Tag Archives: China

Hong Kong police break up new protest with rubber bullets, tear gas

Protesters erect the Lady Liberty Hong Kong statue during the "No White Terror No Chinazi" rally in Chater Garden, Hong Kong, China September 6, 2019. REUTERS/Amr Abdallah Dalsh

By Marius Zaharia and Jessie Pang

HONG KONG (Reuters) – Hong Kong police fired rubber bullets, tear gas and pepper spray on Friday to clear protesters outside a subway station on the densely populated Kowloon peninsula, the latest clash in 14 weeks of sometimes violent anti-government demonstrations.

Hundreds of protesters, many of them masked and dressed in black, took cover behind umbrellas and barricades made from street fencing. Some had broken through a metal grill to enter the station where they pulled down signs, broke turnstiles and daubed graffiti on the walls.

Protestors stand behind a burning barricade during a demonstration in Mong Kok district in Hong Kong, China September 6, 2019. REUTERS/Kai Pfaffenbach

Protestors stand behind a burning barricade during a demonstration in Mong Kok district in Hong Kong, China September 6, 2019. REUTERS/Kai Pfaffenbach

“We’re angry at the police and angry at the government,” said Justin, 23, dressed in black and wearing a hoodie. “Police was very brutal with us at this station. We cannot let them get away with it.”

Protesters had gathered outside Prince Edward station in Mong Kok, one of the world’s most densely populated regions, where police had fired beanbag guns and used pepper spray to clear demonstrators this week.

They withdrew when police fired rubber bullets, but regrouped in smaller pockets to light fires in the street from wooden pallets, cardboard boxes and other debris. Firemen were dousing the flames.

“The police will use appropriate force to conduct a dispersal operation and warn all protesters to stop all illegal acts and leave immediately,” police said in a statement.

There was no immediate official word of arrests or injuries. Both Mong Kok and Prince Edward stations were closed.

Hong Kong leader Carrie Lam announced measures this week to try to restore order in the Chinese-ruled city, including the formal withdrawal of a bill that triggered the demonstrations. The law would have allowed extraditions to mainland China, despite the city having an independent judiciary dating back to British colonial rule.

But the demonstrations, which began in June, had long since morphed into a broader call for more democracy and many protesters have pledged to fight on, calling Lam’s concessions too little, too late.

“No China” was daubed over walls along the key north-south artery of Nathan Road.

“The four actions are aimed at putting one step forward in helping Hong Kong to get out of the dilemma,” Lam told reporters during a trip to China’s southern region of Guangxi. “We can’t stop the violence immediately.”

Apart from withdrawing the bill, she announced three other measures to help ease the crisis, including a dialogue with the people.

Medical students hold hands as they form a human chain during a protest against the police brutality, at the Faculty of Medicine in The University of Hong Kong, China, September 5, 2019. REUTERS/Anushree Fadnavis

Medical students hold hands as they form a human chain during a protest against the police brutality, at the Faculty of Medicine in The University of Hong Kong, China, September 5, 2019. REUTERS/Anushree Fadnavis

WEEKEND PLANS FOR THE AIRPORT

Demonstrations have at times paralyzed parts of the city, a major Asian financial hub, amid running street battles between protesters and police who have responded with tear gas, pepper spray and water cannons. Violent arrests of protesters, many in metro stations, have drawn international attention.

The crowds were expected to swell into the night, as the city braces for weekend demonstrations aiming to disrupt transport links to the airport.

The airport announced that only passengers with tickets would be allowed to use the Airport Express train service on Saturday, boarding in downtown Hong Kong. The train would not stop en route, on the Kowloon peninsula. Bus services could also be hit, it said.

The measures are aimed at avoiding the chaos of last weekend, when protesters blocked airport approach roads, threw debris on the train track and trashed the MTR subway station in the nearby new town of Tung Chung in running clashes with police.

Global credit rating agency Fitch Ratings on Friday downgraded Hong Kong’s long-term foreign-currency issuer default rating to “AA” from “AA+”.

Fitch said it expects that public discontent is likely to persist despite the concessions to certain protester demands.

German Chancellor Angela Merkel raised the issue of Hong Kong with Chinese Premier Li Keqiang in Beijing, saying a peaceful solution was needed.

“I stressed that the rights and freedoms for (Hong Kong) citizens have to be granted,” Merkel said.

‘RETURN TO ORDER’

Li told a news conference with Merkel “the Chinese government unswervingly safeguards ‘one country, two systems’ and ‘Hong Kong people govern Hong Kong people'”.

Beijing supported the territory’s government “to end the violence and chaos in accordance with the law, to return to order, which is to safeguard Hong Kong’s long-term prosperity and stability”, Li added.

Hong Kong returned to China in 1997 under the “one country, two systems” formula which guarantees freedoms not enjoyed on the mainland. Many Hong Kong residents fear Beijing is eroding that autonomy.

China denies the accusation of meddling and says Hong Kong is its internal affair. It has denounced the protests, warning of the damage to the economy and the possible use of force to quell the unrest.

In addition to calling for a withdrawal of the extradition bill and the release of those arrested for violence, protesters also want an independent inquiry into perceived police brutality, retraction of the word “riot” to describe rallies and the right for Hong Kong people to choose their own leaders.

The protests have presented Chinese President Xi Jinping with his greatest popular challenge since he came to power in 2012.

(Additional reporting by Felix Tam, Jessie Pang, Twinnie Siu, Donny Kwok, Noah Sin, Kai Pfaffenbach and Joe Brock; Andreas Rinke in Beijing; Writing by Anne Marie Roantree and Nick Macfie; Editing by Robert Birsel and Frances Kerry)

China, U.S. to hold trade talks in October; Beijing says phone call went well

FILE PHOTO: Chinese and U.S. flags flutter near The Bund, before U.S. trade delegation meet their Chinese counterparts for talks in Shanghai, China July 30, 2019. REUTERS/Aly Song/File Photo/File Photo

BEIJING (Reuters) – China and the United States on Thursday agreed to hold high-level trade talks in early October in Washington, amid fears that an escalating trade war could trigger a global economic recession.

The talks were agreed to in a phone call between Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin, China’s commerce ministry said in a statement on its website. China’s central bank governor Yi Gang was also on the call.

“Both sides agreed that they should work together and take practical actions to create good conditions for consultations,” the ministry said.

“Lead negotiators from both sides had a really good phone call this morning,” ministry spokesman Gao Feng said in a weekly briefing. “We’ll strive to achieve substantial progress during the 13th Sino-U.S. high-level negotiations in early October.”

Gao also said Beijing opposes any escalation in the trade war.

Trade teams from the two countries will hold talks in mid-September before the high-level talks next month, the ministry said.

A spokesman for the U.S. Trade Representative’s office confirmed that Lighthizer and Mnuchin spoke with Liu and said they agreed to hold ministerial-level trade talks in Washington “in the coming weeks”.

News of the early October talks lifted most Asian share markets on Thursday, raising hopes these can de-escalate the U.S.-China trade war before it inflicts further damage on the global economy.

On Sunday, Washington began imposing 15% tariffs on an array of Chinese imports, while China began placing duties on U.S. crude oil. China said on Monday it had lodged a complaint against the United States at the World Trade Organization.

The United States plans to increase the tariff rate to 30% from the 25% duty already in place on $250 billion worth of Chinese imports from Oct. 1.

U.S. President Donald Trump had warned on Tuesday he would be tougher on Beijing in a second term if trade talks dragged on, compounding market fears that disputes between the United States and China could trigger a U.S. recession.

Chinese leaders will have a packed schedule next month, gearing up for National Day celebrations scheduled for Oct. 1.

They will also hold a key meeting in October to discuss improving governance and “perfecting” the country’s socialist system, state media has said.

(Reporting by Kevin Yao, Yawen Chen and Beijing Monitoring Desk; Editing by Paul Tait and Richard Borsuk)

North Korea tells United Nations to cut international aid staff: letter

FILE PHOTO: North Korean Foreign Minister Ri Yong Ho attends a meeting with China's President Xi Jinping at the Great Hall of the People in Beijing, China December 7, 2018. Fred Dufour/Pool via REUTERS/File Photo

By Michelle Nichols

UNITED NATIONS (Reuters) – North Korea has told the United Nations to cut the number of international staff it deploys in the country because the world body’s programs have failed “due to the politicization of U.N. assistance by hostile forces,” according to a letter seen by Reuters on Wednesday.

The United Nations estimates 10.3 million people – almost half the country’s population – are in need and some 41 percent of North Koreans are undernourished, while Pyongyang said in February it was facing a food shortfall this year and had to halve rations, blaming drought, floods and sanctions.

“U.N. supported programs failed to bring the results as desired due to the politicization of U.N. assistance by hostile forces,” Kim Chang Min, secretary-general for North Korea’s National Coordinating Committee for the United Nations, wrote to the top U.N. official posted in the country.

In the Aug. 21 letter, Kim said the number of international staff should be cut by the end of the year.

North Korea wants the number of international staff with the U.N. Development Programme to be cut to one or two from six, the World Health Organization to four from six and the U.N. Children’s Fund (UNICEF) to cut its 13 staff by one or two.

Kim said the number of international staff with the World Food Programme should be reduced “according to the amount of food aid to be provided” once the agency and North Korean agree how to implement a plan for 2019 to 2021.

There was also no need for a humanitarian aid coordination officer, Kim wrote, adding that U.N. aid officials could instead “visit as and when required.”

The United Nations did not immediately respond to a request for comment.

“Historically there’s been a critical lack of international expertise and oversight and capacity to monitor the use of the assistance that is provided,” said a U.N. diplomat, speaking on condition of anonymity.

“We’re deeply surprised by this turn of events in part because this is when the needs have grown and the U.N. has been trying to mobilize support to scale up assistance in country,” the diplomat said.

The move comes amid stalled talks between the United States and North Korea aimed at dismantling Pyongyang’s nuclear and missile programs. The U.N. Security Council has unanimously ratcheted up sanctions on North Korea since 2006 in a bid to choke funding for those programs.

“The North Korean government’s decisions are only hurting the North Korean people,” said a second U.N. diplomat, speaking on condition of anonymity.

“This is coming at a time where both Russia and China are pushing a false narrative that sanctions are causing the humanitarian problems in North Korea and the only way to solve that is to give North Korea sanctions relief,” the diplomat said.

Russia’s U.N. ambassador, Vassily Nebenzia, told reporters on Tuesday that unilateral sanctions imposed on North Korea by other countries and some strict interpretations of U.N. sanctions were hindering humanitarian work.

“The population of North Korea should not suffer under those sanctions that have been imposed illegitimately,” he said.

(Reporting by Michelle Nichols; Editing by Peter Cooney)

Hong Kong leader withdraws extradition bill, but some say too little too late

FILE PHOTO: Hong Kong's Chief Executive Carrie Lam holds a news conference in Hong Kong, China, September 3, 2019. REUTERS/Kai Pfaffenbach

By James Pomfret and Clare Jim

HONG KONG (Reuters) – Hong Kong leader Carrie Lam on Wednesday withdrew an extradition bill that triggered months of often violent protests so the Chinese-ruled city can move forward from a “highly vulnerable and dangerous” place and find solutions.

Her televised announcement came after Reuters reports on Friday and Monday revealing that Beijing had thwarted an earlier proposal from Lam to withdraw the bill and that she had said privately that she would resign if she could, according to an audio recording obtained by Reuters.

“Lingering violence is damaging the very foundations of our society, especially the rule of law,” a somber Lam said as she sat wearing a navy blue jacket and pink shirt with her hands folded on a desk in front of her.

The withdrawal, a key demand of protesters, came after unrest that drove the former British colony to the edge of anarchy as the government repeatedly refused to back down – igniting pitched battles across the city of seven million, the arrests of more than 1,000 protesters, and leaving a society deeply divided.

Many are furious about perceived police brutality and the number of arrests – 1,183 at the latest count – and want an independent inquiry.

“The government will formally withdraw the bill in order to fully allay public concerns,” Lam said.

“I pledge that the government will seriously follow up the recommendations of the IPCC (Independent Police Complaints Council) report. From this month, I and my principal officials will reach out to the community to start a direct dialogue … we must find ways to address the discontent in society and look for solutions.”

The protests began in March but snowballed in June and have since evolved into a push for greater democracy for the city which returned to China in 1997.

The bill would have allowed extraditions to mainland China where courts are controlled by the Communist Party.

It was not immediately clear if killing the bill would help end the unrest. The immediate reaction appeared skeptical and the real test will be how many people take to the streets.

Some lawmakers said the move should have come earlier.

“The damage has been done. The scars and wounds are still bleeding,” said pro-democracy legislator Claudia Mo. “She thinks she can use a garden hose to put out a hill fire. That’s not going to be acceptable.”

WINNING OVER THE MODERATES?

In the voice recording obtained by Reuters, Lam said at a meeting last week that her room to find a political solution to the crisis was “very limited”, as authorities in Beijing now viewed the situation as a matter of national security.

Beijing’s apparent endorsement of the withdrawal of the bill comes after the biggest popular challenge to Chinese President Xi Jinping’s rule since he took power in 2012.

Others said the move was not enough.

“This won’t appease the protesters,” said Boris Chen, 37, who works in financial services. “In any kind of time, people will find something they can get angry about.”

Pro-Beijing lawmaker Cheung Kwok-kwan said Lam’s announcement was not a compromise to appease those promoting violence, but a bid to win over moderates in the protest camp.

“It was likely speaking to the so-called peaceful, rational, non-violent people who were unsatisfied with the government’s response before,” he said.

One woman, Pearl, 69, said the protests were no longer about the bill.

“Some of those guys may change their minds, maybe, but just a minority,” she said of the protesters. “Some of them just want to create trouble and they will continue to do so.”

“Too little, too late,” said Joshua Wong, a leader of the 2014 pro-democracy protests which were the precursor to the current unrest, on his Facebook page.

The chief executive’s office did not immediately respond to a request for comment on the bill’s withdrawal.

Hong Kong’s benchmark Hang Seng Index <.HSI> jumped after the report of the bill’s imminent withdrawal, trading up about 4%. The property index also jumped.

Lam had said before that the bill was “dead”, but she did not withdraw it.

The protesters’ other four demands are: the retraction of the word “riot” to describe rallies, the release of all arrested demonstrators, an independent inquiry into the police perceived brutality and the right for Hong Kong people to democratically choose their own leaders.

CHINA’S WARNINGS

Hong Kong returned to China under a “one country, two systems” formula that allows it to keep freedoms not enjoyed on the mainland, like the freedom to protest and an independent legal system, hence the anger at the extradition bill and perceived creeping influence by Beijing.

China denies it is meddling in Hong Kong’s affairs but warned again on Tuesday that it would not sit idly by if the unrest threatened Chinese security and sovereignty.

China has regularly denounced the protests and warned about the impact on Hong Kong’s economy.

Cathay Pacific Airways <0293.HK> has been one of the biggest corporate casualties.

China’s aviation regulator demanded it suspend staff from flying over its airspace if they were involved in, or supported, the demonstrations. The airline has laid off at least 20 including pilots and cabin crew.

The airline on Wednesday announced the resignation of chairman John Slosar, following the departure of CEO Rupert Hogg last month.

The unrest has shown no sign of easing.

Riot police fired beanbag guns and used pepper spray – both anti-riot weapons – to clear demonstrators from outside the Mong Kok police station and in Prince Edward metro station, with one man taken out on a stretcher with an oxygen mask over his face, television footage showed.

The police, who have repeatedly denied using excessive force, did not immediately respond to a request for comment.

(Reporting by Clare Jim, Twinnie Siu, Jessie Pang, Lukas Job, Noah Sin, Donny Kwok, Anne Marie Roantree; Writing by Joe Brock and Nick Macfie; Editing by Robert Birsel)

Hong Kong neighborhoods echo with late night cries for freedom

Choco Chu, 23, shouts slogan from his rooftop at Sham Shui Po in Hong Kong, China, August 29, 2019. REUTERS/Tyrone Siu

By Felix Tam and Marius Zaharia

HONG KONG (Reuters) – Every night at 10 p.m., Hong Kong neighborhoods and university dorms echo with pro-democracy and anti-government chants, the latest form of protest in the Chinese-ruled city where a civil disobedience movement has been going on for more than 12 weeks.

What started as a protest against a now-suspended bill that would have allowed criminal suspects to be extradited to mainland China for trial, has evolved into a broad, increasingly violent, and creative, struggle for greater democracy.

Over the past week, residents were seen out on their balconies or opening their windows to shout “Liberate Hong Kong, Revolution of our times”, “Ga Yao!” – a Cantonese expression of encouragement often translated as “Add oil” – or simply vent expletives toward police and the government.

The shouting, heard across the territory, is often interactive – one person starts and a chorus of others soon respond.

“Some people may think it’s naive,” said Torres Fong, 22, a Hong Kong Baptist University student who joins the shouting from his dorm room every night.

“I think its value is far higher. It shows how Hong Kongers are united in this movement and how the spirit is spread across every district.”

“We all live in a tense political atmosphere. Shouting is a way to let out steam and keeps us focused on our core demands.”

The protesters’ cries draw on a long tradition, albeit in a uniquely Hong Kong style owing to its densely populated residential districts packed with dozens of tall blocks of tiny apartments.

During the 1979 Iranian Revolution, residents of Tehran defied curfews to shout “Allahu akbar” (God is Greatest) from their rooftops – a gesture echoed in the city during 2009 protests against the re-election of Iran’s then-president Mahmoud Ahmadinejad.

Through the summer of 2013, and during protests since, Istanbul residents also raised a clamor by leaning from windows and banging pots and pans in support of demonstrations against Turkish leader Tayyip Erdogan.

Less revolutionary, though sometimes political, the “Flogsta scream”, named after a neighborhood in Uppsala, Sweden, is a long-known way for students there to vent out the window to deal with the stresses of university life.

It also occurs daily at 10 p.m.

In Hong Kong, the idea spread through social media app Telegram and LIHKG, a Reddit-like forum. Various posts invited Hong Kong people to join a late-night concert, with free admission and a pajamas dress code.

“It’s very touching,” said Alice Lo, a 24-year-old web designer who lives with her mother in the Hang Hau neighborhood.

“I’ve lived here for two years and never had time to meet my neighbors. I’m glad to know they are proud Hong Kongers who want freedom and democracy. It shows we’re united.”

(Additional reporting by Donny Kwok, Tom Westbrook, and Thomas Peter; Editing by Robert Birsel)

Exclusive: Amid crisis, China rejected Hong Kong plan to appease protesters – sources

Protesters carry placards as they gather to condemn alleged sexual harassment of a detained demonstrator at a police station, in Hong Kong, China August 28, 2019. REUTERS/Anushree Fadnavis

By James Pomfret and Greg Torode

HONG KONG (Reuters) – Earlier this summer, Carrie Lam, the chief executive of Hong Kong, submitted a report to Beijing that assessed protesters’ five key demands and found that withdrawing a contentious extradition bill could help defuse the mounting political crisis in the territory.

The Chinese central government rejected Lam’s proposal to withdraw the extradition bill and ordered her not to yield to any of the protesters’ other demands at that time, three individuals with direct knowledge of the matter told Reuters.

China’s role in directing how Hong Kong handles the protests has been widely assumed, supported by stern statements in state media about the country’s sovereignty and protesters’ “radical” goals.

Beijing’s rebuff of Lam’s proposal for how to resolve the crisis, detailed for the first time by Reuters, represents concrete evidence of the extent to which China is controlling the Hong Kong government’s response to the unrest.

The Chinese central government has condemned the protests and accused foreign powers of fuelling unrest. The Foreign Ministry has repeatedly warned other nations against interfering in Hong Kong, reiterating that the situation there is an “internal affair.”

Lam’s report on the tumult was made before an Aug. 7 meeting in Shenzhen about the Hong Kong crisis led by senior Chinese officials. The report examined the feasibility of the five demands of the protesters, analyzing how conceding to some of these might quiet things down, the individuals with direct knowledge said.

In addition to the withdrawal of the extradition bill, the other demands analyzed in the report were: an independent inquiry into the protests; fully democratic elections; dropping of the term “riot” in describing protests; and dropping charges against those arrested so far.

The withdrawal of the bill and an independent inquiry were seen to be the most feasible politically, according to a senior government official in the Hong Kong administration, who spoke on condition of anonymity. He said the move was envisioned as helping pacify some of the more moderate protesters who have been angered by Lam’s silence.

The extradition bill is one of the key issues that has helped drive the protests, which have drawn millions of people into the streets of Hong Kong. Lam has said the bill is “dead,” but has refused to say explicitly that it has been “withdrawn.”

Beijing told Lam not to withdraw the bill, or to launch an inquiry into the tumult, including allegations of excessive police force, according to the senior government official.

Another of the three individuals, who has close ties with senior officials in Hong Kong and also declined to be identified, confirmed the Hong Kong government had submitted the report.

“They said no” to all five demands, said the source. “The situation is far more complicated than most people realize.”

The third individual, a senior Chinese official, said that the Hong Kong government had submitted the report to the Central Co-ordination Group for Hong Kong and Macau Affairs, a high-level group led by Politburo Standing Committee member Han Zheng, and that President Xi Jinping was aware of it.

The official confirmed that Beijing had rejected giving in to any of the protesters’ demands and wanted Lam’s administration to take more initiative.

In a statement responding to Reuters, Lam’s office said her government had made efforts to address protesters’ concerns, but did not comment directly on whether it had made such a proposal to Beijing, or received instructions.

Written questions to China’s Foreign Ministry were referred to the Hong Kong and Macau Affairs Office (HKMAO), a high-level bureau under China’s State Council. HKMAO did not respond to a faxed request for comment.

Reuters has not seen the report. The news agency also was unable to establish the precise timing of the rejection.

The two Hong Kong sources said the report was submitted between June 16 – the day after Lam announced the suspension of the extradition bill – and Aug. 7, when the HKMAO and China’s representative Liaison Office in Hong Kong held a forum in nearby Shenzhen attended by nearly 500 pro-establishment figures and businesspeople from Hong Kong.

The question of Beijing’s influence strikes at the heart of Hong Kong’s “one country, two systems” governance, which promised the city a high degree of autonomy and wide-ranging freedoms that don’t exist in mainland China.

More than two months of protests have embroiled Hong Kong in its most severe crisis since the former British colony returned to Chinese rule in 1997.

What began as a movement to oppose the extradition bill, which would have allowed people to be sent to China for trial in Communist Party controlled courts, has morphed into a broader campaign for greater rights and democracy in a direct challenge to Beijing.

‘HER HANDS ARE TIED’

Ip Kwok-him, a senior pro-Beijing politician who sits on Hong Kong’s elite Executive Council, which advises senior officials, including Lam, told Reuters that “if the central government won’t allow something, you can’t do it.” Ip did not know about the proposal to withdraw the bill.

A senior businessman who attended the Shenzhen meeting and has met with Lam recently said “her hands are tied” and Beijing wouldn’t let her withdraw the bill. The businessman spoke on condition of anonymity because of the sensitivity of the matter.

At the Shenzhen meeting, Zhang Xiaoming, the head of the HKMAO, said in televised public remarks that if the turmoil persisted, “the central government must intervene.”

Since then, there have been signs of Beijing taking a harder line.

For instance, officials have likened some protests to “terrorism,” Chinese paramilitary police have conducted drills near the border, several Hong Kong companies have been pressured to suspend staff supporting the protests, and security personnel have searched the digital devices of some travelers entering China.

On Friday, Joshua Wong, a prominent democracy activist, was arrested, according to his political party, Demosisto.

(Reporting by James Pomfret; Additional reporting by Clare Jim, Farah Master and the Beijing newsroom; Editing by Alex Richardson and Gerry Doyle)

China says troops will defend Hong Kong’s prosperity ahead of planned pro-democracy march

Military vehicles of the Chinese People's Liberation Army (PLA) pass Huanggang Port for a routine troop rotation in Hong Kong, August 29, 2019. Xinhua via REUTERS

By Donny Kwok and Jessie Pang

HONG KONG (Reuters) – China brought fresh troops into Hong Kong on Thursday in what it described as a routine rotation of the garrison, days before protesters planned to hold a march calling for full democracy for the Chinese-ruled city after three months of demonstrations.

Chinese state media stressed the troop movement was routine and Asian and Western diplomats watching the People’s Liberation Army (PLA) forces in the former British colony had been expecting it.

Even so, the timing of the redeployment is likely to hit nerves in Hong Kong, which returned to China in 1997 as a Special Administrative Region and has been hit by a wave of sometimes violent protests since June.

State news agency Xinhua said the military had completed a p rotation of air, land and maritime forces. It released pictures and footage of armored personnel carriers moving in convoy in Hong Kong before dawn, their lights flashing.

The PLA will make even greater contributions to maintaining Hong Kong’s prosperity and stability, Xinhua cited its garrison in Hong Kong as saying.

Analysts estimate the garrison numbers between 8,000 and 10,000 troops split between bases in southern China and a network of former British army barracks in Hong Kong.

Trucks full of PLA soldiers rolled into Hong Kong within hours of the 1997 handover which ended British rule, raising questions about their role. They stage frequent drills but have seldom since been seen outside their bases.

Reuters witnesses on Thursday saw significantly more activity in and around the PLA’s Shek Kong military base in the rural New Territories than has been apparent in recent months.

About a dozen military jeeps inside the base could be seen just inside the base from a nearby public road, with several camouflaged soldiers milling about.

Four black civilian SUV’s drove between military buildings on a nearby hill road. Several larger green army trucks could be seen outside some buildings, flanked by guards.

Unrest in Hong Kong escalated in mid-June over a now-suspended extradition bill that would have allowed people to be sent to mainland China for trial in Communist Party-controlled courts.

It has since evolved into calls for greater democracy under the “one country, two systems” formula, which guarantees freedoms not enjoyed on the mainland, including an independent judiciary.

The protests have posed the biggest challenge for Communist Party rulers in Beijing since President Xi Jinping took power in 2012.

China has denounced the protests and accused the United States and Britain of interfering in its affairs in Hong Kong. It has sent clear warnings that forceful intervention is possible.

Hundreds of People’s Armed Police this month conducted exercises at a sports stadium in Shenzhen that borders Hong Kong a day after the U.S. State Department said it was “deeply concerned” about their movements.

Troops are seen at the Shek Kong military base of People's Liberation Army (PLA) in New Territories, Hong Kong, China August 29, 2019. REUTERS/Staff

Troops are seen at the Shek Kong military base of People’s Liberation Army (PLA) in New Territories, Hong Kong, China August 29, 2019. REUTERS/Staff

Chinese defense ministry spokesman Ren Guoqiang said the timing of the troop rotation was similar to that of previous years to “meet the demands of defending Hong Kong”.

The protests have rattled Hong Kong’s business community, with Cathay Pacific Airways <0293.HK> the biggest corporate casualty after Beijing demanded it suspend staff involved in, or who support, the demonstrations.

The American Chamber of Commerce (AmCham) said Hong Kong faced an unprecedented test of the “one country, two systems” formula it has been ruled under since 1997.

“AmCham believes that Hong Kong still stands apart from its rivals in the region due to a combination of competitive advantages, including the rule of law, individual freedoms and its deep pool of talent,” it said in a statement.

“While these remain intact for now, they can no longer be taken for granted.”

‘CONFIDENT AND DETERMINED’

Defense Ministry spokesman Ren said the garrison troops would fulfill their obligation of defending Hong Kong according to the law and would follow the orders of the Communist Party.

They had the confidence, determination and capability to “protect and defend Hong Kong’s long-term prosperity and stability,” he told a briefing in Beijing.

He did not answer a question on whether troop levels in Hong Kong had risen with the new deployment.

Ren said that the People’s Armed Police drills in Shenzhen were routine and that they conduct similar exercises every year.

The Civil Human Rights Front, the organizer of previous mass protests in Hong Kong, plans a rally from Hong Kong’s Central business district to Beijing’s main representative Liaison Office in the city on Saturday.

The group’s leader, Jimmy Sham, was attacked by two men armed with a knife and a baseball bat on Thursday, it said on its Facebook page. He was not hurt but a friend who tried to protect him suffered injuries to his arm.

Protesters targeted the Liaison Office, a symbol of Beijing’s rule, in July, daubing anti-China slogans on its walls and signs.

Police refused permission for the march on Thursday, but the group said it would appeal.

The protest would mark five years since Beijing ruled out universal suffrage for Hong Kong and comes as Hong Kong faces its first recession in a decade, with all its pillars of growth under stress.

Beijing is eager to quell the unrest before the 70th anniversary of the founding of the People’s Republic of China on Oct. 1, when Xi will oversee a military parade in Beijing.

(Reporting by Donny Kwok, Felix Tam, Greg Torode, Farah Master, Twinnie Siu, James Pomfret and Anne Marie Roantree in HONG KONG and Ben Blanchard in BEIJING; Writing by Nick Macfie, Editing by Robert Birsel and Angus MacSwan)

China hopes U.S. will create conditions necessary for September trade talks

FILE PHOTO: U.S. dollar and China yuan notes are seen in this picture illustration June 2, 2017. REUTERS/Thomas White/Illustration/File Photo

BEIJING (Reuters) – China and the United States are discussing the next round of face-to-face trade talks scheduled in September, but hopes for progress hinge on whether Washington can create favorable conditions, China’s commerce ministry said on Thursday.

In the latest tit-for-tat escalation of the trade war between the world’s two largest economies, U.S. President Donald Trump last Friday said he would heap an additional duty of 5% on about $550 billion in targeted Chinese goods.

The move came hours after China had unveiled retaliatory tariffs on $75-billion worth of U.S. goods.

China hopes the United States can cancel the planned additional tariffs to avoid an escalation in the trade war, its commerce ministry spokesman, Gao Feng, told reporters on Thursday.

“The most important thing at the moment is to create necessary conditions for both sides to continue negotiations,” he said during a weekly briefing, adding that China was lodging “solemn representation” with the United States.

For two years, the Trump administration has sought to pressure China to eliminate what it calls unfair trade practices and make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

But China has constantly denied such accusations, vowing to fight back in kind and criticizing U.S. measures as protectionist.

Gao said China had “ample” countermeasures to retaliate against the planned U.S. tariffs, but talks in the current circumstances should focus on whether the tariffs could be canceled.

He did not answer directly when asked if his remarks suggested China would not retaliate against the latest U.S. tariff threat.

China has repeatedly said it would have no choice but to retaliate if the United States followed through on its threat.

On Monday, Trump predicted a trade deal with China, saying he believed it was sincere about wanting to reach a deal, citing what he called increasing economic pressure on Beijing and job losses there.

Trump cited as a positive sign comments by Vice Premier Liu He, who has been leading the talks with Washington, that China was willing to resolve the dispute through “calm” negotiations.

He repeated his assertion that Chinese officials had contacted U.S. trade counterparts overnight, offering to resume negotiations, a statement that China declined to confirm.

Gao also declined to provide any detail when asked if there had been a call this week between Beijing and Washington.

“As far as I know, both trade teams have maintained effective communication,” he said.

In July 2018, the U.S.-China trade dispute boiled over in tariffs on hundreds of billions of dollars’ worth of each other’s goods and threatens to engulf all trade between the countries, putting global growth at risk.

“We hope the United States will show sincerity and concrete actions,” Gao said.

(Reporting by Stella Qiu and Se Young Lee; Writing by Yawen Chen; Editing by Simon Cameron-Moore and Clarence Fernandez)

Trump moves to cool tension over China, Iran as G7 summit wraps up

French President Emmanuel Macron and U.S. President Donald Trump attend a joint press conference at the end of the G7 summit in Biarritz, France, August 26, 2019. REUTERS/Christian Hartmann

By Jeff Mason and Richard Lough

BIARRITZ, France (Reuters) – U.S. President Donald Trump on Monday offered an olive branch to China after days of intense feuding over trade that has spooked financial markets and he opened the door to diplomacy with Iran, easing tensions on the last day of a strained G7 summit.

The leaders of the world’s major industrialized nations, meeting in the French coastal resort of Biarritz, agreed on a deal to provide $20 million in emergency help to Brazil and its neighbors stop the Amazon forest fires.

While they were not expected to leave Biarritz with a more comprehensive set of agreements or even a joint communique, Trump and his Western allies appeared to have at least agreed cordially to disagree on issues dividing them.

These ranged from Washington’s escalating trade war with China, which many fear could tip the slowing world economy into recession; how to deal with the nuclear ambitions of both Iran and North Korea; and the question of whether Russian President Vladimir Putin should be readmitted to the group.

Trump, a turbulent presence at last year’s G7 gathering, insisted during the Biarritz meeting that he was getting along well with other leaders of a group that also comprises Britain, Canada, France, Germany, Italy and Japan.

The trade war between the United States and China, the world’s two largest economies, escalated last Friday as both sides leveled more tariffs on each other’s exports.

On Sunday, a White House spokeswoman said that when Trump told journalists that he had had second thoughts about last week’s tariff blow against China, they were regret for not raising them more.

However, the mood-music changed abruptly on Monday, hours after China’s yuan fell to an 11-year low against the dollar amid fears that the quickening Sino-U.S. trade war would inflict more damage on the world’s largest economies.

Speaking on the sidelines of the G7 summit on Monday, Trump said he believed China wanted to make a trade deal after it contacted U.S. trade officials overnight to say it wanted to return to the negotiating table.

Trump hailed Chinese President Xi Jinping as a great leader and said the prospect of talks was a very positive development.

“He understands, and it’s going to be great for China, it’s going to be great for the U.S., it’s going to be great for the world,” he said.

In Beijing, Foreign Ministry spokesman Geng Shuang said he had not heard that a phone call between the two sides had taken place.

“MAKE IRAN RICH AGAIN”

Trump also backed away from confrontation over Iran on Monday, a day after French President Emmanuel Macron stunned other leaders by inviting Iran’s foreign minister to Biarritz for talks on the stand-off between Washington and Tehran.

Trump told journalists that they had been wrong to report that he was blindsided by the five-hour visit of Mohammad Javad Zarif to the summit’s sidelines, and said that while he thought it was too soon for a meeting he had no objections to it.

European leaders have struggled to calm a confrontation between Iran and the United States since Trump pulled his country out of Iran’s internationally brokered 2015 nuclear deal last year and reimposed sanctions on the Iranian economy.

Macron has led efforts to defuse tensions, fearing a collapse of the nuclear deal could set the Middle East ablaze.

Trump indicated an openness to discussions with Iran on a nuclear deal and said he was not looking for regime change.

“I’m looking at a really good Iran, really strong, we’re not looking for regime change,” he said. “And we’re looking to make Iran rich again, let them be rich, let them do well.”

Trump and Macron met over a long lunch on the first day of the summit and, as they gathered with other leaders for further talks on Monday, they greeted each other warmly and smiled.

DIGITAL TAX

Taking more heat out of the annual meeting, French and U.S. negotiators meeting behind the scenes reached a compromise agreement on France’s digital tax, a levy that had prompted Trump to threaten a separate tax on French wine imports.

The row had threatened to open up a new front in the trade spat between Washington and the EU as economic relations between the two appeared to sour.

France’s 3% levy applies to revenue from digital services earned by firms with more than 25 million euros in French revenue and 750 million euros ($830 million) worldwide.

Trump skipped a session of G7 leaders on climate change at which they agreed to the $20 million technical and financial help for the Amazon. Macron said Trump agreed on the initiative but could not attend because of bilateral meeting engagements.

A record number of fires are ravaging the rainforest, many of them in Brazil, drawing international concern because of the Amazon’s importance to the global environment.

Macron shunted the blazes fires to the top of the summit agenda after declaring them a global emergency. Last week he accused Brazilian President Jair Bolsonaro’s government of not doing enough to protect the area and of lying about its environmental commitments.

(Reporting by Richard Lough, John Irish, Crispian Balmer, Marine Pennetier, John Chalmers, Jeff Mason, William James, Andreas Rinke and Michel Rose; Writing by John Chalmers; Editing by Alison Williams)

Hong Kong government warns of great danger after weekend of violence

An anti-extradition bill protester throws a Molotov cocktail as protesters clash with riot police during a rally to demand democracy and political reforms, at Tsuen Wan, in Hong Kong, China August 25. REUTERS/Tyrone Siu

By Twinnie Siu

HONG KONG (Reuters) – Illegal violence is pushing Hong Kong to the brink of great danger, the city government said on Monday, after a weekend of clashes that included the first gun-shot and the arrest of 86 people, the youngest just 12.

Police fired water cannon and volleys of tear gas in running battles with protesters who threw bricks and petrol bombs on Sunday, the second day of weekend clashes in the Chinese-ruled city.

Six officers drew their pistols and one officer fired a warning shot into the air, police said in a statement, adding that 215 rounds of tear gas and 74 rubber bullets were fired over the two days.

“The escalating illegal and violent acts of radical protesters are not only outrageous, they also push Hong Kong to the verge of a very dangerous situation,” the government said in a statement.

The protests began in mid-June over a now-suspended extradition bill that would have allowed Hong Kong people to be sent to mainland China for trial.

But the demonstrations have evolved over 12 straight weeks into a broad demand for greater democracy in the financial hub that was promised a high degree of autonomy under a “one country, two systems” formula when it was handed to China by colonial ruler Britain in 1997.

More demonstrations are planned in the days and weeks ahead, including a rally at Hong Kong’s Cathay Pacific Airways <0293.HK> headquarters on Wednesday to protest against perceived “white terror”, a term used to describe anonymous acts that create a climate of fear.

Cathay has emerged as the biggest corporate casualty of the protests after China demanded it suspend staff involved in, or who supported, the anti-government demonstrations that have plunged the city into its biggest crisis since 1997.

On Saturday, activists threw petrol bombs and bricks in the gritty industrial district of Kwun Tong, on the east of the Kowloon peninsula. Some protesters cut down “smart” lamp posts equipped with surveillance cameras.

An anti-extradition bill protester carries a barricade for blocking the road during a protest in Hong Kong, China, August 25, 2019. REUTERS/Willy Kurniawan

An anti-extradition bill protester carries a barricade for blocking the road during a protest in Hong Kong, China, August 25, 2019. REUTERS/Willy Kurniawan

GRAVE CHALLENGE

The protests pose the gravest popular challenge to Chinese President Xi Jinping since he took power in 2012, with his government keen to quell the unrest ahead of the 70th anniversary of the founding of the People’s Republic of China on Oct 1.

Protesters again adopted cat-and-mouse tactics on Sunday evening, gathering then quickly dispersing, only to reappear in other places.

They also set up barricades to block some roads, following a largely peaceful rally earlier in the day.

Police said the 86 arrested people were aged 12 to 52, and they were suspected of offences including unlawful assembly, possession of offensive weapons and assaulting police officers.

Twenty-one officers were injured in the violence, they said.

The weekend clashes marked a return to violent unrest after days of calmer demonstrations.

The protests have occasionally caused serious disruption including forcing the closure of the airport.

China has denounced the protests, warned of the damage to Hong Kong’s economy and complained of outside interference.

It has also sent a clear warning that forceful intervention is possible, with paramilitary forces holding drills in Shenzhen, just over the border from Hong Kong in mainland China.The protesters say they are fighting the erosion of the “one country, two systems” arrangement under which Hong Kong returned to China with the promise of freedoms, not enjoyed on the mainland, for 50 years.

But the turmoil is taking a toll.

The world’s biggest equity deal this year was to unfold in Hong Kong later this month but it has been put on hold. Banks are issuing unprecedented profit warnings, while hotels and restaurants are half-empty.

Several major conferences and trade fairs have been postponed and economists say retail sales could drop by 20%-30% this year.

Hong Kong’s benchmark Hang Seng Index <.HSI> closed down 1.9% on Monday, in line with regional markets, as the latest salvo in the Sino-U.S. trade war rattled investors.

(Reporting By Twinnie Siu, Donny Kwok and Noah Sin; Writing by Anne Marie Roantree; Editing by Michael Perry, Robert Birsel)