Trump, Xi unlikely to meet before March 1 trade deadline: U.S. officials

U.S. President Donald Trump and China's President Xi Jinping chat as they walk along the front patio of the Mar-a-Lago estate after a bilateral meeting in Palm Beach, Florida, U.S., April 7, 2017. REUTERS/Carlos Barria

WASHINGTON (Reuters) – U.S. President Donald Trump and Chinese President Xi Jinping are unlikely to meet before their countries’ March 1 deadline to reach a trade deal, two U.S. administration officials and a source familiar with the negotiations said on Thursday.

The countries had taken a 90-day hiatus in their trade war to hammer out a deal, and another round of talks is scheduled for next week in China.

White House economic adviser Larry Kudlow told reporters on Thursday that the leaders of the two economic superpowers could still meet later.

“At some point, the two presidents will meet, that is what Mr. Trump has been saying. But that is off in the distance still at the moment,” he said.

(Reporting by Steve Holland and Jeff Mason; Additional reporting by Alexandra Alper; Writing by Lisa Lambert; Editing by Doina Chiacu and Alistair Bell)

Trump upbeat on China trade talks but wants broad access for U.S. firms

FILE PHOTO: U.S. Trade Representative Robert Lighthizer (2nd right) sits across from China's Vice Premier Liu He (left) during the opening of US-China Trade Talks in the Eisenhower Executive Office Building at the White House in Washington, U.S., January 30, 2019. REUTERS/Leah Millis/File Photo

By Doina Chiacu and David Lawder

WASHINGTON (Reuters) – President Donald Trump expressed optimism about forging a comprehensive trade deal with China as high-level talks continued on Thursday, but said any arrangement that fails to open Chinese markets broadly to U.S. industry and agriculture would be unacceptable.

As delegations from the world’s two top economies held the second of two scheduled days of talks in the U.S. capital aimed at easing a six-month-old trade war, Trump also said no final accord will be made until he meets with Chinese President Xi Jinping in the near future.

The talks were aimed at resolving deep differences over China’s intellectual property practices. Trump has threatened to raise tariffs on $200 billion of Chinese goods to 25 percent from 10 percent on March 2 if an agreement is not reached and impose new tariffs on the rest of Chinese goods shipped to the United States.

Trump was scheduled to meet with the leader of the Chinese delegation, Vice Premier Liu He, at the White House at 3:30 p.m. as talks conclude.

“Meetings are going well with good intent and spirit on both sides,” Trump said on Twitter. “No final deal will be made until my friend President Xi, and I, meet in the near future to discuss and agree on some of the long-standing and more difficult points.”

Trump, who has engaged in a series of fights with a variety of trade partners since becoming president in 2017, has acted as the final decision-maker in U.S. trade negotiations. Trump has vetoed multiple proposed trade deals with China, choosing to push ahead with tariffs on Chinese goods to gain leverage.

The Republican president set a high bar for any agreement in the current round of talks, writing on Twitter, “China’s representatives and I are trying to do a complete deal leaving NOTHING unresolved on the table.”

Trump said he was looking for China to open its markets “not only to Financial Services, which they are now doing, but also to our Manufacturing, Farmers and other U.S. businesses and industries. Without this a deal would be unacceptable!”

Chinese negotiators proposed a meeting between Trump and Xi next month in the Chinese city of Hainan, the Wall Street Journal reported.

Two White House officials said the Chinese had not made an invitation in the current talks for Trump to meet Xi in China soon, but added that they would not be surprised if such an offer was extended during Liu’s meeting on Thursday.

“The White House thus far has been focused on substance, not next steps,” one official told Reuters, speaking on condition of anonymity.

THUMBS UP

People’s Bank of China Governor Yi Gang declined comment on Chinese proposals as he left the delegation’s hotel for the meetings in Eisenhower Executive Office Building, next to the White House. Asked how the talks were going, Yi flashed a thumbs-up sign.

The Journal quoted anonymous sources as saying Chinese proposals mostly involved more purchases of U.S. farm and energy products and promises to invite more American capital into China’s manufacturing and financial services sectors.

U.S. officials have demanded that Beijing make deep structural changes to its industrial policies, including broad new protections for American intellectual property and an end to practices that Washington has said force U.S. companies to transfer technology to Chinese firms in exchange for market access.

The U.S. complaints, along with accusations of Chinese cyber theft of American trade secrets and a systematic campaign to acquire U.S. technology firms, were used by Trump’s administration to justify punitive tariffs on $250 billion worth of Chinese imports.

China has retaliated with tariffs of its own, but has suspended some and is allowing some purchases of U.S. soybeans during the talks.

Chinese officials have said their policies do not coerce technology transfers. They have emphasized steps already taken, including reduced automotive tariffs and a draft foreign investment law expected to be approved in March that improves access for foreign firms and promises to outlaw “administrative means to force the transfer of technology.”

A crucial component of any progress in the talks, according to U.S. officials, is agreement on a mechanism to verify and enforce China’s follow-through on any reform pledges. This could maintain the threat of U.S. tariffs on Chinese goods for the long term.

The U.S. tariffs on Chinese goods are just one front in Trump’s efforts to upend the global trading order with his “America First” strategy. He has also imposed global tariffs on imported steel and aluminum, washing machines and solar panels and has threatened to raise tariffs on imported cars unless Japan and the European Union offer trade concessions.

(Reporting by Doina Chiacu, Susan Heavey, Chris Prentice, Jeff Mason, Steve Holland, Alexandra Alper and David Lawder; Writing by David Lawder; Editing by Will Dunham)

China allows first-ever U.S. rice imports in ‘goodwill gesture’ ahead of trade talks

FILE PHOTO: Shipping containers are seen at a port in Shanghai, China July 10, 2018. REUTERS/Aly Song

BEIJING (Reuters) – China has opened the door to imports of rice from the United States for the first time ever in what analysts took to signal a warming of relations between the world’s two biggest economies after a frosty year marked by tensions and tit-for-tat tariffs.

The green light from Chinese customs, indicated in a statement posted on the customs authority’s website on Friday, comes in the run-up to talks between the countries in January after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a moratorium on higher tariffs that would affect trade worth hundreds of billions of dollars.

It wasn’t immediately clear how much rice China, which sources rice imports from within Asia, might seek to buy from the United States. But the move, which comes after years of talks on the matter, follows pledges from China’s commerce ministry of further U.S. trade openings earlier this week.

As of Dec. 27, imports of brown rice, polished rice and crushed rice from the United States are now permitted, as long as cargoes meet China’s inspection standards and are registered with the United States Department of Agriculture.

“The permission for U.S. rice suggests an improving U.S. and China relationship,” said Cherry Zhang, an agriculture analyst with consultancy JCI. Zhang said she expected any imports would likely be ordered by state-owned companies.

Officials at a government-affiliated think-tank in Beijing said the price of U.S. rice is not competitive, compared with imports from South Asia, and said the move to formally permit import should be interpreted as a goodwill gesture.

China opened its rice market when it joined the World Trade Organization in 2001, but a lack of phytosanitary protocol between China and the United States effectively banned imports, according to trade group USA Rice.

Nonetheless, in July, China formally imposed additional tariffs of 25 percent on U.S. rice, even though imports were not permitted at the time.

(Reporting by Meng Meng and Ryan Woo; Editing by Kenneth Maxwell)

Xi tells Mattis China won’t give up ‘one inch’ of territory

U.S. Defense Secretary Jim Mattis, second from left, speaks during a meeting with China's Defense Minister Wei Fenghe at the Bayi Building in Beijing, China, June 27, 2018. Mark Schiefelbein/Pool via REUTERS

By Phil Stewart and Ben Blanchard

BEIJING (Reuters) – China is committed to peace and won’t cause “chaos” in the world, but cannot give up even an inch of territory that the country’s ancestors have left behind, Chinese President Xi Jinping told U.S. Defense Secretary Jim Mattis on Wednesday.

Mattis, a former Marine general, has been highly critical of China’s muscular military moves in the disputed South China Sea. The U.S. military even withdrew an invitation to China to join a multinational naval exercise that will start during Mattis’ visit, upsetting Beijing.

Mattis is visiting against a backdrop of spiraling tension between Beijing and Washington over trade.

Beijing is also deeply suspicious of U.S. intentions toward self-governing and democratic Taiwan, which is armed by the United States. China views the island as a sacred part of its territory.

Meeting in Beijing’s Great Hall of the People, Xi told Mattis that China had only peaceful intentions and would not “cause chaos,” state television reported.

Both countries’ common interests far outweigh their differences, but on territorial issues there can be no concessions, Xi added, without referring to specific areas.

“We cannot lose even one inch of the territory left behind by our ancestors. What is other people’s, we do not want at all,” state television cited Xi as saying.

Mattis, in comments in front of reporters, told Xi his talks had been “very, very” good.

“I am happy to be in China and we are assigning the same high degree of importance to the military relationship,” Mattis said.

Meeting earlier in the day, China’s defense minister told Mattis that only with mutual respect and by avoiding confrontation can China and the United States develop together.

“China upholds peaceful development, and China’s military unswervingly protects the country’s sovereignty, security and development interests,” Chinese Defence Minister Wei Fenghe said, according to his ministry.

U.S. Defense Secretary Jim Mattis, left, and China's Defense Minister Wei Fenghe stand as the American national anthem is played during a welcome ceremony at the Bayi Building in Beijing, Wednesday, June 27, 2018. Mark Schiefelbein/Pool via Reuters

U.S. Defense Secretary Jim Mattis, left, and China’s Defense Minister Wei Fenghe stand as the American national anthem is played during a welcome ceremony at the Bayi Building in Beijing, Wednesday, June 27, 2018. Mark Schiefelbein/Pool via Reuters

“China and the United States can only develop together if we maintain no conflict, no confrontation, mutual respect and win-win cooperation,” Wei added.

“China and the United States’ two militaries must implement the consensus of the two countries’ leaders, increase mutual trust, strengthen cooperation and manage risks to turn ties between the two militaries into a factor for stability in the bilateral relationship.”

Mattis, the first Pentagon chief to visit China since 2014, told Wei he expected all of his conversations in Beijing would be characterized by an “open and honest” dialogue, like the one he had with Wei.

“The military-to-military relationship is critical to the broader relationship between our two countries,” Mattis added, in comments also in front of reporters.

Mattis invited Wei to visit him at the Pentagon.

Wei was similarly upbeat in his public remarks.

“Your visit to China this time is … a new positive factor to the military-to-military and state-to-state relationship,” said Wei, who only assumed his position in March.

TAIWAN TENSION

The Chinese defense ministry statement made only passing mention of the South China Sea, Taiwan and North Korea, citing Wei as telling Mattis what China’s positions were on those issues.

As Mattis arrived, Chinese state media said a formation of Chinese warships had been holding daily combat drills for more than a week in waters near Taiwan, and there have been frequent Chinese air force exercises near the island.

While China and the United States have tried hard to keep lines of communication between their militaries open, especially at the senior level, they are deeply suspicious of each other.

The United States accuses China of militarizing the South China Sea with its island-building work there, while China has been angered by U.S. naval patrols through the strategic waterway.

In May, the United States withdrew an invitation to China to attend a major U.S.-hosted naval drill, the Rim of the Pacific exercise, known as RIMPAC and previously attended by China, in response to what Washington sees as Beijing’s militarization of the South China Sea.

Still, the two have broad strategic common interests, such as ensuring peace and stability on the Korean peninsula.

China welcomed a historic summit between U.S. President Donald Trump and North Korean leader Kim Jong Un earlier this month in Singapore, where Kim reaffirmed a commitment to work toward complete denuclearisation of the Korean peninsula, while Trump said he would halt joint U.S.-South Korean “war games.”

(The story is refiled to removes extraneous words paragraphs five and nine, fixes typo paragraph seven.)

(Reporting by Phil Stewart and Ben Blanchard; Additional reporting by Christian Shepherd and Michael Martina; Editing by Michael Perry, Robert Birsel)

North Korea’s Kim told Xi he wanted to resume six-party disarmament talks: Nikkei

North Korean leader Kim Jong Un shakes hands with Chinese President Xi Jinping in Beijing, as he paid an unofficial visit to China, in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang March 28, 2018. KCNA/via Reuters

TOKYO (Reuters) – North Korean leader Kim Jong Un told Chinese President Xi Jinping during talks in Beijing last week that he agreed to return to six-party talks on his nation’s nuclear program and missile tests, the Nikkei newspaper said on Thursday.

Months of chill between Beijing and Pyongyang appeared to suddenly vanish during Kim’s secretive visit, with China saying that Kim had pledged his commitment to denuclearization.

Quoting multiple sources connected to China and North Korea, the Nikkei said that, according to documents issued after Kim and Xi met, Kim told Xi that he agreed to resuming the six-party talks, which were last held in 2009.

North Korea declared the on-again, off-again talks dead at the time, blaming U.S. aggression. The talks grouped the two Koreas, the United States, Russia, Japan and host China.

The sources said it was also possible that Kim could convey his willingness to resume the talks to U.S. President Donald Trump at a summit set to take place in May, but that it was far from clear if that meant the talks would actually resume.

Chinese officials were not immediately able to comment.

China has traditionally been secretive North Korea’s closest ally, though ties have been frayed by Kim’s pursuit of nuclear weapons and missiles and Beijing’s backing of tough U.N. sanctions in response.

North Korea has said in previous talks that it could consider giving up its nuclear arsenal if the United States removed its troops from South Korea and withdrew its so-called nuclear umbrella of deterrence from South Korea and Japan.

Some analysts have said Trump’s willingness to meet Kim handed North Korea a diplomatic win, as the United States had insisted for years that any such summit be preceded by North Korean steps to denuclearize.

(Reporting by Elaine Lies; Editing by Nick Macfie)

Train believed carrying top North Korean delegation leaves Beijing

Police officers keep watch next to a train at the Beijing Railway Station in Beijing, China March 27, 2018. REUTERS/Jason Le

By Ben Blanchard and Christine Kim

BEIJING/SEOUL (Reuters) – A train believed to be carrying a senior North Korean delegation left the Chinese capital on Tuesday following a dramatic whirlwind visit that some reports said included the country’s leader, Kim Jong Un.

The conservative South Korea Chosun Ilbo newspaper, citing an unnamed senior intelligence official, said the delegation had included Kim and that he had since left to return to North Korea.

South Korea’s left-leaning press Hankyoreh also reported Kim had traveled to Beijing for meetings with Chinese President Xi Jinping on Monday afternoon before leaving for a “third location” on Tuesday. It did not cite specific sources.

The Hankyoreh did not specify where the “third location” was but said it could be in China.

Hong Kong’s South China Morning Post said Kim was on the train that left Beijing, citing two anonymous sources.

South Korea said it was closely watching events in Beijing, where a foreign ministry spokeswoman deflected a question on whether Kim, his sister or some other senior North Korean was visiting. South Korea’s spy agency declined to confirm the report.

“At present I have no understanding of the situation you mention. If there is news we will release it,” foreign ministry spokeswoman Hua Chunying told a regular daily briefing.

Diplomatic sources in Beijing said a senior North Korean official was in town, but did not know exactly who.

Bloomberg, citing three unidentified sources, reported late on Monday that Kim was in Beijing in what would be his first known trip outside North Korea since taking power in 2011.

The unconfirmed visit came ahead of planned summit meetings with South Korean President Moon Jae-in and U.S. President Donald Trump.

Paramilitary police officers stand guard outside the Diaoyutai State Guesthouse, where foreign dignitaries usually stay, in Beijing, China March 27, 2018. REUTERS/Jason Lee

Paramilitary police officers stand guard outside the Diaoyutai State Guesthouse, where foreign dignitaries usually stay, in Beijing, China March 27, 2018. REUTERS/Jason Lee

“The presidential Blue House is watching things in Beijing very closely, while keeping all possibilities open,” said the senior official in Seoul, who spoke on condition of anonymity.

Improving ties between North Korea, which is pursuing nuclear and missile programs in defiance of U.N. Security Council resolutions, and China would be a positive sign before the planned summits, he said.

A Reuters reporter saw a convoy leave Beijing’s Diaoyutai State Guest House, where senior foreign leaders often stay, and drive north on Tuesday morning. It was unclear where the convoy was headed.

Later, a Reuters journalist saw what was believed to be the delegation’s train pulling out of a Beijing station. The group was reported to have arrived in China on Sunday after crossing from North Korea in the border city of Dandong.

A senior U.S. official who follows North Korea closely said the available evidence suggested that Kim had traveled to Beijing to meet Chinese President Xi Jinping, but stressed that has not been confirmed.

Underscoring the mystery, one senior Beijing-based diplomatic source told Reuters simply: “We just don’t know.”

One source with ties to China’s leadership said it was possible Kim’s younger sister, Kim Yo Jong, was in town. She visited South Korea for the Winter Olympics last month, paving the way for a summit between the two Koreas.

South Korean news agency Newsis reported that Kim Yo Jong and the North’s ceremonial leader, Kim Yong Nam, were visiting Beijing, citing an unidentified North Korea-related source in Beijing.

The pair visited South Korean President Moon Jae-in at his office in Seoul during the Winter Olympics in February.

The U.S. official, speaking on condition of anonymity, said it was unlikely Kim Jong Un would have sent his sister on such an important mission, unlike her ceremonial visit to South Korea for the Olympics.

On the contrary, the official said, a summit with Xi would underscore Kim’s standing as a world leader.

Security personnel take position along Beijing’s main east-west thoroughfare, Changan Avenue, in Beijing, China March 27, 2018. REUTERS/Damir Sagolj

“LOT OF LEVERAGE”

Xi and Kim Jong Un had reasons to meet in advance of Kim’s meetings with Moon and possibly Trump, the U.S. official said.

“Xi has met Trump, and in many respects learned how to deal with him better than some people here do,” the official said.

“At the same time, despite the recent tensions, he needs to know what Kim has in mind for dealing with the South and the U.S., and he still has a lot of leverage with the North.”

Japanese media reported on Monday that a high-ranking Pyongyang official appeared to have arrived by train in Beijing.

The Blue House official said South Korea had been aware of “related movements” in North Korea, such as the train, for a few days but he could not confirm whether Kim or another high-ranking North Korean official was visiting China.

Beijing is the main ally of secretive and isolated North Korea, as well as its biggest trading partner.

China has not confirmed any visit by a North Korean but has not totally censored speculation.

There were posts on Chinese social media talking about the possibility Kim Jong Un was in China, some citing family members in Dandong. The rail journey between Dandong and Beijing covers more than 1,100 km (680 miles). It takes at least 14 hours by ordinary service, according to Chinese railway timetables.

The North Korean leader is due to hold separate summits with South Korea in late April and the United States in May.

“The fact that the summits are being held has been beyond our expectations. Right now, the situation surrounding the Korean peninsula is moving very quickly and it would be inadvisable to think with prejudice,” the Blue House official said.

Kim Jong Un’s father, Kim Jong Il, met then-president Jiang Zemin in China in 2000 before a summit between the two Koreas in June that year.

Kim Jong Il was considered at the time to have made the visit to reaffirm close ties with China.

“North Korea likely wants to confirm its relationship with China and believes it has some leverage with which it can ask for things from China,” said Yoo Ho-yeol, Professor of North Korean studies at Seoul’s Korea University.

“If North Korea speaks with the United States on its own, it might feel it is at a disadvantage but, if it has China as an ally, Pyongyang may think it will be able to protect its interests and profits during the summits.”

(Reporting by Ben Blanchard in BEIJING and Christine Kim in SEOUL; Additional reporting by Heekyong Yang in SEOUL and John Walcott in WASHINGTON; Editing by Paul Tait and Nick Macfie)

Taiwan says should educate its youth on dangers of China

FILE PHTO: Military honour guards attend a flag-raising ceremony at Chiang Kai-shek Memorial Hall, in Taipei, Taiwan March 16, 2018. REUTERS/Tyrone Siu

TAIPEI (Reuters) – Taiwan should educate its youth about the risks presented by China where there is neither freedom nor democracy, Taiwan’s main body in charge of policy making toward its giant neighbor said on Friday.

China has been increasing its efforts to win over young Taiwanese, a key demographic to reach out to amid souring political relations between Beijing and Taipei, including offering incentives to set up businesses in China.

China claims Taiwan as its sovereign territory and considers people from the self-ruled island to be Chinese citizens.

In a statement issued after a meeting to discuss China’s recently concluded parliamentary session, Taiwan’s Mainland Affairs Council said the government should up efforts to counter China trying to attract talent, such as students and teachers.

“Some council members said that young people in Taiwan set great store on democracy and freedom, which is exactly what the environment in mainland Chinese society cannot provide,” it said.

“The government can strengthen and show off Taiwan’s advantages, and help young people understand the possible risks.”

Taiwan’s current government swept into power with the help of the youth-driven Sunflower Movement, protesting against a trade pact with China, something Taiwan’s government has said caught China’s attention, which is why China is now focusing on young Taiwanese.

Taiwan is one of China’s most sensitive issues, and China’s hostility toward the island has risen since Tsai Ing-wen from the pro-independence Democratic Progressive Party won the presidency in 2016.

China fears she wants to push for formal independence, though Tsai says she wants to maintain the status quo and peace.

Chinese President Xi Jinping warned Taiwan on Tuesday it would face the “punishment of history” for any attempt at separatism, offering his strongest warning yet to the island.

China has also been infuriated by a new U.S. law which encourages contacts and exchanges between U.S. and Taiwanese officials even though they do not have formal ties.

The United States’ commitment to Taiwan has never been stronger and the island is an inspiration to the rest of the Indo-Pacific region, a senior U.S. diplomat said in Taipei this week.

The Mainland Affairs Council said it had noted that Chinese officials have been using the term “severe” of late to refer to relations across the Taiwan Strait.

“The future development of relations across the Taiwan Strait is still full of challenges, and it is not easy to be optimistic,” it added.

(Reporting by Twinnie Siu; Writing by Ben Blanchard; Editing by Nick Macfie)

United States official says commitment of Taiwan has never been stronger

Alex Wong, U.S. deputy assistant secretary at the Bureau of East Asian and Pacific Affairs, speaks at American Chamber of Commerce (AmCham)’s yearly dinner event, in Taipei, Taiwan March 21, 2018. REUTERS/Tyrone Siu

By Twinnie Siu and Fabian Hamacher

TAIPEI (Reuters) – The United States’ commitment to Taiwan has never been stronger and the island is an inspiration to the rest of the Indo-Pacific region, U.S. Deputy Assistant Secretary of State Alex Wong said on Wednesday, in comments certain to anger Beijing.

Wong was speaking during a visit to Taipei at a time of increased hostility between the self-ruled island and Beijing and just a day after Chinese President Xi Jinping issued his strongest warning against Taiwan separatism to date.

China claims Taiwan as its own and considers the self-ruled island a wayward province, which Xi said on Tuesday would face the “punishment of history” for any attempt at separatism.

The island is one of China’s most sensitive issues and a potential military flashpoint. Underlining that threat, Taiwan sent ships and aircraft earlier on Wednesday to shadow a Chinese aircraft carrier group through the narrow Taiwan Strait, its defense ministry said.

“Taiwan can no longer be excluded unjustly from international fora. Taiwan has much to share with the world,” Wong said at a reception attended by Taiwan President Tsai Ing-wen, a member of the pro-independence Democratic Progressive Party.

“I can assure you, the United States government and the United States private sector will do their part to ensure Taiwan’s stellar international example shines brightly.”

Beijing is already furious over a law signed last week by U.S. President Donald Trump that encourages the United States to send senior officials to Taiwan to meet Taiwanese counterparts and vice versa.

President Tsai welcomed the new law on Wednesday.

“We were pleased President Trump signed the Taiwan travel act into law. We are grateful to the Trump administration and to members of the congress for supporting this bill,” she said.

Taiwan’s defense ministry said earlier that the Chinese carrier group, led by the mainland’s sole operational aircraft carrier the Liaoning, entered the Taiwan Strait late on Tuesday, but kept on its western side.

By midday on Wednesday it had left Taiwan’s air defense identification zone heading southwest, the ministry said, adding that it looked like China was conducting drills.

Taiwan’s military sent ships and aircraft to shadow the carrier group the entire way but spotted nothing out of the ordinary and people in Taiwan should not be concerned, it added.

China’s Defence Ministry did not immediately respond to a request for comment.

Taiwan says China has ramped up military exercises around the island in the past year or so.

China suspects Taiwan’s Tsai wants to push for formal independence for the island, which would cross a red line for Communist Party leaders in Beijing. Tsai has said she wants to maintain the status quo and is committed to ensuring peace.

Separately on Wednesday, China announced that a former ambassador to the United Nations, Liu Jieyi, has been appointed head of China’s Taiwan Affairs Office. Veteran diplomat Liu has been deputy head of the office since October last year.

(Reporting by Fabian Hamacher and Twinnie Siu; Writing by Ben Blanchard and Anne Marie Roantree; Editing by Himani Sarkar)

North Korea says U.S. ‘declared war’ warns it could shoot down U.S. bombers

North Korean Foreign Minister Ri Yong-ho walks to speak to the media outside the Millennium hotel New York, U.S., September 25, 2017.

By Michelle Nichols, Ben Blanchard and Christine Kim

UNITED NATIONS/BEIJING/SEOUL (Reuters) – North Korea’s foreign minister said on Monday that President Donald Trump had declared war on North Korea and that Pyongyang reserves the right to take countermeasures, including shooting down U.S. bombers even if they are not in its air space.

“The whole world should clearly remember it was the U.S. who first declared war on our country,” Foreign Minister Ri Yong Ho told reporters in New York.

“Since the United States declared war on our country, we will have every right to make countermeasures, including the right to shoot down United States strategic bombers even when they are not inside the airspace border of our country,” Ri said.

“The question of who won’t be around much longer will be answered then,” Ri said in a direct reference to a Twitter post by Trump on Saturday.

The increasingly heated rhetoric between Trump and North Korean leader Kim Jong Un is raising fears of a risk of a miscalculation by one side or the other that could have massive repercussions.

China called on Monday for all sides in the North Korea missile crisis to show restraint and not “add oil to the flames.”

Ri told the U.N. General Assembly on Saturday that targeting the U.S. mainland with its rockets was inevitable after “Mr Evil President” Trump called Kim a “rocket man” on a suicide mission.

“Just heard Foreign Minister of North Korea speak at U.N. If he echoes thoughts of Little Rocket Man, they won’t be around much longer!” Trump said on Twitter on Saturday.

North Korea, which has pursued its missile and nuclear programs in defiance of international condemnation and economic sanctions, said it “bitterly condemned the reckless remarks” of Trump. They were an “intolerable insult to the Korean people” and a declaration of war, the North’s official news agency said on Monday.

Pyongyang accuses the United States, which has 28,500 troops in South Korea, a legacy of the 1950-53 Korean war, of planning to invade and regularly threatens to destroy it and its Asian allies. The United States and South Korea are technically still at war with North Korea because the 1950s conflict ended with a truce, not a peace treaty.

U.S. Treasury yields fell to session lows after Ri’s comments on Monday.

 

‘DERANGED’

In an unprecedented direct statement on Friday, Kim described Trump as a “mentally deranged U.S. dotard” whom he would tame with fire.

Kim said North Korea would consider the “highest level of hard-line countermeasure in history” against the United States and that Trump’s comments had confirmed his nuclear program was “the correct path”.

Trump threatened in his maiden U.N. address last Tuesday to “totally destroy” the country of 26 million people if North Korea threatened the United States or its allies.

Asked how concerned China was the war of words between Trump and North Korea could get out of control, Foreign Ministry spokesman Lu Kang described the situation as highly complex and sensitive.

It was vitally important everyone strictly, fully and correctly implemented all North Korea related U.N. resolutions, Lu said, resolutions which call for both tighter sanctions and efforts to resume dialogue.

All sides should “not further irritate each other and add oil to the flames of the tense situation on the peninsula at present”, Lu told a daily news briefing.

“We hope all sides do not continue doing things to irritate each other and should instead exercise restraint.”

Speaking to British Prime Minister Theresa May by telephone, Chinese President Xi Jinping repeated Beijing’s position that the North Korean issue should be resolved peacefully via talks, state media said.

China hopes Britain can play a constructive role in easing the situation and pushing for a resumption in talks, Xi said. May, like some other U.S. allies, has pushed for China to do more on North Korea.

Downing Street said the two leaders agreed there was a particular responsibility for China and Britain, as permanent Security Council members, to help find a diplomatic solution.

North Korea conducted its sixth and most powerful nuclear bomb test on Sept. 3. Pyongyang said on Friday it might test a hydrogen bomb over the Pacific Ocean.

While China has been angered by North Korea’s repeated nuclear and missile tests, it has also called for the United States and its allies to help lessen tension by dialing back their military drills.

U.S. Air Force B-1B Lancer bombers escorted by fighters flew in international airspace over waters east of North Korea on Saturday in a show of force the Pentagon said indicated the range of military options available to Trump.

In response to a question about the exercises, Chinese spokesman Lu said: “A continued rise in tensions on the peninsula, I believe, is not in the interests of any side.”

Wang Jingdong, president of the world’s largest lender Industrial and Commercial Bank of China (ICBC), told reporters during a briefing the bank will “strictly implement U.N. Security Council decisions related to North Korea and carefully fulfill relevant international responsibility”.

Japanese Prime Minister Shinzo Abe on Monday said his decision to call a snap election would not distract his government from responding to North Korean threats.

 

(Reporting by Michelle Nichols at the United Nations, Ben Blanchard in Beijing and Christine Kim in Seoul; Additional reporting by Shu Zhang in Beijing, Elizabeth Piper in London and Kiyoshi Takenaka in Tokyo; Writing by Philip Wen; Editing by Nick Macfie and Grant McCool)

 

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

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

By Michael Martina and Christian Shepherd

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

‘NOT AFRAID’

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

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

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

Saturday will be the 105th anniversary of his birth.

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

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

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

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

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

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

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

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

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

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

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

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

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