Tag Archives: Vietnam

U.S. ready to confront Beijing on South China Sea: admiral

Guided missile destroyer in South China Sea

By Colin Packham

SYDNEY (Reuters) – The United States is ready to confront China should it continue its overreaching maritime claims in the South China Sea, the head of the U.S. Pacific fleet said on Wednesday, comments that threaten to escalate tensions between the two global rivals.

China claims most of the resource-rich 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.

The United States has called on China to respect the findings of the arbitration court in The Hague earlier this year which invalidated its vast territorial claims in the strategic waterway.

But Beijing continues to act in an “aggressive” manner, to which the United States stands ready to respond, Admiral Harry Harris, head of the U.S. Pacific Command, said in a speech in Sydney.

“We will not allow a shared domain to be closed down unilaterally no matter how many bases are built on artificial features in the South China Sea,” he said. “We will cooperate when we can but we will be ready to confront when we must.”

The comments threaten to stoke tensions between the United States and China, already heightened by President-elect Donald Trump’s decision to accept a telephone call from Taiwan’s president on Dec. 2 that prompted a diplomatic protest from Beijing.

Asked about Harris’s remarks, Chinese Foreign Ministry spokesman Geng Shuang said the situation in the South China Sea was currently stable, thanks to the hard work of China and others in the region.

“We hope the United States can abide by its promises on not taking sides on the sovereignty dispute in the South China Sea, respect the efforts of countries in the region to maintain peace and stability in the South China Sea region and do more to promote peace and stability there,” he told a daily news briefing.

The United States estimates Beijing has added more than 3,200 acres (1,300 hectares) of land on seven features in the South China Sea over the past three years, building runways, ports, aircraft hangars and communications equipment.

In response, the United States has conducted a series of freedom-of-navigation operations in the South China Sea, the latest of which came in October.

The patrols have angered Beijing, with a senior Chinese official in July warning the practice may end in “disaster”.

Harris said it was a decision for the Australian government whether the U.S. ally should undertake its own freedom-of-navigation operations, but said the United States would continue with the practice.

“The U.S. fought its first war following our independence to ensure freedom of navigation,” said Harris. “This is an enduring principle and one of the reasons our forces stand ready to fight tonight.”

(Additional reporting by Ben Blanchard in Beijing; Editing by Lincoln Feast and Jacqueline Wong)

Exclusive: Risking Beijing’s ire, Vietnam begins dredging on South China Sea reef

Vietnam begins building in South China Sea

By Lincoln Feast and Greg Torode

SYDNEY/HONG KONG (Reuters) – Vietnam has begun dredging work on a disputed reef in the South China Sea, satellite imagery shows, the latest move by the Communist state to bolster its claims in the strategic waterway.

Activity visible on Ladd Reef in the Spratly Islands could anger Hanoi’s main South China Sea rival, Beijing, which claims sovereignty over the group and most of the resource-rich sea.

Ladd Reef, on the south-western fringe of the Spratlys, is completely submerged at high tide but has a lighthouse and an outpost housing a small contingent of Vietnamese soldiers. The reef is also claimed by Taiwan.

In an image taken on Nov. 30 and provided by U.S.-based satellite firm Planet Labs, several vessels can be seen in a newly dug channel between the lagoon and open sea.

While the purpose of the activity cannot be determined for certain, analysts say similar dredging work has been the precursor to more extensive construction on other reefs.

“We can see that, in this environment, Vietnam’s strategic mistrust is total … and they are rapidly improving their defences,” said Trevor Hollingsbee, a retired naval intelligence analyst with Britain’s defence ministry.

“They’re doing everything they can to fix any vulnerabilities – and that outpost at Ladd Reef does look a vulnerability.”

Reuters reported in August that Vietnam had fortified several islands with mobile rocket artillery launchers capable of striking China’s holdings across the vital trade route.

Vietnam’s foreign ministry did not respond to a request for comment.

The vessels at Ladd Reef cannot be identified in the images, but Vietnam would be extremely unlikely to allow another country to challenge its control of the reef.

Greg Poling, a South China Sea expert at Washington’s Center for Strategic and International Studies (CSIS), said it remained unclear how far the work on Ladd Reef would go. Rather than a reclamation and a base, it could be an attempt to simply boost access for supply ships and fishing boats.

Ladd could also theoretically play a role in helping to defend Vietnam’s nearby holding of Spratly Island, where a runway is being improved and new hangars built, he said.

“Vietnam’s knows it can’t compete with China but it does want to improve its ability to keep an eye on them,” Poling said.

Vietnam has long been fearful of renewed Chinese military action to drive it off its 21 holdings in the Spratlys – worries that have escalated amid Beijing’s build-up and its anger at the recent Philippines legal action challenging its claims.

China occupied its first Spratlys possessions after a sea battle against Vietnam’s then weak navy in 1988. Vietnam said 64 soldiers were killed as they tried to protect a flag on South Johnson reef – an incident still acutely felt in Hanoi.

BUILDING BURST

The United States has repeatedly called on claimants to avoid actions that increase tensions in the South China Sea, through which some $5 trillion in world trade is shipped every year.

Vietnam has emerged as China’s main rival in the South China Sea, actively asserting sovereignty over both the Paracel and the Spratly groupings in their entirety and undergoing its own naval modernisation. Taiwan also claims both, but its position is historically aligned with Beijing’s.

The Asia Maritime Transparency Initiative, run by the CSIS, says Vietnam has added about 120 acres (49 hectares) of land to its South China Sea holdings in recent years.

Regional military attaches say Vietnam’s key holdings are well fortified, some with tunnels and bunkers, appearing geared to deterring easy invasion.

Vietnam’s reclamation work remains modest by Chinese standards, however.

The United States, which has criticized China for militarizing the waterway, estimates Beijing has added more than 3,200 acres (1,300 hectares) of land on seven features in the South China Sea over the past three years, building runways, ports, aircraft hangars and communications equipment.

Beijing says it is entitled to “limited and necessary self-defensive facilities” on its territory and has reacted angrily to “freedom of navigation” operations by U.S. warships near Chinese-held islands.

CHINESE RECLAMATION WORK DAMAGED

In another image provided by Planet Labs, reclamation work in the Chinese-held Paracel Island chain appears to have been damaged by recent storms.

China began dredging and land filling earlier this year at North Island, about 12 km (7 miles) north of Woody Island, where it has a large military base and this year stationed surface-to-air missiles.

Satellite images in February and March showed dredging vessels working to build a 700 meter (2,300 ft) sand bridge connecting low-lying North Island with neighboring Middle Island.

But images taken after two powerful storms spun through the region in October show the narrow sand strip has been largely swept away.

The Paracels have been under Chinese control for more than 40 years after a battle towards the end of the Vietnam War, when Chinese forces removed the then-South Vietnamese navy. Analysts say they play a key part in protecting China’s nuclear armed submarine fleet on Hainan Island, to the north.

China has not commented publicly on the work at North Island and the foreign ministry did not respond to requests for comment.

(Additional reporting by Martin Petty and Ben Blanchard; Editing by Alex Richardson)

U.S. runs freedom-of-navigation operation in South China Sea

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

By Idrees Ali and Matt Spetalnick

WASHINGTON (Reuters) – A U.S. navy warship carried out a freedom-of-navigation operation on Friday near islands claimed by China and two other Asian countries in the South China Sea, U.S. officials told Reuters.

The guided-missile destroyer USS Decatur challenged “excessive maritime claims near the Paracel Islands,” specifically Triton and Woody Islands, claimed by China, Taiwan and Vietnam, the U.S. officials said, speaking on condition of anonymity.

The destroyer sailed within waters claimed by China, but not within the 12-nautical-mile territorial limits of the islands, the officials said. The U.S. military defines a freedom-of-navigation operation as one that challenges excessive maritime claims, officials said.

The Pentagon declined to comment.

One official said the U.S. destroyer was shadowed by three Chinese vessels and that all interactions were safe. The operation was first reported by Reuters.

It was the fourth challenge that the United States has made to what it considers overreaching maritime claims by China in the South China Sea in the past year, and the first since May.

China, Washington’s main strategic rival in Asia, claims almost the entire South China Sea, through which about $5 trillion worth of trade passes each year. The United States has criticized Beijing’s buildup of military facilities in the sea and expressed concerns they could be used to restrict free movement.

China has a runway on Woody Island, the site of the largest Chinese presence on the Paracels, and has placed surface-to-air missiles there, according to U.S. officials.

In the last three U.S. freedom-of-navigation operations in the South China Sea within the last year, U.S. warships cruised within 12 nautical miles of islands claimed by Beijing. The actions greatly angered China, which has accused the United States of stirring up trouble there.

The latest operation comes just after the volatile president of the Philippines announced his “separation” from Washington and realignment with China. The Philippines has been a key ally of the United States and a territorial rival of Beijing in the South China Sea.

Rodrigo Duterte’s announcement on Thursday was a significant turnaround after a tribunal in The Hague ruled that China did not have historic rights to the South China Sea in a case brought by the previous Philippine administration and strongly backed by the United States.

But in Washington a person close to the matter said the latest naval operation was not timed for Duterte’s China visit this week and that planning for the patrol had long been in the works.

(Additional reporting by David Brunnstrom; Editing by Chizu Nomiyama and Jeffrey Benkoe)

Vietnam gives thumbs-up to U.S. regional role

US and Vietnam leaders

HANOI (Reuters) – Vietnam supports U.S. “intervention” in the Asia-Pacific if it helps keep peace and stability, the defense ministry said, in a timely endorsement of a continued U.S. presence amid uncertainty over Washington’s faltering “pivot”.

Vice defense minister, Senior Lieutenant-General Nguyen Chi Vinh, met on Monday with Cara Abercrombie, the U.S. Deputy Assistant Secretary of Defense for South and Southeast Asia, and told her Vietnam backed a positive U.S. role.

The general’s words of support, conveyed by a normally reclusive defense ministry, come when the United States most needs them, with its “rebalance” – aimed at boosting its Asian foothold and tempering China’s rise – now under strain in the run-up to a U.S. presidential election.

Vinh “affirmed that Vietnam will support the U.S and other partners to intervene in the region as long as it brings peace, stability and prosperity”, it said in a statement.

At the dialogue, Abercrombie said the United States would not change its rebalance strategy, the statement added.

Uncertainty lingers in Asia over changes ahead at the White House and whether a new leadership would give less priority to keeping China in check as it grows increasingly assertive in the South China Sea, a waterway vital to global trade.

Washington’s traditional defense alliances in Southeast Asia are currently being tested, with ties with Thailand frosty since a 2014 coup and questions about the future of a tight military relationship with the Philippines under volatile new President Rodrigo Duterte, a staunch U.S. critic.

Relations between the United States and Vietnam, in contrast, have warmed substantially in the past two years, much to do with jitters over the South China Sea to which Hanoi has disputes with Beijing.

The latest affirmation of those ties came after the full lifting of a U.S. lethal arms embargo on Vietnam in May, allowing closer defense links and some joint military exercises between the former enemies.

Two U.S. warships earlier this month made a call at a new international port built at Vietnam’s strategic Cam Ranh Bay in a brief but symbolic return for U.S. combat vessels.

The U.S. ambassador to Vietnam last week admitted the U.S. dynamism once seen in the region had “a little bit diminished”, but said there was still appetite for U.S. involvement.

Ted Osius also said a dramatic change in U.S.-Vietnam ties was “not about to happen” because of Philippine leader Duterte’s outreach toward China.

(Reporting by My Pham; Editing by Martin Petty)

China armed forces warn Japan against South China sea patrols

Chinese and Japanese warships

BEIJING, Sept 29 (Reuters) – Japan is “playing with fire” with plans to step up activity in the contested South China Sea through joint training patrols with the United States, China’s Defence Ministry said on Thursday, warning it would not sit watching from the sidelines.

China claims virtually the entire South China Sea and has repeatedly denounced what it views as interference there by the United States and its ally, Japan.

Japan is strengthening its ties in the region, in particular with the Philippines and Vietnam, which contest China’s claims to parts of the sea, and it aims to help build the capacity of coastal states in the busy waterway, its defence minister said this month during a visit to Washington.

Chinese Defence Ministry spokesman Yang Yujun, asked about Japan’s plans, said it had constantly been trying to stir things up in the South China Sea for its own purposes.

“We must solemnly tell Japan this is a miscalculation. If Japan wants to have joint patrols or drills in waters under Chinese jurisdiction this really is playing with fire,” Yang told a monthly news briefing.

“China’s military will not sit idly by,” he added, without elaborating.

Ties between Asia’s two largest economies have long been overshadowed by arguments over their painful wartime history and a territorial spat in the East China Sea, among other issues.

Ships carrying about $5 trillion in trade pass through the South China Sea every year.

Brunei, Malaysia and Taiwan also have claims in the sea, which is also believed to be rich in energy resources and fish stocks.

In July, an arbitration court in the Hague said China’s claims to the waterway were invalid, after a case was brought by the Philippines. China has refused to recognise the ruling.

(Reporting by Ben Blanchard; Editing by Robert Birsel)

Vietnam moves new rocket launchers into disputed South China Sea

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

By Greg Torode

HONG KONG (Reuters) – Vietnam has discreetly fortified several of its islands in the disputed South China Sea with new mobile rocket launchers capable of striking China’s runways and military installations across the vital trade route, according to Western officials.

Diplomats and military officers told Reuters that intelligence shows Hanoi has shipped the launchers from the Vietnamese mainland into position on five bases in the Spratly islands in recent months, a move likely to raise tensions with Beijing.

The launchers have been hidden from aerial surveillance and they have yet to be armed, but could be made operational with rocket artillery rounds within two or three days, according to the three sources.

Vietnam’s Foreign Ministry said the information was “inaccurate”, without elaborating.

Deputy Defence Minister, Senior Lieutenant-General Nguyen Chi Vinh, told Reuters in Singapore in June that Hanoi had no such launchers or weapons ready in the Spratlys but reserved the right to take any such measures.

“It is within our legitimate right to self-defense to move any of our weapons to any area at any time within our sovereign territory,” he said.

The move is designed to counter China’s build-up on its seven reclaimed islands in the Spratlys archipelago. Vietnam’s military strategists fear the building runways, radars and other military installations on those holdings have left Vietnam’s southern and island defenses increasingly vulnerable.

Military analysts say it is the most significant defensive move Vietnam has made on its holdings in the South China Sea in decades.

Hanoi wanted to have the launchers in place as it expected tensions to rise in the wake of the landmark international court ruling against China in an arbitration case brought by the Philippines, foreign envoys said.

The ruling last month, stridently rejected by Beijing, found no legal basis to China’s sweeping historic claims to much of the South China Sea.

Vietnam, China and Taiwan claim all of the Spratlys while the Philippines, Malaysia and Brunei claim some of the area.

“China has indisputable sovereignty over the Spratly islands and nearby waters,” China’s Foreign Ministry said in a faxed statement on Wednesday. “China resolutely opposes the relevant country illegally occupying parts of China’s Spratly islands and reefs and on these illegally occupied Spratly islands and reefs belonging to China carrying out illegal construction and military deployments.”

The United States is also monitoring developments closely.

“We continue to call on all South China Sea claimants to avoid actions that raise tensions, take practical steps to build confidence, and intensify efforts to find peaceful, diplomatic solutions to disputes,” a State Department official said.

STATE-OF-THE-ART SYSTEM

Foreign officials and military analysts believe the launchers form part of Vietnam’s state-of-art EXTRA rocket artillery system recently acquired from Israel.

EXTRA rounds are highly accurate up to a range of 150 km (93 miles), with different 150 kg (330 lb) warheads that can carry high explosives or bomblets to attack multiple targets simultaneously. Operated with targeting drones, they could strike both ships and land targets.

That puts China’s 3,000-metre runways and installations on Subi, Fiery Cross and Mischief Reef within range of many of Vietnam’s tightly clustered holdings on 21 islands and reefs.

While Vietnam has larger and longer range Russian coastal defense missiles, the EXTRA is considered highly mobile and effective against amphibious landings. It uses compact radars, so does not require a large operational footprint – also suitable for deployment on islets and reefs.

“When Vietnam acquired the EXTRA system, it was always thought that it would be deployed on the Spratlys…it is the perfect weapon for that,” said Siemon Wezeman, a senior arms researcher at the Stockholm International Peace Research Institute (SIPRI).

There is no sign the launchers have been recently test fired or moved.

China took its first Spratlys possessions after a sea battle against Vietnam’s then weak navy in 1988. After the battle, Vietnam said 64 soldiers with little protection were killed as they tried to protect a flag on South Johnson reef – an incident still acutely felt in Hanoi.

In recent years, Vietnam has significantly improved its naval capabilities as part of a broader military modernization, including buying six advanced Kilo submarines from Russia.

Carl Thayer, an expert on Vietnam’s military at the Australian Defence Force Academy, said the deployment showed the seriousness of Vietnam’s determination to militarily deter China as far as possible.

“China’s runways and military installations in the Spratlys are a direct challenge to Vietnam, particularly in their southern waters and skies, and they are showing they are prepared to respond to that threat,” he said. “China is unlikely to see this as purely defensive, and it could mark a new stage of militarization of the Spratlys.”

Trevor Hollingsbee, a former naval intelligence analyst with the British defense ministry, said he believed the deployment also had a political factor, partly undermining the fear created by the prospect of large Chinese bases deep in maritime Southeast Asia.

“It introduces a potential vulnerability where they was none before – it is a sudden new complication in an arena that China was dominating,” he said.

(Additional reporting by David Brunnstrom in Washington, Michael Martina in Beijing and Martin Petty in Hanoi.; Editing by Lincoln Feast)

U.S. launches quiet diplomacy to ease South China Sea tensions

A ship of Chinese Coast Guard is seen near a ship of Vietnam Marine Guard in the South China Sea

By Lesley Wroughton and John Walcott

WASHINGTON (Reuters) – The United States is using quiet diplomacy to persuade the Philippines, Indonesia, Vietnam and other Asian nations not to move aggressively to capitalize on an international court ruling that denied China’s claims to the South China Sea, several U.S. administration officials said on Wednesday.

“What we want is to quiet things down so these issues can be addressed rationally instead of emotionally,” said one official, who spoke on the condition of anonymity to describe private diplomatic messages.

Some were sent through U.S. embassies abroad and foreign missions in Washington, while others were conveyed directly to top officials by Defense Secretary Ash Carter, Secretary of State John Kerry and other senior officials, the sources said.

“This is a blanket call for quiet, not some attempt to rally the region against China, which would play into a false narrative that the U.S. is leading a coalition to contain China,” the official added.

The effort to calm the waters following the court ruling in The Hague on Tuesday suffered a setback when Taiwan dispatched a warship to the area, with President Tsai Ing-wen telling sailors that their mission was to defend Taiwan’s maritime territory.

The court ruled that while China has no historic rights to the area within its self-declared nine-dash line, Taiwan has no right to Itu Aba, also called Taiping, the largest island in the Spratlys. Taipei administers Itu Aba but the tribunal called it a “rock”, according to the legal definition.

The U.S. officials said they hoped the U.S. diplomatic initiative would be more successful in Indonesia, which wants to send hundreds of fishermen to the Natuna Islands to assert its sovereignty over nearby areas of the South China Sea to which China says it also has claims, and in the Philippines, whose fishermen have been harassed by Chinese coast guard and naval vessels.

‘UNKNOWN QUANTITY’

One official said new Philippine President Rodrigo Duterte remains “somewhat of an unknown quantity” who has been alternately bellicose and accommodating toward China.

Philippine Defense Secretary Delfin Lorenzana said that ahead of the ruling he had spoken to Carter, who he said told him China had assured the United States it would exercise restraint, and that the U.S. government made the same assurance.

Carter had sought and been given the same assurance from the Philippines, Lorenzana added.

China, for its part, repeated pleas for talks between Beijing and Manila, with Foreign Minister Wang Yi saying the it is time to get things back on the “right track” after the “farce” of the case.

On Thursday, the official newspaper of China’s ruling Communist Party said China had shown it can fix territorial issues via talks, pointing to agreement reached with Vietnam over their maritime boundary in the Gulf of Tonkin and ongoing talks with South Korea.

“China is a faithful defender of the principle that countries large and small are equal and has consistently upheld using consultations to resolve border issues on the basis of sovereign equality and mutual respect,” the People’s Daily said in a commentary.

Meanwhile, two Chinese civilian aircraft landed on Wednesday at two new airports on reefs controlled by China in the Spratly Islands in the South China Sea, a move the State Department said would increase tensions rather than lower them.

“We don’t have a dog in this fight other than our belief … in freedom of navigation,” State Department spokesman Mark Toner told a briefing on Wednesday. “What we want to see in this very tense part of Asia, of the Pacific, rather, is a de-escalation of tensions and we want to see all claimants take a moment to look at how we can find a peaceful way forward.”

CONTINGENCY PLANHowever, if that effort fails, and competition escalates into confrontation, U.S. air and naval forces are prepared to uphold freedom of maritime and air navigation in the disputed area, a defense official said on Wednesday.

Democrat Ben Cardin of Maryland, a senior member of the Senate Foreign Relations Committee, said confrontation is less likely if the Philippines, Indonesia, Vietnam and other countries work with the United States rather than on their own.

“I don’t think China wants a confrontation with the United States,” he told reporters. “They don’t mind a confrontation with a Vietnamese fishing boat, but they don’t want a confrontation with the United States.”

The court ruling is expected to dominate a meeting at the end of July in Laos of the 10-member Association of Southeast Asian Nations (ASEAN), which includes the Philippines, Malaysia, Indonesia, Myanmar, Vietnam and Thailand.

U.S. Secretary of State John Kerry, and his Chinese counterpart, Foreign Minister Wang, will attend the ministerial.

Sino-American relations suffered two fresh blows on Wednesday as a congressional committee found China’s government likely hacked computers at the U.S. Federal Deposit Insurance Corporation and the United States challenged China’s export duties on nine metals and minerals that are important to the aerospace, auto, electronics and chemical industries.

(Additional reporting by Patricia Zengerle and Yara Bayoumy, and Ben Blanchard in Beijing; Editing by Kieran Murray, Grant McCool and Lincoln Feast)

End to embargo on sales of arms to Vietnam

Vietnamese soldiers of a commando unit march during a parade marking their 70th National Day at Ba Dinh square in Hanoi,

By Matt Spetalnick

HANOI (Reuters) – The United States announced an end to its embargo on sales of lethal arms to Vietnam on Monday, an historic step that draws a line under the two countries’ old enmity and underscores their shared concerns about Beijing’s growing military clout.

The move came during President Barack Obama’s first visit to Hanoi, which his welcoming hosts described as the arrival of a warm spring and a new chapter in relations between two countries that were at war four decades ago.

Obama, the third U.S. president to visit Vietnam since diplomatic relations were restored in 1995, has made a strategic ‘rebalance’ toward Asia a centerpiece of his foreign policy.

Vietnam, a neighbor of China, is a key part of that strategy amid worries about Beijing’s assertiveness and sovereignty claims to 80 percent of the South China Sea.

The decision to lift the arms trade ban, which followed intense debate within the Obama administration, suggested such concerns outweighed arguments that Vietnam had not done enough to improve its human rights record and Washington would lose leverage for reforms.

Obama told a joint news conference with Vietnamese President Tran Dai Quang that disputes in the South China Sea should be resolved peacefully and not by whoever “throws their weight around”. But he insisted the arms embargo move was not linked to China.

“The decision to lift the ban was not based on China or any other considerations. It was based on our desire to complete what has been a lengthy process of moving towards normalization with Vietnam,” he said. Obama later added his visit to a former foe showed “hearts can change and peace is possible”.

The sale of arms, Obama said, would depend on Vietnam’s human rights commitments, and would be made on a case-by-case basis.

HUMAN RIGHTS GROUP OUTRAGED

Human Rights Watch reacted with dismay to Washington’s decision to toss away a critical lever it might have had to spur political reform in the Communist party-ruled state.

Phil Robertson, the watchdog’s Asia director, said in a statement that even as Obama was lifting the arms embargo Vietnamese authorities were arresting a journalist, human rights activists and bloggers on the street and in their houses.

“In one fell swoop, President Obama has jettisoned what remained of U.S. leverage to improve human rights in Vietnam – and basically gotten nothing for it,” he said.

Obama told the news conference with President Quang Washington would continue to speak out for human rights, including citizens’ right to organize through civil society.

Obama is scheduled to meet with a group of activists on Tuesday.

Quang, who actually announced the lifting of the U.S. embargo before Obama could do so, was until recently minister of public security, which activists say harasses and arrests dissidents.

Dissent was once the domain of just a few in Vietnam, but while the party has allowed more open criticism in recent years, it is quick to slap down challenges to its monopoly on power.

LEVERAGE ON ARMS DEALS

Though the communist parties that run China and Vietnam officially have brotherly ties, China’s brinkmanship over the South China Sea – where it has been turning remote outcrops into islands with runways and harbors – has forced Vietnam to recalibrate its defense strategy.

Security analysts and regional military attaches expect Vietnam’s initial wish list of equipment to cover the latest in surveillance radar, intelligence and communications technology, allowing them better coverage of the South China Sea as well as improved integration of its growing forces.

Washington has allowed sales of defensive maritime equipment since 2014. Hanoi’s military strategists are expected to now seek drones, radar, coastal patrol boats and possibly P-3 Orion surveillance aircraft from the United States.

Carl Thayer, an expert on Vietnam’s military at Australia’s Defence Force Academy, said the steep costs of U.S. arms would remain a factor for Hanoi, pushing it toward its traditional suppliers of missiles and planes, particularly long-time security patron, Russia. On the other hand, the lifting of the embargo will provide Vietnam with leverage in future arms deals with those suppliers.

China sees U.S. support for rival South China Sea claimants Vietnam and the Philippines as interference and an attempt to establish hegemony in the region. Washington insists its priority is ensuring freedom of navigation and flight.

However, China’s response to the announcement in Hanoi was muted. The foreign ministry said it hoped the development in relations between the United States and Vietnam would be conducive to regional peace and stability.

Underlining the burgeoning commercial relationship between the United States and Vietnam, one of the first deals signed on Obama’s trip was an $11.3 billion order for 100 Boeing planes by low-cost airline VietJet.

China is Vietnam’s biggest trade partner and source of imports. But trade with the United States has swelled 10-fold over the past two decades to about $45 billion. Vietnam is now Southeast Asia’s biggest exporter to America.

In the commercial hub, Ho Chi Minh City, formerly Saigon, Obama will on Tuesday meet entrepreneurs and tout a Trans-Pacific Partnership trade deal he has championed.

Obama said at the news conference he was confident the trade pact would be approved by U.S. legislators, even though it is an election year. He said he had not seen a credible argument that the deal, which will group 12 economies, would hurt U.S. business.

(Additional reporting by Mai Nguyen, Ho Binh Minh, My Pham and Martin Petty in HANOI and by Greg Torode in HONG KONG; Writing by John Chalmers)

Quietly, Vietnam hosts arms gathering attended by U.S. companies

Soldiers hold rifles while marching during a celebration to mark Reunification Day in Ho Chi Minh city, Vietnam

By My Pham and Idrees Ali

HANOI/WASHINGTON (Reuters) – Vietnam hosts a defense symposium this week attended by top American arms manufacturers, ahead of a visit by U.S. President Barack Obama and as Washington weighs whether to lift an arms embargo on its former enemy.

Secrecy has surrounded the event staged by the communist country and attended by firms including Boeing <BA.N> and Lockheed Martin <LMT.N>. It coincides with the biggest arms buildup in the country since the Vietnam War.

There has been no mention in state-controlled media and defense reporters are not covering the forum. Efforts by Reuters to gain permission to attend have been unsuccessful and Vietnam’s defense ministry could not be reached for comment.

Vietnam has accelerated efforts to build a military deterrent and is the world’s eighth largest weapons importer, as neighbor China intensifies its push to fortify South China Sea islands it has either occupied or built from scratch.

According to the Stockholm International Peace Research Institute think-tank, which tracks defense trade over five-year periods, Vietnam’s total arms imports during 2011-2015 represented a 699 percent jump from 2006-2010.

The Hanoi symposium comes amid debate within the U.S. administration over whether to respond to Vietnam’s longstanding request to remove an arms embargo that is one of the last major vestiges of the Vietnam War era.

Washington eased the embargo in late 2014, but has said any decision to lift it completely would hinge on the extent to which Vietnam has demonstrated progress in improving its human rights record. Its top envoy in that field, Tom Malinowski, was in Hanoi earlier this week.

Vietnam has been in talks with Western and U.S. arms manufacturers for several years now to boost its fleets of fighter jets, helicopters and maritime patrol aircraft, although Russia, its traditional supplier, maintains a dominant position.

Industry sources say Hanoi is keen on U.S. weapons yet wary of the threat of a future embargo even if the current one ends. The countries do have a common concern in China, however, whose assertiveness in the South China Sea has alarmed Washington.

Obama is due to start his Vietnam visit on May 22, the first by a U.S. president in a decade, underlining the rapidly warming relationship between the countries at a time of testy ties and growing mistrust between Hanoi and Beijing, which have competing claims to the Paracel and Spratly islands.

MODERNIZATION NEEDS

A spokesman for Lockheed Martin confirmed the company was attending the Hanoi event.

Boeing is also attending, although the firm made it clear it was not in contravention of the embargo.

“I would like to point out that any defense-related sales to Vietnam will follow development of U.S. government policy on Vietnam,” a spokesman said.

“We believe Boeing has capabilities in mobility and intelligence surveillance and reconnaissance platforms that may meet Vietnam’s modernization needs.”

Those needs have included the purchase of six modern Kilo-class submarines from Russia equipped with Klub cruise missiles, Russian-built S-300 surface-to-air missile batteries, and from Israel, Galil assault rifles and AD-STAR 2888 radars.

Its navy is making Tarantul-class corvettes, known as Molniyas, modeled on Russian designs and equipped with 16 missiles with a range of 130 km (80 miles).

Though the communist parties that run China and Vietnam officially have brotherly ties, experts say Beijing’s brinkmanship has forced Vietnam to recalibrate its defense strategy.

A report in the defense ministry’s People’s Army Newspaper Online in March quoted the vice defense minister, Lieutenant General Nguyen Chi Vinh, as saying Vietnam’s relationship with the United States lacked defense industry cooperation, and Hanoi wanted Washington “to provide modern, suitable and adaptable technology”.

Its outreach so far has been weighted towards Russia, India and Israel in procurements, but analysts say it is unlikely to seek formal military alliances and would stick to its foreign policy of not relying on a single power.

It has, however, mulled joint exercises with another South China Sea claimant at odds with China, the Philippines, and has received recent visits by Singaporean and Japanese warships at its new international port at Cam Ranh Bay, a strategic deepwater base that is home to its submarines.

Tim Huxley, a regional security expert at the International Institute for Strategic Studies in Singapore, said Vietnam’s interest in getting the arms embargo lifted was not only about access to U.S. technology, but boosting its bargaining power.

“It reflects concern about what’s happening in the South China Sea and its need to restructure and re-arm, with a greater emphasis on greater naval and air capability,” he said.

“It wants to widen options available and have more choices in the international market place in terms of range of technology and its negotiating position.”

(Additional reporting by Mai Nguyen in HANOI; Writing and additional reporting by Martin Petty in MANILA; Editing by Mike Collett-White)

U.S. sees new Chinese activity around South China Sea shoal

WASHINGTON (Reuters) – The United States has seen Chinese activity around a reef China seized from the Philippines nearly four years ago that could be a precursor to more land reclamation in the disputed South China Sea, the U.S. Navy chief said on Thursday.

The head of U.S. naval operations, Admiral John Richardson, expressed concern that an international court ruling expected in coming weeks on a case brought by the Philippines against China over its South China Sea claims could be a trigger for Beijing to declare an exclusion zone in the busy trade route.

Richardson told Reuters the United States was weighing responses to such a move.

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

Richardson said the U.S. military had seen Chinese activity around Scarborough Shoal in the northern part of the Spratly archipelago, about 125 miles west of the Philippine base of Subic Bay.

“I think we see some surface ship activity and those sorts of things, survey type of activity, going on. That’s an area of concern … a next possible area of reclamation,” he said.

Richardson said it was unclear if the activity near the reef, which China seized in 2012, was related to the pending arbitration decision.

Asked about Richardson’s statement, Lu Kang, a spokesman for China’s Ministry of Foreign Affairs, said it was hypocritical for the United States to criticize China for militarizing the region when it carries out its own naval patrols there.

“This is really laughable and preposterous,” he said.

The Philippine foreign ministry said it had yet to receive a report about Chinese activity in Scarborough Shoal.

A Philippine military official who declined to be identified because he is not authorized to speak to the media said he was unaware of a Chinese survey ship in the area.

“China already has de facto control over the shoal since 2012 and they always have two to three coastguard ships there. We are also monitoring their activities and movements,” the official told reporters.

Richardson said China’s pursuit of South China Sea territory, which has included massive land reclamation to create artificial islands elsewhere in the Spratlys, threatened to reverse decades of open access and introduce new “rules” that required countries to obtain permission before transiting those waters.

He said that was a worry given that 30 percent of the world’s trade passes through the region.

Asked whether China could respond to the ruling by the court of arbitration in The Hague by declaring an air defense identification zone, or ADIZ, as it did to the north, in the East China Sea, in 2013, Richardson said: “It’s definitely a concern.

“We will just have to see what happens,” he said. “We think about contingencies and … responses.”

Richardson said the United States planned to continue carrying out freedom-of-navigation exercises within 12 nautical miles of disputed South China Sea geographical features to underscore its concerns about keeping sea lanes open.

JOINT PATROLS?

The United States responded to the East China Sea ADIZ by flying B-52 bombers through the zone in a show of force in November 2013.

Richardson said he was struck by how China’s increasing militarization of the South China Sea had increased the willingness of other countries in the region to work together.

India and Japan have joined the U.S. Navy in the Malabar naval exercise since 2014, and were due to take part again this year in an even more complex exercise that will take place in an area close to the East and South China Seas.

South Korea, Japan and the United States were also working together more closely than ever before, he said.

Richardson said the United States would welcome the participation of other countries in joint patrols in the South China Sea, but those decisions needed to be made by the countries in question.

He said the U.S. military saw good opportunities to build and rebuild relationships with countries such as Vietnam, the Philippines and India, which have all realized the importance of safeguarding the freedom of the seas.

He cited India’s recent hosting of an international fleet review that included 75 ships from 50 navies, and said the United States was exploring opportunities to increase its use of ports in the Philippines and Vietnam, among others – including the former U.S. naval base at Vietnam’s Cam Ranh Bay.

But he said Washington needed to proceed judiciously rather than charging in “very fast and very heavy,” given the enormous influence and importance of the Chinese economy in the region.

“We have to be sophisticated in how we approach this so that we don’t force any of our partners into an uncomfortable position where they have to make tradeoffs that are not in their best interest,” he said.

“We would hope to have an approach that would … include us a primary partner but not necessarily to the exclusion of other partners in the region.”

(Additional reporting by Neil Jerome Morales in Manila and Megha Rajagopalan in Beijing; Editing by Peter Cooney and Nick Macfie)