Kokang region in early 2015.

“Every day, more people come,” said Li Yinzhong, an aid manager in the camp, gesturing at the mostly Han Chinese refugees from Myanmar’s Kokang region trudging through the reddish mud earth around rows of large blue huts where they sleep on nylon tarpaulin sheets.

“We will look after them until they decide they want to go back.”

Blue disaster relief tents provided by the Chinese also dotted the terraced sugarcane, maize and tea terraces flanking the mountainous winding road to Nansan. The town, close to the Kokang region of Myanmar’s Shan State, is providing refuge for a stream of refugees that Chinese authorities estimate number more than 20,000.

The violence is a blow to efforts by Myanmar’s de facto leader Aung San Suu Kyi, to reach a comprehensive peace agreement with Myanmar’s ethnic minorities, some of them in rebellions spanning decades.

The conflict is also fraying ties between China and Myanmar, which Beijing has hoped could be a key gateway in its multi-pronged “One Belt One Road” strategy to promote economic links between China and Europe.

Kokang has close ties to China. The vast majority are ethnic Chinese speaking a Chinese dialect and using the yuan as currency.

‘STATE OF WAR’

The Kokang began fleeing when the rebel Myanmar National Democratic Alliance Army (MNDAA) launched a surprise raid on Myanmar police and military targets in the town of Laukkai, resulting in the deaths of 30 people on March 6.

The Myanmar military has launched “56 waves of small and large clashes”, using cannons, armored vehicles and heavy weapons over the past two months, according to a statement published by the military on March 6 after the attack.

Rebel forces who lay historic claim to the Kokang region have attacked government troops with rocket-propelled grenade launchers and other military hardware.

In an “urgent notice” posted on Sunday on its official website, the MNDAA said the Kokang area was now in a “state of war” as fighting worsened.

On the Chinese side, paramilitary police have sent in battalions of reinforcements, mostly in readiness for disaster relief, according to Chinese officials who spoke on background.

Reuters saw seven Chinese armored personnel carriers moving west along the hilly road towards Myanmar and the relief camp sprawled across a muddy wasteland the size of 10 football fields.

The fresh unrest comes after fighting in early 2015 and in 2009 involving the MNDAA, both flare-ups displacing tens of thousands of people.

Ordnance has occasionally strayed into China, with five people in China killed in 2015 during a round of fighting then.

This time round, the door to a village house was blown out, and the upper floor of the Anran hotel in Nansan was shelled forcing its closure, according to local residents and one official. Reuters was unable to corroborate these accounts.

China has lodged “solemn representations” with Myanmar over its citizens put at risk by the conflict, foreign ministry spokeswoman Hua Chunying told a regular news briefing on Monday.

“The Chinese will be very angry if it escalates to the level of 2015,” said Sino-Myanmar expert Yun Sun, a senior associate with the Stimson Center in Washington D.C.

Beijing wants the Kokang to be included in the comprehensive peace negotiations that Aung San Suu Kyi initiated last August, she said.

The military has blocked that, saying the rebels can only join if they lay down arms first. “The Chinese actually tacitly and privately support the Kokang being included in the negotiations, but they can’t say that,” Sun said.

UNRESOLVED PEACE

At around three in the morning on the day of the rebel raids, loud explosions and gunfire woke the Cao family, prompting them to flee at first light with few possessions.

“I was scared,” said Cao Junxiang, who fled in a convoy of four rudimentary, three-wheel farm lorries tethered to powerful motorcycles — joining a nearly 15-hour snaking exodus of jeeps, trucks, buses, carts and motorcycles bound for China.

“More than half the people (in my village) left,” he said, as others crowded around an open sitting area of a Chinese village house transformed into a makeshift refuge.

Yao Xiao’er, the 49-year old head of the household, said she sent the farm vehicles across the border soon after hearing the first bursts of distant thudding.  She eventually got nearly 100 relatives and friends to safety including a two-year-old toddler and a nonagenarian, half-blind, family matriarch, who was dozing on a tatty sofa.

One young mother with a baby strapped to her back said many refugees were seeking out odd jobs to make ends meet.

“We have no money so some of us cut sugar cane,” she said. “We get around one yuan for every 20 sticks we chop, peel and uproot.”

A Chinese taxi driver plying the route between a Chinese airport in Lincang and the seedy frontier casinos of Myanmar’s Laukkai, said business was drying up.

“No one is coming here anymore.”

(Reporting by James Pomfret; Additional reporting by Christian Shepherd in BEIJING; Editing by Bill Tarrant and Clarence Fernandez)

Japan plans to send largest warship to South China Sea

FILE PHOTO: A helicopter lands on the Izumo, Japan Maritime Self Defense Force's (JMSDF) helicopter carrier, at JMSDF Yokosuka base in Yokosuka, south of Tokyo, Japan,

By Tim Kelly and Nobuhiro Kubo

TOKYO (Reuters) – Japan plans to dispatch its largest warship on a three-month tour through the South China Sea beginning in May, three sources said, in its biggest show of naval force in the region since World War Two.

China claims almost all the disputed waters and its growing military presence has fueled concern in Japan and the West, with the United States holding regular air and naval patrols to ensure freedom of navigation.

The Izumo helicopter carrier, commissioned only two years ago, will make stops in Singapore, Indonesia, the Philippines and Sri Lanka before joining the Malabar joint naval exercise with Indian and U.S. naval vessels in the Indian Ocean in July.

It will return to Japan in August, the sources said.

“The aim is to test the capability of the Izumo by sending it out on an extended mission,” said one of the sources who have knowledge of the plan. “It will train with the U.S. Navy in the South China Sea,” he added, asking not to be identified because he is not authorized to talk to the media.

A spokesman for Japan’s Maritime Self Defense Force declined to comment.

Taiwan, Malaysia, Vietnam, the Philippines and Brunei also claim parts of the sea which has rich fishing grounds, oil and gas deposits and through which around $5 trillion of global sea-borne trade passes each year.

Japan does not have any claim to the waters, but has a separate maritime dispute with China in the East China Sea.

Japan wants to invite Philippine President Rodrigo Duterte, who has pushed ties with China in recent months as he has criticized the old alliance with the United States, to visit the Izumo when it visits Subic Bay, about 100 km (62 miles) west of Manila, another of the sources said.

Asked during a news conference about his view on the warship visit, Duterte said, without elaborating, “I have invited all of them.”

He added: “It is international passage, the South China Sea is not our territory, but it is part of our entitlement.”

On whether he would visit the warship at Subic Bay, Duterte said: “If I have time.”

Japan’s flag-flying operation comes as the United States under President Donald Trump appears to be taking a tougher line with China. Washington has criticized China’s construction of man-made islands and a build-up of military facilities that it worries could be used to restrict free movement.

Beijing in January said it had “irrefutable” sovereignty over the disputed islands after the White House vowed to defend “international territories”.

The 249 meter-long (816.93 ft) Izumo is as large as Japan’s World War Two-era carriers and can operate up to nine helicopters. It resembles the amphibious assault carriers used by U.S. Marines, but lacks their well deck for launching landing craft and other vessels.

Japan in recent years, particularly under Prime Minister Shinzo Abe, has been stretching the limits of its post-war, pacifist constitution. It has designated the Izumo as a destroyer because the constitution forbids the acquisition of offensive weapons. The vessel, nonetheless, allows Japan to project military power well beyond its territory.

Based in Yokosuka, near to Tokyo, which is also home to the U.S. Seventh Fleet’s carrier, the Ronald Reagan, the Izumo’s primary mission is anti-submarine warfare.

(Additional reporting by Martin Petty in Manila; Editing by Nick Macfie)

Cruise control: China squeezes South Korea as boats and planes stay away

A Royal Caribbean cruise is seen at a port in Dalian, Liaoning province, China, July 20, 2017. Picture taken July 20, 2017. REUTERS/Stringer

By Adam Jourdan and Cynthia Kim

SHANGHAI/SEOUL (Reuters) – Pressure in China on travel firms forced airlines and cruise operators to cut routes to South Korea, as the fallout spread on Friday from a diplomatic row over Seoul’s plans to deploy a U.S. missile defense system against Beijing’s objections.

China Eastern Airlines Corp Ltd <600115.SS> and Spring Airlines Co Ltd <601021.SS> stopped offering flights on their websites between the eastern Chinese city of Ningbo and popular South Korean tourist island Jeju from next week.

Korea’s Eastar Jet said it was halting flights between the South Korean cities of Cheongju and tourist hotspot Jeju with various Chinese cities including Ningbo, Jinjiang and Harbin.

This followed Carnival Corp’s <CCL.N> Costa Cruises and Royal Caribbean Cruises <RCL.N> cutting South Korean visits by their China ships. Royal Caribbean cited “recent developments regarding the situation in South Korea”.

The moves reflect a more aggressive and blatant stance against South Korean business in China, although Beijing has not directly said it is targeting South Korean firms.

An internal South Korean government document seen by Reuters said Chinese authorities gave a “7-point” verbal instruction to travel firms to curtail or ban trips to South Korea.

These included a ban on tour groups visiting South Korea from March 15, cruise ships not being allowed to dock in South Korea ports and a warning that those who violated the guidance would face “severe punishment”.

Reuters could not immediately reach China’s tourism administration for comment. China Eastern and Spring Airlines did not respond to requests for comment.

The crackdown has sent a chill across South Korea’s retail and tourism sectors, which rely heavily on China trade, and prompted South Korea to say it will consider filing a complaint against China to the World Trade Organization.

South Korea sold $124 billion worth of goods and services to China last year, about five times the amount it exported to nearby Japan and double the amount it shipped to its second-biggest overseas market, the United States.

Tourism is a particularly sensitive sector, with official South Korean data showing almost half of the visitors to the country come from China.

Asked about cruise operators cancelling South Korean port visits, an official from South Korea’s Ministry of Trade, Industry and Energy told Reuters the ministry was checking if any WTO rules have been violated.

“If we are to launch a dispute, we still need to make sure if anything has been ordered by Beijing,” the official said.

“RELEVANT DEPARTMENTS”

Political risk analysts said the widespread actions against South Korean firms pointed to centralized coordination.

Princess Cruises, also owned by Carnival, said in a statement on Friday it would remove visits to South Korea from routes after talks with “relevant departments”.

“Due to the current situation, Princess Cruises’ China team has been in close dialogue and prudent discussions with relevant departments,” the firm said. “All routes which involve South Korea have been altered.”

The diplomatic problems with its biggest trade partner have come at a difficult time for South Korea.

On Friday, South Korea’s Constitutional Court removed President Park Geun-hye from office on Friday over a graft scandal involving the country’s conglomerates.

Analysts said the upheaval had given China the opportunity to put pressure on Park’s possible successors to ditch or delay the installation of the U.S. Terminal High Altitude Area Defence (THAAD) missile system.

“I think they’ll keep up this pressure well into the period where we get a new government in South Korea,” said Andrew Gilholm, director of analysis for China and North Asia at risk consultancy Control Risks.

“Possibly the reason they’re pushing so hard is that they are trying to influence whatever policy the next government in Seoul takes.”

Meantime, South Koreans living in China have been advised by business groups to adopt a low profile, while residents and shopkeepers in a Shanghai neighborhood where many South Koreans live told Reuters of a growing sense of anxiety.

“I feel wherever I am people are watching me. On the street, in the car and at restaurants, I don’t feel I can freely speak Korean,” said Seo Lan Kyung, 48, a housewife who said she has been living in China for 18 years.

“I want to keep living here but increasingly there’s a feeling of impending crisis.”

(Additional reporting by Christian Shepherd and Muyu Xu in BEIJING, Alexandra Harney in SHANGHAI, Heekyong Yang and Hyunjoo Jun in SEOUL; Editing by Simon Cameron-Moore)