Tag Archives: ALLCE

Philippines grants U.S. greater access to bases amid China concerns

  • Philippines, U.S. agree to add four locations under EDCA
  • Agreement comes amid tensions in South China Sea, over Taiwan
  • EDCA allows U.S. access to Philippine military bases

MANILA, Feb 2 (Reuters) – The Philippines has granted the United States expanded access to its military bases, their defence chiefs said on Thursday, amid mounting concern over China’s increasing assertiveness in the disputed South China Sea and tensions over self-ruled Taiwan.

Washington would be given access to four more locations under the 2014 Enhanced Defense Cooperation Agreement (EDCA), U.S. Defense Secretary Lloyd Austin and Philippines’ Defense Secretary Carlito Galvez said in a joint news conference.

Austin, who was in the Philippines for talks as Washington seeks to extend its security options in the country as part of efforts to deter any move by China against self-ruled Taiwan, described Manila’s decision as a “big deal” as he and his counterpart reaffirmed their commitment to bolstering their countries’ alliance.

“Our alliance makes both of our democracies more secure and helps uphold a free and open Indo-Pacific,” said Austin, whose visit follows U.S. Vice President Kamala Harris’s trip to the Philippines in November, which included a stop at Palawan in the South China Sea.

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“We discussed concrete actions to address destabilising activities in the waters surrounding the Philippines, including the West Philippine Sea, and we remain committed to strengthening our mutual capacities to resist armed attack,” Austin said.

“That’s just part of our efforts to modernize our alliance. And these efforts are especially important as People’s Republic of China continues to advance its illegitimate claims in the West Philippine Sea,” he added.

The additional locations under the EDCA bring to nine the number of military bases the United States would have access to, and Washington had announced it was allocating more than $82 million toward infrastructure investments at the existing sites.

The EDCA allows U.S. access to Philippine military bases for joint training, pre-positioning of equipment and the building of facilities such as runways, fuel storage and military housing, but not a permanent presence.

Austin and Galvez did not say where the new locations would be. The former Philippine military chief had said the United States had requested access to bases on the northern land mass of Luzon, the closest part of the Philippines to Taiwan, and on the island of Palawan, facing the disputed Spratly Islands in the South China Sea.

There was no immediate comment from the Chinese Embassy in Manila.

Outside the military headquarters, dozens of protesters opposed to the United States maintaining a military presence in the country chanted anti-U.S. slogans and called for the EDCA to be scrapped.

Before meeting his counterpart, Austin met with Philippine President Ferdinand Marcos Jr at the presidential palace on Thursday, where he assured the Southeast Asian leader, “we stand ready to help you in any way we can”.

Ties between the United States and the Philippines, a former colony, were soured by predecessor Rodrigo Duterte’s overtures towards China, his famous anti-U.S. rhetoric and threats to downgrade their military ties.

But Marcos has met with U.S. President Joe Biden twice since his landslide victory in the elections last year and reiterated he cannot see a future for his country without its longtime treaty ally.

“I have always said, it seems to me, the future of the Philippines and for that matter the Asia Pacific will always have to involve the United States,” Marcos told Austin.

Reporting by Karen Lema
Editing by Ed Davies and Gerry Doyle

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Microsoft to buy 4% stake in London Stock Exchange

Dec 12 (Reuters) – Microsoft (MSFT.O) is to take a 4% equity stake in London Stock Exchange Group (LSEG.L) as part of a 10-year commercial deal to migrate the exchange operator’s data platform into the cloud, the British company said on Monday.

It is the latest sign of deepening ties between financial services providers and a handful of big global cloud companies such as Microsoft, Google (GOOGL.O), Amazon (AMZN.O) and IBM (IBM.N), which have prompted regulators to scrutinise the ties more closely.

Microsoft has longstanding links with LSEG, but the exchange group’s Chief Executive David Schwimmer said that about a year ago they began talks on closer ties.

“It’s a long term partnership. In terms of the products we will be building together, I would expect our customers to start to see the benefits of that 18 to 24 months out and we will continue building from there,” Schwimmer told Reuters.

Regulators have expressed concern about the over-reliance of financial firms on too few cloud providers, given the disruption this could cause across the sector if a provider went down.

The European Union has just approved a law introducing safeguards on cloud providers in financial services, with Britain set to follow suit.

“You should assume we do not like to surprise our regulators,” Schwimmer said, when asked if LSEG has ensured that regulators were on board.

LSEG said the link with Microsoft was a partnership to reap the benefits of “consumption-based pricing”, and not a traditional cloud deal.

“We will continue to maintain our multi-cloud strategy and working with other cloud providers,” Schwimmer said.

The deal was not about savings by outsourcing activities to the cloud, but about meaningful incremental revenue growth as new products come on stream over time.

“This feels like a key milestone in LSEG’s journey towards being information solutions-centric, even if ‘meaningful’ revenue growth specifics are lacking,” analysts at Jefferies said.

As part of the deal, LSEG has made a contractual commitment for minimum cloud-related spend with Microsoft of $2.8 billion over the term of the partnership.

Microsoft said the basis of the partnership will be the digital transformation of LSEG’s technology infrastructure and Refinitiv platforms on to the Microsoft Cloud.

“The initial focus will be on delivering interoperability between LSEG Workspace and Microsoft Teams, Excel and PowerPoint with other Microsoft applications and a new version of LSEG’s Workspace,” the U.S. company said.

LSEG shares were up 4% in early trade.

LSEG bought Refinitiv for $27 billion from a Blackstone and Thomson Reuters’ consortium, which turned the exchange into the second largest financial data company after Bloomberg LP.

LSEG has made “good progress” on its programme for the delivery of its cloud-based data platform since the completion of its Refinitiv acquisition in January 2021, it said in a statement.

Microsoft will buy LSEG shares from the Blackstone (BX.N)/Thomson Reuters (TRI.TO), Consortium, the exchange operator said.

Thomson Reuters, which owns Reuters News, has a minority shareholding in LSEG following the Refinitiv deal.

Microsoft’s purchase is expected to complete in the first quarter of 2023.

Reporting by Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee, Jane Merriman and Louise Heavens

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China’s Xi calls for oil trade in yuan at Gulf summit in Riyadh

  • Xi says summit with Gulf, Arab League is ‘milestone’
  • U.S. wary of growing Chinese influence in Arab world
  • Arabs defy U.S. pressure to limit China ties, cut off Russia
  • Summits showcase Saudi Crown Prince Mohammed as key leader

RIYADH, Dec 9 (Reuters) – President Xi Jinping told Gulf Arab leaders on Friday that China would work to buy oil and gas in yuan, a move that would support Beijing’s goal to establish its currency internationally and weaken the U.S. dollar’s grip on world trade.

Xi was speaking in Saudi Arabia where Crown Prince Mohammed bin Salman hosted two “milestone” Arab summits with the Chinese leader which showcased the powerful prince’s regional heft as he courts partnerships beyond close historic ties with the West.

Top oil exporter Saudi Arabia and economic giant China both sent strong messages during Xi’s visit on “non-interference” at a time when Riyadh’s relationship with Washington has been tested over human rights, energy policy and Russia.

Any move by Saudi Arabia to ditch the dollar in its oil trade would be a seismic political move, which Riyadh had previously threatened in the face of possible U.S. legislation exposing OPEC members to antitrust lawsuits.

China’s growing influence in the Gulf has unnerved the United States. Deepening economic ties were touted during Xi’s visit, where he was greeted with pomp and ceremony and on Friday met with Gulf states and attended a wider summit with leaders of Arab League countries spanning the Gulf, Levant and Africa.

At the start of Friday’s talks, Prince Mohammed heralded a “historic new phase of relations with China”, a sharp contrast with the awkward U.S.-Saudi meetings five months ago when President Joe Biden attended a smaller Arab summit in Riyadh.

Asked about his country’s relations with Washington in light of the warmth shown to Xi, Foreign Minister Prince Faisal bin Farhan Al Saud said Saudi Arabia would continue to work with all its partners. “We don’t see this as a zero sum game,” he said.

“We do not believe in polarisation or in choosing between sides,” the prince told a news conference after the talks.

Though Saudi Arabia and China signed several strategic and economic partnership deals, analysts said relations would remain anchored mostly by energy interests, though Chinese firms have made forays into technology and infrastructure sectors.

“Energy concerns will remain front and centre of relations,” Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington, told Reuters.

“The Chinese and Saudi governments will also be looking to support their national champions and other private sector actors to move forward with trade and investment deals. There will be more cooperation on the tech side of things too, prompting familiar concerns from Washington.”

Saudi Arabia agreed a memorandum of understanding with Huawei this week on cloud computing and building high-tech complexes in Saudi cities. The Chinese tech giant has participated in building 5G networks in Gulf states despite U.S. concerns over a possible security risk in using its technology.

NATURAL PARTNERS

Saudi Arabia and its Gulf allies have defied U.S. pressure to limit dealings with China and break with fellow OPEC+ oil producer Russia over its invasion of Ukraine, as they try to navigate a polarised world order with an eye on national economic and security interests.

Riyadh is a top oil supplier to China and the two countries reaffirmed in a joint statement the importance of global market stability and energy collaboration, while striving to boost non-oil trade and enhance cooperation in peaceful nuclear power

Xi said Beijing would continue to import large quantities of oil from Gulf Arab countries and expand imports of liquefied natural gas, adding that their countries were natural partners who would cooperate further in upstream oil and gas development.

China would also “make full use of the Shanghai Petroleum and National Gas Exchange as a platform to carry out yuan settlement of oil and gas trade,” he said.

Beijing has been lobbying for use of its yuan currency in trade instead of the U.S. dollar.

A Saudi source, speaking before Xi’s visit, told Reuters that a decision to sell small amounts of oil in yuan to China could make sense in order to pay Chinese imports directly, but “it is not yet the right time”.

Most of Saudi Arabia’s assets and reserves are in dollars including more than $120 billion of U.S. Treasuries that Riyadh holds, and the Saudi riyal, like other Gulf currencies, is pegged to the dollar.

Earlier, the Chinese leader said his visit heralded a new era in relations, voicing hope the Arab summits would become “milestone events in the history of China-Arab relations”.

Additional reporting by Eduardo Baptista in Beijing, Riham Alkousaa, Ahmad Ghaddar and Lina Najm in Dubai
Writing by Ghaida Ghantous and Dominic Evans
Editing by Mark Heinrich, William Maclean and Mark Potter

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Honda Motor, LG Energy to build $4.4 bln U.S. EV battery plant

TOKYO/WASHINGTON, Aug 29 (Reuters) – Japan’s Honda Motor Co (7267.T) will build a new $4.4 billion lithium-ion battery plant for electric vehicles in the United States with Korean battery supplier LG Energy Solution Ltd (373220.KS), the two companies said on Monday.

Battery makers are looking to increase production in the U.S. where a shift toward electric vehicles (EV) could increase as the country implements stricter regulation and tightens tax credit eligibility.

The location of the plant has not been finalised, the companies said, but two people briefed on the matter confirmed reports Honda is seriously considering Ohio, where Honda’s main U.S. factory is located.

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The companies aim for annual production capacity of approximately 40 GWh with the batteries supplied exclusively to Honda facilities in North America to power Honda and Acura EV models.

The pair are expected to establish a joint venture before building the plant, with the start of construction planned for early 2023 and mass-production by the end of 2025.

Ohio Governor Mike DeWine said his administration is working with Honda and LG “to ensure that they choose Ohio for this new electric battery plant.” The sources briefed on the matter said an announcement on the location could come in weeks.

The U.S. government has been pushing policies designed to bring more battery and EV manufacturing into the country.

President Joe Biden signed a $430 billion climate, health care and tax bill this month that would render electric vehicles assembled outside North America ineligible for tax credits. read more

The Honda Motor logo is pictured at the 43rd Bangkok International Motor Show, in Bangkok, Thailand, March 22, 2022. REUTERS/Athit Perawongmetha

White House Deputy National Climate Advisor Ali Zaidi praised the Honda LG “massive investment” that he said was catalyzed by climate and infrastructure legislation.

U.S. Energy Secretary Jennifer Granholm said the administration was bringing “back the domestic manufacturing of batteries to provide Americans with good-paying jobs that will power the EV revolution.”

California announced a plan last week requiring all new vehicles sold in the state by 2035 to be either electric or plug-in electric hybrids. read more

The two companies said a combination of strong local electric vehicle production and the timely supply of batteries would put them “in the best position to target the rapidly-growing North American EV market.”

LG Energy Solution, which is mainly engaged in the development of lithium-ion battery materials and next-generation batteries, also supplies EV batteries and has signed joint-venture agreements with General Motors (GM.N), Hyundai Motor Co (005380.KS) and Stellantis (STLA.MI). read more

In July, Panasonic Energy Co, a unit of tech conglomerate Panasonic Holdings Corp (6752.T) and a major Tesla Inc (TSLA.O) supplier, said it had selected Kansas as the site for a new battery plant with investment of up to $4 billion. read more

Earlier this year, Honda laid out a target to roll out 30 EV models globally and produce about 2 million EVs a year by 2030. read more

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Reporting by Satoshi Sugiyama and Heekyong Yang in Seoul and David Shepardson in Washington; Editing by Rashmi Aich Krishna Chandra Eluri, Kirsten Donovan and Chris Reese

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China, Russia partner up against West at Olympics summit

  • Xi and Putin present assertive manifesto to counter U.S.
  • Leaders back each other on Taiwan, NATO enlargement
  • ‘No forbidden areas’ in Russia-China cooperation
  • First U.S. troop reinforcements arrive in Europe

BEIJING/ MOSCOW/WASHINGTON, Feb 4 (Reuters) – China and Russia on the opening day of the Winter Olympics declared a “no limits” partnership, backing each other over standoffs on Ukraine and Taiwan with a promise to collaborate more against the West.

President Xi Jinping hosted President Vladimir Putin on Friday as the two nations said their relationship was superior to any Cold War era alliance and they would work together on space, climate change, artificial intelligence and control of the internet.

Beijing supported Russia’s demand that Ukraine should not be admitted into NATO, as the Kremlin amasses 100,000 troops near its neighbour, while Moscow opposed any form of independence for Taiwan, as global powers jostle over their spheres of influence.

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“Friendship between the two States has no limits, there are no ‘forbidden’ areas of cooperation,” the two countries said in a joint statement.

The timing of their announcement was highly symbolic, at a China-hosted Olympics that the United States has subjected to a diplomatic boycott.

The agreement marked the most detailed and assertive statement of Russian and Chinese resolve to work together to build a new international order based on their view of human rights and democracy.

Putin used the occasion to trumpet a new gas deal with China worth an estimated $117.5 billion, promising to ramp up Russia’s Far East exports. read more

The United States hit back, saying Xi should have used the meeting to push for lowering of tensions in Ukraine.

Such an approach is what the world expects from “responsible powers,” the U.S. State Department’s top diplomat for East Asia Daniel Kritenbrink said. read more

“If Russia further invades Ukraine and China looks the other way, it suggests that China is willing to tolerate or tacitly support Russia’s efforts to coerce Ukraine…”

Moscow denies it is planning an invasion of Ukraine.

Daniel Russel of the Asia Society think tank, who served as the U.S. State Department’s top diplomat for East Asia in the Obama administration, said Xi and Putin were “announcing their determination to stand together and to stand against the U.S. and the West — ready to withstand sanctions and contest American global leadership”.

While not formally allied, the two “are making common cause as a tactical matter to better defend their respective interests and their authoritarian systems from Western pressure”, he said.

MUTUAL SUPPORT

The two countries have moved closer together as both have come under pressure from the West on human rights and other issues.

Russian President Vladimir Putin attends a meeting with Chinese President Xi Jinping in Beijing, China February 4, 2022. Sputnik/Aleksey Druzhinin/Kremlin via REUTERS

In the lengthy document – nearly 5,400 words in English translation – each went significantly further than before in backing the other on flashpoints of tension with the West.

– Russia voiced its support for China’s stance that Taiwan is an inalienable part of China, and opposition to any form of independence for the island.

– Moscow and Beijing also voiced their opposition to the AUKUS alliance between Australia, Britain and the United States, saying it increased the danger of an arms race in the region.

– China joined Russia in calling for an end to NATO enlargement and supported its demand for security guarantees from the West.

– They expressed concern about “the advancement of U.S. plans to develop global missile defence and deploy its elements in various regions of the world, combined with capacity building of high-precision non-nuclear weapons for disarming strikes and other strategic objectives”.

Elsewhere, without naming Washington, they criticised attempts by “certain states” to establish global hegemony, fan confrontation and impose their own standards of democracy.

Scott Kennedy, a China expert at Washington’s Center for Strategic and International Studies, said that despite the rhetoric, there would be limits to the alliance.

“China is willing to stand with Russia through thin but not thick,” he said. “If a war breaks out over Ukraine or Taiwan, we can expect this partnership to fracture.”

TECH AND ENERGY

In the technology arena, Russia and China said they were ready to strengthen cooperation on artificial intelligence and information security.

They said they believed that “any attempts to limit their sovereign right to regulate national segments of the Internet and ensure their security are unacceptable”.

Meanwhile Russian state energy giants Gazprom and Rosneft on Friday agreed new gas and oil supply deals with Beijing worth tens of billions of dollars read more .

The deals capitalise on Putin’s drive to diversify Russian energy exports away from the West, which started shortly after he came to power in 1999. Since then Russia has become China’s top energy supplier and cut its reliance on the West for revenues.

The Kremlin said the presidents also discussed the need to broaden trade in national currencies because of unpredictability surrounding the use of the dollar.

U.S. President Joe Biden has said Russian companies could be cut off from the ability to trade in dollars as part of sanctions if Russia invades Ukraine.

The first of 2,000 American troops sent to reinforce NATO allies in Eastern Europe and Germany arrived on Friday. read more

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Reporting by Tony Munroe in Beijing, Andrew Osborn in Moscow and Humeyra Pamuk in Washington; Additional reporting by Vladimir Soldatkin, Oksana Kobzeva and Olesya Astakhova in Moscow, Gabriel Crossley in Beijing, David Brunnstrom, Alexandra Alper and Simon Lewis in Washington; Writing by Mark Trevelyan and Costas Pitas; Editing by Angus MacSwan, Frances Kerry and Grant McCool

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Pfizer CEO unsure on need for fourth dose of COVID-19 vaccine

A 3D printed Pfizer logo is placed near medicines from the same manufacturer in this illustration taken September 29, 2021. REUTERS/Dado Ruvic/Illustration

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Jan 10 (Reuters) – Pfizer Inc (PFE.N) Chief Executive Officer Albert Bourla said on Monday he was unsure about the need for a fourth dose of COVID-19 vaccine and that a shot targeting the highly contagious Omicron variant would be ready in March.

The comments contrasted with those made by Moderna Inc (MRNA.O) CEO Stephen Bancel, who said last week people could need another shot in the fall of 2022 as the efficacy of boosters was likely to decline over the next few months.

A huge Omicron-driven spike in COVID-19 cases has forced some nations to look to another booster dose, but early signs suggest repeat vaccination may be a hard sell as beleaguered populations enter their third pandemic year. read more

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“I don’t know if there is a need for a fourth booster, that is something that needs to be tested,” Bourla said on CNBC, ahead of Pfizer’s presentation at the J.P. Morgan healthcare conference.

Work is ongoing on a new version of COVID-19 vaccine that would be effective against Omicron and other variants, he said.

The U.S. drugmaker earlier in the day announced three deals to broaden the use of the messenger RNA technology (mRNA) that its COVID-19 vaccine was based on, including a pact worth as much as $1.35 billion with gene-editing specialist Beam Therapeutics (BEAM.O).

Pfizer has been looking to advance the development of mRNA-based vaccines and therapeutics after it led global efforts to develop a COVID-19 shot against the pandemic.

The company will also collaborate with Codex DNA Inc (DNAY.O) to leverage the biotech’s proprietary technology, which could enable more efficient development of mRNA-based vaccines, therapeutics and other biopharma products.

It deal with private biotech Acuitas Therapeutics will focus on the use of the Vancouver-based company’s lipid nanoparticle technology for developing up to ten vaccines or therapeutics.

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Reporting by Bhanvi Satija, Manojna Maddipatla and Mrinalika Roy in Bengaluru; Editing by Devika Syamnath and Aditya Soni

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Biden vows to stand with SE Asia in defending freedom of seas, democracy

  • Biden pledges to defend freedom of the seas
  • U.S. concerned by China’s “coercive and proactive actions” across Taiwan Strait
  • China’s Premier Li says upholding peace in South China Sea in everyone’s interest

BANDAR SERI BEGAWAN, Oct 27 (Reuters) – President Joe Biden said on Wednesday the United States would stand with Southeast Asian allies in defending freedom of the seas, democracy and human rights and backed efforts to hold the Myanmar junta accountable to its commitments to peace.

Southeast Asia has become a strategic battleground between the United States and China, which controls most of the South China Sea and has turned up military and political pressure on fiercely democratic Taiwan, a self-ruled island it considers its own.

Australia and the Association of Southeast Asian Nations (ASEAN) agreed on Wednesday at a virtual regional summit to establish a “comprehensive strategic partnership”, a sign of Canberra’s ambition to play a bigger role in the region.

Biden joined Southeast Asian leaders in rebuking Myanmar’s junta as the summit opened on Tuesday without a representative from the country following its top general’s exclusion for ignoring peace proposals.

“In Myanmar, we must address the tragedy caused by the military coup which is increasingly undermining regional stability,” Biden said on Wednesday.

“The United States stands for the people of Myanmar and calls for military regime to end the violence, release all political prisoners and return to the path of democracy.”

He also said the United States was deeply concerned by “China’s coercive and proactive actions” across the Taiwan Strait, a waterway linking the island and the mainland.

Tensions between Taiwan and China have escalated in recent weeks as Beijing raises military and political pressure.

That has included repeated missions by Chinese warplanes in Taiwan’s air defence identification zone, or ADIZ, which covers a broader area than Taiwan’s territorial air space which Taiwan monitors and patrols to give it more time to respond to any threats.

China has never renounced the use of force to ensure eventual unification with Taiwan.

Chinese Premier Li Keqiang told the summit upholding peace, stability, freedom of navigation and overflight in the South China Sea was in everyone’s interest.

“The South China Sea is our common home,” he said.

REGIONAL ECONOMIC FRAMEWORK

Biden also said he would speak out for “human rights in Xinjiang and Tibet (and) the rights of the people of Hong Kong”.

China denies human rights abuses in farwestern Xinjiang and the Himalayan region of Tibet. It also denies meddling with freedoms in the former British colony of Hong Kong.

Biden also announced discussions with partners in the IndoPacific region would start to develop a framework “that will position all of our economies for the future”.

“We look forward to working together with digital economy standards on infrastructure and regional connectivity, on supply chain resilience and anti-corruption and worker standards and so much more,” he said

Critics of U.S. strategy for the region point to its lack of an economic component after former President Donald Trump withdrew from the trade deal now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2017.

Japanese Prime Minister Fumio Kishida told reporters he had stressed in Wednesday’s meetings his country’s resolute stance on “urgent regional situations”, including the East and South China Seas, North Korea and Myanmar.

“I also mentioned human rights situations in Hong Kong and Xinjiang, as well as the importance of peace and stability in the Taiwan strait,” he said.

Australian Prime Minister Scott Morrison said the Australia-ASEAN pact would strengthen diplomatic and security ties and promised Canberra would “back it with substance”.

“This milestone underscores Australia’s commitment to ASEAN’s central role in the Indo-Pacific and positions our partnership for the future,” he said in a joint statement with Foreign Minister Marise Payne.

Brunei, serving as chair of ASEAN, said the agreement “marked a new chapter in relations.”

After the announcement, Australia said it would invest $154 million in projects in Southeast Asia on health and energy security, counter-terrorism, fighting transnational crime, plus hundreds of scholarships.

China has sought a similar agreement with ASEAN. Premier Li met ASEAN leaders on Tuesday, and the bloc’s leaders will meet Chinese President Xi Jinping in November at a virtual summit, two diplomatic sources told Reuters.

Morrison sought to reassure ASEAN that a trilateral security pact agreed last month between the United States, Britain and Australia, under which Australia will get access to nuclear-powered submarines, would not be a threat to the region.

Reporting by Ain Bandial in Bandar Seri Begawan and Tom Allard in Sydney; Additional reporting by Stanley Widianto in Jakarta; Kiyoshi Takenaka in Tokyo, Colin Packham in Canberra, David Brunnstrom in Washington and Neil Jerome Morales in Manila; Writing by Martin Petty and Nick Macfie; Editing by Simon Cameron-Moore, Jon Boyle and Sonya Hepinstall

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