Tag Archives: China

North Korea diplomat expected to attend China forum with U.S. envoy

North Korean flag in Beijing

SEOUL (Reuters) – A North Korean diplomat who was part of the so-called six-party talks aimed at ending the country’s nuclear program arrived on Monday in China, where she is expected to attend a forum in which the U.S. nuclear envoy will take part, Japan’s Kyodo news agency said.

If the diplomat does take part, it would be a rare gathering of experts from the six countries, coming weeks after Chinese President Xi Jinping said he would like to see the six-party talks resume.

Isolated North Korea conducted its fourth nuclear test in January and a long-range rocket launch the following month in defiance of U.N. resolutions, prompting the U.N. Security Council to impose new sanctions.

China, reclusive North Korea’s only major ally, has been angered by its nuclear and missile programs. Xi said in April China wanted to see a resumption of the six-party talks, which have been stalled since 2008.

The North Korean diplomat, Choe Son Hui, is deputy director-general of the North Korean Foreign Ministry’s U.S. affairs bureau, according to South Korea. She was a delegate to the stop-start six-party nuclear talks, hosted by China.

Choe was expected to attend the closed-door Northeast Asia Cooperation Dialogue in Beijing, hosted by the Institute on Global Conflict and Cooperation at the University of California, San Diego, Kyodo said.

The annual dialogue is an informal multilateral conference attended by government officials and scholars from the United States, South Korea, Japan, Russia and China, the five countries involved in the six-party talks along with North Korea.

“We hope that this conference can make a meaningful inquiry into the relevant cooperation issues in northeast Asia,” Chinese Foreign Ministry spokeswoman Hua Chunying told reporters in Beijing.

The U.S. State Department said last week that Sung Kim, the U.S. special representative for North Korea policy, would attend the forum in Beijing. Kyodo said Japan may also send its top nuclear negotiator.

State Department spokesman John Kirby said on Monday that Kim has no plans to meet with his North Korean counterparts during the session.

It was unclear if Choe would hold separate meetings with officials from other countries.

Choe attended a security conference in 2012 in China, but no representatives from North Korea have taken part since, according to the Institute on Global Conflict and Cooperation.

The visit comes after career diplomat Ri Su Yong, one of North Korea’s highest-profile officials, visited China and held a rare meeting with Xi.

(Reporting by Ju-min Park, additional reporting by Megha Rajagopalan in Beijing and Warren Strobel in Washington; Editing by Nick Macfie and Steve Orlofsky)

South China floods kill 22, with more rain forecast

China floods 2016

BEIJING (Reuters) – Severe floods in southern China have killed at least 22 people and left 20 missing since Saturday, the government said, with the rains expected to continue for the next three days.

About 200,000 people from eight southern provinces and regions, including Hubei, Sichuan, Guizhou, Jiangxi, Yunnan, Zhejiang and Anhui, had been forced to evacuate, the Ministry of Civil Affairs said on its website.

Storms had pushed water levels in rivers to dangerous levels, leading to crop damage and the collapse of 10,500 houses, the official Xinhua news agency reported. Estimated economic losses were 7.34 billion yuan ($1.1 billion), it said.

Three days of heavy rain last week had already killed 14 people, Xinhua said on Friday.

China has frequently been devastated by natural disasters, particularly by floods and earthquakes. Flooding, an annual problem, has been exacerbated by urban sprawl and poor drainage infrastructure in many cities.

Chinese officials had warned of the potential for record floods this year due to a strong El Nino weather pattern, which warms sea-surface temperatures in the Pacific and has been linked to serious crop damage, forest fires and flash flood and drought around the world.

(Reporting by Michael Martina; Editing by Nick Macfie)

China warns U.S. on visit by Dalai Lama, Taiwan President

he Dalai Lama speaks at the U.S. Institute of Peace in Washington

BEIJING (Reuters) – China warned the United States on Tuesday to stick by its promises not to support any separatist activities, ahead of a U.S. visit by Taiwan’s new president and a possible meeting between the Dalai Lama and U.S. President Barack Obama.

The self-ruled, democratic island of Taiwan and the remote mountainous region of Tibet are two of China’s most sensitive political and diplomatic issues.

Chinese Foreign Ministry spokesman Lu Kang said both issues involved the “one China” policy, a basic diplomatic tenet referring to both Taiwan and Tibet being part of China that Beijing insists foreign governments recognize.

“I can responsibly tell you that on this issue the U.S. government has made solemn promises, which is to uphold a one China policy,” Lu told a daily news briefing.

Taiwan President Tsai Ing-wen will transit in Miami on her way to Panama, one of the island’s few diplomatic allies, for the expansion ceremony of the Panama Canal and stopover in Los Angeles on her return, Taiwan deputy foreign minister Javier Ching-shan Hou said on Tuesday.

Her trip abroad from June 24 to July 2 will also include a state visit to another ally, Paraguay, the government said.

Travel abroad is sensitive for Taiwanese leaders who have angered China in the past because it is seen as exerting sovereignty.

China is suspicious of Tsai, who assumed office last month, as she is also head of the pro-independence Democratic Progressive Party (DPP).

Lu said the U.S. has said it opposes Taiwan independence.

“We demand the U.S. government earnestly stands by its promises, conscientiously handle the relevant issue in accordance with the one China principle and not give any space to any individual or behavior which tries to create two Chinas, one China one Taiwan, or to split China,” he added.

Taiwan deputy minister Hou gave no details on who Tsai would meet while in the U.S.

On the issue of the Dalai Lama, whom Beijing brands a dangerous separatist, Lu said the United States also recognizes that Tibet is an inseparable part of China.

“The 14th Dalai Lama often puts up the facade of religion to peddle internationally his political position of splitting China,” he said.

“We demand no country or government give him any space for such activities and should certainly not do anything the 1.3 billion people of China would resolutely oppose.”

Asked if he would meet Obama during his three-day visit to Washington, exiled Tibetan spiritual leader the Dalai Lama told Reuters on Monday it was “not finalised, but some friends say he may meet me”.

The Dalai Lama says he simply wants genuine autonomy for Tibet rather than independence.

(Reporting by Ben Blanchard; Additional reporting by J.R. Wu in Taipei)

North Korea restarts plutonium production for nuclear bombs

North Korean leader Kim Jong Un visits the construction site of Ryongaksan soap factory in this undated photo released by North Korea's Korean Central News Agency

By Jonathan Landay, David Brunnstrom and Matt Spetalnick

WASHINGTON (Reuters) – North Korea has restarted production of plutonium fuel, a senior U.S. State Department official said on Tuesday, showing that it plans to pursue its nuclear weapons program in defiance of international sanctions.

The U.S. assessment came a day after the U.N. nuclear watchdog said it had “indications” that Pyongyang has reactivated a plant to recover plutonium from spent reactor fuel at Yongbyon, its main nuclear complex.

The latest developments suggest North Korea’s reclusive regime is working to ensure a steady supply of materials for its drive to build warheads, despite tightened international sanctions after its fourth nuclear test in January.

The U.S. official, who spoke on condition of anonymity, said that Washington is worried by the new plutonium reprocessing effort, but he offered no explicit word on any U.S. response.

“Everything in North Korea is a cause for concern,” the official told Reuters.

“They take the spent fuel from the 5 megawatt reactor at Yongbyon and let it cool and then take it to the reprocessing facility, and that’s where they’ve obtained the plutonium for their previous nuclear tests. So they are repeating that process,” the official said. “That’s what they’re doing.”

North Korea, which conducted its fourth nuclear test in January, vowed in 2013 to restart all nuclear facilities, including the main reactor and the smaller plant at Yongbyon, which was shut down in 2007 as part of an international disarmament-for-aid deal that later collapsed.

The International Atomic Energy Agency (IAEA), which has no access to North Korea and mainly monitors its activities by satellite, said last year it had seen signs of a resumption of activity at Yongbyon.

IAEA chief Yukiya Amano told a news conference in Vienna on Monday that there have been indications of renewed plutonium reprocessing activities at Yongbyon. Reprocessing involves extracting plutonium from spent reactor fuel, one route to obtaining bomb fuel other than uranium enrichment.

“I would agree that there are indications,” the U.S. official said.

The official declined to confirm whether this determination was made from satellite imagery or intelligence sources, or to say how much plutonium North Korea could produce by this method.

South Korea’s Unification Ministry spokesman Cheong Joon-hee said Seoul was closely watching movements related to the North’s nuclear facility “with grave concern” but declined to comment directly on plutonium production.

A spokesman for China’s Foreign Ministry said China, North Korea’s lone major ally, has always promoted the denuclearization of the Korean peninsula and a resolution of the issue via talks.

“We hope all parties can work hard together to put the nuclear issue back on the track of dialogue and negotiations,” spokesman Hong Lei told reporters.

SHROUDED IN SECRECY

North Korea announced at a rare congress of its ruling Workers’ Party last month that it would strengthen its defensive nuclear weapons capability.

It had already declared itself “a responsible nuclear weapons state” and disavowed the use of nuclear weapons unless its sovereignty is first infringed by others with nuclear arms.

While North Korea in the past has often obtained key components for its nuclear program from other countries despite international sanctions, there was no sign of any recent outside procurement involved in reactivating its plutonium reprocessing, the U.S. official said.

There is little proven knowledge about the quantities of weapons-grade uranium or plutonium that North Korea possesses, or its ability to produce either, though plutonium from spent fuel at Yongbyon is widely believed to have been used in its nuclear bombs.

South Korean Defense Minister Han Min-koo said last month the North probably had about 40 kg (88 lb) of plutonium. That would be enough to make eight to 10 bombs, according to experts.

Operating the 5 megawatt reactor could yield about 5-6 kg of plutonium a year, they said.

Experts at the U.S.-Korea Institute at Johns Hopkins University’s School of Advanced International Studies in Washington predicted last year that North Korea’s nuclear weapons stockpile could grow to 20, 50 or 100 bombs within five years, from an estimated 10 to 16 weapons at that time.

North Korea has come under tightening international pressure over its nuclear weapons program, including tougher U.N. sanctions adopted in March backed by China, following its most recent nuclear blast and ballistic missile tests.

The website 38 North reported last week, based on commercial satellite imagery, that exhaust plumes had been detected twice in May from the thermal plant at Yongbyon’s Radiochemical Laboratory, the site’s main reprocessing installation.

The Institute for Science and International Security also reported exhaust emissions from a chimney at the plant, which it said was often associated with reprocessing activities there.

(Additional reporting by Jack Kim in Seoul and Ben Blanchard in Beijing; Editing by James Dalgleish and Nick Macfie)

China tells U.S. to play constructive role over South China Sea

Center for Strategic and International Studies (CSIS) Asia Maritime Transparency Initiative file image of an octagonal tower with a conical feature at its top, located on the northeast

By Yeganeh Torbati and Michael Martina

BEIJING (Reuters) – China told the United States on Tuesday that it should play a constructive role in safeguarding peace in the disputed South China Sea, as U.S. Secretary of State John Kerry called for talks and a peaceful resolution.

China claims most of the South China Sea, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims, as well as close military ties with the United States.

China has been angered by what it views as provocative U.S. military patrols close to islands China controls in the South China Sea. The United States says the patrols are to protect freedom of navigation.

Speaking at the end of high-level Sino-U.S. talks in Beijing, State Councillor Yang Jiechi, China’s top diplomat who outranks the foreign minister, said China had the right to safeguard its territorial sovereignty and maritime rights.

“China respects and protects the right that all countries enjoy under international law to freedom of navigation and overflight,” Yang told reporters.

Disputes should be resolved by the parties involved through consultation, he said.

“China hopes the U.S. will scrupulously abide by its promise to not take sides in relevant territorial disputes and play a constructive role in safeguarding peace and stability in the South China Sea,” Yang said.

U.S. Defense Secretary Ash Carter said on Saturday the U.S. approach to the Asia-Pacific remained “one of commitment, strength and inclusion”, but he also warned China against provocative behaviour in the South China Sea.

Kerry said the United States did not take a position on the sovereignty of any land features in the South China Sea but thought all claimants should exercise restraint.

“We reiterated America’s fundamental support for negotiations and a peaceful resolution based on the rule of law as well as our concern about any unilateral steps by any party … to alter the status quo,” Kerry said.

Kerry added that he and Yang reaffirmed their governments’ commitment to upholding the freedom of navigation and overflight.

The Philippines is hoping for a favourable ruling from a tribunal in The Hague this month after it went to court in 2013 seeking clarification on its economic entitlements in the South China Sea.

China has said it will not respect the court’s decision and there are fears in Manila that China may retaliate by declaring an air defence identification zone in the disputed waters or by reclaiming disputed Scarborough Shoal.

Gregory Poling, director of Asia Maritime Transparency Initiative at the U.S. Center for Strategic and International Studies, said China would not risk an escalation if it knew the United States would try to deter its actions on Scarborough Shoal.

“What we’ve seen over and over in the last years, China is unwilling to risk activities that threaten deadly force,” Poling told diplomats and military officials at the main army base in Manila.

“It is possible to deter them. We’ll have to keep deterring them over and over. That is the test for next 10 to 15 years in this game of whack-a-mole until the Chinese decide that this is not the way to do international relations.”

(Additional reporting by Manuel Mogato in Manila; Writing by Ben Blanchard; Editing by Robert Birsel and Nick Macfie)

China slams Philippines definition of South China Sea ‘reef’

Still image from a United States Navy video purportedly shows Chinese dredging vessels in the waters around Fiery Cross

BEIJING (Reuters) – As Asia’s biggest security summit is set to convene, China on Friday accused the Philippines of seeking to negate its sovereignty in the South China Sea by describing Taiping Island as a reef and not an island in Manila’s territorial court case.

Tensions in the South China Sea are set to dominate the Shangri-La Dialogue (SLD) starting Friday, exposing a deepening rivalry between the United States and China ahead of a landmark legal ruling over the disputed area in the Hague.

Beijing refuses to recognize the case lodged by the Philippines with the Permanent Court of Arbitration in The Hague over territorial claims in the South China Sea and says such disputes should be resolved through bilateral talks.

Manila is challenging the legality of China’s claim there, in part by arguing that no land mass in the Spratly archipelago, including Itu Aba, known as Taiping Island in Chinese, can legally be considered a life-sustaining island.

That would mean it cannot hold rights to a 200 nautical mile (370 km) exclusive economic zone.

“The Philippines’ attempt to define Taiping Island as a ‘reef’ exposes that the goal of its arbitration case is to try to negate China’s sovereignty and related rights over the Spratly Islands,” China’s Foreign Ministry spokeswoman Hua Chunying said.

“This is a violation of international law and completely unacceptable,” Hua said in a statement posted to the ministry’s website.

Chinese fishermen had historically lived on Itu Aba year-round, and fished, dug wells, cultivated plants and constructed buildings, all evidence that it was an island capable of sustaining human life and economic activity, Hua said.

China claims almost the entire South China Sea, through which about $5 trillion worth of ship-borne goods passes every year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims to the waters.

Self-ruled Taiwan controls Itu Aba, which some analysts believe has the strongest claim to island status and an economic zone. Late last year it finished a $100 million port upgrade on Itu Aba, which has an airstrip, a hospital and fresh water.

China, which claims sovereignty over Taiwan, has appeared unruffled by Taiwan’s upgrading work on Itu Aba. Military strategists say that is because it could fall into China’s hands should it ever take over Taiwan.

Taiwan in May called on the international court not to make a ruling on the legal status of Itu Aba in the South China Sea case if the judges don’t visit first to see for themselves it can sustain life.

(Reporting by Michael Martina; Editing by Michael Perry)

Attempted North Korean missile launch fails

KCNA file picture shows North Korean leader Kim Jong Un watching the ballistic rocket launch drill of the Strategic Force of the Korean People's Army at an unknown location

By Ju-min Park

SEOUL (Reuters) – North Korea attempted to fire a missile from its east coast on Tuesday but the launch appears to have failed,South Korean officials said, in what would be the latest in a string of unsuccessful ballistic missile tests by the isolated country.

The launch attempt took place at around 5:20 a.m. Seoul time (4.20 p.m. ET), said the officials, who asked not to be identified. They did not elaborate.

Tension in Northeast Asia has been high since North Korea conducted its fourth nuclear test in January and followed that with a satellite launch and test launches of various missiles.

Japan put its military alert on Monday for a possible North Korean missile launch.

“North Korea shows no sign of abandoning the development of nuclear missiles and so we will continue to work closely with the U.S. and South Korea in response and maintain a close watch,” Japanese Minister of Defence Gen Nakatani told a media briefing.

North Korea appeared to have attempted to launch an intermediate-range Musudan missile, South Korea’s Yonhap News Agency said.

North Korea attempted three test launches of the Musudan in April, all of which failed, U.S. and South Korean officials have said.

Yonhap quoted a South Korean government source as saying the missile was likely to have exploded at about the time it lifted off from a mobile launcher.

China, North Korea’s only major ally, called for the cessation of any action that would exacerbate tension.

“The situation on the peninsula remains complex and sensitive,” Chinese Foreign Ministry spokeswoman Hua Chunying said at a briefing when asked about the launch.

“We think that all sides should avoid any actions that further worsen tensions.”

China has been angered by North Korea’s nuclear and missile tests and signed up to tough U.N. sanctions against its reclusive neighbor in March.

North Korean state media did not mention any missile launch.

A Pentagon statement said that a failed North Korean intermediate-range ballistic missile launch had been detected, but did not pose a threat to North America.

“We strongly condemn North Korea’s missile test in violation of UN Security Council resolutions, which explicitly prohibit North Korea’s use of ballistic missile technology,” the Pentagon statement said.

IN A RUSH?

The North’s flurry of weapons technology tests came in the run-up to the first congress in 36 years of its ruling Workers’ Party this month, where young leader Kim Jong Un consolidated his control.

Tuesday’s launch appears to have been its first missile test since then, and experts said it was unusual to test-fire a missile so soon after a failure.

The South Korean military said the successive tests could stem from Kim’s order in March for further tests of nuclear warheads and ballistic missiles.

“They must’ve been in a rush. Maybe Kim Jong Un was very upset about the failures,” said Lee Choon-geun, senior research fellow at South Korea’s state-run Science and Technology Policy Institute.

North Korea has never carried out a successful launch of the Musudan missile, which theoretically has the range to reach any part of Japan and the U.S. territory of Guam.

The North is believed to have up to 30 Musudan missiles, according to South Korean media, which officials said were first deployed in around 2007.

“It could have cracks and something wrong with the welding,” Lee said of possible causes for the latest failure. “But deployment before test-firing these to complete development seems unusual.”

The attempted launch took place near the east coast city of Wonsan, one of the South Korean officials said, the same area where previous Musudan tests had taken place.

Separately, the international department of China’s Communist Party said diplomat Ri Su Yong, one of North Korea’s highest-profile officials, visited China on Tuesday, meeting the department’s head, Song Tao.

The two expressed a desire to increase cooperation between their parties and work hard to promote regional peace and stability, the department said in a brief statement.

There was no indication of any link between the missile launch and Ri’s visit.

Ri was foreign minister until he was named a member of the politburo during the recent Workers’ Party congress.

(Additional reporting by Se Young Lee in Seoul, Tim Kelly in Tokyo, Ben Blanchard in Beijing and Idrees Ali in Washington; Writing by Tony Munroe; Editing by Robert Birsel and James Dalgleish)

G7 agrees, need strong message on South China Sea

Participants of the G7 summit meetings (from front in clockwise) Japanese Prime Minister Shinzo Abe, French President Francois Hollande, Britain's Prime Minister David Cameron, Canadian Prime Minister Justin Trudeau, European Commission President Jean-Claude Juncker, European Council President Donald Tusk, Italy's Prime Minister Matteo Renzi, German Chancellor Angela Merkel and U.S. President Barack Obama attend session 1 working lunch meeting at the Shima Kanko Hotel in Shima, Mie Prefecture, Japan

By Matt Spetalnick and Tetsushi Kajimoto

ISE-SHIMA, Japan (Reuters) – Group of Seven (G7) leaders agreed on Thursday on the need to send a strong message on maritime claims in the western Pacific, where an increasingly assertive China is locked in territorial disputes with Japan and several Southeast Asian nations.

The agreement prompted a sharp rejoinder from China, which is not in the G7 club but whose rise as a power has put it at the heart of some discussions at the advanced nations’ summit in Ise-Shima, central Japan.

“Prime Minister (Shinzo) Abe led discussion on the current situation in the South China Sea and East China Sea. Other G7 leaders said it is necessary for G7 to issue a clear signal,” Japan’s Deputy Chief Cabinet Secretary Hiroshige Seko told reporters after a session on foreign policy affairs.

At a news conference late on Wednesday, Abe said Japan welcomed China’s peaceful rise while repeating Tokyo’s opposition to acts that try to change the status quo by force and urging respect of the rule of law – principles expected to be mentioned in a statement after the summit.

The United States is also increasingly concerned about China’s action in the region.

Chinese Foreign Ministry spokeswoman Hua Chunying retorted in Beijing that the South China Sea issue had “nothing to do” with the G7 or any of its members.

“China is resolutely opposed to individual countries hyping up the South China Sea for personal gain,” she said.

U.S. President Barack Obama called on China on Wednesday to resolve maritime disputes peacefully and he reiterated that the United States was simply concerned about freedom of navigation and overflight in the region.

Obama on Thursday pointed to the risks from North Korea’s nuclear and missile programs, saying the isolated state was “hell bent” on getting atomic weapons.

But he said there had been improved responses from countries in the region like China that could reduce the risk of North Korea selling weapons or nuclear material.

“It’s something that we’ve put at the center of discussions and negotiations with China,” Obama told reporters.

GLOBAL HEALTH CHECK

The global economy topped the agenda earlier in the day, when G7 leaders voiced concern about emerging economies and Abe made a pointed comparison to the 2008 global financial crisis. Not all his G7 partners appeared to agree.

The G7 leaders did agree on the need for flexible spending to spur world growth but the timing and amount depended on each country, Seko told reporters, adding some countries saw no need for such spending. Britain and Germany have been resisting calls for fiscal stimulus.

“G7 leaders voiced the view that emerging economies are in a severe situation, although there were views that the current economic situation is not a crisis,” Seko said .

Abe presented data showing global commodities prices fell 55 percent from June 2014 to January 2016, the same margin as from July 2008 to February 2009, after the Lehman collapse.

Lehman had been Wall Street’s fourth-largest investment bank when it filed for Chapter 11 protection on Sept. 15, 2008, making its bankruptcy by far the biggest in U.S. history. Its failure triggered the global financial crisis.

Abe hopes, some political insiders say, to use a G7 statement on the global economy as cover for a domestic fiscal package including the possible delay of a rise in the nation’s sales tax to 10 percent from 8 percent planned for next April.

Obama ripped into Republican presidential candidate Donald Trump, saying the billionaire had rattled other G7 leaders and that his statements were aimed at getting headlines, not what was needed to keep America safe and the world on an even keel.

Trump has been accused of racism, misogyny and bigotry for saying he would build a giant wall to keep out illegal Mexican immigrants, would temporarily ban Muslims from the United States and after he made a series of comments considered demeaning to women.

Summit pageantry began when Abe escorted G7 leaders to the Shinto religion’s holiest site, the Ise Grand Shrine in central Japan, dedicated to sun goddess Amaterasu Omikami, mythical ancestress of the emperor.

On Wednesday night, Abe met Obama for talks dominated by the arrest of a U.S. military base civilian worker in connection with the killing of a young woman on Japan’s southern Okinawa island, reluctant host to the bulk of the U.S. military in Japan.

The attack has marred Obama’s hopes of keeping his Japan trip strictly focused on his visit on Friday to Hiroshima, site of the world’s first atomic bombing, to highlight reconciliation between the two former World War Two foes and his nuclear anti-proliferation agenda.

The G7 groups Britain, Canada, France, Germany, Italy, Japan and the United States.

(Additional reporting by Thomas Wilson, Kiyoshi Takenaka, Kylie MacLellan, Ami Miyazaki, and Ben Blanchard; Writing by Linda Sieg; Editing by Nick Macfie, Robert Birsel)

Philippines says China broke deal on South China Sea agreement

File photo of two Chinese surveillance ships which sailed between Philippines warship and Chinese fishing

MANILA (Reuters) – Philippine President Benigno Aquino on Thursday accused China of breaking a U.S.-brokered deal between the two nations on the Scarborough Shoal, an uninhabited rocky outcrop in the South China Sea.

China claims almost the entire South China Sea, believed to have rich deposits of oil and gas. Brunei, Malaysia, Taiwan, Vietnam and the Philippines also claim the waterway, through which about $5 trillion in ship-borne goods pass every year.

Beijing seized control of Scarborough Shoal, near the main Philippine island of Luzon, in June 2012, following a three-month standoff after a Philippine Navy vessel tried to arrest Chinese fishermen found illegally hauling giant clams there.

On Thursday, Aquino said the United States moved in quickly to resolve the standoff, brokering a “face-saving” deal by asking both nations to pull out their ships, but only the Philippines withdrew.

“Now, their continued presence is something that we have continuously objected to,” Aquino told reporters in his hometown in Tarlac, north of the Philippine capital.

“There was a deal, which we observed religiously. We hope the other side will do what we have done.”

China’s embassy in Manila did not respond to Reuters’ request for comment on Aquino’s remarks.

Beijing has denied ever making a deal with Manila and Washington, a Philippine diplomat who was involved in the negotiations told Reuters, on condition of anonymity, because he was not authorised to speak to the media.

China has reclaimed seven reefs in the Spratlys islands, building two airfields, ports, lighthouses radars, and other military structures, which the United States has called a clear move to militarise the disputed area.

In March, Washington warned that China might next reclaim the Scarborough Shoal, after Beijing sent survey ships to the area, although a Philippine military aircraft despatched to check the reports did not find a survey ship there.

“China is not reclaiming Scarborough Shoal,” Aquino said, allaying the fears that Beijing might reclaim the shoal, just outside the former U.S. naval base in Subic.

There have been many “red lines” in China’s assertive behaviour in the South China Sea, Aquino added, such as harassing a survey ship hired by an Anglo-Philippine firm seeking oil and gas in the Reed Bank.

Both Reed Bank and Scarborough Shoal lie in the Philippines’ 200-mile exclusive economic zone, Aquino said, calling China’s actions a violation of a 2002 pact on the South China Sea between China and ten Southeast Asian nations.

(Reporting by Manuel Mogato; Editing by Clarence Fernandez)

New Taiwan president urges China to drop historical baggage

aiwan’s President Tsai Ing-wen addresses during an inauguration ceremony in Taipei

By J.R. Wu and Faith Hung

TAIPEI (Reuters) – Taiwan’s new president urged China on Friday to “drop the baggage of history” in an otherwise conciliatory inauguration speech that Beijing’s Communist Party rulers had been watching for any move towards independence.

President Tsai Ing-wen was sworn in with Taiwan’s export-driven economy on the ropes and China, which views the self-ruled island as its own, looking across the Taiwan Strait for anti-Beijing sentiment that could further sour economic ties.

Tsai’s Democratic Progressive Party (DPP), which has traditionally favored independence, won parliamentary and presidential elections by a landslide in January on a voter backlash against creeping dependence on China. It takes over after eight years under China-friendly Nationalist Ma Ying-jeou.

Tsai, Taiwan’s first woman president, said Taiwan would play a responsible role and be a “staunch guardian of peace” with China.

“Cross-Strait relations have become an integral part of building regional peace and collective security,” she told thousands outside the presidential office.

“The two governing parties across the Strait must set aside the baggage of history and engage in positive dialogue for the benefit of the people on both sides.”

China, which has never renounced force to take control of what it considers a renegade province, said this month the new Taiwan government would be to blame for any crisis that might erupt.

Chiang Kai-shek’s Nationalists fled to Taiwan after losing the civil war to the Communists in China in 1949. China has pressured the new government to stick to the “one China” principle agreed with the Nationalists. That allows each side to interpret what “one China” means.

China’s Taiwan Affairs Office said Tsai’s remarks were an “incomplete answer”, warning that China saw any push for Taiwan independence as “the biggest menace to peace across the Taiwan Strait”, according to the official Xinhua news agency.

Chinese Foreign Ministry spokeswoman Hua Chunying, asked about the inauguration, merely praised the record of the “one China” policy.

“Regardless of what internal changes take place within Taiwan, China will uphold the one China principle and oppose Taiwanese independence,” she told a briefing.

“LET’S SET ASIDE DISPUTES”

In a sign of a deteriorating economy, Taiwan’s export orders fell more than expected in April, their 13th straight month of decline, according to data released on Friday, as demand in China and other global markets remained weak.

Taiwan markets reacted calmly to Tsai’s speech. The main stock index reached an intraday high as she spoke, before closing 0.4 percent higher.

Tsai pledged to abide by the constitution of the Republic of China, Taiwan’s formal name, and promised to safeguard the island’s sovereignty and territory.

She also mentioned the East China and South China Seas, where an increasingly muscular China has been at odds over territorial claims with its neighbors.

“Regarding problems arising in the East China Sea and South China Sea, we propose setting aside disputes so as to enable joint development,” she said.

The American Institute in Taiwan, which represents U.S. interests in the island in the absence of formal diplomatic ties, said it looked forward to working with the new government.

The United States switched diplomatic recognition from Taiwan to China in 1979 but is also Taiwan’s biggest ally and arms supplier.

China is deeply distrustful of Tsai’s DPP, whose charter includes a clause promoting “a sovereign and independent Republic of Taiwan”.

Voted in by a Taiwanese public equally distrustful of growing economic dependence on China, the DPP also champions Taiwan’s own history. There were massive protests in 2014 that stalled a trade pact with China and were a key element of the DPP’s rise.

(Additional reporting by David Brunnstrom in WASHINGTON and Megha Rajagopalan in BEIJING; Editing by Paul Tait and Nick Macfie)