Tag Archives: VN

World

Vietnam president quits as Communist Party intensifies graft crackdown

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  • President highest-profile casualty of graft crackdown
  • Phuc blamed for conduct of officials under him
  • Hundreds of officials hit by ‘blazing furnace’ campaign
  • Phuc’s downfall widely expected

HANOI, Jan 17 (Reuters) – Vietnam President Nguyen Xuan Phuc has resigned after the ruling Communist Party blamed him for “violations and wrongdoing” by officials under his control, the government said on Tuesday, in a major escalation of the country’s anti-graft campaign.

Phuc, a former prime minister widely credited with accelerating pro-business reforms, held the largely ceremonial post of president since 2021 and is the highest-ranking official targeted by the party’s sweeping corruption crackdown.

Vietnam has no paramount ruler and is officially led by four “pillars”: the party’s secretary, the president, prime minister and speaker of the house.

Phuc, 68, was ultimately responsible for offences committed by many officials, including two deputy prime ministers and three ministers, the government said.

“Fully being aware of his responsibilities before the party and people, he submitted an application to resign from his assigned positions, quit his job and retire,” it said in statement.

Phuc’s office could not immediately be reached for comment and it was not clear if a replacement has been chosen.

Vietnam has been rife with speculation he would be removed following January’s dismissal of two deputy prime ministers who served under him, as the party doubles down on a “blazing furnace” anti-corruption drive led by its powerful long-serving chief, Nguyen Phu Trong.

Last year, 539 party members were prosecuted or “disciplined” for corruption and “deliberate wrongdoings”, including ministers, top officials and diplomats, according to the party, while police investigated 453 corruption cases, up 50% from 2021.

Trong earlier this month said the party was “more determined” and “more effective and methodical” in its approach, and vowed to deliver results.

IMPACT UNCERTAIN

Opinions vary on the impact of the anti-graft drive on investment and policy.

Le Hong Hiep of the Vietnam Studies Programme at the Singapore’s ISEAS-Yusof Ishak Institute said the purge could pave the way for cleaner more capable leaders to rise.

“As long as the leadership reshuffles do not lead to radical policy changes, their impact on the economy will also be limited,” Hiep posted on his Facebook account.

However, Ha Hoang Hop, a senior visiting fellow at the same institute, said Phuc’s demise and uncertainty over the impact of the crackdown could unnerve investors.

“This could lead Vietnam to a time of instability that would worry foreign friends and investors,” he said.

Phuc’s resignation requires approval from the legislature, which sources on Monday said would hold a rare extraordinary meeting this week, adding to expectation that Phuc’s fate had been sealed.

Phuc, who was known in Vietnam for his friendly approach and love for the national soccer team, was once tipped as a future party General Secretary, the state’s most prestigious job.

As prime minister from 2016 to 2021, he oversaw an average 6% annual economic growth for Asia’s burgeoning manufacturing powerhouse and helped further a liberalisation drive that included trade deals with the European Union and Pacific powers.

Despite his downfall, the government on Tuesday praised his achievements, particularly his pandemic response.

“He has made great efforts in leading, directing and administering the COVID-19 epidemic prevention and control, achieving important results,” it said.

Editing by Kanupriya Kapoor and Martin Petty

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World

Chinese jet came within 10 feet of U.S. military aircraft -U.S. military

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WASHINGTON, Dec 29 (Reuters) – A Chinese military plane came within 10 feet (3 metres) of a U.S. air force aircraft in the contested South China Sea last week and forced it to take evasive maneuvers to avoid a collision in international airspace, the U.S. military said on Thursday.

The close encounter followed what the United States has called a recent trend of increasingly dangerous behavior by Chinese military aircraft.

The incident, which involved a Chinese Navy J-11 fighter jet and a U.S. air force RC-135 aircraft, took place on Dec. 21, the U.S. military said in a statement.

“We expect all countries in the Indo-Pacific region to use international airspace safely and in accordance with international law,” it added.

A U.S. military spokesperson said the Chinese jet came within 10 feet of the plane’s wing, but 20 feet from its nose, which caused the U.S. aircraft to take evasive maneuvers.

The United States has raised the issue with the Chinese government, a separate U.S. official said.

The Chinese embassy in Washington D.C. did not immediately respond to a request for comment.

In the past, China has said that the United States sending ships and aircraft into the South China Sea is not good for peace.

U.S. military planes and ships routinely carry out surveillance operations and travel through the region.

China claims vast swathes of the South China Sea that overlap with the exclusive economic zones of Vietnam, Malaysia, Brunei, Indonesia and the Philippines.

Trillions of dollars in trade flow every year through the waterway, which also contains rich fishing grounds and gas fields.

In a meeting with his Chinese counterpart in November, U.S. Defense Secretary Lloyd Austin raised the need to improve crisis communications, and also noted what he called dangerous behavior by Chinese military planes.

Despite tensions between the United States and China, U.S. military officials have long sought to maintain open lines of communication with their Chinese counterparts to mitigate the risk of potential flare-ups or deal with any accidents.

Australia’s defence department said in June that a Chinese fighter aircraft dangerously intercepted an Australian military surveillance plane in the South China Sea region in May.

Australia said the Chinese jet flew close in front of the RAAF aircraft and released a “bundle of chaff” containing small pieces of aluminum that were ingested into the Australian aircraft’s engine.

In June, Canada’s military accused Chinese warplanes of harassing its patrol aircraft as they monitored North Korea sanction evasions, sometimes forcing Canadian planes to divert from their flight paths.

Relations between China and the United States have been tense, with friction between the world’s two largest economies over everything from Taiwan and China’s human rights record to its military activity in the South China Sea.

U.S. House Speaker Nancy Pelosi’s trip to Taiwan in August infuriated China, which saw it as a U.S. attempt to interfere in its internal affairs. China subsequently launched military drills near the island.

The United States has no formal diplomatic relations with Taiwan but is bound by law to provide the island with the means to defend itself.

Reporting by Idrees Ali and Doina Chiacu
Editing by Frances Kerry and Josie Kao

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Idrees Ali

Thomson Reuters

National security correspondent focusing on the Pentagon in Washington D.C. Reports on U.S. military activity and operations throughout the world and the impact that they have. Has reported from over two dozen countries to include Iraq, Afghanistan, and much of the Middle East, Asia and Europe. From Karachi, Pakistan.

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World

Oil prices fall on economic fears, dollar strength

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LONDON, Dec 6 (Reuters) – Oil prices fell in a volatile market on Tuesday as the U.S. dollar stayed strong and economic uncertainty offset the bullish impact of a price cap placed on Russian oil and the prospects of a demand boost in China.

Brent crude futures were down 61 cents, or 0.74%, to $82.07 a barrel at 1447 GMT. West Texas Intermediate crude (WTI) fell 51 cents, or 0.66%, to $76.42.

Earlier in the session, both contracts fell by more than $1, while Brent rose by more than $1 in Asian trading.

Crude futures on Monday recorded their biggest daily drop in two weeks after U.S. services industry data indicated a strong U.S. economy and drove expectations of higher interest rates than recently forecast.

The U.S. dollar index edged lower on Tuesday but was still buoyed by bets of higher interest rates, following the biggest rally in two weeks on Monday.

A stronger greenback makes dollar-denominated oil more expensive for buyers holding other currencies, reducing demand for the commodity.

“Inflationary headwinds could still cause global economic turbulence in coming months,” said Tamas Varga of oil broker PVM, but added that “China’s gradual COVID opening is a tentatively positive development”.

In China, more cities are easing COVID-19-related curbs, prompting expectations of increased demand in the world’s top oil importer.

The country is set to announce a further relaxation of some of the world’s toughest COVID curbs as early as Wednesday, sources said.

The market was weighing the production impact of a price cap of $60 per barrel on Russian crude imposed by the Group of Seven (G7), the European Union and Australia, contributing to market volatility.

The price cap adds to the disruption caused by the EU’s embargo on imports of Russian crude by sea and similar pledges by the United States, Canada, Japan and Britain.

The embargo is likely to tighten market supply as the EU has to source crude from elsewhere, Commerzbank analyst Carsten Fritsch said in a note.

Russia has declared its intention not to sell oil to anyone who signs up to the price cap.

The threat of losing insurance will limit Russia’s access to the tanker market and could reduce crude exports by 500,000 barrels per day from February levels, said analysts from Rystad Energy in a note.

Russia’s January-November oil and gas condensate production rose 2.2% from a year earlier to 488 million tonnes, according to Deputy Prime Minister Alexander Novak, who expects a slight output decline following the latest sanctions.

Reporting by Rowena Edwards in London, additional reporting by Muyu Xu in Singapore; editing by Jason Neely and Barbara Lewis

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World

Biden and Xi to meet ahead of G20

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NUSA DUA, Indonesia, Nov 14 (Reuters) – Chinese leader Xi Jinping will arrive on the Indonesian island of Bali on Monday for a long-awaited meeting with U.S. President Joe Biden, ahead of a Group of 20 (G20) summit set to be fraught with tension over Russia’s invasion of Ukraine.

The two leaders are expected to discuss Taiwan, Ukraine and North Korea’s nuclear ambitions, issues that will also loom over the G20 that opens on Tuesday without Russian President Vladimir Putin in attendance.

Billionaire Elon Musk, the CEO of Tesla Inc (TSLA.O) and Twitter Inc, addressed a business forum that is part of the summit and said he had “too much work” on his plate.

Speaking by videolink, he appeared lit by candles, wearing a batik shirt sent by the organisers. He said he was speaking from a place that had just lost power.

Foreign Minister Sergei Lavrov will represent the Russian president at the G20 summit – the first since Russia invaded Ukraine in February – after the Kremlin said Putin was too busy to attend.

On the eve of Monday’s meeting with Xi, Biden told Asian leaders in Cambodia that U.S. communication lines with China would stay open to prevent conflict, with tough talks almost certain in the days ahead.

The United States would “compete vigorously” with China while “ensuring competition does not veer into conflict”, said Biden, stressing the importance of peace in the Taiwan Strait during an address to the East Asia Summit in Cambodia. He arrived in Bali on Sunday night.

Relations between the superpowers have sunk to their lowest in decades, marred by growing tensions in recent years over a host of issues ranging from Hong Kong and Taiwan to the South China Sea, trade practices and U.S. restrictions on Chinese technology.

But U.S. officials said there have been quiet efforts by both Beijing and Washington over the past two months to repair ties.

“These meetings do not take place in isolation, they are part of a very sustained process,” said one Biden administration official. “We have engaged in serious, sustained – dozens and dozens of hours – of quiet diplomacy behind the scenes.

“I think we are satisfied with the seriousness that both sides have brought to that process.”

Biden and Xi, who have held five phone or video calls since Biden became president in January 2021, last met in person during the Obama administration when Biden was vice president.

Monday’s face-to-face meeting will be at The Mulia, a luxury beachside hotel on Nusa Dua bay in Bali. It is unlikely to produce a joint statement, the White House has said, but it could help stabilise the bilateral relationship.

Both leaders will attend the opening of the G20 summit on Tuesday.

‘SOME DISCOMFORT’

One of the main topics at the G20 will be Russia’s war in Ukraine and Biden will be “unapologetic” in his defence of the European nation, U.S. officials said last week.

Xi and Putin have grown increasingly close in recent years, bound by their shared distrust of the West, and reaffirmed their partnership just days before Russia invaded Ukraine. But China has been careful not to provide any direct material support that could trigger Western sanctions against it.

Chinese Premier Li Keqiang emphasised the “irresponsibility” of nuclear threats during the summit in Cambodia, suggesting China was uncomfortable with strategic partner Russia’s nuclear rhetoric, the Biden administration official said.

The West has accused Russia of making irresponsible statements on the possible use of nuclear weapons since its February invasion of Ukraine. Russia has in turn accused the West of “provocative” nuclear rhetoric.

“There have been areas where China and Russia have worked together to deepen and broaden their relationship economically,” said the U.S. official. “But on some of these big issues, I think there is undeniably some discomfort in Beijing about what we’ve seen in terms of reckless rhetoric and activity on the part of Russia.”

Russia’s Lavrov said on Sunday the West was “militarising” Southeast Asia in a bid to contain Russian and Chinese interests, setting the stage for more confrontation with Western leaders at the G20.

Ukrainian President Volodymyr Zelenskiy has said he will address the G20 gathering by videolink on Tuesday.

British Prime Minister Rishi Sunak is expected to meet Lavrov at the summit, a Downing Street spokesperson said in a statement. He is also likely to hold a bilateral meeting with Biden.

The G20 bloc, which includes a broad array of countries ranging from Brazil to India and Germany, accounts for more than 80% of the world’s gross domestic product (GDP) and 60% of its population.

Australian Prime Minister Anthony Albanese is due to join Indonesian President Joko Widodo to address the parallel B20 business forum taking place on Monday ahead of the G20 summit.

Reporting by Nandita Bose, Fransiska Nangoy, Leika Kihara and Simon Lewis in Nusa Dua; Writing by Kay Johnson and Raju Gopalakrishnan; Editing by Ed Davies and Robert Birsel

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World

G7 urges China to abstain from threats, use of force

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MUENSTER, Germany, Nov 4 (Reuters) – The Group of Seven on Friday urged China to abstain from “threats, coercion, intimidation, or the use of force,” while expressing their aim for cooperation where possible to tackle global challenges including security, global health and climate.

The mildly-worded communique, wrapping up two days of meetings by the foreign ministers of the world’s seven wealthiest democracies, also reiterated the importance of peace and stability across the Taiwan Straits.

The G7 increasingly agrees on the need for a coordinated response to Chinese President Xi Jinping’s ambitions following a congress of the ruling Communist party, a senior U.S. State Department official said earlier, but the communique did not make a reference to a common goal.

The gathering coincided with a one-day visit by German Chancellor Olaf Scholz to China, which fuelled concern that Germany would continue to prioritize economic relations with its largest trading partner over security and strategic considerations.

This could risk divisions among Western allies that have sought to adopt a tougher stance towards China in recent years.

“We remind China of the need… to abstain from threats, coercion, intimidation, or the use of force,” the G7 communique said. “We strongly oppose any unilateral attempts to change the status quo by force or coercion.”

The G7 said it remained “seriously concerned about the situation in and around the East and South China Seas” after China earlier this year staged war games near Taiwan.

China claims the self-governed island as its own territory and has never renounced the use of force to bring the island under its control.

Moreover the G7 said they would continue to raise concerns with China on its reported human rights violations and abuses, including in Xinjiang and Tibet, and on the “continued erosion of Hong Kong’s rights, freedoms and autonomy”.

The U.S. State Department official told reporters there was had been an “increasing convergence of the views on what China’s ultimate strategy, both domestically but also globally, is” over the last 1-1/2 years.

“Coming out of the party congress, I think there’s an increasing recognition of ultimately what President Xi’s ambitions are and the need for a coordinated response to that,” he said, speaking on condition of anonymity.

“That’s something that I think will be a focus of this group as we head into Japan’s presidency next year,” he noted, referring to Japan taking over the G7’s rotating presidency from Germany at the start of next year.

Sino-Japanese relations have long been plagued by a dispute over a group of tiny uninhabited East China Sea islets, a legacy of Japan’s World War Two aggression and regional rivalry.

On Friday Japan’s Sankei newspaper reported that the Japanese and Chinese governments had started planning a meeting between Xi and Japanese Prime Minister Fumio Kishida for mid-November.

European Union foreign policy chief Josep Borrell cautioned earlier in the day that China should not be put in the same category as Russia, which invaded Ukraine in February.

“It is clear that China is… becoming much more assertive, much more on a self-reliant course,” Borrell told reporters.

“But for the time being, many member states have a strong economic relationship with China, and I don’t think we can put China and Russia on the same level.”

The G7 said in their statement that they aimed for “constructive cooperation with China, where possible and in our interest” on global issues such as health and climate change.

Reporting by Humeyra Pamuk, Sarah Marsh and Sabine Siebold; additional reporting by Sarah Marsh; editing by Philippa Fletcher and Jonathan Oatis

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China’s Xi greets Vietnamese ally with ceremony, call for defiance

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BEIJING, Oct 31 (Reuters) – Chinese President Xi Jinping told the visiting leader of Vietnam’s ruling Communist Party on Monday that both countries and parties should “never let anyone interfere” with their progress, state broadcaster CCTV reported.

The bullish message against outside interference came at a time of strained relations between China and the West, especially with the United States over Taiwan, the Ukraine conflict, trade and other issues.

Xi and Nguyen Phu Trong, both unmasked, shook hands and embraced before taking part in a televised welcome ceremony in Beijing’s Great Hall of the People – an unusual display of close contact between Xi and another leader, as China persists with strict COVID lockdowns.

Trong’s was the first visit by a foreign leader since Xi secured a precedent-breaking third term as General Secretary at the Chinese Communist Party’s 20th party congress this month.

“The development of the cause of human progress is a long and tortuous process, and the development of socialist countries faces a very complicated international environment and serious risks and challenges,” Xi said, according to CCTV.

“The Chinese and Vietnamese parties should persist in working for the happiness of the people and the progress of mankind, push forward socialist modernization with all their might, and never let anyone interfere with our progress or let any force shake the institutional foundation of our development,” Xi added, according to CCTV.

The visit by Trong – who holds more power than either Vietnam’s president or prime minister – was a showcase of Communist unity.

Vietnam and China are among the last five communist-ruled states in the world, along with Cuba, Laos and North Korea.

Pakistan’s Prime Minister Shehbaz Sharif and German Chancellor Olaf Scholz will also visit China this week.

China is Vietnam’s largest trading partner and a key source of imports for its fast-growing economy, including raw materials and machinery for its crucial manufacturing sector.

Though the two neighbours have a long history of mistrust and territorial disputes, including over islands and waters in the South China Sea, their Communist parties remain officially close.

Like Xi, Trong has also stayed on as party chief beyond the usual tenure of one or two terms, cementing his influence in a party traditionally governed by consensus among its politburo and powerful central committee. His last trip abroad was to Cambodia.

(This story has been refiled to fix the spelling of Vietnamese in the headline)

Reporting by Martin Quin Pollard; additional reporting by Beijing Newsroom; Editing by Andrew Heavens

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Business

Oil tumbles on inflation woes, Iraq exports

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The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, March 21, 2016. REUTERS/Leonhard Foeger

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LONDON, Aug 30 (Reuters) – Oil prices fell Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.

Brent crude futures for October settlement fell $2.45, or 2.33%, to $102.64 a barrel by 1022 GMT, after climbing 4.1% on Monday, the biggest increase in more than a month.

The October contract expires on Wednesday and the more active November contract was at $101.12 a barrel, down 1.76%.

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U.S. West Texas Intermediate crude was at $95.46 a barrel, down $1.55, or 1.6%, following a 4.2% rise in the previous session.

Inflation is near double-digit territory in many of the world’s biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more

“The economy will continue to remain slow with the Fed’s aggressive monetary policies. Investors are now waiting for the monthly employment data on Friday,” said Kunal Sawhney, chief executive officer, Kalkine Group.

Prices took a tumble after comments from Iraq’s state-owned marketer SOMO that the country’s oil exports are unaffected by unrest, UBS analyst Giovanni Staunovo said. read more

Baghdad seeing its worst fighting for years as clashes between Shi’ite Muslim groups spill into a second day. read more

SOMO also said on Tuesday it can redirect more oil to Europe if required. read more

The market awaits the upcoming meeting of the Organization of the Petroleum Exporting Countries and allies such as Russia, known as OPEC+, on Sept. 5.

Saudi Arabia last week raised the possibility of production cuts from OPEC+, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West.

“Possible reduction in OPEC+ production is the reason why the oil market has thumbed its nose at weakening equities and the strong dollar,” said Tamas Varga of oil broker PVM.

Meanwhile, the American Petroleum Institute, an industry group, is due to release data on U.S. crude inventories at 4:30 p.m. EDT (2030 GMT) on Tuesday.

U.S. crude oil stockpiles likely fell 600,000 barrels in the week to Aug. 26, with distillates and gasoline inventories also seen down, a preliminary Reuters poll showed on Monday.

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Reporting by Rowena Edwards, additional reporting by Muyu Xu in Singapore; Editing by Christian Schmollinger and Louise Heavens

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World

Oil settles lower as halted Russian pipeline flows appear temporary, demand fears rise

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Sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant

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  • Russia oil exports halted via southern leg of Druzhba pipeline
  • EU puts forward ‘final’ text to resurrect Iran nuclear deal
  • API data shows crude oil inventories up last week – sources
  • Dollar edges lower as traders await U.S. inflation report
  • Recession, demand expectations also weigh on market

NEW YORK, Aug 9 (Reuters) – Oil prices settled slightly lower on Tuesday after a see-saw session as worries that a slowing economy could cut demand vied with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine.

Crude prices have been under pressure for weeks as fears mounted that a recession could cut oil demand.

Brent crude settled at $96.31 a barrel, losing 34 cents, or 0.4%. U.S. West Texas Intermediate (WTI) crude settled at $90.50 a barrel, shedding 26 cents, or 0.3%. During the session, both benchmarks rose and fell by more than $1 a barrel.

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Ukraine halted oil flows on the Druzhba oil pipeline to parts of central Europe because Western sanctions had prevented a payment from Moscow for transit fees from going through.

Flows along the southern route of the Druzhba pipeline have been affected while the northern route serving Poland and Germany was uninterrupted.

Oil initially moved higher on the pipeline news and expectations that the shutdown would tighten supplies, but prices reversed course as details became clearer around what caused the disruption and that flows were expected to resume within days. read more

“Considering the fact it is not the Russian side shutting down pipe, but the Ukrainian side, it would figure to be a situation that can resolved sooner rather than later,” Bob Yawger, director of energy futures at Mizuho in New York, said in a note.

Prices were pressured by talks of a last-ditch effort by European nations to revive the Iran nuclear accord. On Monday, the European Union put forward a “final” text to revive the 2015 Iran deal. A senior EU official said a final decision on the proposal, which needs U.S. and Iranian approval, was expected within “very, very few weeks”.

Talks have dragged on for months without a deal.

Iran’s crude exports, according to tanker trackers, are at least 1 million barrels per day below their rate in 2018 when former U.S. President Donald Trump exited the nuclear agreement.

Oil is now down more than $40 from its peak following Russia’s invasion of Ukraine, which took Brent briefly to $139 a barrel.

U.S. crude oil inventories were also signaling slacking demand, according to market sources citing American Petroleum Institute figures. Crude stocks rose by about 2.2 million barrels for the week ended Aug. 5. Analysts had forecast a small 400,000-barrel drop in crude inventories. Official government data is due on Wednesday at 10:30 a.m. EDT.

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Additional reporting by Alex Lawler, Sonali Paul and Emily Chow
Editing by Louise Heavens, Mark Potter, Barbara Lewis and David Gregorio

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China says it ‘drove’ away U.S. destroyer that sailed near disputed isles

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Arleigh Burke-class guided-missile destroyer USS Benfold (DDG 65), forward-deployed to the U.S. 7th Fleet area of operations, conducts underway operations in the South China Sea, in this handout picture released on July 13, 2022. U.S. Navy/Handout via REUTERS

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BEIJING, July 13 (Reuters) – A U.S. destroyer sailed near the disputed Paracel Islands in the South China Sea on Wednesday, drawing an angry reaction from Beijing, which said its military had “driven away” the ship after it illegally entering territorial waters.

The United States regularly carries out what it calls Freedom of Navigation Operations in the South China Sea challenging what it says are restrictions on innocent passage imposed by China and other claimants.

The U.S. Navy said the USS Benfold “asserted navigational rights and freedoms in the South China Sea near the Paracel Islands, consistent with international law”.

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China says it does not impede freedom of navigation or overflight, accusing the United States of deliberately provoking tensions.

The People’s Liberation Army’s Southern Theatre Command said the U.S. ship’s actions seriously violated China’s sovereignty and security by illegally entering China’s territorial waters around the Paracels, which are also claimed by Vietnam and Taiwan.

“The PLA’s Southern Theatre Command organised sea and air forces to follow, monitor, warn and drive away” the ship, it added, showing pictures of the Benfold taken from the deck of the Chinese frigate the Xianning.

“The facts once again show that the United States is nothing short of a ‘security risk maker in the South China Sea’ and a ‘destroyer of regional peace and stability.'”

The U.S. Navy said the Chinese statement on the mission was “false” and the latest in a long string of Chinese actions to “misrepresent lawful U.S. maritime operations and assert its excessive and illegitimate maritime claims at the expense of its Southeastern Asian neighbours in the South China Sea”.

The United States is defending every country’s right to fly, sail, and operate wherever international law allows, and nothing China “says otherwise will deter us”, it added.

China seized control of the Paracel Islands from the then-South Vietnamese government in 1974.

Monday marked the sixth anniversary of a ruling by an international tribunal that invalidated China’s sweeping claims to the South China Sea, a conduit for about $3 trillion worth of ship-borne trade each year.

China has never accepted the ruling.

China claims almost the entire South China Sea. Vietnam, the Philippines, Malaysia, Taiwan and Brunei all have competing and often overlapping claims.

China has built artificial islands on some of its South China Sea holdings, including airports, raising regional concerns about Beijing’s intentions.

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Reporting by Beijing Newsroom; Additional reporting by Ben Blanchard in Tapei; Writing by Bernard Orr; Editing by Muralikumar Anantharaman and Kim Coghill

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U.S., Chinese foreign ministers hold first in person talks since October

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NUSA DUA, Indonesia, July 9 (Reuters) – U.S. Secretary of State Antony Blinken and China’s Foreign Minister Wang Yi met on Saturday for the first in-person talks since October after attending a G20 summit where the top U.S. diplomat led efforts to pressure Russia over its war in Ukraine.

U.S. officials say Blinken’s meeting with Wang in Bali, Indonesia, including a morning session of talks and a working lunch, is aimed at keeping the difficult U.S. relationship with China stable and preventing it from veering inadvertently into conflict. read more

“There is no substitute for face to face … diplomacy, and in a relationship as complex and consequential as the one between the United States and China there is a lot to talk about,” Blinken told reporters at the beginning of the meeting.

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“We very much look forward to a productive and constructive conversation,” he said.

Blinken is expected to repeat warnings to China not to support Russia’s war in Ukraine and the two sides will address contentious issues that include Taiwan, China’s extensive South China Sea claims, its expansion of influence in the Pacific, human rights, and trade tariffs.

However, both sides share an interest in keeping the relationship stable and Blinken and U.S. officials say President Joe Biden and Chinese President Xi Jinping are expected to speak again in coming weeks, something Saturday’s meeting is likely to address.

“China and the United States are two major countries, so it is necessary for the two countries to maintain normal exchanges,” Wang told reporters.

“At the same time, we do need to talk together to ensure that this relationship will continue to move forward along the right track,” Wang said.

Daniel Russel, a top U.S. diplomat for East Asia under former President Barack Obama who has close contact with Biden administration officials, said he believed a key aim for the meeting would be to explore the possibility of an in-person meeting between Biden and Xi, their first as leaders, possibly on the sidelines of a G20 summit in Bali in November.

The United States calls China its main strategic rival and is concerned it might one day attempt to take over the self-ruled democratic island of Taiwan, just as Russia attacked Ukraine.

The top U.S. diplomat for East Asia, Daniel Kritenbrink, said on Tuesday he expected a “candid” exchange with Wang and said it would be another opportunity “to convey our expectations about what we would expect China to do and not to do in the context of Ukraine”.

Shortly before Russia’s Feb. 24 Ukraine invasion, Beijing and Moscow announced a “no limits” partnership. But U.S. officials have said they have not seen China evade tough U.S.-led sanctions on Russia or provide it with military equipment.

However, China has declined to condemn Russia’s actions and it has criticized the sweeping sanctions.

U.S. officials have warned of consequences, including sanctions, should China start offering material support for Russia’s war effort, which it calls a “special military operation” to degrade the Ukrainian military though Kyiv counters that it is an imperial-style land grab.

Despite their strategic rivalry, the world’s two largest economies remain major trading partners and Biden has been considering scrapping tariffs on a range of Chinese goods to curb surging U.S. inflation before the November midterm elections, with control of Congress in focus. read more

(This story has been refiled to edit headline to show first in person talks)

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Additional reporting by Ryan Woo in Beijing; Writing by Ed Davies; Editing by Christian Schmollinger, Robert Birsel

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