Tag Archives: Beijing

U.S. to require approvals on work of Chinese diplomats in America

By Humeyra Pamuk and David Brunnstrom

WASHINGTON (Reuters) – The United States said on Wednesday it would now require senior Chinese diplomats to get State Department approval before visiting U.S. university campuses and holding cultural events with more than 50 people outside mission grounds.

Washington cast the move as a response to what it said was Beijing’s restrictions on American diplomats based in China. It comes as part of a Trump administration campaign against alleged Chinese influence operations and espionage activity.

The State Department said it also would take action to help ensure all Chinese embassy and consular social media accounts were “properly identified.”

“We’re simply demanding reciprocity. Access for our diplomats in China should be reflective of the access that Chinese diplomats in the United States have, and today’s steps will move us substantially in that direction'” U.S. Secretary of State Mike Pompeo told a news briefing.

It was the latest U.S. step to restrict Chinese activity in the United States in the run-up to the November presidential election, in which President Donald Trump has made a tough approach to China a key foreign policy platform.

Pompeo also said Keith Krach, the State Department’s undersecretary for Economic Growth, had written recently to the governing boards of U.S. universities alerting them to threats posed by the Chinese Communist Party.

“These threats can come in the form of illicit funding for research, intellectual property theft, intimidation of foreign students and opaque talent recruitment efforts,” Pompeo said.

He said universities could ensure they had clean investments and endowment funds, “by taking a few key steps to disclose all (Chinese) companies’ investments invested in the endowment funds, especially those in emerging-market index funds.”

On Tuesday, Pompeo said he was hopeful Chinese Confucius Institute cultural centers on U.S. university campuses, which he accused of working to recruit “spies and collaborators,” would all be shut by the end of the year.

Last month, Pompeo labeled the center that manages the dozens of Confucius Institutes in the United States “an entity advancing Beijing’s global propaganda and malign influence” and required it to register as a foreign mission.

The State Department announced in June it would start treating four major Chinese media outlets as foreign embassies, calling them mouthpieces for Beijing.

It took the same step against five other Chinese outlets in February, and in March said it was slashing the number of journalists allowed to work at U.S. offices of major Chinese media outlets to 100 from 160 due to Beijing’s “long-standing intimidation and harassment of journalists.”

(Reporting by Humeyra Pamuk and David Brunnstrom; Editing by Chizu Nomiyama and Bill Berkrot)

Pentagon concerned by China’s nuclear ambitions, expects warheads to double

By Idrees Ali and Phil Stewart

WASHINGTON (Reuters) – China is expected to at least double the number of its nuclear warheads over the next decade from the low 200’s now and is nearing the ability to launch nuclear strikes by land, air and sea, a capacity known as a triad, the Pentagon said on Tuesday.

The revelations came as tensions rise between China and the United States and as Washington seeks to have Beijing join a flagship nuclear arms treaty between the United States and Russia.

In its annual report to Congress on China’s military, the Pentagon said that China has nuclear warheads in the low 200’s, the first time the U.S. military has disclosed this number. The Federation of American Scientists has estimated that China has about 320 nuclear warheads.

The Pentagon said the growth projection was based on factors including Beijing having enough material to double its nuclear weapons stockpile without new fissile material production.

The Pentagon’s estimate is in line with an analysis by the Defense Intelligence Agency.

“We’re certainly concerned about the numbers … but also just the trajectory of China’s nuclear developments writ large,” Chad Sbragia, deputy assistant secretary of defense for China, told reporters.

Earlier this year, China’s Communist Party-backed newspaper Global Times said Beijing needs to expand the number of its nuclear warheads to 1,000 in a relatively short time.

Sbragia said China was also nearing completion of its nuclear triad capacity, suggesting China is further along than previously publicly known. China has only two of the three legs of triad operational but is developing a nuclear capable air-launched ballistic missile.

The report said that in October 2019, China publicly revealed the H-6N bomber as its first nuclear capable air-to-air refueling bomber.

Washington has repeatedly called for China to join in trilateral negotiations to extend New START, a U.S.-Russian nuclear arms treaty that is due to expire in February.

China has said it has no interest in joining the negotiation, given that the U.S. nuclear arsenal is about 20 times the size of China’s.

In July, a senior Chinese diplomat said Beijing would “be happy to” participate in trilateral arms control negotiations, but only if the United States were willing to reduce its nuclear arsenal to China’s level.

China’s growing nuclear arsenal should not be used as an excuse for the United States and Russia not to extend New START, Kingston Reif, director for disarmament and threat reduction policy at the Arms Control Association advocacy group, said.

It “further reinforces the importance of extending New START and the folly of conditioning extension on China and China’s participation in arms control,” Reif added.

China’s nuclear arsenal is a fraction of the United States’, which has 3,800 nuclear warheads stockpiled, and Russia’s, which has roughly 4,300, according to the Federation of American Scientists.

“PREVENT TAIWAN INDEPENDENCE”

Tensions have been simmering between China and the United States for months. Washington has taken issue with China’s handling of the novel coronavirus outbreak and moves to curb freedoms in Hong Kong. The increasingly aggressive posture comes as President Donald Trump bids for re-election in November.

Another source of tension has been Taiwan. China has stepped up its military activity around the democratic island Beijing claims as sovereign Chinese territory, sending fighter jets and warships on exercises close to Taiwan.

The Pentagon report, based on 2019 information, said China’s military continued to “enhance its readiness” to prevent Taiwan’s independence and carry out an invasion if needed.

(Reporting by Idrees Ali and Phil Stewart; Editing by Cynthia Osterman)

Italy says China a key strategic partner, despite U.S. concerns

By Angelo Amante

ROME (Reuters) – Italy and China need to forge closer ties, Italian Foreign Minister Luigi Di Maio said on Tuesday, potentially putting Rome at odds with Washington, which has raised alarm over Beijing’s economic ambitions.

Di Maio was speaking after talks with the Chinese government’s top diplomat State Councillor Wang Yi, who was beginning a visit to Europe that will also include the Netherlands, Norway, France and Germany.

Italy became the first major Western economy to join China’s international infrastructure project, the Belt and Road Initiative, when it signed a raft of accords in 2019. However, the move has yielded little for Italy so far.

“It was a very fruitful meeting,” Di Maio said, adding that he had discussed with Wang how to “relaunch (our) strategic partnership from the economic and industrial view point”.

Wang told reporters it was important for China and the European Union to strengthen relations and deepen cooperation to tackle the coronavirus.

U.S. President Donald Trump blames Beijing for the spread of the disease, which emerged in China last year. He also wants to restrict the global development of Chinese telecom giant Huawei Technologies Co., accusing it of acting as a Trojan Horse for Chinese cyber spies.

Italy has not joined the United States in imposing restrictions on Huawei and Di Maio made no reference to the company in his remarks. In an apparent reference to tensions with Washington, Wang said China did not want to see a Cold War.

“A Cold War would be a step backwards,” he said. “We will not let other countries do this for their own private interests, while damaging the interests of other countries.”

Di Maio said he had raised the issue of Hong Kong with Wang, saying its citizens’ rights and freedoms had to be respected.

China unveiled a national security law last month which Hong Kong pro-democracy protesters and the West say breaches the 1984 Sino-British treaty that guaranteed Hong Kong’s autonomy.

Drugmakers slash prices to win China’s bulk-buy contracts: state media

BEIJING/SHANGHAI (Reuters) – Drugmakers have slashed prices by up to 95% to win state contracts in China’s largest bidding round of its drug procurement program, state media said on Thursday.

Beijing has implemented a national scheme where global pharmaceutical companies and Chinese generic drugmakers vie to sell their products in bulk at public hospitals.

In the latest bidding round for contracts worth hundreds of billions yuan in total, drugmakers cut prices by 53% on average, state media Xinhua reported, citing preliminary results.

It involves 55 types of medicines, more than the previous two rounds.

Drugs open for bidding covered some products that contributed more than $1 billion each to foreign drugmakers’ sales in 2019 but face challenges from generic versions offered by local drugmakers.

They included AstraZeneca Plc’s heart disease treatment Brilinta, and blood-thinner Eliquis, jointly developed by Pfizer Inc. and Bristol Myers Squibb Co (BMS). Contracts for the two treatments were won by Chinese companies, according to preliminary results published by procurement authorities.

A BMS representative said that the company decided not to join the bidding for Eliquis, and that it will speed up introducing new drugs in China.

AstraZeneca did not reply to a Reuters request for comment.

Foreign companies generally quoted higher prices in Thursday’s bidding and barely secured any contracts, said ICBC International Research analyst Zhang Jialin.

More expensive brand-name drugs still had opportunities in the market not covered by the national procurement scheme, thanks to their higher profile among patients and doctors compared with cheaper generic drugs, Zhang said.

Thursday’s bidding also showed China’s generic drugs market starting to concentrate around a few big players, Zhang added.

Units of Shanghai Pharmaceuticals Holding won bids for six products, the parent company said in a filing.

For smaller firms, the bulk-buy scheme might risk driving them close to losses, said Wang Yue, a professor at Peking University’s School of Health Humanities.

“Many companies actually have no power to bargain with the government,” he said. “When the market changes, like when labor and logistics costs rise, the (low drug) prices are hard to sustain.”

For most products in Thursday’s bidding, if a single company won the bid, it could provide up to half of the total procurement volume in the first year. If there were at least four winners, 70-80% of the volume could be shared, procurement authorities said in official guidance last month.

(Reporting by Roxanne Liu in Beijing and Brenda Goh in Shanghai; Editing by Nick Macfie and Mark Potter)

Hong Kong’s Apple Daily vows to fight on after owner arrested

By Yoyo Chow

HONG KONG (Reuters) – Hong Kong’s Apple Daily tabloid responded with defiance on Tuesday to the arrest of owner Jimmy Lai under a new national security law imposed by Beijing, promising to fight on in a front-page headline over an image of Lai in handcuffs.

Readers queued from the early hours to get copies of the pro-democracy tabloid a day after police raided its offices and took Lai into detention, the highest-profile arrest under the national law.

“Apple Daily must fight on,” the front-page headline read, amid fears the new law is eroding media freedoms guaranteed when the former British colony returned to Chinese rule in 1997.

“The prayers and encouragement of many readers and writers make us believe that as long as there are readers, there will be writers, and that Apple Daily shall certainly fight on.”

More than 500,000 copies were printed, compared with the usual 100,000, the paper said on its website.

Mainland-born Lai, who was smuggled into Hong Kong on a fishing boat when he was a penniless 12-year-old, is one of the most prominent democracy activists in the city and an ardent critic of Communist Party rule in Beijing.

His arrest comes amid a crackdown on the pro-democracy opposition in Hong Kong that has drawn international criticism and raised fears for freedoms promised by Beijing under a “one country, two systems” formula.

The sweeping security law imposed on June 30 punishes anything China considers secession, subversion, terrorism or collusion with foreign forces with up to life in prison.

The city’s Beijing-backed government and Chinese authorities say the law is necessary to restore order after months of at times violent anti-government protests last year, sparked by fears China was slowly eroding those freedoms.

Hong Kong has since become another source of contention between the United States and China, whose relations were already at their most strained in years over issues including trade, the coronavirus, China’s treatment of its Uighur Muslim minority and its claims in the South China Sea.

U.S. Secretary of State Mike Pompeo on Monday called Lai a “patriot”, saying Beijing had “eviscerated” Hong Kong’s freedoms.

Britain said Lai’s arrest was further evidence the security law was a “pretext to silence opposition”, to which China’s embassy replied by urging London to stop “using freedom of the press as an excuse to discredit” the law.

‘DANCING WITH THE ENEMY’

Police detained Lai for suspected collusion with foreign forces after about 200 officers searched the newspaper’s offices, collecting 25 boxes of evidence.

Handcuffed and apparently wearing the same clothes after spending the night in jail, he was driven by police on Tuesday to his yacht which police searched, according to media footage.

Beijing has labelled Lai a “traitor” in the past and issued a statement supporting his arrest.

The Beijing-backed China Daily newspaper said in an editorial Lai’s arrest showed “the cost of dancing with the enemy.” The paper added that “justice delayed didn’t mean the absence of justice”.

Police arrested 10 people in all on Monday, including other Apple Daily executives and 23-year-old Agnes Chow, one of the former leaders of young activist Joshua Wong’s Demosisto pro-democracy group, which disbanded before the new law came into force.

Chow was released on bail late on Tuesday, calling the arrest of herself and other activists “political persecution.”

“It’s very obvious that the regime is using the national security law to suppress political dissidents,” she said.

Hong Kong’s pro-democracy movement has managed to sustain broad support across the community.

Shares in Next Digital, which publishes Apple Daily, surged for a second day, gaining more than 2,078% from Friday’s close, after online pro-democracy forums called on investors to show support.

Its market value rose as high as HK$5.17 billion ($666.7 million) from some HK$200 million.

In the working-class neighborhood of Mong Kok, dozens of people queued from as early as 2:00 a.m. (1800 GMT) to buy Lai’s paper.

“What the police did yesterday interfered with press freedom brutally,” said 45-year-old Kim Yau as she bought a copy.

“All Hong Kong people with a conscience have to support Hong Kong today, support Apple Daily.”

In another show of support, long queues formed at lunch time at the Cafe Seasons restaurant owned by Lai’s son, Ian, who was also arrested on Monday.

The United States last week imposed sanctions on several top officials over what it said was their role in curtailing political freedoms in Hong Kong. China responded with sanctions on top U.S. legislators and others.

($1 = 7.7501 Hong Kong dollars)

(Additional reporting by Jessie Pang, Carol Mang, Donny Kwok and Clare Jim; Writing by Marius Zaharia; Editing by Stephen Coates, Robert Birsel and Nick Macfie)

U.S. health chief, visiting Taiwan, attacks China’s pandemic response

By Yimou Lee

TAIPEI (Reuters) – U.S. Health Secretary Alex Azar attacked China’s response to the coronavirus pandemic on Tuesday and said that if such an outbreak had emerged in Taiwan or the United States it could have been “snuffed out easily”.

The Trump administration has repeatedly criticized Beijing for trying to cover up the virus outbreak, first identified in the central Chinese city of Wuhan late last year, and prevaricating on information sharing. China angrily denies the accusations.

“The Chinese Communist Party had the chance to warn the world and work with the world on battling the virus. But they chose not to, and the costs of that choice mount higher every day,” Azar said in Taipei, capital of self-ruled Taiwan, an island China claims as its own.

As the virus emerged, China did not live up to its “binding” international obligations in a betrayal of the cooperative spirit needed for global health, he added, wearing a face mask as he has done for all his public events in Taiwan.

“I believe it is no exaggeration to say that if this virus had emerged in a place like Taiwan or the United States, it might have been snuffed out easily: rapidly reported to public health authorities, who would have shared what they knew with health professionals and with the general public,” Azar said.

“Instead, Beijing appears to have resisted information sharing, muzzling doctors who spoke out and hobbling the world’s ability to respond.”

The United States has the highest number of coronavirus infections and deaths in the world and President Donald Trump has come under scathing attack from critics at home for not taking what he calls the “China virus” seriously enough.

Taiwan has been praised by health experts for its early and effective steps to control the outbreak, with only 480 infections, including seven deaths.

Azar arrived in Taiwan on Sunday as the highest-level U.S. official to visit in four decades, a trip condemned by China.

China considers Taiwan a breakaway province and has vowed to bring it under its rule, by force if necessary.

Chinese fighter jets on Monday briefly crossed the median line of the sensitive Taiwan Strait, and were tracked by Taiwanese anti-aircraft missiles, part of what Taipei sees as a pattern of harassment by Beijing.

Washington broke off official ties with Taipei in 1979 in favor of Beijing but is still Taiwan’s biggest arms supplier. The Trump administration has made strengthening its support for the democratic island a priority as relations with China sour over issues including human rights, the pandemic, Hong Kong and trade.

Azar said the world should recognize Taiwan’s health accomplishments and not try to push it out, pointing to Taiwan’s exclusion from the World Health Organization due to Chinese objections.

“This behavior is in keeping with Beijing’s approach to WHO and other international organisations. The influence of the PRC (People’s Republic of China) far outweighs its investment in this public health institution – and it uses influence not to advance public health objectives, but its own narrow political interests.”

Both China and the WHO say Taiwan has been provided with the help it needs during the pandemic, which Taiwan disputes.

(Reporting by Yimou Lee; Writing by Ben Blanchard; Editing by Lincoln Feast and Nick Macfie)

Hong Kong police raid on newspaper filmed in real time as China flexes muscles

By James Pomfret

HONG KONG (Reuters) – Six weeks after China imposed sweeping national security laws on Hong Kong, police moved in on media tycoon Jimmy Lai, one of the most outspoken critics of Beijing in the city.

Lai, 71, was whisked away from his home early on Monday morning by national security police, part of a citywide operation that also saw eight other men arrested, including several of his senior executives.

Then, just before 10 a.m., hundreds of police descended on Lai’s corporate Next Digital headquarters, where his flagship Apple Daily is produced and published.

Staffers said they asked police what legal grounds they had for entering. But these questions were largely ignored as more than 200 police streamed in, according to a live feed of the unfolding drama.

Apple Daily’s Editor-in-Chief Ryan Law, who was helping film and comment on the Facebook live feed, could be seen rushing about the building as he tried to report on events breaking in his own newsroom.

“This is, I believe, the first time in Hong Kong that police have initiated a mass search on a media outlet like this,” he said, panting, as he scaled a back staircase with a colleague to get around the mass of police officers.

As news of the raid spread, more than 10,000 people tuned in, watching as Law defied police warnings to stop filming.

The newsroom was lightly staffed at the time.

But the few employees there, some clad in shorts and sneakers, were told to produce identity documents and register with the police. Some demanded to first see a search warrant.

Some desks were festooned with poster art in support of pro-democracy protests last year, and the Umbrella movement of 2014. One read: “Who’s afraid of the truth!”

More police began arriving, and fanned across the newsroom, following by Law as they meandered through the unmanned cubicles in scattershot fashion, lifting a paper here, plucking a folder from a cabinet there.

“What is the scope of your search area?” one voice was heard shouting off camera. A male officer replied that such inquiries should be put to his supervisors.

Several executive offices, including Lai’s, were sealed off with a red cordon and guarded by police.

PREPARED FOR RAID

Two months before, in an interview with Reuters in one of those sealed rooms, Lai said he was bracing for just such a day: shifting assets abroad and making preparations with lawyers.

“Everything will be piled on us,” he had said.

At around 11 a.m., police led the crew-cut Lai into his office in handcuffs. When he went to the toilet, an entourage of around 20 officers followed. Several other senior executives were also shown being taken into the building.

The police said in a statement that they had a court-issued warrant for their search, and that the nine men had all been arrested for suspected national security law violations, including collusion with foreign powers.

The police did not reveal the names or any specific charges for any of those arrested.

The raid, though expected, rattled some staffers.

Months before the law took effect, the newspaper had shredded documents, uploaded digitized files to overseas servers and safeguarded sources, two senior reporters told Reuters, speaking anonymously because of the sensitivity of the situation.

“I had prepared myself mentally for this,” one said. “But emotionally I feel a little conflicted. It’s happened so quickly. The government is finally taking this drastic step to destroy the city’s media freedoms.”

Police carted 25 boxes of evidence from the building and blocked reporters from other outlets from entering.

Senior police on the scene tried at one point to prevent Apple Daily reporters working at their desks, but relented upon fierce objections from staff present.

Law, Apple Daily’s chief editor, said the paper would continue to be published no matter what.

“Business as usual,” he said in a text message to Reuters.

(Additional reporting by Greg Torode and Jessie Pang; Editing by Gerry Doyle and Raju Gopalakrishnan)

China seizes U.S. consulate in Chengdu, retaliating for Houston

By Martin Quin Pollard and Thomas Peter

CHENGDU, China (Reuters) – China took over the premises of the U.S. consulate in the southwestern city of Chengdu on Monday, after ordering the facility to be vacated in retaliation for China’s ouster last week from its consulate in Houston, Texas.

The seizure capped a dramatic escalation in tensions between the world’s two biggest economies that began when employees at China’s Houston consulate were seen burning documents in a courtyard last Tuesday, hours before Beijing announced that it had been ordered to leave the facility.

The U.S. consulate in Chengdu, in Sichuan province, was closed as of 10 a.m (0200) on Monday, and Chinese authorities had entered the building from the front door, China’s Ministry of Foreign Affairs said in a statement.

On Friday, Beijing announced that it had asked the United States to close its Chengdu post, and gave the Americans 72 hours to vacate, the same amount of time China was given to leave its Houston mission, which was shut on Friday.

“We are disappointed by the

By Martin Quin Pollard and Thomas Peter

CHENGDU, China (Reuters) – China took over the premises of the U.S. consulate in the southwestern city of Chengdu on Monday, after ordering the facility to be vacated in retaliation for China’s ouster last week from its consulate in Houston, Texas.

The seizure capped a dramatic escalation in tensions between the world’s two biggest economies that began when employees at China’s Houston consulate were seen burning documents in a courtyard last Tuesday, hours before Beijing announced that it had been ordered to leave the facility.

The U.S. consulate in Chengdu, in Sichuan province, was closed as of 10 a.m (0200) on Monday, and Chinese authorities had entered the building from the front door, China’s Ministry of Foreign Affairs said in a statement.

On Friday, Beijing announced that it had asked the United States to close its Chengdu post, and gave the Americans 72 hours to vacate, the same amount of time China was given to leave its Houston mission, which was shut on Friday.

“We are disappointed by the Chinese Communist Party’s decision and will strive to continue our outreach to the people in this important region through our other posts in China,” a U.S. State Department spokesperson said in an email to Reuters.

At midday on Monday, police removed a roadblock that had restricted access to the Chengdu facility, and dozens of passersby stopped to take photos and videos.

One man stood across the street and played the Chinese national anthem from his phone.

“We feel very sad about the breaking down of the relationship between China and U.S.,” said a bystander outside the facility who said his surname was Li. He said he was worried about the impact of deteriorating relations on Chinese citizens who want to travel or study in the United States.

Grey sheet-like material was placed over the spot near the entrance where a plaque had been affixed, and over the place where there was large lettering saying “U.S. Consulate General”.

The U.S. embassy issued a video in Chinese on its Twitter feed: “The U.S. consulate in Chengdu has been proudly promoting the mutual understanding between Americans and the people in Sichuan, Chongqing, Guizhou, Yunnan and Tibet since 1985. We will forever miss you,” it said.

The American flag was no longer flying at the consulate having been lowered at 6:18 a.m. on Monday, according to video shot by a journalist and shared by state broadcaster CCTV on its Twitter-like Weibo account.

The eagle on top of the flagpole remained.

On Sunday night, a crane was seen entering the consulate compound and hoisting at least one container onto a large truck.

The Chengdu consulate opened in 1985 and had almost 200 employees, including about 150 locally hired staff, according to its website. It was not immediately clear how many had been working there at the time of its closure, after U.S. diplomats were evacuated from China because of the coronavirus pandemic.

U.S.-China relations have plunged to their worst in decades over a range of disputes, from trade and technology to the COVID-19 pandemic, China’s territorial claims in the South China Sea and its clampdown on Hong Kong.

On Thursday, U.S. Secretary of State Mike Pompeo gave a speech calling a more assertive approach to China the “mission of our time”.

(Reporting by Martin Quin Pollard and Thomas Peter; writing by Tony Munroe; editing by Richard Pullin and Raju Gopalakrishnan)

 

China orders U.S. to shut Chengdu consulate, retaliating for Houston

By Yew Lun Tian, Tony Munroe and Doina Chiacu

BEIJING/WASHINGTON (Reuters) – China ordered the United States on Friday to close its consulate in the city of Chengdu, responding to a U.S. demand for China to close its Houston consulate, as relations between the world’s two largest economies deteriorate.

The order to close the consulate in Chengdu, in southwestern China’s Sichuan province, continued Beijing’s recent practice of like-for-like responses to U.S. actions.

China had warned it would retaliate after it was this week given 72 hours – until Friday – to vacate its consulate in the Texas city, and had urged the United States to reconsider.

Relations between Washington and Beijing have deteriorated sharply this year over issues ranging from trade and technology to the novel coronavirus, China’s territorial claims in the South China Sea and its clampdown on Hong Kong.

“The Ministry of Foreign Affairs of China informed the U.S. Embassy in China of its decision to withdraw its consent for the establishment and operation of the U.S. Consulate General in Chengdu,” China’s foreign ministry said in a statement.

Foreign ministry spokesman Wang Wenbin said some Chengdu consulate personnel were “conducting activities not in line with their identities” and had interfered in China’s affairs and harmed China’s security interests, but he did not say how.

Senior Chinese diplomat Wang Yi, who is also foreign minister, blamed Washington for the deterioration in ties.

“The current difficult situation in Sino-U.S. relations is entirely caused by the United States, and its goal is trying to interrupt China’s development,” Wang said in a video conversation with his German counterpart.

U.S. President Donald Trump’s administration said the closing of the consulate was aimed at protecting American intellectual property and personal information.

“We urge the CCP (Chinese Communist Party) to cease these malign actions rather than engage in tit-for-tat retaliation,” John Ullyot, a spokesman for the White House National Security Council, said in a statement.

The consulate in Chengdu was given 72 hours to close, or until 10 a.m. on Monday, the editor of the Global Times newspaper said on Twitter.

The consulate opened in 1985 and has almost 200 employees, including about 150 locally hired staff, according to its website. It was not immediately clear how many are there now after U.S. diplomats were evacuated from China during the novel coronavirus outbreak.

Global share markets fell after the announcement, led by a heavy drop in Chinese blue chips, which fell 4.4%, while the yuan hit a two-week low. [MKTS/GLOB]

The U.S. State Department warned Americans in China of a greater risk of arbitrary law enforcement including detention, repeating a similar warning two weeks ago.

TROUBLED TIES

Secretary of State Mike Pompeo said in a speech on Thursday Washington and its allies must use “more creative and assertive ways” to press the Chinese Communist Party to change its ways.

A source had told Reuters China was considering shutting the U.S. consulate in Wuhan, where Washington withdrew staff as the coronavirus outbreak raged.

“The Chengdu consulate is more important than the Wuhan consulate because that is where the U.S. gathers information about Tibet and China’s development of strategic weapons in neighboring regions,” said Wu Xinbo, a professor and American studies expert at Fudan University in Shanghai.

He said the Chengdu consulate was less important for economic activity than U.S. consulates in Shanghai, Guangzhou and Hong Kong.

Chinese social media users, who had denounced the order to close the Houston mission, lauded the response.

The comment, “let’s renovate it into a hotpot restaurant!”, a reference to a popular dish in Chengdu, got 100,000 likes on the Weibo account of state broadcaster CCTV.

(Reporting by Tony Munroe and Yew Lun Tian; additional reporting by Huizhong Wu and Judy Hua in Beijing, Rama Venkat in Bengaluru, Tom Westbrook in Singapore and Doina Chiacu in Washington; Editing by Michael Perry, Timothy Heritage and Jonathan Oatis)

U.S. diplomats head to China despite row over Houston consulate

By Humeyra Pamuk

WASHINGTON (Reuters) – A flight bound for Shanghai carrying U.S. diplomats has left the United States as Washington presses ahead with its plan to restaff its mission in China a day after a U.S. order to close the Chinese consulate in Houston sharply escalated tensions.

A person familiar with the matter told Reuters the flight, carrying an unspecified number of U.S. diplomats, left Washington on Wednesday evening. The State Department did not immediately respond to a request for comment.

An internal State Department email dated July 17, seen by Reuters, said the department was working to arrange a charter flight to Shanghai from Washington’s Dulles International Airport departing on Thursday.

The source said this flight had departed earlier than initially planned.

The email said a tentative July 29 flight to Tianjin and Beijing was in the initial planning stages and a target date for another flight, to Guangzhou, was still to be determined.

The memo said priority was being given to reuniting separated families and returning section/agency heads.

The U.S. is working to fully restaff its mission in China, one of its largest in the world, which was evacuated in February because of COVID-19, the illness caused by the new coronavirus.

Thursday’s flight went ahead despite a dramatic move by Washington to close China’s consulate in Houston amid sweeping espionage allegations.

China warned on Thursday it would be forced to respond to the U.S. move, which had “severely harmed” relations.

It gave no details, but the South China Morning Post reported that China may close the U.S. consulate in Chengdu, while a source told Reuters on Wednesday it was considering shutting the consulate in Wuhan, where the United States withdrew staff at the start of the coronavirus outbreak.

Two flights have so far taken place to return some of the more than 1,200 U.S. diplomats with their families to China since negotiations for the returns hit an impasse in early July over conditions China wanted to impose on the Americans.

The impasse caused the State Department to postpone flights tentatively scheduled for the first 10 days of July.

U.S.-China relations have deteriorated this year to their lowest level in decades over a wide range of issues, including China’s handling of the coronavirus pandemic, bilateral trade and a new security law for Hong Kong.

Washington and Beijing have been negotiating for weeks over the terms of how to bring U.S. diplomats back amid disagreement over COVID-19 testing and quarantine procedures as well as frequency of flights and how many each can bring back.

(Reporting by Humeyra Paumuk; Additional reporting by David Brunnstrom; Editing by Mary Milliken and Diane Craft)