China says North Korea tension has to be stopped from reaching ‘irreversible’ stage

North Korean leader Kim Jong Un arrives for an opening ceremony of a newly constructed residential complex in Ryomyong street in Pyongyang, North Korea April 13, 2017. REUTERS/Damir Sagolj

By Dominique Patton and Sue-Lin Wong

BEIJING/PYONGYANG (Reuters) – China said on Friday tension over North Korea had to be stopped from reaching an “irreversible and unmanageable stage” as a U.S. aircraft carrier group steamed toward the region amid fears the North may conduct a sixth nuclear weapons test.

Concern has grown since the U.S. Navy fired 59 Tomahawk missiles at a Syrian airfield last week in response to a deadly gas attack, raising questions about U.S. President Donald Trump’s plans for North Korea, which has conducted missile and nuclear tests in defiance of U.N. and unilateral sanctions.

The United States has warned that a policy of “strategic patience” is over. U.S. Vice President Mike Pence travels to South Korea on Sunday on a long-planned 10-day trip to Asia.

China, North Korea’s sole major ally and neighbor which nevertheless opposes its weapons program, has called for talks leading to the denuclearization of the Korean peninsula.

“We call on all parties to refrain from provoking and threatening each other, whether in words or actions, and not let the situation get to an irreversible and unmanageable stage,” Chinese Foreign Minister Wang Yi told reporters in Beijing.

North Korea denounced the United States for bringing “huge nuclear strategic assets” to the region as the Carl Vinson strike group with a flag-ship nuclear-powered aircraft carrier steamed closer, and said it stood ready to strike back.

“The Trump administration, which made a surprise guided cruise-missile strike on Syria on April 6, has entered the path of open threat and blackmail,” the North’s KCNA news agency quoted the military as saying in a statement.

“The army and people of the DPRK will as ever courageously counter those who encroach upon the dignity and sovereignty of the DPRK and will always mercilessly ravage all provocative options of the U.S. with Korean-style toughest counteraction.”

DPRK stands for the North’s official name, the Democratic People’s Republic of Korea.

North Korea, still technically at war with the South after their 1950-53 conflict ended in a truce, not a treaty, has on occasion conducted missile or nuclear tests to coincide with big political events and often threatens the United States, South Korea and Japan.

On Saturday, it marks the “Day of the Sun”, the 105th anniversary of the birth of state founder Kim Il Sung.

U.S. ally South Korea warned against any North Korean “provocation”, such as a nuclear or missile test.

“There is certain to be powerful punitive measure that will be difficult for the North Korean regime to endure,” the South’s Foreign Ministry said in a statement.

WITH OR WITHOUT YOU

While Trump has put North Korea on notice that he will not tolerate any more provocation, U.S. officials have said his administration is focusing its strategy on tougher economic sanctions.

Trump said on Thursday North Korea was a problem that “will be taken care of” and he believed Chinese President Xi Jinping would “work very hard” to help resolve it.

Trump has also said the United States is prepared to tackle the crisis without China, if necessary.

He diverted the Carl Vinson aircraft carrier and its strike group toward the Korean peninsula last weekend in a show of force. (http://tmsnrt.rs/2p1yGTQ)

Worry about North Korean aggression has also led to a deterioration of ties between China and South Korea because China objects to the deployment of a U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system in the South.

“It’s not hard to see that ever since the United States and Republic of Korea decided to deploy THAAD, the situation has not become harmonious but has become more tense,” Chinese Foreign Ministry spokesman Geng Shuang, said in response to a question about the system.

South Korea and the United States say the sole purpose of the THAAD is to guard against North Korean missiles, but China says that its powerful radar could penetrate its territory.

The dollar fell on Friday against a basket of currencies, on track for a losing week as tension over North Korea underpinned the perceived safe-haven Japanese yen.

Japan’s Nikkei business daily said the government had discussed how to rescue an estimated 57,000 Japanese citizens in South Korea as well as how to cope with a possible flood of North Korean refugees coming to Japan, among whom might be spies.

In Pyongyang, retired soldier Ho Song Chol told Reuters that North Korea would win should there be any conflict with the United States.

“We don’t think about other things, we just live in our belief that we will win as long as our Supreme Leader is with us,” Ho said, referring to Kim Jong Un.

Kang Gil-won, a 26-year-old graduate living in Seoul, said his biggest concern was not North Korea, but finding work in a tough job market.

“There’s no concern that war is going to break out tomorrow,” he told Reuters at a “study café” where many young job seekers prepare for interviews.

“Getting a job is a war that I feel in my bones.”

(Additional reporting by Nick Macfie, James Pearson, Ju-min Park and Jack Kim in SEOUL, Natalie Thomas in Pyongyang, Linda Sieg in TOKYO and Michael Martina and Christian Shepherd in BEIJING; Writing by Nick Macfie; Editing by Robert Birsel)

Trump signs resolution allowing U.S. states to block family planning funds

U.S. President Donald Trump waves as he boards Air Force One at Joint Base Andrews outside Washington, U.S., before traveling to Palm Beach, Florida for the Good Friday holiday/Easter weekend, April 13, 2017. REUTERS/Yuri Gripas

By Lisa Lambert

WASHINGTON (Reuters) – President Donald Trump on Thursday signed a resolution that will allow U.S. states to restrict how federal funds for contraception and reproductive health are spent, a move cheered by anti-abortion campaigners.

“This is a major pro-life victory,” said the most powerful Republican in the House of Representatives, Speaker Paul Ryan, adding that a regulation enacted under Democratic former President Barack Obama had forced states to fund Planned Parenthood, a national non-profit that provides contraception, health screenings, and abortions.

Under the Congressional Review Act, which allows lawmakers to repeal newly minted rules, both the House and Senate had passed a resolution killing Obama’s regulation that had protected federal grants for clinics in states wanting to block the funding.

States such as Texas in recent years have kept the grants from going to clinics as part of the country’s longstanding fight over abortion. Broadly, many Republicans seek to restrict abortion or make it illegal while Democrats have fought to keep abortion legal.

The resolution had narrowly passed the U.S. Congress, with Vice President Mike Pence called to the Senate on March 30 to break a tie vote in the chamber, where Republicans hold a slim majority. The federal government can never again create a “substantially similar” regulation under the review law.

The grants, known as “Title X” funds, were already barred from going directly to abortion services but under the now-null regulation Planned Parenthood clinics were assured they could receive money even in the face of state objections.

“Allowing states to withhold Title X funding from family planning clinics won’t make anyone safer or healthier – it will instead place essential services out of reach,” said Diane Horvath-Cosper, a medical doctor and fellow at Physicians for Reproductive Health, adding that for many people the clinics are the only place where they can receive affordable health services such as disease testing.

(Reporting by Lisa Lambert; Editing by Frances Kerry)

Dollar rises after sliding on Trump remarks on currency, rates

FILE PHOTO: U.S. dollar notes are seen in this November 7, 2016 picture illustration. REUTERS/Dado Ruvic/Illustration/File Photo

By Dion Rabouin

NEW YORK (Reuters) – The U.S. dollar rose on Thursday, rebounding after a slide that investors considered overdone following remarks by President Donald Trump that the currency was getting too strong and he would prefer the Federal Reserve to keep interest rates low.

The greenback and U.S. Treasury yields took a heavy hit after Trump’s comments to the Wall Street Journal, in which he said the strength of the dollar would hurt the economy.

But after losing 0.6 percent on Wednesday – its biggest one-day fall in more than three weeks – the dollar recovered on Thursday against a basket of major currencies <=USD> that tracks its value, rising 0.3 percent.

“Clearly, I think it was oversold yesterday,” said Peter Ng, senior currency trader at Silicon Valley Bank in Santa Clara, California. “The market was very sensitive to headlines given how nervous it has become due to geopolitical risk.”

Trading was also thinner than usual because of the impending Good Friday holiday in the U.S. and Europe this week, Ng said.

Having hit a five-month low of 108.73 yen in early Asian trading, the dollar steadied at 109.20 yen. <JPY=>

“Yes, it was negative what (Trump) said…but it’s not a big surprise – it wasn’t a U-turn in his rhetoric on the exchange rate so far,” said Commerzbank currency strategist Thu Lan Nguyen in Frankfurt.

“The question is: is he able to influence monetary policy in order to get a weaker dollar? That is still an open question.”

Trump’s remarks went against a long-standing practice of both U.S. Democratic and Republican administrations of refraining from commenting on policy set by the independent Federal Reserve. It is also unusual for a president to talk about the value of the dollar, a subject usually left to the U.S. Treasury secretary.

The dollar has shed 1.7 percent against the yen so far this week, its fourth week lower against the safe-haven Japanese currency in five, as a rise in tensions in Asia and Europe prompted yen buying.

Investors are concerned about the upcoming French presidential election as well as possible U.S. military action against Syria and North Korea, and an escalation of tensions with Russia.

The euro fell 0.5 percent to $1.0619 <EUR=> after touching a one-week high in overnight trading.

The dollar was little changed against China’s offshore yuan <CNH=D3>, after falling to a six-day low on Wednesday. It had risen to a one-month high at the start of the week.

(Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Bernadette Baum)

Wall Street flat as investors assess earnings, Trump comments

Traders work on the floor of the New York Stock Exchange (NYSE) in the Manhattan borough of New York, New York, U.S., April 4, 2017. REUTERS/Brendan McDermid

By Yashaswini Swamynathan

(Reuters) – U.S. stocks were little changed on Thursday as investors assessed the first rush of bank earnings and President Donald Trump’s remarks on the dollar’s strength and interest rates.

Shares of JPMorgan <.JPM.N> and Citigroup <C.N> rose about 1 percent after the two banks reported better-than-expected quarterly profits.

However, Wells Fargo <WFC.N> slipped 2.5 percent after reporting a big drop in mortgage banking revenue.

The earnings reports come in the wake of a frenetic rally in bank shares that started after Trump’s election as U.S. president on hopes that he would rein in banking regulations and introduce other business friendly policies.

At 10:01 a.m. EDT the Dow Jones industrial average <.DJI> was down 0.58 points, flat, at 20,591.28, the S&P 500 <.SPX> was up 0.68 points, or 0.028999 percent, at 2,345.61 and the Nasdaq Composite <.IXIC> was up 10.40 points, or 0.18 percent, at 5,846.56.

“Investors will (be) faced with another day of market uncertainties as bank earnings, geopolitical worries and Trump’s comments on the greenback are being reflected in the volatility index that is flashing trouble ahead,” Peter Cardillo, chief market economist at First Standard Financial, wrote in a note.

Trump told the Wall Street Journal on Wednesday that the dollar “was getting too strong” and that he would like to see interest rates stay low.

The S&P 500 financial index <.SPSY> was up 0.2 percent, while five other S&P sectors were down.

Nine of the 11 major S&P sectors were lower, led by a 0.4 percent decline in financials. Bank of America <BAC.N> and Goldman Sachs <GS.N> are due to report results next week.

Shares of Applied Optoelectronics <AAOI.O> jumped nearly 23 percent to $50.15 after the company said it expected first-quarter earnings to exceed its forecast.

Trading volumes could be lower than usual on Thursday ahead of the Good Friday holiday.

Declining issues outnumbered advancers on the NYSE by 1,403 to 1,186. On the Nasdaq, 1,201 issues fell and 1,163 advanced.

The S&P 500 index showed two 52-week highs and no lows, while the Nasdaq recorded 10 highs and 27 lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)

May, Trump agree Russia should break ties with Assad: UK PM’s office

U.S. President Donald Trump escorts British Prime Minister Theresa May after their meeting at the White House in Washington, U.S., January 27, 2017. REUTERS/Kevin Lamarque

LONDON (Reuters) – British Prime Minister Theresa May spoke on Monday to U.S. President Donald Trump and agreed that “a window of opportunity” exists to persuade Russia to break ties with Syrian President Bashar al-Assad, May’s office said.

A spokeswoman for the prime minister said Trump had thanked May for her support following last week’s U.S. military action in Syria against the Assad regime.

The White House later on Monday said Trump had spoken with May and separately with German Chancellor Angela Merkel by telephone about the U.S. attack and thanked them for their support.

It said in a statement that May and Merkel expressed support for the U.S. action and agreed with Trump on the importance of holding Assad accountable.

In a shift in Washington’s strategy, U.S. missiles hit a Syrian air base last week in retaliation for what the United States and its allies say was a poison gas attack by Syria’s military in which scores of civilians died. The Syrian government has denied it was behind the assault.

Trump had previously appeared disinclined to intervene against the Syrian leader and the attack raised expectations that he might now be ready to adopt a tougher-than-expected stance with Russia, Assad’s main backer.

U.S. Secretary of State Rex Tillerson is due to travel to Moscow this week and the spokeswoman for May said the two leaders had agreed during their conversation that the visit was an opportunity to make progress toward a solution.

“The prime minister and the president agreed that a window of opportunity now exists in which to persuade Russia that its alliance with Assad is no longer in its strategic interest,” the spokeswoman said.

“They agreed that U.S. Secretary of State Tillerson’s visit to Moscow this week provides an opportunity to make progress toward a solution which will deliver a lasting political settlement.”

The spokeswoman said the two leaders had also stressed the importance of the international community, including China, putting pressure on North Korea to constrain the threat it poses.

(Reporting by Kate Holton; Editing by James Dalgleish, Toni Reinhold)

Groups sue to obtain White House visitor logs

Man arrested after threatening to kill 'all white police' at White House

By Jonathan Stempel

NEW YORK (Reuters) – A coalition of nonprofit groups on Monday sued the U.S. Department of Homeland Security to obtain logs of visitors to President Donald Trump’s homes.

The lawsuit accused the Secret Service, which maintains the logs, of violating the law by ignoring several requests for lists of visitors to the White House, Trump Tower in Manhattan, and the Mar-a-Lago estate in Palm Beach, Florida.

Monday’s complaint was filed in Manhattan federal court by the Citizens for Responsibility and Ethics in Washington (CREW), the Knight First Amendment Institute at Columbia University, the National Security Archive, and archive researcher Kate Doyle.

The plaintiffs had requested the logs under the federal Freedom of Information Act.

Similar litigation by CREW in 2009 prompted the Obama administration to disclose White House visitor logs on a delayed basis, and according to the complaint led to the release of 5.99 million records.

A spokesman for the Homeland Security Department, which oversees the Secret Service, said the department does not discuss pending litigation. The lawsuit was reported earlier by the Washington Post.

The website where White House visitor logs were available went dark after Trump became president.

That page now reads: “This page is being updated. It will post records of White House visitors on an ongoing basis, once they become available.” (https://www.whitehouse.gov/briefing-room/disclosures/visitor-records)

Several Democratic lawmakers last month called on Trump, a Republican, to make logs public again.

Many FOIA lawsuits against federal agencies are filed in Washington rather than New York.

But in August 2013, the federal appeals court in Washington said Congress did not intend to authorize FOIA requesters to obtain records “indirectly” from the Secret Service that they could not obtain directly from the President.

That decision involved a request by the conservative group Judicial Watch for records of all White House visitors over seven months.

It was written by Chief Judge Merrick Garland, whose Supreme Court nomination by Obama was never acted upon by Congress.

Federal judges in Manhattan can use Garland’s opinion for guidance, but need not follow it.

The case is Doyle et al v. U.S. Department of Homeland Security, U.S. District Court, Southern District of New York, No. 17-02542.

(Reporting by Jonathan Stempel in New York; Editing by Richard Chang)

Trump to meet U.S. business leaders on infrastructure, tax reform

U.S. President Donald Trump waves as he walks from Marine One upon his return to the White House in Washington, U.S., April 9, 2017. REUTERS/Joshua Roberts - RTX34UUD

By David Shepardson

WASHINGTON (Reuters) – U.S. President Donald Trump will meet with about 20 chief executives on Tuesday as he works to gain support for a $1 trillion infrastructure program, tax reform and other administration priorities, said White House spokesman Sean Spicer.

Trump will meet with the heads of General Motors Co <GM.N>, International Business Machines Corp <IBM.N> and Wal-Mart Stores Inc <WMT.N>, a government official briefed on the matter said.

Trump has pledged to unlock $1 trillion in private and public infrastructure investments to fix bridges, improve the electrical grid and broadband internet, modernize airports and potentially rebuild hospitals for veterans. Nearly three months after his inauguration, Trump will again seek the advice and funds of the private sector for his “national rebuilding” program.

Trump also wants to streamline the income tax system, cut federal regulations, reduce corporate income tax and add new taxes to prod companies to keep or move production to the United States. He has held numerous sessions with CEOs since taking office.

The chief executives are part of Trump’s “Strategy and Policy Forum” that was created in December and last met with the president on Feb. 3.

The business leaders from a variety of sectors will also meet in small groups with Transportation Secretary Elaine Chao, Environmental Protection Agency chief Scott Pruitt, Commerce Secretary Wilbur Ross, Education Secretary Betsy DeVos and White House budget director Mick Mulvaney, Spicer said.

Participants in Ross’ meeting include Wal-Mart CEO Doug McMillon and Indra Nooyi, chief executive officer of PepsiCo Inc <PEP.N>. Pruitt’s meeting will include GM CEO Mary Barra and Paul Atkins, CEO of Patomak Global Partners LLC and a Republican former SEC commissioner. Chao’s meeting will include Tesla Inc <TSLA.O> CEO Elon Musk.

BlackRock CEO Larry Fink, who heads the world’s largest investment management firm, in a letter to shareholders Monday backed calls for private investment to rebuild U.S. infrastructure. The Trump administration plans to unveil as soon as May the $1 trillion infrastructure plan over 10 years.

“Fixing crumbling roads and bridges is not enough. We need to be focused on reshaping our world, not just repairing it,” Fink wrote.

Last week, Trump pitched infrastructure projects to about 50 New York area CEOs. National Economic Council Director Gary Cohn told executives that privatizing air traffic control, which the administration proposed in its budget outline in March, could be a big boost.

Other chief executives taking part Tuesday include consultant EY, Boston Consulting Group, the Cleveland Clinic and Global Infrastructure Partners, an infrastructure investment fund.

(Reporting by David Shepardson; Editing by Andrew Hay and Lisa Shumaker)

Russia warns of serious consequences from U.S. strike in Syria

President Trump meeting with his National Security team and being briefed by Chairman of the Joint Chiefs of Staff General Joseph Dunford via secure video after a missile strike on Syria while inside the Sensitive Compartmented Information Facility at his Mar-a-Lago resort in West Palm Beach, Florida. White House Press Secretary Sean Spicer stated that this image has been digitally edited for security purposes.

By Steve Holland, Andrew Osborn and Tom Perry

PALM BEACH, Fla./MOSCOW/BEIRUT (Reuters) – Russia warned on Friday that U.S. cruise missile strikes on a Syrian air base could have “extremely serious” consequences, as President Donald Trump’s first major foray into a foreign conflict opened up a rift between Moscow and Washington.

The U.S. military launched dozens of Tomahawk missiles from the USS Porter and USS Ross warships in the Mediterranean Sea that hit the airstrip, aircraft and fuel stations of the Shayrat air base, which the Pentagon says was used to store chemical weapons.

It was Trump’s biggest foreign policy decision since taking office in January and the kind of direct intervention in Syria’s six-year-old civil war that his predecessor Barack Obama avoided.

The American strikes were in reaction to what Washington says was a poison gas attack by the Syrian government of President Bashar al-Assad this week that killed at least 70 people in rebel-held territory.

The U.S. action catapulted Washington into confrontation with Russia, which has military advisers on the ground aiding its close ally Assad.

“We strongly condemn the illegitimate actions by the U.S. The consequences of this for regional and international stability could be extremely serious,” Russia’s deputy U.N. envoy, Vladimir Safronkov, told a meeting of the U.N. Security Council on Friday.

Russian Prime Minister Dmitry Medvedev charged that the U.S. strikes were one step away from clashing with Russia’s military.

Moscow said it had suspended communication with U.S. forces designed to stop planes colliding over Syria, where U.S. jets frequently bomb Islamic States militants. But senior U.S. military officials told Pentagon reporters that Russia has not suspended the military communications channel.

U.S. officials informed Russian forces ahead of the missile strikes, and avoided hitting Russian personnel.

Satellite imagery suggests the Shayrat air base is home to Russian special forces and military helicopters, part of the Kremlin’s effort to help the Syrian government fight Islamic State and other militant groups.

Trump has frequently called for improved relations with Russia which were strained under Obama over Syria, Ukraine and other issues, but the U.S. president said action had to be taken against Assad.

“Years of previous attempts at changing Assad’s behavior have all failed and failed very dramatically,” Trump said as he announced the attack on Thursday night from his Florida resort, Mar-a-Lago, where he was meeting Chinese President Xi Jinping.

“Even beautiful babies were cruelly murdered in this very barbaric attack,” he said, adding: “No child of God should ever suffer such horror.”

ASSAD ‘ON NOTICE’

A wide range of U.S. allies from Asia, Europe and the Middle East expressed support, if sometimes cautiously, for the strikes.

Assad has been “put on notice” by the U.S. action, Britain’s U.N. Ambassador Matthew Rycroft told the Security Council, terming it a “proportionate response to unspeakable acts.”

U.S. officials said the military intervention was a “one-off” intended to deter future chemical weapons attacks, and not an expansion of the U.S. role in the Syrian war.

The action is likely to be interpreted as a signal to Russia, as well as to countries such as North Korea, China and Iran where Trump has faced foreign policy tests early in his presidency, that he is willing to use force.

Assad’s office said Damascus would respond by striking its enemies harder.

The Syrian government and Moscow denied Syrian forces were behind the gas attack but Western countries dismissed their explanation that chemicals leaked from a rebel weapons depot after an air strike.

The Syrian army said the U.S. attack killed six people and called it “blatant aggression” which made the United States a partner of “terrorist groups” including Islamic State. There was no independent confirmation of civilian casualties.

U.S. lawmakers from both parties on Friday backed Trump’s action but demanded he spell out a broader strategy for dealing with the conflict and consult with Congress on any further action.

A Russian frigate carrying cruise missiles sailed through the Bosphorus Strait into the Mediterranean Sea, although there was no indication it was in response to the U.S. action.

Russia expects U.S. Secretary of State Rex Tillerson to explain Washington’s stance in light of the missile strikes

when he visits Moscow in the coming week, Interfax news agency cited a Russian Foreign Ministry spokeswoman as saying.

Washington has long backed rebels fighting Assad in a multi-sided civil war that has killed more than 400,000 people and driven half of Syrians from their homes since 2011.

The United States has conducted air strikes against Islamic State militants who control territory in eastern and northern Syria, and a small number of U.S. troops are on the ground assisting anti-Islamic State militias.

Russia joined the war on Assad’s behalf in 2015, turning the momentum of the conflict in his favor. Although they support opposing sides in the war between Assad and rebels, Washington and Moscow say they share a single main enemy, Islamic State.

Tuesday’s attack was the first time since 2013 that Syria was accused of using sarin, a banned nerve agent it was meant to have given up under a Russian-brokered, U.N.-enforced deal that persuaded Obama to call off air strikes four years ago.

Video depicted limp bodies and children choking while rescuers tried to wash off the poison gas. Russian state television blamed rebels and did not show footage of victims.

The U.S. strikes cheered Assad’s enemies, after months when Western powers appeared to grow increasingly resigned to his staying in power. But opposition figures said an isolated assault was far from the decisive intervention they seek.

(Additional reporting by Phil Stewart, Idrees Ali, Yara Bayoumy, Jonathan Landay, John Walcott, Lesley Wroughton, Patricia Zengerle, Roberta Rampton, David Brunnstrom and Matt Spetalnick in Washington, Megan Davies in New York and Jack Stubbs in Moscow; Writing by Peter Graff and Alistair Bell; Editing by Giles Elgood and James Dalgleish)

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

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

By Steve Holland

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DIFFERING PERSONALITIES

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

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

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

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

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

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

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

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

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

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

NO GRAND BARGAIN ON TRADE

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

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

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

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

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

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