Tag Archives: China

Philippine officials say China blocked access to disputed South China Sea atoll

By Manuel Mogato

MANILA (Reuters) – China sent several ships to a disputed atoll in the South China Sea, preventing Filipino fishermen from accessing traditional fishing grounds and raising tensions in the volatile region, Philippine officials said on Wednesday.

China had sent as many as seven ships to Quirino Atoll, also known as Jackson Atoll, in recent weeks, said Eugenio Bito-onon Jr, the mayor of nearby Pagasa Island in the Spratly Islands.

The Spratlys are the most contested archipelago in the South China Sea, a resource-rich region and critical shipping lane linking North Asia to Europe, South Asia and the Middle East.

“This is very alarming, Quirino is on our path when we travel from Palawan to Pagasa. It is halfway and we normally stop there to rest,” Bito-onon told Reuters.

“I feel something different. The Chinese are trying to choke us by putting an imaginary checkpoint there. It is a clear violation of our right to travel, impeding freedom of navigation,” he said.

In Beijing, Foreign Ministry spokesman Hong Lei said China’s Ministry of Transport had sent vessels to tow a grounded foreign ship and they had since left the surrounding waters.

“To guarantee safety of navigation and of work conditions, China urged fishing vessels near the site to leave,” Hong said, adding that China had indisputable sovereignty over the atoll.

The Philippines Foreign Ministry said Chinese coast guard vessels had been seen at the atoll two weeks ago but were not in the area on Wednesday.

“The Department is monitoring reports on the situation on the ground and reiterates its call for China to exercise self-restraint from the conduct of activities that could complicate or escalate disputes in the South China Sea and affect peace and stability in the region,” the ministry said in a statement.

TENSIONS ON THE RISE

Earlier, the Philippine military said it was looking into the situation around Jackson Atoll, where a Chinese warship allegedly fired warning shots at Filipino fishermen in 2011.

“We know there are Chinese ships moving around the Spratly area,” spokesman Brigadier-General Restituto Padilla told Reuters. “There are also ships around Second Thomas Shoal, so we want to make sure if the presence is permanent.”

A spokesman for the U.S. State Department said it was trying to confirm the latest reported incident.

Mark Toner told a regular news briefing that the United States, a treaty ally of the Philippines that has repeatedly expressed concerns about Beijing’s methods in pursuit of maritime claims, did not want to China using its ships “to intimidate … fishing vessels in that region.”

Second Thomas Shoal is where the Philippine navy has been occupying and reinforcing a rusting ship it ran aground in 1999 to bolster its claims to the disputed reef.

A military source from Palawan said a surveillance plane had seen four to five ships in the vicinity of Jackson Atoll last week.

“There are no indications China will build structures or develop it into an island,” said the source, who was not authorized to speak to the media about the South China Sea.

The Philippines Star newspaper, which earlier reported the story, quoted an unidentified fisherman as saying Chinese boats chased them away when they tried to enter the area last week.

Along with China and the Philippines, Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims on the waters, through which about $5 trillion in trade is shipped every year.

Tensions have been building recently, with the United States and others expressing concerns about China’s land reclamation in the Spratly Islands and deployment of surface-to-air missiles and fighter jets in the Paracel Islands.

U.S. Defense Secretary Ash Carter warned China on Tuesday against what he called “aggressive” actions in the region, saying there would be “specific consequences” to militarization of the South China Sea.

In response, Hong urged Washington on Wednesday to “stop exaggerating and sensationalizing” the issue.

For its part, Beijing has been angered by “freedom of navigation” air and sea patrols the United States has conducted near the islands it claims in the South China Sea and says it needs military facilities for its self defense.

(Additional reporting by Michael Martina and Adam Rose in Beijing and David Brunnstrom in Washington; Writing by Lincoln Feast and John Chalmers; Editing by Clarence Fernandez and Peter Cooney)

U.N. imposes harsh new sanctions on North Korea over its nuclear program

By Louis Charbonneau and Michelle Nichols

UNITED NATIONS (Reuters) – North Korea faces harsh new U.N. sanctions to starve it of money for its nuclear weapons program following a unanimous Security Council vote on Wednesday on a resolution drafted by the United States and Pyongyang’s ally China.

The resolution, which dramatically expands existing sanctions, follows North Korea’s latest nuclear test on Jan. 6 and a Feb. 7 rocket launch that Washington and its allies said used banned ballistic missile technology. Pyongyang said it was a peaceful satellite launch.

U.S. Ambassador Samantha Power said the sanctions go further than any U.N. sanctions regime in two decades and aim to cut off funds for North Korea’s nuclear and other banned weapons programs.

All cargo going to and from North Korea must now be inspected and North Korean trade representatives in Syria, Iran and Vietnam are among 16 individuals added to a U.N. blacklist, along with 12 North Korean entities.

Previously states only had to inspect such shipments if they had reasonable grounds to believe they contained illicit goods.

“Virtually all of the DPRK’s (North Korea) resources are channeled into its reckless and relentless pursuit of weapons of mass destruction,” Power told the council after the vote, adding that the cargo inspection provisions are “hugely significant.”

U.N. Secretary-General Ban Ki-moon welcomed the 15-nation council’s move, saying in a statement that Pyongyang “must return to full compliance with its international obligations.”

North Korea has been under U.N. sanctions since 2006 because of its four nuclear tests and multiple rocket launches.

After nearly two months of bilateral negotiations that at one point involved U.S. President Barack Obama and his Chinese counterpart, Xi Jinping, China agreed to support the unusually tough measures intended to persuade its close ally to abandon its atomic weapons program.

China’s Ambassador Liu Jieyi called for a return to dialogue, saying: “Today’s adoption should be a new starting point and a paving stone for political settlement of the nuclear issue on the Korean Peninsula.”

However, he reiterated Beijing’s concerns about the possible deployment of an advanced U.S. missile system in South Korea.

“At this moment all parties concerned should avoid actions that will further aggravate tension on the ground,” he said. “China opposes the deployment of the THAAD anti-missile system … because such an action harms the strategic and security interests of China and other countries of the region.”

He was referring to the U.S. Terminal High Altitude Area Defense (THAAD) system.

There was no immediate reaction from the North Korean U.N. mission. The official North Korean news agency KCNA said on Monday the proposed sanctions were “a wanton infringement on (North Korea’s) sovereignty and grave challenge to it.”

Shortly after the U.N. move, the U.S. Treasury Department said it was blacklisting two entities and 10 individuals for ties to North Korea’s government and its banned weapons programs, and said the State Department was also blacklisting three entities and two individuals for similar reasons.

The new U.N. sanctions close a gap in the U.N. arms embargo on Pyongyang by banning all weapons imports and exports.

The Security Council’s list of explicitly banned luxury goods has been expanded to include luxury watches, aquatic recreational vehicles, snowmobiles worth more than $2,000, lead crystal items and recreational sports equipment.

There is also an unprecedented ban on the transfer to North Korea of any item that could directly contribute to the operational capabilities of its armed forces, such as trucks that could be modified for military purposes.

The new U.N. measures also blacklist 31 ships owned by North Korean shipping firm Ocean Maritime Management Company (OMM).

Added to the U.N. sanctions list was the National Aerospace Development Agency, or NADA, the body responsible for February’s rocket launch.

Newly blacklisted individuals include a senior official in North Korea’s long-range missile program, senior officials at NADA, officials for Tanchon Commercial Bank in Syria and Vietnam, and Korea Mining Development Trading Corporation (KOMID) representatives in Iran and Syria.

An earlier draft would have blacklisted 17 individuals but the proposed designation of a KOMID representative in Russia was dropped from the final version of the resolution.

(Reporting by Louis Charbonneau and Michelle Nichols; Editing by James Dalgleish)

South Korea demands more sanctions on ‘serial offender’ North

By Stephanie Nebehay and Tom Miles

GENEVA (Reuters) – South Korea’s foreign minister called on the U.N. Security Council to expand sanctions on North Korea on Wednesday to punish what he called an escalating and increasingly threatening nuclear program.

Yun Byung-se called North Korea a “serial offender” and denounced Pyongyang’s fourth nuclear test and latest long-range missile launch, carried out in January and February.

North Korea’s Ambassador Se Pyong So said his country’s nuclear program was designed to ensure peace on the divided Korean peninsula, and warned that more sanctions would bring a “tougher reaction”.

Both men addressed the U.N.-backed Conference on Disarmament in Geneva hours before major powers were scheduled to vote at the U.N. Security Council across the Atlantic on a resolution to expand sanctions on North Korea.

The United States also condemned Pyongyang’s actions.

“The international community stands united in its firm opposition to the DPRK’s development and possession of nuclear weapons,” Christopher Buck, deputy U.S. disarmament ambassador, told the Geneva talks.

“We do not and will not accept North Korea as a nuclear-armed state.”

LANDMARK RESOLUTION

After nearly two months of bilateral negotiations, China last month agreed to support new measures in the Security Council to try and persuade its ally North Korea to abandon its atomic weapons program.

Pyongyang has been under U.N. sanctions since 2006 because of its nuclear tests and multiple rocket launches.

“It’s no wonder that the Security Council will very soon put up a landmark resolution with the strongest ever non-military sanction measures in seven decades of U.N. history,” South Korea’s Yun said.

The credibility of the nuclear non-proliferation regime needed to be protected, he added.

“Even at this moment, Pyongyang is accelerating its nuclear weapons and missile capabilities from nuclear bombs and hydrogen bombs to ICBMs and SLBMs,” he said referring to intercontinental ballistic missiles and submarine-launched ballistic missiles.

“We have heard Pyongyang officially state its intention not only to further develop its nuclear weapons and missiles but also to use them.”

Japan’s parliamentary vice-minister for foreign affairs, Masakazu Hamachi, said North Korea’s actions had undermined the security of Northeast Asia and the rest of the world.

North Korea’s envoy retorted that the nuclear program was “not directed to harm the fellow countryman but to protect peace on the Korean Peninsula and security in the region from the U.S. vicious nuclear war scenario.”

“The more sanctions will bring about tougher reaction,” So said.

(Reporting by Tom Miles and Stephanie Nebehay; writing by Stephanie Nebehay; Editing by Andrew Heavens and John Stonestreet)

China’s militarization of South China Sea will have consequences, Carter says

SAN FRANCISCO (Reuters) – U.S. Defense Secretary Ash Carter on Tuesday warned China against what he called “aggressive” actions in the South China Sea region, including the placement of surface-to-air missiles on a disputed island, and said they would have consequences.

“China must not pursue militarization in the South China Sea,” Carter said in a wide-ranging speech at the Commonwealth Club in San Francisco. “Specific actions will have specific consequences.”

He did not elaborate, but underscored the U.S. military’s determination to safeguard maritime security around the world, and particularly in the South China Sea region, which sees about 30 percent of the world’s trade transit its waters each year.

The U.S. defense chief also took aim at both Russia and China for their actions to limit Internet access, as well as state-sponsored cyber threats, cyber espionage and cyber crime.

In his prepared remarks, Carter drew a sharp contrast between such behavior by Russia and China and what he described as much healthier U.S. actions to preserve Internet freedom.

“We don’t desire conflict with either country,” he said. “But we also cannot blind ourselves to their apparent goals and actions.”

He urged cooperation with U.S. technology companies to ensure data security and necessary encryption levels, despite growing controversy over the FBI’s request to circumvent security features on an iPhone used by one of the San Bernardino, California, shooters.

Carter, on his third visit to the technology-heavy Silicon Valley since taking office a year ago, said he could not address the case specifically since it was under litigation, but made clear that the Defense Department viewed encryption as a necessary part of data security.

“It’s important to take a step back here, because future policy shouldn’t be driven by any one particular case,” Carter said in what appeared to be a departure from the Justice Department’s view.

Carter noted that the Defense Department is the largest user of encryption in the world and needed it to be as strong as possible.

(Reporting by Andrea Shalal; Editing by Mohammad Zargham)

China to lay off five to six million workers, earmarks at least $23 billion

BEIJING (Reuters) – China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution, two reliable sources said, Beijing’s boldest retrenchment program in almost two decades.

China’s leadership, obsessed with maintaining stability and making sure redundancies do not lead to unrest, will spend nearly 150 billion yuan ($23 billion) to cover layoffs in just the coal and steel sectors in the next 2-3 years.

The overall figure is likely to rise as closures spread to other industries and even more funding will be required to handle the debt left behind by “zombie” state firms.

The term refers to companies that have shut down some of their operations but keep staff on their rolls since local governments are worried about the social and economic impact of bankruptcies and unemployment.

Shutting down “zombie firms” has been identified as one of the government’s priorities this year, with China’s Premier Li Keqiang promising in December that they would soon “go under the knife”..

The government plans to lay off five million workers in industries suffering from a supply glut, one source with ties to the leadership said.

A second source with leadership ties put the number of layoffs at six million. Both sources requested anonymity because they were not authorized to speak to media about the politically sensitive subject for fear of sparking social unrest.

The ministry of industry did not immediately respond when asked for comment on the reports.

The hugely inefficient state sector employed around 37 million people in 2013 and accounts for about 40 percent of the country’s industrial output and nearly half of its bank lending.

It is China’s most significant nationwide retrenchment since the restructuring of state-owned enterprises from 1998 to 2003 led to around 28 million redundancies and cost the central government about 73.1 billion yuan ($11.2 billion) in resettlement funds.

On Monday, Yin Weimin, the minister for human resources and social security, said China expects to lay off 1.8 million workers in the coal and steel industries, but he did not give a timeframe.

China aims to cut capacity gluts in as many as seven sectors, including cement, glassmaking and shipbuilding, but the oversupplied solar power industry is likely to be spared any large-scale restructuring because it still has growth potential, the first source said.

DEBT OVERHANG

The government has already drawn up plans to cut as much as 150 million tonnes of crude steel capacity and 500 million tonnes of surplus coal production in the next three to five years.

It has earmarked 100 billion yuan in central government funds to deal directly with the layoffs from steel and coal over the next two years, vice-industry minister Feng Fei said last week.

The Ministry of Finance said in January it would also collect 46 billion yuan from surcharges on coal-fired power over the coming three years in order to resettle workers. In addition, an assortment of local government matching funds will also be made available.

However, the funds currently being offered will do little to resolve the problems of debts held by zombie firms, which could overwhelm local banks if they are not handled correctly.

“They have proposed this dedicated fund only to pay the workers, but there is no money for the bad debts, and if the bad debts are too big the banks will have problems and there will be panic,” said Xu Zhongbo, head of Beijing Metal Consulting, who advises Chinese steel mills.

Factories shut down would have to repay bank loans to avoid saddling state banks with a mountain of non-performing loans, the sources said. “Triangular debt”, or money owed by firms to other enterprises, would also have to be resolved, they added.

Although China has promised to help local banks transfer the bad debts of zombie steel mills to asset management firms, local governments are not expected to gain access to the worker lay-off funds until the zombie firms have actually been shut down and debt issues settled.

($1 = 6.5476 Chinese yuan)

(Additional reporting by Ruby Lian in Shanghai; Editing by Raju Gopalakrishnan)

U.N. delays vote on tough new North Korea sanctions at Russia’s request

UNITED NATIONS (Reuters) – The United Nations Security Council delayed until Wednesday a vote on a U.S.-Chinese drafted resolution that would dramatically expand U.N. sanctions on North Korea after Russia said it needed more time to review the text, diplomats said.

The vote, which had been scheduled for Tuesday afternoon, is now planned for 10 a.m. on Wednesday, the diplomats said on condition of anonymity.

“Subsequent to the United States’ request … to schedule a council vote for this afternoon, Russia invoked a procedural 24-hour review of the resolution, so the vote will be on Wednesday,” the U.S. mission to the United Nations said in a statement to reporters.

The expanded sanctions, if adopted, would require inspections of all cargo going to and from North Korea and blacklisting North Koreans active in Syria, Iran and Vietnam.

After nearly two months of bilateral negotiations that at one point involved U.S. President Barack Obama and his Chinese counterpart, Xi Jinping, China agreed to support the unusually tough measures intended to persuade its close ally North Korea to abandon its atomic weapons program.

Last week the United States presented the 15-nation council with the draft resolution that would significantly tighten restrictions after North Korea’s nuclear test and Feb. 7 rocket launch, and create what it described as the toughest U.N. sanctions regime in two decades.

Originally Washington had wanted the council to adopt the resolution last weekend but Russia had demanded more time to study it.

The draft seen by Reuters would require U.N. member states to conduct mandatory inspections of all cargo passing through their territory to or from North Korea to look for illicit goods. Previously states only had to do this if they had reasonable grounds to believe there was illicit cargo.

The list of explicitly banned luxury goods will be expanded to include luxury watches, aquatic recreational vehicles, snowmobiles worth more than $2,000, lead crystal items and recreational sports equipment.

Pyongyang denied the Feb. 7 launch involved banned ballistic missile technology, saying it was a peaceful satellite launch.

The official North Korean news agency KCNA said in a commentary on Monday its “position as a satellite manufacturer and launcher will never change (and) … space development is not something to be given up because of someone’s ‘sanctions’.”

It called the proposed sanctions “a wanton infringement on (North Korea’s) sovereignty and grave challenge to it.”

The proposal would also close a gap in the U.N. arms embargo on Pyongyang by banning all weapons imports and exports.

There would also be an unprecedented ban on the transfer to North Korea of any item that could directly contribute to the operational capabilities of its armed forces, such as trucks that could be modified for military purposes.

Other proposed measures include a ban on all supplies of aviation and rocket fuel to North Korea, a requirement for states to expel North Korean diplomats engaging in illicit activities, and blacklisting 16 North Korean individuals and 12 entities, including the National Aerospace Development Agency, or NADA, the body responsible for February’s rocket launch.

North Korea has been under U.N. sanctions since 2006 because of its four nuclear tests and multiple rocket launches.

Candidates for the blacklist include Choe Chun-sik, who was head of North Korea’s long-range missile program; Hyon Kwang Il, senior official at NADA; Yu Chol U, director of NADA; Jang Bom Sun and Jon Myong Guk, Tanchon Commercial Bank officials in Syria; Jang Yon Son and Kim Yong Chol, Korea Mining Development Trading Corporation (KOMID) representatives in Iran; and Kang Ryong and Ryu Jun, KOMID representatives in Syria.

Two Tanchon bank representatives in Vietnam are also to be blacklisted.

In addition to NADA, North Korean entities to be blacklisted include the Academy of National Defense Sciences, Chongchongang Shipping Co and the Ministry of Atomic Energy Industry.

Also new, countries will be required, not just encouraged, to freeze the assets of North Korean entities linked to Pyongyang’s nuclear or missile programs and to prohibit the opening of new branches or offices of North Korean banks or to engage in banking correspondence with them

Proposed North Korea sanctions dig deep, implementation falls to China

SEOUL (Reuters) – From inspecting visiting North Korean ships to paring back coal imports, the burden of enforcing new U.N. sanctions on Pyongyang falls mainly on China, which wants to punish its ally for nuclear violations without squeezing it to the point of crisis.

After nearly two months of negotiations between Washington and Beijing, China agreed on Thursday to a U.S. proposal that would dramatically tighten existing restrictions on North Korea after its Jan. 6 nuclear test and recent rocket launch.

The draft, seen by Reuters, would require U.N. member states to conduct mandatory inspections of all cargo passing through their territory to or from North Korea and bans all gold exports, as well as exports of coal if proceeds fund the North’s weapons programs.

For China, which accounts for 90 percent of North Korean trade, that means stepping up inspections at sea ports such as Dalian and in the border city of Dandong, through which much of the trade between the countries passes.

China, which defended North Korea in the 1950-53 Korean War, is Pyongyang’s closest ally and largest trading partner. While it has become increasingly critical of the North’s nuclear and missiles programs, it prizes stability on the Korean peninsula.

“It might look like China is cooperating, but that’ll just be on the surface,” said Kim Dong-yub at Kyungnam University’s Institute of Far Eastern Studies in Seoul.

The two countries share a fairly porous 870-mile border where both legal and illicit trade has grown in recent years, and off-the-books trade accounts for a significant share of commerce between the two.

“Until these trade routes are shut off, the structure there makes it too difficult for sanctions to effectively kick in,” said Kim.

Chinese foreign ministry spokesman Hong Lei said China believes the new sanctions should be aimed at reining in North Korea’s nuclear and missile program, and should not affect ordinary people, and that what is most needed is to get negotiations back on track.

Asked about criticism China had not fully enforced previous sanctions, Hong disagreed. “China consistently strictly abides by its relevant decisions,” he said.

AT THE COAL FACE

The draft resolution targets impoverished North Korea’s heavy reliance on mineral exports by banning the sale or transfer of North Korean coal, iron and iron ore if profits are deemed to be spent on its nuclear or missile programs.

Minerals for sale which are “exclusively for livelihood purposes” are exempted, which analysts said would be impossible to monitor.

“You can’t determine which part of the mineral trade is related to people’s livelihoods or not,” said Choi Kyung-soo, head of the North Korea Resources Institute in Seoul, who made dozens of trips to North Korean state mines between 2001 and 2008 as part of an inter-Korean cooperation team.

China imported $852 million worth of North Korean coal last year and $73 million worth of iron ore, according to Chinese customs data.

Last year, North Korean coal deliveries to China surged 26.9 pct to 19.63 million tonnes, making North Korea China’s third biggest supplier behind Australia and Indonesia. Coal deliveries from Australia plunged 25 percent, indicating the increase in imports may have been to help support its ally.

‘HUMANITARIAN PROBLEM’

Jin Qiangyi of China’s Yanbian University, near the North Korean border, told Reuters there was a “real possibility” such far-reaching sanctions on top of an already moribund economy could create a “humanitarian problem”, and affect China’s ability to safely implement the proposed sanctions.

“China has to think about what will happen to the North Korean economy, whether there will be other problems,” said Jin.

Critics of sanctions argue they would stifle the country’s fledgling economy and hurt ordinary North Koreans.

A senior Western diplomat in Beijing who declined to be identified said China remains wary of cutting off North Korea completely, and insists ordinary North Koreans should not be punished for the behavior of their leader.

The draft resolution also proposes banning all exports of aviation fuel to North Korea, except for in “essential” and “humanitarian” cases, which could make it difficult stage an air show planned for September in the port city of Wonsan that is to include aerobatic displays by the North Korean air force.

Much of North Korea’s aviation fuel appears to come from China. In 2015, the isolated country spent $876.6 million importing 1,414 tonnes of Chinese jet fuel according to Chinese customs data – enough for North Korea to operate its fleet of largely Soviet-era military aircraft.

“The draft is very strong and, if adopted as now written, was definitely worth the wait it took to plug loopholes and toughen restrictions on transport and finance,” William Newcomb, a former member of the United Nations Panel of Experts on North Korea, told Reuters.

“Implementation remains a challenge, however. Not even all members of the Security Council have implemented past resolutions”.

(Additional reporting by David Stanway, Megha Rajagopalan and Ben Blanchard in BEIJING and Louis Charbonneau and Michelle Nichols at the UNITED NATIONS; Editing by Tony Munroe and Raju Gopalakrishnan)

U.S. test-fires ICBMs to stress its power to Russia, North Korea

VANDENBERG AIR FORCE BASE, Calif. (Reuters) – The U.S. military test-fired its second intercontinental ballistic missile in a week on Thursday night, seeking to demonstrate its nuclear arms capacity at a time of rising strategic tensions with Russia and North Korea.

The unarmed Minuteman III missile roared out of a silo at Vandenberg Air Force Base in California late at night, raced across the sky at speeds of up to 15,000 mph and landed a half hour later in a target area 4,200 miles away near Kwajalein Atoll in the Marshall Islands of the South Pacific.

Deputy Defense Secretary Robert Work, who witnessed the launch, said the U.S. tests, conducted at least 15 times since January 2011, send a message to strategic rivals like Russia, China and North Korea that Washington has an effective nuclear arsenal.

“That’s exactly why we do this,” Work told reporters before the launch.

“We and the Russians and the Chinese routinely do test shots to prove that the operational missiles that we have are reliable. And that is a signal … that we are prepared to use nuclear weapons in defense of our country if necessary.”

Demonstrating the reliability of the nuclear force has taken on additional importance recently because the U.S. arsenal is near the end of its useful life and a spate of scandals in the nuclear force two years ago raised readiness questions.

The Defense Department has poured millions of dollars into improving conditions for troops responsible for staffing and maintaining the nuclear systems. The administration also is putting more focus on upgrading the weapons.

President Barack Obama’s final defense budget unveiled this month calls for a $1.8 billion hike in nuclear arms spending to overhaul the country’s aging nuclear bombers, missiles, submarines and other systems.

The president’s $19 billion request would allow the Pentagon and Energy Department to move toward a multiyear overhaul of the atomic arms infrastructure that is expected to cost $320 billion over a decade and up to 1 trillion dollars over 30 years.

The nuclear spending boost is an ironic turn for a president who made reducing U.S. dependence on atomic weapons a centerpiece of his agenda during his first years in office.

Obama called for a world eventually free of nuclear arms in a speech in Prague and later reached a new strategic weapons treaty with Russia. He received the Nobel Peace Prize in part based on his stance on reducing atomic arms.

“He was going to de-emphasize the role of nuclear weapons in U.S. national security policy … but in fact in the last few years he has emphasized new spending,” said John Isaacs of the Council for a Livable World, an arms control advocacy group.

Critics say the Pentagon’s plans are unaffordable and unnecessary because it intends to build a force capable of deploying the 1,550 warheads permitted under the New START treaty. But Obama has said the country could further reduce its deployed warheads by a third and still remain secure.

Hans Kristensen, an analyst at the Federation of American Scientists, said the Pentagon’s costly “all-of-the-above” effort to rebuild all its nuclear systems was a “train wreck that everybody can see is coming.” Kingston Reif of the Arms Control Association, said the plans were “divorced from reality.”

The Pentagon could save billions by building a more modest force that would delay the new long-range bomber, cancel the new air launched cruise missile and construct fewer ballistic submarines, arms control advocates said.

Work said the Pentagon understood the financial problem. The department would need $18 billion a year between 2021 and 2035 for its portion of the nuclear modernization, which is coming at the same time as a huge “bow wave” of spending on conventional ships and aircraft, he said.

“If it becomes clear that it’s too expensive, then it’s going to be up to our national leaders to debate” the issue, Work said, something that could take place during the next administration when spending pressures can no longer be ignored.

(Reporting by David Alexander; Editing by Jonathan Oatis and John Stonestreet)

China says it ‘really needs’ South China Sea defenses in face of U.S. push

BEIJING (Reuters) – China “really needs” its defenses in the South China Sea in the face of a militarization process being pushed by the United States, and can deploy whatever equipment it wants on its own soil, China’s Defence Ministry said on Thursday.

China and the United States have sparred repeatedly over the past week following reports China is deploying advanced missiles, fighters and radar equipment on islands in the South China Sea, especially on Woody Island in the Paracels.

The United States has accused China of militarizing the disputed waters. Beijing, for its part, has been angered by “freedom of navigation” air and sea patrols the United States has conducted near islands China claims in the South China Sea.

Those have included one by two B-52 strategic bombers in November and by a U.S. Navy destroyer that sailed within 12 nautical miles of Triton Island in the Paracels last month.

“The United States is the real promoter of the militarization of the South China Sea,” defense ministry spokesman Wu Qian told a regular monthly news briefing.

“China’s construction of military facilities on the islands and reefs of the South China Sea is really needed.”

The Paracel Islands are China’s “inherent territory”, he added.

“It is China’s legitimate right to deploy defense facilities within our own territory, no matter in the past or at present, no matter temporarily or permanently, no matter what equipment it is,” Wu said.

People are being “dazzled” by the endless hyping up by U.S. media of equipment China is deploying in the South China Sea, he added.

“One minute it’s air defense missiles, then radars, then various types of aircraft – who knows what tomorrow will bring in terms of new equipment being hyped up.”

Even the Americans have said some of this equipment had been placed there in the past, Wu said.

China claims most of the South China Sea, through which more than $5 trillion in global trade passes every year. Vietnam, Malaysia, Brunei, the Philippines and Taiwan have rival claims.

This week, coinciding with a visit to Washington by Chinese Foreign Minister Wang Yi, Admiral Harry Harris, head of the U.S. Navy’s Pacific Command, said the U.S. would step up freedom-of-navigation operations in the South China Sea and that China was trying to militarily dominate East Asia.

Wu said the U.S. was employing double standards, asking why U.S. patrols in the South China Sea should not also be considered militarization.

There has been speculation that China might declare an Air Defence Identification Zone (ADIZ) in the South China Sea, similar to one it declared over the East China Sea in late 2013, to anger from Japan and the United States.

Asked if this was the case, Wu repeated the ministry’s previous line that it had every right to do so, but the move would depend on the level of aerial threat China faced.

“There are all sorts of factors that need consideration,” Wu said, without elaborating.

In Hanoi, a Vietnamese official said the militarization of the South China Sea was a very serious issue.

“Irrespective of the opposition and concern voiced by Vietnam and the international community, China continues to take actions that not only violate Vietnam’s sovereignty, accelerate militarization of the East Sea, but also threaten peace and stability,” foreign media spokesman Le Hai Binh told a briefing, employing the name Vietnam uses for the South China Sea.

Annual trade between the communist neighbors exceeds $60 billion, but anti-China sentiment is strong in Vietnam, where people are embittered over what many see as a history of Chinese bullying and territorial infringements in the South China Sea.

(Additional reporting by Martin Petty in HANOI; Editing by Clarence Fernandez)

U.S. to boost freedom of navigation moves in South China Sea, admiral says

WASHINGTON (Reuters) – The United States, which is worried by China’s military buildup to assert dominance in the South China Sea, will increase freedom-of-navigation operations there, a senior Pentagon official said on Wednesday.

“We will be doing them more, and we’ll be doing them with greater complexity in the future and … we’ll fly, sail and operate wherever international law allows,” Admiral Harry Harris, head of the U.S. Navy’s Pacific Command, told a House Armed Services Committee hearing.

“We must continue to operate in the South China Sea to demonstrate that that water space and the air above it is international,” Harris said.

On Tuesday, Harris said China was “changing the operational landscape” in the South China Sea by deploying missiles and radar as part of an effort to militarily dominate East Asia.

China is “clearly militarizing the South China Sea … You’d have to believe in a flat Earth to think otherwise,” Harris said in comments that coincided with a visit to Washington by Chinese Foreign Minister Wang Yi.

China says its military facilities in the South China Sea are “legal and appropriate” and on Tuesday, in an apparent reference to U.S. patrols, Wang said Beijing hoped not to see more close-up reconnaissance, or the dispatch of missile destroyers or strategic bombers.

Harris, asked what more could be done to deter militarization, said the United States could deploy more naval assets, although there were significant “fiscal, diplomatic and political hurdles” in the way of stationing a second aircraft carrier group in the region.

“We could consider putting another (attack) submarine out there, we could put additional destroyers forward …there are a lot of things we could do, short of putting a full carrier strike group in the Western Pacific,” he said.

China claims most of the South China Sea, through which more than $5 trillion in global trade passes every year. Vietnam, Malaysia, Brunei, the Philippines and Taiwan have rival claims.

Harris’s comments came a day after he said China had deployed surface-to-air missiles on Woody Island in the South China Sea’s Paracel chain and radars on Cuarteron Reef in the Spratly islands further to the south.

On Tuesday, his command said China’s repeated deployment of advanced fighter aircraft to Woody Island was part of a disturbing trend that was inconsistent with Beijing’s commitment to avoid actions that could escalate disputes.

Last month, a U.S. Navy destroyer carried out a patrol within 12 nautical miles of Triton Island in the Paracels, a move China called provocative.

The United States has also conducted sea and air patrols near artificial islands China has built in the Spratlys, including by two B-52 strategic bombers in November.

(Reporting by Idrees Ali; additional reporting by David Brunnstrom and Clarece Polke; Editing by Susan Heavey and James Dalgleish)