With U.S.-China tensions running high, hopes dim for end to trade war

By Andrea Shalal and Cate Cadell

WASHINGTON/BEIJING (Reuters) – Beijing sharply rebuked Washington on Tuesday for adding some top Chinese artificial intelligence startups to its trade blacklist, dimming hopes for progress in high-level talks aimed at ending a 15-month trade war between the two economic giants.

U.S. and Chinese deputy trade negotiators were due to meet in Washington for a second day of talks on Tuesday, laying the groundwork for the first minister-level meetings in over two months later this week.

A report from the South China Morning Post said China had tamped down expectations ahead of the talks scheduled for Thursday with Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, saying the Chinese delegation could leave earlier than planned because “there’s not too much optimism.”

The mood soured this week after the U.S. Commerce Department widened its trade blacklist to include 20 Chinese public security bureaus and eight companies including video surveillance firm Hikvision <002415.SZ>, as well as leaders in facial recognition technology SenseTime Group Ltd and Megvii Technology Ltd.

The action bars the firms from buying components from American companies without U.S. government approval, a potentially crippling move. It follows the same blueprint used by Washington in its attempt to limit the influence of Huawei Technologies Co Ltd [HWT.UL] for what it says are national security reasons.

Hikvision, with a market value of about $42 billion, calls itself the world’s largest maker of video surveillance gear.

U.S. officials said the action was tied to China’s treatment of Muslim minorities and human rights violations, provoking a sharp reaction from Beijing.

China said the United States should stop interfering in its affairs. It will continue to take firm and resolute measures to protect its sovereign security, foreign ministry spokesman Geng Shuang told a regular media briefing without elaborating.

Major U.S. stock indexes fell on Tuesday, amid the continued tensions between the United States and China, whose tit-for-tat tariffs have roiled financial markets, slowed capital investment, and triggered a slowdown in trade flows.

New International Monetary Fund Managing Director Kristalina Georgieva issued a stark warning about the state of global growth on Tuesday, saying trade conflicts had thrown it into a “synchronized slowdown” and must be resolved.

In her inaugural speech after taking over the global crisis lender on Oct. 1, Georgieva unveiled new IMF research showing that the cumulative effect of trade conflicts could mean a $700 billion reduction in global GDP output by 2020, or around 0.8%.

LOOMING TARIFF HIKES

The trade talks are taking place days before U.S. tariffs on $250 billion worth of Chinese goods are slated to rise to 30% from 25%. Trump has said the tariff increase will take effect on Oct. 15 if no progress is made in the negotiations.

President Donald Trump on Monday said a quick trade deal was unlikely, and that he would not be satisfied with a partial deal.

The two sides have been at loggerheads over U.S. demands that China improve protections of American intellectual property, end cyber theft and the forced transfer of technology to Chinese firms, curb industrial subsidies and increase U.S. companies’ access to largely closed Chinese markets.

Trump launched a new round of tariffs after the last high-level talks in late July failed to result in agricultural purchases or yield progress on substantive issues. China quickly responded with tariff increases of its own.

Washington is also moving ahead with discussions around possible restrictions on capital flows into China, with a focus on investments made by U.S. government pension funds, Bloomberg reported. The news sent shares of chipmakers sharply lower.

Another flashpoint has been a widening controversy over a tweet from an official with the NBA’s Houston Rockets. His backing of Hong Kong democracy protests was rebuked by the National Basketball Association, sparking a backlash.

Trump also called for a peaceful resolution to the protests in Hong Kong, and warned the situation had the potential to hurt trade talks.

Police in Hong Kong have used rubber bullets, tear gas and water cannons against pro-democracy demonstrators in the former British colony, which has been plunged into its worst political crisis in decades.

Beijing views U.S. support for pro-democracy protests in Hong Kong as interfering with its sovereignty.

(Reporting by Andrea Shalal and David Lawder in Washington and Cate Cadell in Beijing; Writing by Andrea Shalal; Editing by Paul Simao)

Hong Kong faces more protests after night of violence

By Simon Gardner and Jessie Pang

HONG KONG (Reuters) – Hundreds of protesters gathered in Hong Kong shopping malls on Monday demanding “freedom” ahead of expected new protests after overnight turmoil in the Asian financial hub brought a warning from the last British governor that people could be killed.

Protesters formed large circles inside multi-level shopping malls and chanted “disband Hong Kong police force”, “fight for freedom, stand with Hong Kong” and “I have the right to wear a mask”, as shoppers on a public holiday looked on.

The introduction of colonial-era emergency powers on Friday banning face masks, which protesters use to hide their identity, has sparked some of the most violent clashes in four months of demonstrations.

“Before long, unless we are very, very lucky, people are going to get killed, people are going to be shot,” former British governor Chris Patten told Sky News. “The idea that with public order policing you send police forces out with live ammunition is preposterous.”

Two protesters have been shot, one in the chest and one in the leg. Authorities said the shootings were not intentional but occurred during skirmishes between police and protesters.

Many protesters, police and journalists have been injured in clashes, with police using rubber bullets, tear gas and water cannons against demonstrators, some of whom throw bricks and petrol bombs.

A journalist working with Hong Kong’s public broadcaster was recovering in the hospital on Monday after being hit by a petrol bomb on Sunday night.

On Monday, Hong Kong’s metro rail system, which typically carries about 5 million passengers a day, was only partially operating due to what authorities said was “serious vandalism” on Sunday night. Some stations were torched in the protests.

Many shops and Chinese banks were also extensively damaged.

The Sunday night protests, the second night of violence since the imposition of emergency laws, saw scores of protesters arrested and the first warning from Chinese military personnel stationed in the territory.

The protests have plunged the former British colony into its worst political crisis in decades and pose the biggest popular challenge to Chinese President Xi Jinping since he came to power in 2012.

What started as opposition to a now-withdrawn extradition bill has grown into a pro-democracy movement against what is seen as Beijing’s increasing grip on the city, which protesters say undermines a “one country, two systems” status promised when Britain handed Hong Kong back to China in 1997.

China dismisses such accusations, saying foreign governments, including Britain and the United States, have fanned anti-China sentiment.

‘IMPORTANCE OF DIALOGUE’

A 38-year-old woman and an 18-year-old man were charged on Monday for violating the emergency laws. They were also charged with unlawful assembly.

Tens of thousands of protesters, many families with children, marched peacefully through the center of Hong Kong on Sunday, most wearing face masks in defiance of the threat of a maximum one year in prison for doing so.

Police fired tear gas and charged with batons in an attempt to disperse protesters across the city and the rallies deteriorated into running clashes as night fell.

China’s Hong Kong military garrison warned protesters on Sunday they could be arrested for targeting its barracks with lasers – the first direct interaction between the People’s Liberation Army and protesters.

Carrie Lam, the city’s Beijing-backed leader, has said the face mask ban was necessary to end the violence by militant activists. But it has been criticized by human rights groups and the United Nations.

“She would have to be crazy to be making these decisions on her own without being pressured into them. The face mask business, absolutely madness,” said Patten, who handed Hong Kong back to China in 1997.

“I fear for the future, unless Carrie Lam actually intervenes and understands the importance of dialogue.”

The city government said in a statement “public safety has been jeopardized and the public order of the whole city is being pushed to the verge of a very dangerous situation”.

Hong Kong is facing its first recession in a decade with the protests damaging tourism and retail sectors.

Protesters are demanding an independent inquiry into police action.

Some protesters said an inquiry, which Patten also called for Lam to allow, was key to ending the protests.

“Hong Kong is part of China, no doubt. We don’t want independence. But we do want our freedoms that we are used to,” said Kong, 57, who works in finance, as he watched hundreds of protesters chanting in a shopping mall on Sunday.

“If they hold an independent inquiry, that would do it. Half of these people would go home. That is the key,” Kong said.

But others are worried the emergency powers are just the beginning of more erosion of their rights.

“The government can use the emergency law to enact other evil laws,” said student Isaac Shum, 19, at one shopping mall protest.

(Additional reporting Simon Gardner, Jessie Pang, Farah Masters; Writing Michael Perry; Editing by Paul Tait and Gerry Doyle)

White House confirms U.S.-China trade talks starting Thursday

White House confirms U.S.-China trade talks starting Thursday
WASHINGTON (Reuters) – Top U.S. officials will welcome a high-ranking Chinese delegation starting Oct. 10 for the latest round of trade talks aimed at easing tensions between the world’s two largest economies, the White House confirmed on Monday.

“The two sides will look to build on the deputy-level talks of the past weeks. Topics of discussion will include forced technology transfer, intellectual property rights, services, non-tariff barriers, agriculture, and enforcement,” White House spokeswoman Stephanie Grisham said in a statement.

(Reporting by Makini Brice; Editing by Catherine Evans)

Kudlow says Trump team ‘open-minded’ about U.S.-China talks next week

WASHINGTON (Reuters) – White House economic adviser Larry Kudlow said on Friday that the U.S. team was “open-minded” about the outcome of U.S.-China trade talks next week, which will include deputy-level meetings on Monday and Tuesday, with minister-level meetings Thursday and Friday.

Kudlow declined to make any predictions about the talks but said that there had been a “softening of the psychology on both sides” in the past month, with the United States delaying some tariff increases and China making some modest purchases of American farm products.

(Reporting by David Lawder; Editing by Kevin Liffey)

Police fire tear gas as protests swell after Hong Kong imposes emergency powers

By Clare Jim and Noah Sin

HONG KONG (Reuters) – Hong Kong’s embattled leader Carrie Lam invoked colonial-era emergency powers last used more than 50 years ago on Friday, in a dramatic move that enraged protesters who took to the streets of the Chinese-ruled city within hours.

Lam, speaking at a news conference, said a ban on face masks would take effect on Saturday under the emergency laws that allow authorities to “make any regulations whatsoever” in whatever they deem to be in the public interest.

China’s Hong Kong and Macao Affairs Office praised the move in a statement that said the protests were evolving into a “color revolution”, a term coined to refer to popular uprisings in Ukraine and other former Soviet states that swept away long-standing rulers, with interference from external forces.

The emergency laws allow curfews, censorship of the media, and control of harbors, ports and transport, although Lam did not specify any particular action that might follow beyond the mask ban.

Nearly four months of anti-government protests have plunged Hong Kong into its biggest political crisis since its handover from Britain to China in 1997 under a “one country, two systems” formula that granted it autonomy and broad freedoms not enjoyed on the mainland.

Lam said her move was necessary to quell escalating violence.

But as darkness fell, defiant demonstrators took to the streets to vent their anger, vandalizing what they perceived to be China-friendly businesses and blocking road in the heart of the financial center. Police fired tear gas to disperse protesters in flashpoint districts across the territory, including Causeway Bay, Sha Tin and Wong Tai Sin.

Shopping malls, banks and shops across Hong Kong island had closed early in anticipation of violence as some protesters burned Chinese flags and chanted “You burn with us”, and “Hong Kongers, revolt”.

“The anti-mask law has become a tool of tyranny,” said Samuel Yeung, an 18-year-old university student, as crowds swelled in the main financial district of Central, beneath gleaming skyscrapers that house the Asia headquarters of companies including HSBC.

“They can make use of the emergency law to enact any policies or laws that the government wants. There’s no rule of law anymore. We can only be united and protest.”

“NOT A STATE OF EMERGENCY”

What began as opposition to a proposed extradition law, which could have seen people sent for trial in mainland courts, has grown into a broad pro-democracy movement and a serious challenge to Chinese leader Xi Jinping.

The protesters are angry about what they see as creeping interference by Beijing in their city’s affairs. China dismisses accusations it is meddling and has accused foreign governments, including the United States and Britain, of stirring up anti-China sentiment.

On Friday evening, thousands of demonstrators – many blue-collar workers and unmasked residents – gathered across the territory, filling shopping malls and blocking roads. Bus routes were suspended and rail operator MTR closed stations.

Many protesters wear masks to hide their identity due to fears employers could face pressure to take action against them.

“Almost all protesters wear masks, with the intention of hiding their identity. That’s why they have become more unbridled,” said Lam.

“We can’t keep the existing regulations idle and let violence escalate and the situation continue to deteriorate.”

Lam described the territory as being in serious danger, but not in a state of emergency.

Pro-Beijing groups had been pushing for a mask ban, but it was not clear how the government would implement it in a city where many of its 7.4 million residents wear them every day to protect against infection following the outbreak of the deadly Severe Acute Respiratory Syndrome (SARS) in 2003.

Police can stop anyone in public and ask them to remove a mask if the officer believes it may prevent identification, according to the law. Exceptions are made if the person wearing a mask can prove they need it for medical, religious or professional reasons.

Offenders face a maximum fine of HK$25,000 ($3,200) and imprisonment for a year, according to details of the prohibition published by the government.

“SOMETHING DRASTIC”

Authorities had already loosened guidelines on the use of force by police, according to documents seen by Reuters.

That came just before an escalation in violence on Tuesday, the 70th anniversary of the founding of the People’s Republic of China, when police fired about 1,800 volleys of tear gas, 900 rubber bullets and six live bullets – one of which hit an 18-year-old, the first time a protester had been hit be live fire.

The student, Tony Tsang, was shot at close range as he fought with a policeman. He is stable in hospital and has been charged with rioting, which carries a maximum 10-year sentence and assaulting an officer.

Pro-democracy campaigners condemned Lam’s latest decision.

“This is an ancient, colonial set of regulations, and you don’t use them unless you can’t legislate anymore,” said Martin Lee, a veteran activist and one of the city’s most prominent lawyers. “Once you start, there’s no end to it.”

The U.N. human rights office said Hong Kong must protect the right to freedom of assembly and Britain urged its former colony not to aggravate tension.

Some Hong Kong’s businesses, struggling with a dip in tourism and retail sales due to the protests, gave the law a warmer welcome.

“I agree with it at this point,” said businessman Allan Zeman, who is also an economic adviser to Lam. “You have to do something drastic to end the violence.”

But Hong Kong shares fell on Friday, hitting one-month lows.

(Reporting by Clare Jim and Noah Sin; Additional reporting by Twinnie Siu, Poppy McPherson, Donny Kwok, James Pomfret, Jessie Pang, Felix Tam and Farah Master in Hong Kong, Sun Yilei in Shanghai and Chen Aizhu in Singapore; Writing by Anne Marie Roantree and Bill Rigby; Editing by Robert Birsel and Alex Richardson)

Hong Kong set to enact emergency laws as it struggles to contain violence

By Clare Jim and Felix Tam

HONG KONG (Reuters) – Hong Kong’s government is expected to discuss sweeping emergency laws on Friday that would include banning face masks at protests, two sources told Reuters, as the Chinese-ruled territory grapples with an escalating cycle of violence.

Authorities have already loosened guidelines on the use of force by police, according to documents seen by Reuters on Thursday, as they struggle to stamp out anti-government protests that have rocked Hong Kong for nearly four months.

The loosening of restrictions on the use of force by police came into effect just before some of the most violent turmoil yet at protests on Tuesday, when a teenaged secondary school student was shot by an officer in the chest and wounded – the first time a demonstrator had been hit by live fire.

More than 100 people were wounded, after police fired about 1,400 rounds of tear gas, 900 rubber bullets and six live rounds as protesters threw petrol bombs and wielded sticks.

The Beijing-backed local government was set to hold a meeting on Friday morning where it was likely to enact a colonial-era emergency law that has not been used in half a century, two sources with knowledge of the matter told Reuters.

Media reports earlier on Thursday of an expected ban on face masks – which hundreds of thousands of protesters wear to conceal their identities and shield themselves from tear gas – sent Hong Kong’s stock market up to a one-week high.

Growing opposition to the former British colony’s government has plunged the financial hub into its biggest political crisis in decades and poses the gravest popular challenge to Chinese President Xi Jinping since he came to power.

Protesters are angry about what they see as creeping interference by Beijing in their city’s affairs despite a promise of autonomy in the “one country, two systems” formula under which Hong Kong returned to China in 1997.

China dismisses accusations it is meddling and has accused foreign governments, including the United States and Britain, of stirring up anti-China sentiment.

As speculation of an emergency law swirled, riot police moved into districts across Hong Kong that have seen violent clashes between demonstrators and security forces in recent weeks, according to Telegram groups, a popular encrypted messaging app popular with protesters.

LIVE ROUNDS

Local media Now TV and Cable TV reported the changes to the police procedures manual took effect on Sept. 30, the day before Tuesday’s violence at widespread protests on China’s National Day, during which the student was shot.

Reuters could not confirm when the changes were made, but has seen police documents that showed changes to some guidelines on how officers could act when considering force.

The updated guidelines also removed a line that said “officers will be accountable for their own actions”, stating only that “officers on the ground should exercise their own discretion to determine what level of force is justified in a given situation”.

Police declined to comment when asked if amendments had been made to the manual.

“The guidelines on the use of force involve details of operation. It may affect the normal and effective operation of the police force and work of police on crime prevention if details are made public,” police said in a statement to Reuters.

Hong Kong’s police have long been admired for their professionalism compared with some forces elsewhere in Asia.

But the public has become increasingly hostile towards the force over past weeks amid accusations of heavy-handed tactics. Police say they have shown restraint.

The unrest, which began over opposition to a now-withdrawn extradition bill that would have allowed people to be sent to mainland China for trial, shows no sign of letting up.

Protesters, fired up over the shooting of the young man this week, are planning more demonstrations at shopping malls across 11 districts on Thursday night and throughout the weekend.

“HEINOUS CRIMES”

Elizabeth Quat, a lawmaker for a pro-Beijing political party, told a news conference the looming ban on face masks under a law giving police broad emergency powers was aimed at stopping “illegal assemblies”.

“This law is not targeting peaceful protesters. It is focused on targeting those rioters who have committed heinous crimes,” she said.

But pro-democracy lawmakers fear the emergency powers could be used to further curtail freedoms.

“To impose an anti-mask law in the current social condition is to further infuriate the people and will definitely be met with escalating violence,” lawmaker Fernando Cheung told Reuters. “This is no different than adding fuel to fire. The result will be riots.”

Goldman Sachs estimated this week that the city might have lost as much as $4 billion in deposits to rival banking center Singapore between June and August.

On Thursday, Lam Chi-wai, chairman of the Junior Police Officers Association, urged the city’s leader to impose a curfew to maintain public order.

“We cannot work alone – clapping only with one hand – without appropriate measures and support from top level,” Lam said.

TEENAGER CHARGED

Tony Tsang, the 18-year-old who was shot at close range as he fought an officer with what appeared to be a white pole on Tuesday, has since been charged with rioting, which carries a maximum 10-year sentence, and assaulting a police officer.

Tsang is in hospital in a stable condition and was not able to attend a court session on Thursday, but his lawyer appeared on his behalf. About 200 supporters turned up to watch the proceedings.

Separately, the lawyer for an Indonesian journalist injured when police fired a projectile during protests on Sunday said she had been blinded in one eye.

The European Union said in a statement it was deeply troubled by the escalation of violence and the only way forward was through “restraint, de-escalation and dialogue”.

(Additional reporting by Donny Kwok, James Pomfret and Anne Marie Roantree; Writing by Anne Marie Roantree and Poppy McPherson; Editing by Stephen Coates, Robert Birsel and Alex Richardson)

Hong Kong office workers, schoolmates denounce police shooting of teen

By Clare Jim and Yiming Woo

HONG KONG (Reuters) – Hong Kong office workers and high-school students turned out in their hundreds under a sweltering midday sun on Wednesday to denounce a policeman for shooting and wounding a teenager during the most violent clashes in nearly four months of unrest.

The office workers marched to Chater Garden in the Central business district as the students, some in the same class as the wounded 18-year-old, demonstrated outside his New Territories school.

More than 100 people were wounded during Tuesday’s turmoil, the Hospital Authority said, as anti-China demonstrators took to the streets across the Chinese-ruled territory, throwing petrol bombs and attacking police who responded with tear gas and water cannon. Five remained in a serious condition with 35 stable.

Thirty police were injured, with five in hospital.

During one clash, an officer shot an 18-year-old school student in the chest with a live round after coming under attack with a metal bar, video footage showed. The teen was in stable condition in hospital on Wednesday.

Protesters outside the wounded student’s school, the Tsuen Wan Public Ho Chuen Yiu Memorial College, chanted “Free Hong Kong”, condemned the police and urged a thorough investigation.

“(It’s) ridiculous, it can’t happen, and it should not be happening in Hong Kong,” said one 17-year-old who goes to the same school.

“It really disappointed me and let me down about the policeman. I don’t know why they took this action to deal with a Form Five student. Why do you need to shoot? It’s a real gun.”

Protesters have previously been hit with anti-riot bean-bags rounds and rubber bullets and officers have fired live rounds in the air, but this was the first time a demonstrator had been shot with a live round.

Police said the officer involved was under serious threat and acted in self-defense in accordance with official guidelines.

Police said they arrested 269 people – 178 males and 91 females – aged 12 to 71 during the Tuesday turmoil, while officers fired about 1,400 rounds of tear gas, 900 rubber bullets and six live rounds.

The protests, on the 70th anniversary of the founding of the People’s Republic of China, were aimed at propelling the activists’ fight for greater democracy onto the international stage and embarrassing the city’s political leaders in Beijing.

The former British colony has been rocked by months of protests over a now-withdrawn extradition bill that would have allowed people to be sent to mainland China for trial but have evolved into calls for democracy, among other demands.

The outpouring of opposition to the Beijing-backed government has plunged the city into its biggest political crisis in decades and poses the gravest popular challenge to President Xi Jinping since he came to power.

The pro-establishment Democratic Alliance for the Betterment and Progress of Hong Kong condemned Tuesday’s violence and urged the government to impose emergency laws to resolve the crisis.

‘CHILLING DISREGARD’

Many shops and business closed on Tuesday in anticipation of the violence, which is taking a growing toll on the city’s economy as it faces its first recession in a decade and the central government grapples with a U.S.-China trade war and a global slowdown.

Standard & Poor’s cut its Hong Kong economic growth forecast on Tuesday to 0.2 percent for this year, down from its forecast of 2.2 percent in July, blaming tension in the city for plunging retail sales and a sharp dip in tourism.

The Hong Kong General Chamber of Commerce condemned the violence.

“Extremists’ chilling disregard for the rule of law is not only affecting Hong Kong’s reputation as an international financial and business center, but also crippling many small businesses and threatening the livelihoods of hundreds of thousands of ordinary citizens,” it said in a statement.

The protesters come from wide-ranging backgrounds. Of 96 charged after violence on Sunday, eight were under 18, some were students, others had jobs ranging from waiter, teacher and surveyor to sales manager, construction worker and a hotel employee.

Protesters are angry about what they see as creeping interference by Beijing in their city’s affairs despite a promise of autonomy in the “one country, two systems” formula under which Hong Kong returned to China in 1997.

China dismisses accusations it is meddling and has accused foreign governments, including the United States and Britain, of stirring up anti-China sentiment.

The protesters are increasingly focusing their anger on mainland Chinese businesses and those with pro-Beijing links, daubing graffiti on store fronts and vandalizing outlets in the heart of the financial center.

The Bank of China (Hong Kong) said two of its branches came under attack on Tuesday.

“The bank expresses its deepest anger and strongly condemns this illegal, violent behavior,” it said in a statement.

(Reporting by Clare Jim and Yimin Woo; Additional reporting by Twinnie Siu, Jessie Pang, Bill Rigby, Donny Kwok, Sumeet Chatterjee; Writing by Farah Master, Anne Marie Roantree and Nick Macfie; Editing by Robert Birsel)

Taliban, U.S. envoy in Pakistan to review broken peace talks

By Asif Shahzad and Charlotte Greenfield

ISLAMABAD (Reuters) – Afghan Taliban officials were due in Islamabad on Wednesday to discuss the possibility of reviving talks for a political settlement in Afghanistan, Pakistan’s foreign ministry and the insurgent group said.

The high-profile Taliban delegation was arriving as the top U.S. diplomat involved in talks with the militants, Zalmay Khalilzad, also met government officials in Islamabad.

It was not clear if the Taliban would meet Khalilzad, though one senior Pakistani government official said that might happen.

The Taliban delegation led by Mullah Abdul Ghani Baradar, one of the group’s founders, was due to discuss “important issues” with Pakistani officials, spokesman Suhail Shaheen said.

The visit, the latest stop on a tour of regional powers including Russia, China and Iran by Taliban officials, comes after efforts by the militants and the United States to reach a deal allowing for the withdrawal of U.S.-led foreign forces broke down last month.

“The visit would provide the opportunity to review the progress made under U.S.-Taliban peace talks so far, and discuss the possibilities of resuming the paused political settlement process in Afghanistan,” Pakistan’s foreign ministry said in a statement. It said a meeting between the insurgents and Foreign Minister Shah Mahmood Qureshi was being finalized.

Khalilzad, U.S. President Donald Trump’s Special Representative for Afghanistan, has been meeting Pakistani officials in Islamabad following discussions between Trump and Pakistani Prime Minister Imran Khan in the United States.

“These consultations follow discussions held between the United States and Pakistan during the United Nations General Assembly in New York last week,” said a spokesman for the U.S. Embassy in Islamabad via email.

The spokesman did not say if Khalilzad was still in Pakistan on Wednesday or if he planned to meet the Taliban officials. A top Pakistan government official told Reuters that the Taliban would likely meet Khan, and that, “we’re trying that we will convince the Taliban that the delegation also meets Zalmay Khalilzad”.

The official said the meetings would focus on attempting to convince the Taliban to include the Afghan government in the peace talks. The insurgents have previously refused to negotiate with what they call an illegitimate “puppet” regime in Kabul.

Sediq Sediqqi, a spokesman for Afghan President Ashraf Ghani, said on Twitter that the Afghan government should be involved in any peace process.

“No progress will be imminent if a peace process is not owned and led by the Afghan government,” he said.

PROGRESS ON PEACE?

The United States has long considered Pakistani cooperation crucial to efforts to end the war in Afghanistan.

Trump last month halted the talks with the Taliban, aimed at striking a deal allowing U.S. and other foreign troops to withdraw in exchange for Taliban security guarantees, following the death of a U.S. solder and 11 others in a Taliban bomb attack in Kabul.

The Taliban delegation would inform Pakistan’s leadership of the factors that derailed the talks, said a Taliban official who declined to be identified. The Taliban also planned to follow up on Khan’s recent comment that he would try to convince Trump to resume the talks, the Taliban official said.

Baradar, the head of the delegation, was making his first known visit to Pakistan since he was released from a Pakistani jail a year ago.

Previously the coordinator of the group’s military operations in southern Afghanistan, he was arrested in 2010 by a team from Pakistani and U.S. intelligence agencies.

The U.S. and Taliban said last month, shortly before talks broke off, that they were close to reaching a deal, despite concerns among some U.S. security officials and within the Afghan government that a U.S. withdrawal could plunge the country into even more conflict and open the way for a resurgence of Islamist militant factions.

(Reporting by Jibran Ahmed in Peshawar, Pakistan and Abdul Qadir Sediqi and Orooj Hakimi in Kabul and Charlotte Greenfield and Asif Shahzad in Islamabad; Writing by Rod Nickel in Kabul and Charlotte Greenfield in Islamabad; Editing by Robert Birsel and Alex Richardson)

China showcases fearsome new missiles to counter U.S. at military parade

By Michael Martina

BEIJING (Reuters) – China’s military on Tuesday showed off new equipment at a parade in central Beijing to mark 70 years since the founding of the People’s Republic, including hypersonic-glide missiles that experts say could be difficult for the United States to counter.

In a speech at the start of the nearly three-hour, highly choreographed spectacle, Chinese President Xi Jinping said that his country would stay on the path of “peaceful development,” but that the military would resolutely safeguard the country’s sovereignty and security.

China says the parade, the country’s most important political event of the year, which featured more than 15,000 troops marching through part of Tiananmen Square as jet fighters trailing colored smoke soared overhead, is not meant to intimidate any specific country.

But defense experts see it as a message to the world that China’s military prowess is growing rapidly, even as it faces mounting challenges, including months of anti-government protests in Hong Kong and a slowing economy.

As expected, China unveiled new unmanned aerial vehicles (UAVs) and showcased its advancing intercontinental and hypersonic missiles, designed to attack the aircraft carriers and bases that undergird U.S. military strength in Asia.

A state television announcer called the missile arsenal a “force for realizing the dream of a strong nation and strong military.”

Among the weapons were the “carrier killer” Dongfeng-21D (DF-21D), unveiled at a military parade in 2015, designed to hit warships at sea at a range of up to 1,500 kilometers, and the DF-26 intermediate-range missile, dubbed “Guam killer” in reference to the U.S. Pacific island base.

The People’s Liberation Army (PLA) also rolled out a hypersonic missile, known as the DF-17, which theoretically can maneuver sharply at many times the speed of sound, making it extremely difficult to counter.

Nozomu Yoshitomi, professor at Japan’s Nihon University and a retired major general in Japan’s Ground Self-Defence Force, said the DF-17 posed serious questions about the effectiveness of the regional missile defense system the United States and Japan are building.

“There is a possibility that if we do not acquire a more sophisticated ballistic missile defense system, it will become impossible for both the United States and Japan to respond,” Yoshitomi said.

Bringing up the rear of the ground parade were 16 upgraded launchers carrying DF-41 intercontinental ballistic missiles, which are the backbone of China’s nuclear deterrent, capable of reaching the United States with multiple nuclear warheads.

State media said 40% of the arms shown in the parade were appearing in public for the first time. Such hardware included new and revamped versions of missiles, such as the long-range submarine-launched and ship-based YJ-18A anti-ship cruise missiles, the official Xinhua news agency said.

China has a practice of only displaying systems in parades it says have entered some form of service, though analysts have cautioned that some of the new equipment could be experimental or prototypes.

For instance, the Gongji-11, described by the state-controlled Global Times as an attack drone and the “final version” of the Sharp Sword drone that first flew in 2013, was displayed for the first time on the back of a truck.

China showed jets in aerial refueling formation, and the Z-20 medium lift helicopter, similar to a U.S. UH-60 Black Hawk, also made its public debut, Xinhua said.

RAPID DEVELOPMENT

Many modern Western militaries eschew elaborate, large-scale military parades as costly extravagances and argue such events have almost no value for war beyond a possible boost to morale.

Still, governments around the region and foreign military experts watched the parade closely for signals about China’s military achievements, looking for clues about weapon capabilities and evidence of new systems.

The government of the self-ruled island of Taiwan, which China claims as its territory, said in response to the parade that China was a serious threat to peace and democracy.

As a part of what Chinese military officials said would be a focus on command structure reforms under Xi’s ambitious military reorganization, hundreds of personnel from the PLA’s new Joint Logistics Support Force, Strategic Support Force, and Rocket Force marched in their national day parade debuts.

Xinhua also said there were two female major generals participating in the parade for the first time.

Analysts see progress in combined operations between branches of the military and in mechanizing its forces as a shift in priorities from defending Chinese borders toward having expeditionary forces able to defend the country’s far-flung commercial and diplomatic interests.

Many said the show of force was a reminder to the United States and its allies at how far the PLA has come.

Sam Roggeveen, the director of the Sydney-based Lowy Institute’s International Security Program, said the pace of China’s military technological development was “breathtaking” and that with defense spending thought to be around 2% of GDP, “they’re not breaking a sweat.”

“The message is pretty blunt. It dramatically erodes the U.S. military edge is Asia, and over the long-term, America’s military primacy in Asia is clearly under threat,” Roggeveen said.

(Reporting by Michael Martina; Additional reporting by Ben Blanchard and Tony Munroe in Beijing, Colin Packham in Sydney and Kiyoshi Takenaka in Tokyo. Editing by Gerry Doyle)

Hong Kong police shoot teen as protest violence escalates

By Jessie Pang and Donny Kwok

HONG KONG (Reuters) – Hong Kong police shot a teenager on Tuesday, the first time a protester has been hit by live ammunition during four months of demonstrations, as the Chinese-ruled city was rocked by widespread unrest on the 70th anniversary of the founding of the People’s Republic.

In cat-and-mouse clashes that spread from the upmarket district of Causeway Bay to the Admiralty area of government offices on Hong Kong island, police were pelted with petrol bombs and responded by firing tear gas and water cannon.

Police said an officer shot an 18-year-old man in the shoulder in the Tsuen Wan area of the New Territories with a live round. Protesters have previously been hit before with bean bags rounds and rubber bullets and officers have fired live rounds in the air.

Verified video footage of the incident widely shared on social media shows a chaotic melee with riot police battling protesters wielding metal bars, before an officer fires a shot at close range.

As the wounded man steps back and falls, someone tries to help, but another policeman tackles him to the ground.

“A large group of rioters was attacking police officers in Tsuen Wan,” police said in a statement. “Police officers warned them, but they were still attacking police. A police officer’s life was seriously endangered. In order to save his and other officers’ lives, they fired at the attacker.”

There were no immediate details on the wounded man’s condition.

Former colonial ruler Britain said the use of live ammunition was disproportionate.

Nearly four months of street clashes and demonstrations have plunged the former British colony into its biggest political crisis in decades and pose the most serious popular challenge to President Xi Jinping since he came to power.

Protesters had vowed to seize the opportunity on China’s National Day to propel their calls for greater democracy onto the international stage, hijacking an occasion Beijing sees as an opportunity to showcase China’s economic and military progress.

“I’m not young, but if we don’t march now, we’ll never have the chance to speak again, it’s as simple as that,” said one marcher near Causeway Bay, a 42-year-old woman with her own logistics company who identified herself as Li.

POLICE BAN DEFIED

Thousands of black-clad protesters, some wearing Guy Fawkes masks, marched on Admiralty, defying a police ban. Violence escalated across the harbor to Kowloon and beyond to the New Territories. Police vans chasing down pro-democracy protesters in the key drag of Hennessy Road.

Police said 31 people had been wounded across the territory, two critically, without giving details.

Protester Jerry, 26, dressed in black and sitting amid the wreckage in Causeway Bay, denounced the police.

“The Hong Kong police, they’ve just lost their minds,” he told Reuters. “They just follow orders. They say it’s to protect lives, but they see the people as objects.”

British Foreign Secretary Dominic Raab criticized the use of live ammunition.

“Whilst there is no excuse for violence, the use of live ammunition is disproportionate, and only risks inflaming the situation,” Raab said in a statement.

In the Admiralty area, police fired water cannon and volley after volley of tear gas to disperse protesters throwing Molotov cocktails outside central government offices and ordered the evacuation of the Legislative Council building next door.

Petrol bombs were also thrown at MTR metro stations, including at Causeway Bay and Admiralty and Sham Shui Po in the New Territories. Many stations were closed to stop protesters moving around. Shutting stations has made them a common target for attack during the weeks of unrest.

Chinese banks and Chinese-backed businesses were targeted with petrol bombs and anti-China graffiti. Local broadcaster RTHK said it was pulling all its reporters away from the violence after one was hit on the head.

BIRTHDAY PARADE

Hong Kong has been tense for weeks, with protests often turning violent, as authorities tried to avoid activists spoiling Beijing’s birthday parade.

Hundreds of officials and members of Hong Kong’s pro-establishment elite began the day with a flag-raising ceremony and National Day reception at the Convention and Exhibition Centre, held early and moved behind closed doors. Roads to the center were closed and tightly policed.

Hong Kong had benefited from China’s support under the “one country, two systems” policy, Acting Chief Executive Matthew Cheng told the assembly, referring to guarantees of political freedoms after the city’s handover from British to Chinese rule in 1997.

But he said escalating violence was disrupting social order and hurting the economy.

The government of embattled leader Carrie Lam has already canceled an annual Oct. 1 fireworks display over the city’s Victoria Harbour, citing public safety.

Lam, who was trapped in a stadium for hours last week after attending the “open dialogue”, left for Beijing on Monday to celebrate China’s birthday on the mainland.

In contrast to events in Hong Kong, Beijing’s carefully choreographed anniversary festivities included troops marching through part of Tiananmen Square with new missiles and floats celebrating the country’s technological prowess.

Lam was shown on television smiling as a float celebrating Hong Kong went past as she sat with Chinese officials.

The Communist Party leadership is determined to project an image of national strength and unity in the face of challenges including Hong Kong’s unrest.

“On our journey forward, we must uphold the principles of peaceful reunification and one country, two systems; maintain lasting prosperity and stability in Hong Kong and Macau … and continue to strive for the motherland’s complete reunification,” Xi said in a nationally televised speech in Beijing.

Hong Kong protesters are angry about what they see as creeping Chinese interference in the Asian financial center.

China dismisses the accusation and has accused foreign governments, including the United States and Britain, of fanning anti-China sentiment.

(Reporting by Jessie Pang and Donny Kwok, Additional reporting by Sharon Tam, Felix Tam, Poppy McPherson, Anne Marie Roantree, Farah Master, James Pomfret, Twinnie Siu, Alun John, David Kirton, Jennifer Hughes and Keith Zhai; Writing by Clara Ferreira Marques, Bill Rigby and Nick Macfie; Editing by Raju Gopalakrishnan and Alex Richardson)