Turkey accuses Germany of aiding its enemies, as row escalates

FILE PHOTO: Turkish President Tayyip Erdogan (R) is pictured wit Justice Minister Bekir Bozdag during the International Istanbul Law Congress in Istanbul, October 17, 2016. REUTERS/Murad Sezer/File

By Tulay Karadeniz

ANKARA (Reuters) – Turkish leaders condemned Germany on Friday for cancelling rallies of Turkish residents due to be addressed by Ankara’s ministers and accused Berlin of giving “shelter” to Turkey’s enemies.

As the diplomatic spat between the two countries became increasingly angry, Turkish President Tayyip Erdogan said a German journalist being held in Turkey was a “German agent” and a member of an armed Kurdish militant group.

A source in Germany’s foreign ministry on Friday night told Reuters those accusations were “absurd”.

Earlier, comments in Berlin by Turkey’s Justice Minister Bekir Bozdag, who had been scheduled to address a meeting in the southwestern town of Gaggenau until it was canceled on Thursday, reflected a broader souring of relations between the two NATO allies.

“Let them look back at their history,” Bozdag said in a speech. “We see the old illnesses flaring up.”

The city of Cologne also blocked an event where Turkey’s Economy Minister Nihat Zeybecki was to speak on Sunday. Police said shortly after that a second gathering he had been due to attend in the western town of Frechen was also canceled.

Zeybecki said he still planned to go to Germany.

“We say the victory is God’s…I will go from cafe to cafe, house to house,” he said. “Nobody should worry, we will still meet with our citizens in Germany.”

Chancellor Angela Merkel, speaking in Tunis, said her government had played no part in steps taken by city councils who, according to one mayor, acted purely on security grounds.

She renewed her criticism of Turkey’s arrest of Deniz Yucel, a correspondent for German newspaper Die Welt.

“We support freedom of expression and we can criticize Turkey,” she told reporters.

The German foreign ministry urged Ankara to refrain from “pouring oil on the fire”.

GERMANY “ABETTING TERRORISM”

Erdogan said in Ankara the cause of the tensions between the two countries was Germany’s support for Turkey’s enemies.

“It isn’t because a correspondent of Die Welt was arrested,” Erdogan told an awards ceremony in Istanbul.

“It is because this person hid in the German embassy as a member of the PKK and a German agent for one month. When we told them to hand him over to be tried, they refused.”

“So, they won’t let our justice minister and economy minister speak,” Erdogan added.

“They need to be tried for helping and abetting terrorism.”

Gaggenau would have been part of efforts to garner support among 1.5 million Turkish citizens for an April referendum expanding Erdogan’s powers – something he has sought with increased urgency since an army bid to topple him.

Erdogan has accused West European countries of failing to condemn the July putsch quickly or strongly enough. West European countries have expressed concern about his subsequent crackdown on journalists, judiciary, academics and others.

On Friday evening the Dutch government said plans by Turkish authorities to hold a referendum campaign rally in Rotterdam were “undesirable”.

The leader of an association of Dutch Turks said Turkish Foreign Minister Mevlut Cavusoglu was planning to attend the March 11 rally, hoping to persuade the Netherlands’ hundreds of thousands of dual citizens to vote for the new constitution giving Erdogan greater powers.

Authorities in Gaggenau evacuated the city hall for hours on Friday after receiving a bomb threat, its mayor told n-tv German television. Asked if it was linked to the cancellation, mayor Michael Pfeiffer said: “We presume this at the moment, but we don’t know for sure.”

In a phone call between Turkish Foreign Minister Mevlut Cavusoglu and his German counterpart Sigmar Gabriel, the ministers agreed to meet in Germany on March 8 to discuss tensions between the two countries, foreign ministry sources in Ankara said.

Journalist Yucel, a German-Turkish dual national, is charged with propaganda in support of a terrorist organization. The German foreign ministry said it had not yet been granted consular access to Yucel or five other Germans arrested since the July 15 coup attempt.

German Justice Minister Heiko Maas sent Bozdag a sharply worded letter after Bozdag canceled their Thursday meeting.

“When journalists, judges and attorneys are arrested simply because they are doing their jobs, simply because they are fulfilling their role in a constitutional state, then each arrest marks a degradation of the rule of law,” he wrote.

“It is the role of the state to protect journalists and not burden them with repressive measures.”

Erdogan accuses an exiled cleric of masterminding the coup, describing his organization as the FETO terrorist group. Turkey also complains that Germany and other West European countries give succor to militant leftists and PKK Kurdish militants.

Germany is wary of rising tensions, seeking continued Turkish commitment to arrangements preventing large movements of refugees from Turkey to Europe.

(Additional reporting by Andrea Shalal in Berlin, Andreas Rinke in Tunis and Tuvan Gumrukcu in Ankara; editing by Andrew Roche)

U.S. carrier puts on show of ‘commitment’, not power, in South China Sea

U.S. Navy personnel prepare to launch an F18 fighter jet on the deck of USS Carl Vinson in the South China Sea. REUTERS/Erik De Castro

By Manuel Mogato

ABOARD THE USS CARL VINSON, South China Sea (Reuters) – The flight deck of the USS Carl Vinson shakes as a succession of F-18 fighter jets are catapulted into take-off, emitting a thunderous noise and leaving white mist in their wake.

Crewmen aboard the aircraft carrier scramble to prepare for the next arrival in a frenetic cycle of take-offs and landings involving dozens of aircraft, a dramatic display of American power in the hotly contested South China Sea.

The USS Carl Vinson led a carrier strike group on Friday in waters some 400 nautical miles east of China’s Hainan Island and northeast of the Paracels, the island chain occupied by Beijing since it seized control from Vietnam in the 1970s.

China claims most of the South China Sea through which about $5 trillion in ship-borne trade passes every year. Neighbors Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

China’s growing military presence in the waters has fueled concern in the West, with the United States criticizing its militarization of maritime outposts and holding regular air and naval patrols to ensure freedom of navigation.

Tension between the United States and China over trade and territory under U.S. President Donald Trump has been stepped up of late, with fear in the region that the South China Sea, vital to global trade, could become a battleground between the two rival powers.

Some 30 fighter jets, helicopters and other aircraft took to the sky on Friday and crew in color-coded uniform raced to service them, check their instruments and fit weapons. An overpowering smell of aircraft fuel lingered in the air.

At any given time, between eight and 25 aircraft are in the air, day and night, with 15-20 on standby.

USS Carl Vinson has been on patrol since Feb. 19 in the South China Sea, amid some confusion about U.S. staying power in the region under a Trump administration with policies skewed heavily towards a domestic agenda.

Comments so far by Washington have caused alarm, most notably those by Secretary of State Rex Tillerson, who suggested during his Senate hearing that China be blocked from accessing the islands it has built and fortified with surface-to-air missiles.

Rear Admiral James Kilby, the strike group commander, said the patrol was not a show of power, but a demonstration of U.S. commitment to the Asia-Pacific.

“We wanted to reassure our friends and allies and our belief in the freedom of navigation and security operations that we always conducted,” he reporters flown out to the carrier on Friday.

“We have operated in the past, and we will continue to operate in the future. We continued to demonstrate that the international waters are waters where everyone can sail.”

TESTING THE WATERS

Under former President Barack Obama’s pivot to Asia, Washington sought to challenge China’s growing assertiveness through FONOPS, or Freedom of Navigation Operations, which routinely riled Beijing, particularly those close to its seven artificial islands.

Some critics say the FONOPS have been both provocative and fruitless, having failed to deter China from building up what it considers legitimate defenses.

A top Chinese official last year warned that FONOPS could “end in disaster”.

Friday’s exercise was far from the disputed areas of the waterway, rich fishing grounds which contain largely unexplored oil and gas deposits. Kilby there were “contacts” with merchant, fishing and military vessels in the past two weeks, though no “incidents”. He did not elaborate.

China has been guarded in its response to the latest U.S. mission, which started one day after Beijing finished its own aircraft carrier exercises.

It said it respected freedom of navigation and hoped the United States could “contribute positive energy towards this good situation”.

The crew aboard Carl Vinson will spend five months in Asia.

During Friday’s drills, one fighter missed its landing, or “recovery”, and was made to repeat the exercise, circling the vast ship before making a perfect landing.

Captain Douglas Verissimo, the skipper of Vinson, said the exercises included rigorous checks. Aircraft were simulating combat and bombing runs, performing over and over until flaws were ironed out.

“Every time they land, there’s someone grading them,” he said.

(Writing by Martin Petty; Editing by Nick Macfie)

China hints at trade war strategy in South Korea standoff

A barbed-wire fence is set up around a golf course owned by Lotte, where the U.S. Terminal High Altitude Area Defense (THAAD) system will be deployed, in Seongju, South Korea, March 1, 2017. Kim Joon-beom/Yonhap via REUTERS

By Adam Jourdan

SHANGHAI (Reuters) – South Korean firms are being squeezed in China, in suspected retaliation for Seoul’s deployment of a U.S. missile defense system, highlighting the tools China can deploy to hit back at the corporate interests of trade partners it disagrees with.

The chill facing Korea Inc, from cosmetics and supermarket chains to autos and tourism, points to a potential risk for American companies, amid a more confrontational stance taken by new U.S. President Donald Trump

In China, state media and grassroots political groups have led angry calls to boycott popular Korean products. Photos on social media and local news websites showed crowds vandalizing a Hyundai Motor Co <005380.KS> car, and some Chinese tourism firms moved to cancel Korean tours.

Beijing is furious over a joint plan by South Korea and the United States to set up the Terminal High Altitude Area Defence (THAAD) missile system in South Korea. Seoul and Washington say it will defend against nuclear-armed North Korean missiles. But Beijing says its far-reaching radar is targeted at China.

The furor echoes protests in 2012 against Japanese firms during a row with Tokyo over disputed islands in the East China Sea. The dispute flared on Monday when Lotte approved a land-swap deal that moved the THAAD system closer to deployment.

On Thursday, Lotte Duty Free, an affiliate of Korean conglomerate Lotte Group, said it had been the target of a suspected Chinese cyber attack.

“What’s happening to Korean companies now is a pretty good playbook for what might happen to U.S. firms over the next year,” said Andrew Gilholm, director of analysis for China and North Asia at risk consultancy Control Risks.

“Rather than the big dramatic trade war, everything goes to hell scenario under Trump, it’s probably more likely to be manifested as regulatory harassment of companies – one of the lower intensity tools for China.”

Korean stocks plunged on Friday, hitting cosmetics giant Amorepacific Corp <090430.KS>, carmaker Hyundai, and airlines Jeju Air Co Ltd <089590.KS>, Korean Air Lines Co Ltd <003490.KS> and Asiana Airlines Inc <020560.KS>.

POLITICAL PRESSURE

Some companies hinted at feeling political pressure to loosen or cut ties with South Korea. Korean media reported China had ordered tour operators in Beijing to stop selling trips to the country.

Three major Chinese tour operators Reuters spoke to, including China Youth Travel Service <600138.SS>, said they were still offering Korean tours. A customer service worker at Tuniu Corp <TOUR.O>, however, said the firm had stopped providing tours to Korea, citing the THAAD controversy. Tuniu did not respond to requests for comment.

Lotte also said searches for its products had been disrupted on major e-commerce platform JD.com Inc <JD.O>, though it did not directly say this was due to diplomatic tensions. JD.com declined to comment.

The CEO of Chinese retailer Jumei.com posted on his official microblog that his firm would no longer sell Lotte products. The firm did not respond to Reuters requests for comment.

“Some retailers have removed Lotte sales channels over the last week as a result of political pressure,” said a senior China-based retail industry executive, asking not to be named because of the sensitivity of the issues.

The Communist Party Youth League at central and local levels also fanned the flames online, calling for consumers not to buy products including cars, cosmetics and electronics.

“We say ‘no’ to Lotte!” the national-level Communist Youth League wrote in a post on its official microblog page.

‘IT’S BEING COORDINATED’

The consumer backlash followed. The number of posts mentioning Lotte’s Chinese name spiked to nearly 300,000 on Thursday from a normal level of a few thousand.

Photos posted on Chinese social media showed a large group of people surrounding a smashed up Hyundai car covered with black graffiti, prompting alarm over a repeat of issues that have hit faced Japanese carmakers. Other posts circulated online called for a blanket ban on all Korean tours.

China’s tourism administration posted a statement about South Korean “travel tips” on Friday, reminding Chinese holiday-makers “to soberly understand the risks of traveling abroad and carefully choose their travel destinations.”

The administration did not comment on any travel ban.

The normally hawkish state-run tabloid Global Times even struck a note of caution on Friday, warning vandalism of Korean products “won’t win the support of mainstream public opinion”.

However, Gilholm added the wide spectrum of measures taken against South Korea was unusually aggressive and authorities – though staying officially on the sidelines – played a role.

“For it to happen nationwide in such a short space of time it’s clearly been coordinated. You don’t see that being announced or admitted, but it’s being coordinated,” he said.

The Global Times warned last November the United States could face such a coordinated campaign. If Donald Trump triggered a trade war with China, Beijing would then target firms from Boeing <BA.N> to Apple <APPL.O> in a “tit-for-tat” approach.

“If Trump wrecks Sino-U.S. trade, a number of U.S. industries will be impaired,” it said in an editorial.

(Additional reporting by Cate Cadell and Xu Muyu in BEIJING, SHANGHAI newsroom. Editing by Bill Tarrant.)

Germany says to keep soldiers in Baltics as long as needed

German Foreign minister Sigmar Gabriel speaks during a news conference in Riga, Latvia, March 1, 2017. REUTERS/Ints Kalnins

RUKLA, Lithuania/AMARI, Estonia (Reuters) – German Foreign Minister Sigmar Gabriel on Thursday criticized Russia’s military build-up on its borders with the Baltic states as irrational and said Germany would keep troops in the region for as long as needed.

Gabriel visited about 400 German soldiers stationed in Rukla, Lithuania, as part of a German-led battle group of 1,000 troops that will be joined this year by a U.S.-led forces in Poland, British-led soldiers in Estonia and Canadian-led troops in Latvia.

NATO is expanding its presence in the region to levels unprecedented since the Cold War, prompted by Russia’s annexation of Crimea and accusations – denied by Moscow – that it is supporting a separatist conflict in eastern Ukraine.

The NATO presence will swell further for a series of exercises this summer, but is dwarfed by the Russian military build-up, U.S. officials say.

“The military potential that the Russian Federation has built up here at the border is completely irrational in my view because there is zero threat emanating from these countries,” Gabriel told reporters.

Gabriel gave no further details, but said the German troops would remain at the Lithuanian base “as long as needed”.

Russia has said it has noticed German soldiers deploying along its borders for the first time since World War Two and said it views the deployment of NATO troops and military hardware to the Baltic states as a threat.

Moscow has described its own military deployments as being either defensive and a direct response to NATO, or as part of a sweeping program to modernize its armed forces.

“SOLID PROTECTION”

German Defense Minister Ursula von der Leyen, who visited the Lithuanian base last month after the German troops arrived, told reporters at an air base in Amari, Estonia, that Germany was committed to ensuring the safety of the region.

German air force units have been stationed in Estonia to provide air defense since 2005 but their presence was increased in 2014 for air policing operations.

“Estonia, and our friends from Lithuania, Latvia and Poland, can rely on us,” von der Leyen said. “We Germans know what it means to be at the eastern border and to have the solid protection of the alliance.”

Von der Leyen and Gabriel both addressed concerns about increasing Russian disinformation campaigns after a fake report surfaced about a Lithuanian being raped by German troops that NATO said was traced to Russia.

“No one expects a real military confrontation to happen here, but what there is, and what has been reported in Lithuania, Latvia and Estonia, are attempts at massive disinformation and influence campaigns,” Gabriel said.

Von der Leyen said Germany and Europe were seeing clear signs of “efforts to destabilize” similar to Russian interference in the U.S. presidential election reported by U.S. intelligence services.

“That is why it is so important that we investigate these cases, put them on the table and make them public so we can recognize the patterns,” she said.

Russia has categorically denied it ran an influence campaign designed to sway the U.S. presidential election and has dismissed as absurd allegations it intends to meddle in European elections this year.

Such allegations are motivated by a desire to whip up anti-Russian sentiment and are being used by Western politicians to distract voters from pressing domestic problems, says Moscow.

(Reporting by Sabine Siebold in Rukla and David Mardiste in Amari; Writing by Andrea Shalal; editin by Janet Lawrence and Richard Lough)

China reacts with anger, threats after South Korean missile defense decision

FILE PHOTO: A Terminal High Altitude Area Defense (THAAD) interceptor is launched during a successful intercept test, in this undated handout photo provided by the U.S. Department of Defense, Missile Defense Agency. U.S. Department of Defense, Missile Defense Agency/Handout via Reuters/File Photo

BEIJING (Reuters) – Chinese state media have reacted with anger and boycott threats after the board of an affiliate of South Korea’s Lotte Group approved a land swap with the government that allows authorities to deploy a U.S. missile defense system.

The government decided last year to deploy the U.S. Terminal High Altitude Area Defense (THAAD) system, in response to the North Korean missile threat, on land that is part of a golf course owned by Lotte in the Seongju region, southeast of Seoul.

The board of unlisted Lotte International Co Ltd approved the deal with the government on Monday.

China objects to the deployment in South Korea of the THAAD, which has a powerful radar capable of penetrating Chinese territory, with Beijing saying it is a threat to its security and will do nothing to ease tension with North Korea.

Lotte should be shown the door in China, the influential state-run Chinese tabloid the Global Times said in an editorial on Tuesday.

“We also propose that Chinese society should coordinate voluntarily in expanding restrictions on South Korean cultural goods and entertainment exports to China, and block them when necessary,” it said in its English-language edition.

The paper’s Chinese version said South Korean cars and cellphones should be targeted as well.

“There are loads of substitutes for South Korean cars and cellphones,” it said.

China has already twice issued “solemn representations” to South Korea about the most recent THAAD-related developments, Chinese Foreign Ministry spokesman Geng Shuang told a daily briefing in Beijing.

But it welcomes foreign companies to operate in China, he said. “Whether or not a foreign company can operate successfully in China, in the end is a decision for the Chinese market and consumer,” he added.

Late on Monday, the ruling Communist Party’s official People’s Daily said cutting diplomatic ties should be considered.

“If THAAD is really deployed in South Korea, then China-South Korea relations will face the possibility of getting ready to cut off diplomatic relations,” it said on the WeChat account of its overseas edition.

The official Xinhua news agency also said in a commentary late on Monday that China “did not welcome this kind of Lotte”.

“Chinese consumers can absolutely say no to this kind of company and their goods based on considerations of ‘national security’,” it said.

South Korea’s defence ministry said on Tuesday it had signed a land swap deal, with Lotte exchanging the golf course for military property. A South Korean military official told Reuters the military would begin area patrols and install fences.

The Lotte Group said on Feb. 8 Chinese authorities had stopped construction at a multi-billion dollar real estate project in China after a fire inspection, fuelling concern in South Korea about damage to commercial ties with the world’s second-largest economy.

Asked if South Korea had demanded the Chinese government suspend any economic retaliation, South Korean Defence Ministry spokesman Moon Sang-kyun said: “We have continuously persuaded China so far and will keep continuing efforts to do so.”

South Korean government officials have said THAAD is a defensive measure against North Korean threats and does not target any other country.

South Korea’s central bank said this month the number of Chinese tourists visiting the tourist island of Jeju had fallen 6.7 percent over the Lunar New Year holiday from last year, partly because of China’s “anti-South Korea measures due to the THAAD deployment decision”.

(Reporting by Ben Blanchard; Additional reporting by Ju-min Park in SEOUL; Editing by Paul Tait and Clarence Fernandez)

North Korea evades sanctions with network of overseas companies: U.N. report

FILE PHOTO - A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

By James Pearson

(Reuters) – North Korea is evading international sanctions with a sophisticated network of overseas companies, enabled partly by its continued access to the international banking system, says a forthcoming United Nations report seen by Reuters.

North Korea is under heavy U.N. sanctions and a strict arms embargo designed to impede the development of its banned nuclear and missile programs. The U.N. panel of experts, which produced the 100-page draft report, was created to investigate reported infringements of those sanctions.

“Designated entities and banks have continued to operate in the sanctioned environment by using agents who are highly experienced and well trained in moving money, people and goods, including arms and related materiel, across borders,” the report says.

U.N. member states should “exercise heightened vigilance” over North Korean diplomats engaged in commercial activities, it says, because some may be providing financial support to illegal networks.

North Korea “is flouting sanctions through trade in prohibited goods, with evasion techniques that are increasing in scale, scope and sophistication,” the report says.

It details a previously unknown interdiction of North Korean-made military communications equipment destined for Eritrea in July last year.

The interdiction was the second time North Korean military equipment bound for Eritrea had been intercepted, indicating an ongoing arms trade between the two countries, the report said.

The seized equipment, part of an air shipment, included 45 boxes of battlefield radios and accessories, the report says.

The radios were manufactured by a Malaysia-based front company called “Glocom”, which is controlled by the Reconnaissance General Bureau, the sanctioned North Korean intelligence agency tasked with overseas operations and weapons procurement, the report says.

INTELLIGENCE AGENCY

The report identifies two North Korean trading companies which, according to an unidentified U.N. member state, are linked to sanctioned entities, including the Reconnaissance General Bureau.

The report also outlines North Korea’s use of the financial system to pay for its sanctioned operations.

“Behind these illicit activities is the continued access of the Democratic People’s Republic of Korea to the international banking system,” the report says, using North Korea’s official title.

“Despite strengthened financial sanctions in 2016, the country’s networks are adapting by using greater ingenuity in accessing formal banking channels,” the report said.

In cases where financial access is more restricted, North Korean agents use bulk cash and gold to circumvent the financial system entirely, and at times use foreign citizens as middlemen and facilitators.

The report says North Korea continues to export banned minerals despite last year’s sanctions putting a cap on coal exports, a key source of hard currency for the state’s nuclear and missile programs.

China has said it would ban coal imports from North Korea until the end of the year. On Thursday, North Korea issued a rare reproach of China, its main diplomatic backer, over the ban.

The U.N. report says enforcement of sanctions against North Korea “remains insufficient and highly inconsistent” and calls for additional measures to address shortcomings.

(Reporting By James Pearson; Editing by Bill Tarrant)

China say North Korea’s nuclear plan is a problem between U.S. and North Korea

North Korean leader Kim Jong Un watches a performance given with splendor at the People's Theatre on Wednesday to mark the 70th anniversary of the founding of the State Merited Chorus in this photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on February 23, 2017. KCNA/via REUTERS

BEIJING (Reuters) – China on Friday dismissed renewed pressure from U.S. President Donald Trump over its role in North Korea, saying the crux of the matter was a dispute between Washington and Pyongyang.

Trump told Reuters in an interview on Thursday that China could solve the national security challenge posed by North Korea “very easily if they want to”, turning up pressure on Beijing to exert more influence to rein in Pyongyang’s increasingly bellicose actions.

China has made clear that it opposes North Korea’s nuclear and missile programs and has repeatedly called for denuclearization of the Korean peninsula and a return to negotiations between Pyongyang and world powers.

It has also insisted it is dedicated to enforcing U.N. sanctions against North Korea.

“We have said many times already that the crux of the North Korean nuclear issue is the problem between the United States and North Korea,” Chinese Foreign Ministry spokesman Geng Shuang told a daily news briefing, responding to Trump’s remarks.

“We hope the relevant parties can shoulder their responsibilities, play the role the should, and together with China play a constructive role for peace and stability on the Korean peninsula and for its denuclearization,” he added.

The official Xinhua news agency said China’s influence on North Korea had been exaggerated.

“The Trump White House needs to make the first move and talk to Pyongyang. The United States stands to lose nothing for trying this,” it said in an English-language commentary.

China announced on Saturday last week it was banning imports of coal from North Korea, after it tested an intermediate-range ballistic missile.

North Korean state media issued a rare reproach of China on Thursday saying its main diplomatic backer was “dancing to the tune” of the United States for halting its coal imports because of its nuclear and missile programs.

The North’s state-run KCNA news agency did not refer directly to China by name but in an unmistakable censure it accused a “neighboring country” of going along with North Korea’s enemies to “bring down its social system”.

Asked about the report, Geng said the U.N. sanctions were a clear signal of opposition from the international community about North Korea’s nuclear and missile programs and that China would enforce them.

However, he also described China and North Korea as being friendly neighbors.

“We are willing to work with North Korea to promote the stable and healthy development of relations,” Geng said, adding North Korea was well aware of China’s position on its nuclear program.

(Reporting by Ben Blanchard; Editing by Robert Birsel)

China military says aware of U.S. carrier in South China Sea

Sailors man the rails as the USS Carl Vinson aircraft carrier departs on deployment from Naval Station North Island in Coronado, California, U.S. January 5, 2017. REUTERS/Mike Blake

BEIJING (Reuters) – China’s defense ministry said on Thursday it was aware of the presence of a U.S. aircraft carrier strike group in the South China Sea and China respected freedom of navigation for all countries in the waters there.

The U.S. navy said the strike group, including the Nimitz-class aircraft carrier the USS Carl Vinson, began “routine operations” in the South China Sea on Saturday amid growing tension with China over control of the disputed waterway.

Defence ministry spokesman Ren Guoqiang said China had a “grasp” of the situation regarding the carrier group in the South China Sea.

“China hopes the U.S. earnestly respects the sovereignty and security concerns of countries in the region, and earnestly respects the efforts of countries in the region to maintain peace and stability in the South China Sea,” Ren told a regular monthly news briefing.

“Of course, we also respect freedom of navigation and overflight for all countries in the South China Sea in accordance with international law,” he added.

The situation in the South China Sea was generally stable, Ren said.

“We hope the actions of the U.S. side can contribute positive energy towards this good situation, and not the opposite.”

Good military relations between the two countries are in interests of both, and well as of the region and the world, and China hoped the United States could meet China half way, strengthen communication and avoid misjudgment, Ren said.

Friction between the United States and China over trade and territory under U.S. President Donald Trump have increased concern that the South China Sea could become a flashpoint.

China wrapped up its own naval exercises in the South China Sea late last week. War games involving its only aircraft carrier have unnerved neighbors with which it has long had rival claims in the waters.

China lays claim to almost all of the resource-rich South China Sea, through which about $5 trillion worth of trade passes each year.

Brunei, Malaysia, the Philippines, Taiwan and Vietnam also claim parts of the waters that have rich fishing grounds, along with oil and gas deposits.

The United States has criticized China’s construction of man-made islands and build-up of military facilities in the sea, and expressed concern they could be used to restrict free of movement.

(Reporting by Ben Blanchard; Editing by Robert Birsel)

Exclusive: China finishing South China Sea buildings that could house missiles – U.S. officials

File Photo: Chinese dredging vessels are purportedly seen in the waters around Mischief Reef in the disputed Spratly Islands in the South China Sea in this still image from video taken by a P-8A Poseidon surveillance aircraft provided by the United States Navy May 21, 2015. U.S. Navy/Handout via Reuters/File Photo

By Idrees Ali

WASHINGTON (Reuters) – China, in an early test of U.S. President Donald Trump, has nearly finished building almost two dozen structures on artificial islands in the South China Sea that appear designed to house long-range surface-to-air missiles, two U.S. officials told Reuters.

The development is likely to raise questions about whether and how the United States will respond, given its vows to take a tough line on China in the South China Sea.

China claims almost all the waters, which carry a third of the world’s maritime traffic. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims. Trump’s administration has called China’s island building in the South China Sea illegal.

Building the concrete structures with retractable roofs on Subi, Mischief and Fiery Cross reefs, part of the Spratly Islands chain where China already has built military-length airstrips, could be considered a military escalation, the U.S. officials said in recent days, speaking on condition of anonymity.

“It is not like the Chinese to build anything in the South China Sea just to build it, and these structures resemble others that house SAM batteries, so the logical conclusion is that’s what they are for,” said a U.S. intelligence official, referring to surface-to-air missiles.

Another official said the structures appeared to be 20 meters (66 feet) long and 10 meters (33 feet) high.

A Pentagon spokesman said the United States remained committed to “non-militarization in the South China Sea” and urged all claimants to take actions consistent with international law.

In Beijing, Chinese Foreign Ministry spokesman Geng Shuang said on Wednesday he was aware of the report, though did not say if China was planning on placing missiles on the reefs.

“China carrying out normal construction activities on its own territory, including deploying necessary and appropriate territorial defense facilities, is a normal right under international law for sovereign nations,” he told reporters.

In his Senate confirmation hearing last month, U.S. Secretary of State Rex Tillerson raised China’s ire when he said Beijing should be denied access to the islands it is building in the South China Sea.

Tillerson subsequently softened his language, and Trump further reduced tensions by pledging to honor the long-standing U.S. “one China” policy in a Feb. 10 telephone call with Chinese President Xi Jinping.

LONGER RANGE

Greg Poling, a South China Sea expert at the Center for Strategic and International Studies in Washington, said in a December report that China apparently had installed weapons, including anti-aircraft and anti-missile systems, on all seven of the islands it has built in the South China Sea.

The officials said the new structures were likely to house surface-to-air missiles that would expand China’s air defense umbrella over the islands. They did not give a time line on when they believed China would deploy missiles on the islands.

“It certainly raises the tension,” Poling said. “The Chinese have gotten good at these steady increases in their capabilities.”

On Tuesday, the Philippines said Southeast Asian countries saw China’s installation of weapons in the South China Sea as “very unsettling” and have urged dialogue to stop an escalation of “recent developments.”

Philippine Foreign Secretary Perfecto Yasay did not say what provoked the concern but said the 10-member Association of South East Asian Nations, or ASEAN, hoped China and the United States would ensure peace and stability.

POLITICAL TEST

The U.S. intelligence official said the structures did not pose a significant military threat to U.S. forces in the region, given their visibility and vulnerability.

Building them appeared to be more of a political test of how the Trump administration would respond, he said.

“The logical response would also be political – something that should not lead to military escalation in a vital strategic area,” the official said.

Chas Freeman, a China expert and former assistant secretary of defense, said he was inclined to view such installations as serving a military purpose – bolstering China’s claims against those of other nations – rather than a political signal to the United States.

“There is a tendency here in Washington to imagine that it’s all about us, but we are not a claimant in the South China Sea,” Freeman said. “We are not going to challenge China’s possession of any of these land features in my judgment. If that’s going to happen, it’s going to be done by the Vietnamese, or … the Filipinos … or the Malaysians, who are the three counter-claimants of note.”

He said it was an “unfortunate, but not (an) unpredictable development.”

Tillerson told the Senate Foreign Relations Committee last month that China’s building of islands and putting military assets on them was “akin to Russia’s taking Crimea” from Ukraine.

In his written responses to follow-up questions, he softened his language, saying that in the event of an unspecified “contingency,” the United States and its allies “must be capable of limiting China’s access to and use of” those islands to pose a threat.

(Reporting by Idrees Ali; Additional reporting by Arshad Mohammed Arshad, David Brunnstrom and John Walcott, and Ben Blanchard in Beijing; Editing by John Walcott, Peter Cooney and Nick Macfie)

Iran ready to give U.S. ‘slap in the face’: commander

Head of Iran's Revolutionary guards ground forces Mohammad Pakpour (C) attends a funeral ceremony in Tehran October 20, 2009. REUTERS/Morteza Nikoubazl

DUBAI (Reuters) – The United States should expect a “strong slap in the face” if it underestimates Iran’s defensive capabilities, a commander of the elite Revolutionary Guards said on Wednesday, as Tehran concluded war games.

Since taking office last month, U.S. President Donald Trump has pledged to get tough with Iran, warning the Islamic Republic after its ballistic missile test on Jan. 29 that it was playing with fire and all U.S. options were on the table.

“The enemy should not be mistaken in its assessments, and it will receive a strong slap in the face if it does make such a mistake,” said General Mohammad Pakpour, head of the Guards’ ground forces, quoted by the Guards’ website Sepahnews.

On Wednesday, the Revolutionary Guards concluded three days of exercises with rockets, artillery, tanks and helicopters, weeks after Trump warned that he had put Tehran “on notice” over the missile launch.

“The message of these exercises … for world arrogance is not to do anything stupid,” said Pakpour, quoted by the semi-official news agency Tasnim.

“Everyone could see today what power we have on the ground.” The Guards said they test-fired “advanced rockets” and used drones in the three-day exercises which were held in central and eastern Iran.

As tensions also mounted with Israel, a military analyst at Tasnim said that Iran-allied Hezbollah could use Iranian made Fateh 110 missiles to attack the Israeli nuclear reactor at Dimona from inside Lebanon.

Hezbollah leader Sayyed Hassan Nasrallah said last Thursday that his group, which played a major role in ending Israel’s occupation of Lebanon, could strike Dimona.

“Since Lebanon’s Hezbollah is one of the chief holders of the Fateh 110, this missile is one of main alternatives for targeting the Dimona installations,” Hossein Dalirian said in a commentary carried by Tasnim.

Iran says its missile program is defensive and not linked to its 2015 nuclear deal with world powers. During the U.S. election race, Trump branded the accord “the worst deal ever negotiated”, telling voters he would either rip it up or seek a better agreement.

(Reporting by Dubai newsroom; Editing by Sami Aboudi and Alison Williams)