North Korea warns U.S. skeptics as Kim heads for summit with Trump

North Korean leader Kim Jong Un waves from a train as he departs for a summit in Hanoi, in Pyongyang, North Korea in this photo released by North Korea's Korean Central News Agency (KCNA) on February 23, 2019. KCNA via REUTERS

By Jack Kim and Josh Smith

HANOI (Reuters) – North Korea warned President Donald Trump on Sunday not to listen to U.S. critics who were disrupting efforts to improve ties, as its leader, Kim Jong Un, made his way across China by train to a second summit with Trump in Vietnam.

The two leaders will meet in Hanoi on Wednesday and Thursday, eight months after their historic summit in Singapore, the first between a sitting U.S. president and a North Korean leader, where they pledged to work toward the complete denuclearization of the Korean peninsula.

But their vaguely worded agreement has produced few results and U.S. Democratic senators and U.S. security officials have warned Trump against cutting a deal that would do little to curb North Korea’s nuclear ambitions.

The North’s KCNA state news agency said such opposition was aimed at derailing the talks.

“If the present U.S. administration reads others’ faces, lending an ear to others, it may face the shattered dream of the improvement of the relations with the DPRK and world peace and miss the rare historic opportunity,” the news agency said in a commentary, referring to North Korea by the initials of its official name, the Democratic People’s Republic of Korea.

The Trump administration has pressed the North to give up its nuclear weapons program, which, combined with its missile capabilities, pose a threat to the United States, before it can expect any concessions.

But in recent days Trump has signaled a possible softening, saying he would love to be able to remove sanctions if there is meaningful progress on denuclearization.

Trump also said he was in no rush and had no pressing schedule for North Korea’s denuclearization, hinting at a more gradual, reciprocal approach, long favored by Pyongyang.

The North also wants security guarantees and a formal end of the 1950-1953 Korean War, which ended in a truce, not a treaty.

Trump said on Sunday that he and Kim expect to make further progress at this week’s summit and again held out the promise that denuclearization would help North Korea develop its economy.

He also said Chinese President Xi Jinping has been supportive of Trump’s meeting with Kim. “The last thing China wants are large scale nuclear weapons right next door.”

TRUMP SCOFFS AT CRITICS

Trump scoffed at critics of his handling of North Korea.

“So funny to watch people who have failed for years, they got NOTHING, telling me how to negotiate with North Korea. But thanks anyway!” he said in a tweet.

U.S. Secretary of State Mike Pompeo told “Fox News Sunday” that North Korea has yet to take “concrete” steps on denuclearization and said another summit might be needed beyond the one in Hanoi, but that he hoped for substantial progress this week.

“The alternative to giving up his nuclear weapons is remaining a pariah state, remaining a nation that is unable to trade, unable to grow, unable to take care of its own people,” Pompeo said of Kim in an interview with CNN’s “State of the Union.”

In a letter to Trump last week, three Democratic chairmen of key committees in the House of Representatives accused the administration of withholding information on the negotiations with North Korea.

“There are ample reasons to be skeptical that Chairman Kim is committed to a nuclear-free North Korea,” the lawmakers wrote.

U.S. intelligence officials recently testified to Congress that North Korea was unlikely to ever give up its entire nuclear arsenal.

The New York Times reported on Sunday that Pompeo has conceded in private discussions with Korea experts that he would be lucky if North Korea agreed to dismantle 60 percent of what the United States has demanded, although he added that it would still be more than any other administration had achieved.

The State Department declined to comment on the report.

KCNA, referring to U.S. fears of the North’s weapons, said if this week’s talks ended without results, “the U.S. people will never be cleared of the security threats that threw them into panic”.

Few details of Kim’s trip to Vietnam were announced until early on Sunday, when North Korean state media confirmed he had left Pyongyang by train, accompanied by senior officials as well as his influential sister, Kim Yo Jong.

RED CARPET SEND-OFF

In rare, revealing coverage of Kim’s travel, the North’s Rodong Sinmun newspaper featured photographs of the leader getting a red-carpet send-off on Saturday afternoon and waving from a train door while holding a cigarette.

He was joined by top officials also involved in the Singapore summit, including Kim Yong Chol, former spy chief and Kim’s top envoy in negotiations with the United States, as well as senior party aide Ri Su Yong, Foreign Minister Ri Yong Ho and defense chief No Kwang Chol.

Other senior officials, such as his de facto chief of staff, Kim Chang Son, and Kim Hyok Chol, negotiations counterpart to U.S. envoy Stephen Biegun, were already in Hanoi to prepare for the summit.

Both sides are under pressure to forge more specific agreements than were reached in Singapore.

The two leaders are likely to try to build on their personal connection to push things forward in Hanoi, even if only incrementally, analysts said.

“They will not make an agreement which breaks up the current flow of diplomacy. (President Trump) has mentioned that they’ll meet again; even if there is a low-level agreement, they will seek to keep things moving,” said Shin Beom-chul, a senior fellow at the Asan Institute for Policy Studies.

Few details of summit arrangements have been released.

Some lamp posts on Hanoi’s tree-lined streets are decked with North Korean, U.S. and Vietnamese flags fluttering above a handshake design, and security has been stepped up at locations that could be the summit venue, or where the leaders might stay.

It could take Kim at least 2-1/2 days to travel to Vietnam by train.

(Additional reporting by Joyce Lee, Ju-min Park, Soyoung Kim, Hyonhee Shin, James Pearson, and Ginger Gibson in Washington; Editing by Robert Birsel and Jeffrey Benkoe)

Trump delays tariff hike on Chinese goods, citing trade talk progress

By Jeff Mason and David Lawder

WASHINGTON (Reuters) – President Donald Trump said on Sunday he would delay an increase in U.S. tariffs on Chinese goods thanks to “productive” trade talks and that he and Chinese President Xi Jinping would meet to seal a deal if progress continued.

The announcement was the clearest sign yet that China and the United States are closing in on a deal to end a months-long trade war that has slowed global growth and disrupted markets.

Trump had planned to raise tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports into the United States if an agreement between the world’s two largest economies were not reached by Friday.

After a week of talks that extended into the weekend, Trump said those tariffs would not go up for now. In a tweet, he said progress had been made in divisive areas including intellectual property protection, technology transfers, agriculture, services and currency.

As a result, he said: “I will be delaying the U.S. increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!”

Mar-a-Lago is the president’s property in Florida, where the two men have met before.

The president did not set a new deadline for the talks to conclude, but he told U.S. state governors gathered at the White House that there could be “very big news over the next week or two” if all went well in the negotiations.

The White House did not provide specific details on the kind of progress that had been made.

The Chinese government’s top diplomat, State Councillor Wang Yi, told a forum in Beijing on Monday that the talks had made “substantive progress”, providing positive expectations for the stability of bilateral ties and global economic development, China’s Foreign Ministry said.

China’s official Xinhua news agency said in a commentary that the goal of an agreement was getting “closer and closer”, but also warned that negotiations would get more difficult as they approached the final stages.

“The emergence of new uncertainty cannot be ruled out, and the long-term nature, complexity, and difficulty of China-U.S. trade frictions must be clearly recognized,” Xinhua said.

Trump and Xi called a 90-day truce last year to give their advisers time to negotiate a deal. The threat of tariff increases represented significant leverage for the Trump team as Beijing is trying to stabilize China’s cooling economy.

“We can’t be sure whether this constitutes a major cave or success because we don’t know the details of what has been negotiated. But … agreeing to extend negotiations a few more weeks definitely is in China’s interests,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies in Washington.

“At this point, the U.S. has likely gotten all it’s going to get out of China.”

J.P. Morgan Asset Management market strategist Tai Hui said the move suggested both sides wanted a settlement of the dispute and added that further tariff escalation would have added to concerns about the U.S. growth outlook.

Markets, which have been sensitive to the dispute as it has slowed global growth, and some U.S. trade associations cheered Trump’s move.

U.S. equity index futures opened higher on Sunday evening as trading kicked off for the week. S&P 500 e-mini futures ticked higher after Trump’s tweets on trade, suggesting Wall Street would open on positive footing on Monday morning.

Asian shares scaled a five-month high and the Australian dollar, a proxy for China investments, got a 0.4 percent lift from the news. [MKTS/GLOB]

Chinese stocks and the yuan jumped at the start of trade, with the benchmark Shanghai Composite index up 2.1 percent, its highest since Aug. 1, and the yuan hit its strongest level against the dollar since July.[.SS]

Trump leaves on Monday for Vietnam, where he will hold a summit with North Korean leader Kim Jong Un. The president, who faces a re-election battle next year, has portrayed his engagement with Kim and forcefulness with China as key successes of his presidency.

ENFORCEMENT STICKING POINT

Trump said on Friday there was a “good chance” a deal would emerge. But his lead trade negotiator, U.S. Trade Representative Robert Lighthizer, emphasized then that some major hurdles remained. Lighthizer has been a key voice in pushing China to make structural reforms.

China’s negotiators stayed for the weekend and the two sides discussed the thorny issue of how to enforce a potential trade deal on Sunday, according to a person familiar with the talks. Tariffs and commodities were also on Sunday’s agenda, he said.

Negotiators have been seeking to iron out differences on changes to China’s treatment of state-owned enterprises, subsidies, forced technology transfers and cyber theft.

Washington wants a strong enforcement mechanism to ensure that Chinese reform commitments are followed through to completion, while Beijing has insisted on what it called a “fair and objective” process. Another source briefed on the talks said that enforcement remained a major sticking point as of Saturday.

Reuters reported on Wednesday that both sides were drafting memorandums of understanding (MOUs) on cyber theft, intellectual property rights, services, agriculture and non-tariff barriers to trade, including subsidies.

Trump said he did not like MOUs because they are short-term, and he wanted a long-term deal. That sparked a back-and-forth with Lighthizer, who argued that MOUs were binding contracts, before saying they would abandon the term altogether going forward.

The source familiar with the talks played down the apparent tension between the top trade negotiator and the president, saying Trump, a former New York businessman, had viewed MOUs from a real estate perspective, while Lighthizer had done so from a trade perspective. There was no daylight between the two men, the source said.

At the White House event with governors on Sunday, Trump said Lighthizer was doing a “fantastic” job.

(Reporting by Jeff Mason and David Lawder; Additional reporting by Rajesh Kumar Singh, Sarah N. Lynch and Howard Schneider in Washington; Josh Horwitz in Shanghai; and Michael Martina and Ben Blanchard in Beijing; Editing by Peter Cooney & Kim Coghill)

U.S., China haggle over toughest issues in trade war talks

U.S. Trade Representative Robert Lighthizer (2ndL), Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross (Top-L) pose for a photograph with China's Vice Premier Liu He (2ndR), Chinese vice ministers and senior officials before the start of US-China trade talks at the White House in Washington, U.S., February 21, 2019. REUTERS/Joshua Roberts

By Jeff Mason and David Lawder

WASHINGTON (Reuters) – Top U.S. and Chinese trade negotiators haggled on Thursday over the details of a set of agreements aimed at ending their trade war, just one week before a Washington-imposed deadline for a deal expires and triggers higher U.S. tariffs.

Reuters reported exclusively on Wednesday that the two sides are starting to sketch out an agreement on structural issues, drafting language for six memorandums of understanding on proposed Chinese reforms.

If the two sides fail to reach an agreement by March 1, U.S. tariffs on $200 billion worth of Chinese imports are set to rise to 25 percent from 10 percent. Tit-for-tat tariffs between the world’s two largest economic powers have disrupted international trade and slowed the global economy since the trade war started seven months ago.

Negotiators have struggled this week to overcome differences on specific language to address tough U.S. demands for structural changes in China’s economy, two sources familiar with the talks said. The issues include an enforcement mechanism to ensure that China complies with any agreements.

“It’s not surprising that this week has been more challenging,” said an industry source familiar with the talks. “Once you move from putting together outlines to filling out the details, that is where things would naturally become more challenging.”

Chinese officials did not answer questions as they left the U.S. Trade Representative’s office on Thursday evening after more than nine hours of talks on Thursday.

The discussions began with a photo opportunity where U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He faced each other silently across a table in the Eisenhower Executive Office Building next door to the White House.

U.S. President Donald Trump will meet with Liu at the Oval Office on Friday, the White House said late on Thursday. The two also met at the end of talks during Liu’s last visit to Washington in late January.

Trump, who has embraced an “America First” policy as part of an effort to rebalance global trade, has said the March 1 deadline could be extended if enough progress is made.

Sources familiar with the negotiations told Reuters the memorandums would cover forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture and non-tariff barriers to trade.

The two sides remain far apart on demands by Trump’s administration for China to end practices on those issues that led Trump to start levying duties on Chinese imports in the first place.

Chinese President Xi Jinping would need to undertake difficult structural economic reforms to meet U.S. demands. The United States is offering no real concessions in return, other than to remove the tariff barriers Trump has imposed to force change from China.

PEN TO PAPER

One of Trump’s demands that is easier to fix for Beijing is to reduce the trade imbalance between the two nations. The U.S. trade deficit with China reached a record $382 billion through the first 11 months of 2018.

The two sides have reached consensus on how to alleviate the trade imbalances, several Chinese government sources said. Washington and Beijing are looking at a 10-item list for that, including additional Chinese purchases of agricultural produce, energy and goods such as semiconductors.

U.S. Agriculture Secretary Sonny Perdue called China’s pledges to purchase U.S. agricultural produce premature.

“Those proposals are all contingent upon a grand deal,” he said on the sidelines of the U.S. Department of Agriculture’s annual forum in Washington.

“The real issue is structural reforms regarding intellectual property, enforceability of those types of provisions.”

The United States could quickly recover its lost agricultural markets in China if a deal is struck, he said.

Perdue has overseen $12 billion in federal aid to U.S. farmers for losses they have sustained because of the trade war. China had all but halted purchases of U.S. soybeans, which were the single biggest U.S. agricultural export, worth around $12 billion in 2017.

(Reporting by Jeff Mason and David Lawder; Additional reporting by Rajesh Kumar Singh, Humeyra Pamuk in Washington, Chris Prentice in New York and Michael Martina in Beijing; writing by Simon Webb; editing by Paul Simao, Richard Chang and Grant McCool)

Explainer: What’s at stake in U.S.-China trade talks

U.S. Treasury Secretary Steven Mnuchin, second from left, U.S. Trade Representative Robert Lighthizer, third from left, and Chinese Vice Premier and lead trade negotiator Liu He, second from right, pose for a photo before the opening session of trade negotiations at the Diaoyutai State Guesthouse in Beijing, Thursday, Feb. 14, 2019. Mark Schiefelbein/Pool via REUTERS

WASHINGTON (Reuters) – U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin are in Beijing this week as Chinese and American negotiators try to hammer out a trade deal to ease a trade war and avert an increase in U.S. tariffs on Chinese goods scheduled for March 2.

The governments of the world’s two largest economies have been locked in a tit-for-tat tariff battle for months as Washington presses Beijing to address long-standing concerns over Chinese practices and policies around industrial subsidies, market access and intellectual property rights protections.

Here is a look at the key issues in the talks and their implications:

WHAT ARE WASHINGTON AND BEIJING FIGHTING ABOUT?

After years of steadily rising U.S. trade deficits with China and U.S. complaints that Beijing has systematically obtained American intellectual property and trade secrets through coercion and outright theft, the Trump administration last year demanded fundamental changes to China’s economic model to allow U.S. companies to compete on a more level playing field. These include an end to policies that Washington claims effectively force U.S. companies to transfer their technologies to Chinese partners and full protection for American intellectual property rights.

WHAT’S AT STAKE?

At the most basic level, a dominant position in future high-technology industries, according to the U.S. Trade Representative’s office. China is determined to upgrade its industrial base in 10 strategic sectors by 2025, including aerospace, robotics, semiconductors, artificial intelligence and new-energy vehicles. U.S. officials say they do not have a problem with China moving up the technology ladder, but they do not want it to happen with stolen or unfairly obtained American know-how. They argue that China’s massive support for state-owned enterprises is leading to overproduction, making it hard for U.S. companies to compete on a market-driven basis.

HOW DOES BEIJING VIEW THESE COMPLAINTS?

Chinese officials generally view the U.S. actions as a broad effort to thwart the Asian country’s inevitable rise to a dominant position in the global economy. They deny that China requires or coerces technology transfers, saying that any such actions are commercial transactions between American and Chinese firms. At the same time, China is looking to make a deal with President Donald Trump to ease U.S. tariffs on Chinese goods and to directly reduce the trade imbalance between the world’s two largest economies through increased purchases of U.S. goods, including soybeans and energy. Beijing has also taken some steps to open up to more imports, including lowering tariffs on imported cars and allowing foreign companies in some sectors to own a majority of their operations in China.

WHAT ACTIONS HAS THE UNITED STATES TAKEN?

Trump has imposed punitive tariffs on $250 billion worth of imported goods from China so far – a 25 percent duty on $50 billion worth of machinery, semiconductors and other technology-related products, and 10 percent tariffs on a broader, $200 billion range of goods that includes many chemicals, building materials, furniture and some consumer electronics. Thus far, Trump has spared many consumer goods, including cellphones, computers, clothing and footwear from tariffs. But if no deal is reached by March 2, the United States is scheduled to raise tariffs on the $200 billion in goods from China to 25 percent from 10 percent. Trump said on Wednesday that a delay was possible.

HAS CHINA RETALIATED?

Yes. China has imposed tariffs of 25 percent on $50 billion worth of U.S. goods, including soybeans, beef, pork, seafood, whiskey, ethanol and motor vehicles. Beijing also has imposed tariffs of 5 percent to 10 percent on another $60 billion worth of U.S. goods, including liquefied natural gas, chemicals, frozen vegetables and food ingredients. So far, Beijing has spared imports of U.S. commercial aircraft largely made by Boeing Co. Since Trump and Chinese President Xi Jinping agreed in December to pursue the current round of talks, China has also suspended tariffs on U.S.-made autos and has resumed some purchases of U.S. soybeans.

WHAT HAS HAPPENED IN THE TALKS SO FAR?

China has pledged to make its industrial subsidy programs compliant with World Trade Organization rules and nondistortive to markets, but has offered no details on how it will achieve this, sources told Reuters. It’s unclear if that will be enough to satisfy U.S. negotiators, but that indicates China may be willing to address those American concerns.

The two sides seemed far apart on industrial subsidies and forced technology transfer when they met in late January, though they indicated some progress had been made around intellectual property rights issues.

A key U.S. demand is creating a mechanism for regular reviews of China’s progress on following through on any reform pledges that it makes, a plan that would maintain a perpetual threat of U.S. tariffs.

China has also offered to make purchases of over $1 trillion worth of goods over the next six years, including of agricultural and energy products as well as industrial goods.

WILL U.S. OFFICIALS ACCEPT A DEAL BASED MAINLY ON PURCHASES?

Trump has been optimistic about a deal, saying on Wednesday that the talks were going “very well”. But he indicated in his State of the Union address on Feb. 5 that big spending by China on American goods would not be enough for a deal. Any new trade deal with China “must include real, structural change to end unfair trade practices, reduce our chronic trade deficit and protect American jobs,” he said in the address.

The president’s advisers say he will not soften his demands that China make structural reforms on intellectual property and related issues. The United States rebuffed some initial offers by China last spring to increase purchases of U.S. goods, choosing instead to proceed with tariffs.

WHAT ARE POSSIBLE OUTCOMES OF THIS WEEK’S TALKS?

The two sides could report some progress toward a deal and may extend the March 2 deadline to keep negotiating, as often happened during talks last year to replace the North American Free Trade Agreement, or NAFTA. A stalemate on core structural issues would be viewed as a negative sign, and investors would brace for higher tariffs. Trade negotiations often go down to the wire, so a final outcome is not likely before the end of February, and any agreement will need the approval of Trump and Xi. The two presidents have no meeting planned before the March deadline.

(Reporting by David Lawder; Additional reporting by Chris Prentice; Editing by Jonathan Oatis)

Wall Street gains as U.S.-China trade talks advance

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., February 13, 2019. REUTERS/Brendan McDermid

By Amy Caren Daniel

(Reuters) – U.S. stocks gained on Friday, led by a bounce in shares of financials, as investors were optimistic about the ongoing trade talks to resolve a bruising tariff dispute between the United States and China.

Talks between the world’s largest economies will continue next week in Washington, with both sides saying this week’s negotiations in Beijing made good progress.

“Trade talks have been completed in Beijing and the good news is that they are planning on having another round of negotiations in Washington next week,” said Art Hogan, chief market strategist at National Securities in New York.

“The market is predicated on a positive outcome from the trade negotiations.”

Hopes of a trade deal ahead of a March 1 deadline has helped the trade-sensitive industrial sector gain more than 16 percent so far this year, making it the best performing S&P sector.

The sector rose 0.97 percent boosted by bellwethers Boeing Co and Caterpillar Inc.

Leading the gains among the 11 major S&P sectors trading higher were financial companies up 1.66 percent, after a more than 1 percent fall in the prior session.

The sector was hit by a fall in U.S. treasury yields on Thursday after bleak retail sales data in December suggested a sharp slowdown in economic activity at the end of 2018.

Another concern for markets was a threat by President Donald Trump to declare a national emergency in an attempt to fund his U.S.-Mexico border wall without congressional approval.

Still, he agreed to sign the bill that lacked money for his wall, but prevents another damaging government shutdown.

At 9:53 a.m. EDT the Dow Jones Industrial Average was up 275.89 points, or 1.08 percent, at 25,715.28, the S&P 500 was up 22.19 points, or 0.81 percent, at 2,767.92 and the Nasdaq Composite was up 21.83 points, or 0.29 percent, at 7,448.79.

PepsiCo Inc shares rose 2.6 percent after the soda maker forecast an increase in revenue growth. Nvidia Corp rose 2.0 percent and helped push the technology sector 0.29 percent higher, after the chipmaker forecast sales for its current fiscal year above expectations.

Advancing issues outnumbered decliners by a 3.76-to-1 ratio on the NYSE and a 2.69-to-1 ratio on the Nasdaq.

The S&P index recorded 38 new 52-week highs and no new lows, while the Nasdaq recorded 43 new highs and 10 new lows.

(Reporting by Amy Caren Daniel and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur)

‘So far, so good,’ Mnuchin says of trade talks in China

U.S. Treasury Secretary Steven Mnuchin and a member of the U.S. trade delegation to China arrives to a hotel in Beijing, China February 13, 2019. REUTERS/Thomas Peter

By Ben Blanchard and Philip Wen

BEIJING (Reuters) – U.S. Treasury Secretary Steven Mnuchin said trade talks with China went well on Wednesday, as the world’s two largest economies try to iron out an agreement to resolve their dispute.

“So far, so good,” he said when asked by reporters on how the meetings in Beijing went. He did not say who he met.

Mnuchin said earlier he hoped for “productive” trade meetings as the two countries seek to end a festering dispute that has seen both sides level tariffs at one other.

U.S. tariffs on $200 billion worth of imports from China are scheduled to rise to 25 percent from 10 percent if the two sides cannot reach a deal by March 1, increasing pain and costs in sectors from consumer electronics to agriculture.

Asked by reporters as he left his Beijing hotel what his hopes were for the visit, Mnuchin said “productive meetings.” He did not elaborate.

Mnuchin, along with U.S. Trade Representative (USTR) Robert Lighthizer, arrived in the Chinese capital on Tuesday.

U.S. President Donald Trump said on Tuesday he could let the deadline for a trade agreement “slide for a little while,” but he would prefer not to do so. The president said he expects to meet with Chinese President Xi Jinping to close the deal at some point.

Trump’s advisers have described March 1 as a “hard deadline,” but Trump told reporters a delay was now possible.

He said in December that the 90-day truce could be extended, but that he could revert to tariffs if differences could not be resolved.

Speaking to Fox News on Wednesday, White House Press Secretary Sarah Sanders said: “we’ll see what happens on whether or not the president makes a move to change the deadline.”

She also raised the possibility of a meeting between the leaders of the two economic superpowers, saying Trump’s personal retreat of Mar-a-Lago in Florida would make a good venue.

“It will ultimately take … President Trump and President Xi sitting down face-to-face figuring that out and getting that final deal because they are the only two that’ll ultimately be able to nail that down,” Sanders said.

A growing number of U.S. businesses and lawmakers have expressed hopes for a delay in the tariff increase while the two sides tackle the difficult U.S. demands for major structural policy changes by China. They include ending the forced transfer of American trade secrets, curbing Beijing’s industrial subsidies and enforcing intellectual property rights.

Trump said last week he did not plan to meet with Xi before the March 1 deadline.

Mnuchin and Lighthizer were scheduled to hold talks on Thursday and Friday with Vice Premier Liu He, the top economic adviser to Xi.

The latest round of talks in Beijing kicked off on Monday with discussions among deputy-level officials to try to work out technical details, including a mechanism for enforcing any trade agreement.

China’s Foreign Ministry referred questions on the talks to the Ministry of Commerce, which did not respond to a request for comment.

A round of talks at the end of January ended with some progress reported but no deal and U.S. declarations that much more work was needed.

‘DODGED A BULLET’

James Green, a senior research fellow at Georgetown University, believes China was looking to secure a Xi-Trump meeting in the hope that it would make a near-term deal on tariffs far more likely.

“From their point of view, they would have dodged a bullet,” Green, who was USTR’s top official at the U.S. embassy in Beijing until mid-2018, told Reuters by telephone.

But there is growing bipartisan concern in the United States about increasing state control of China’s economy, military activity in the South China Sea, and security issues around its technology companies.

Even if the two sides could come to terms on tariffs, that might not mean an end to trade friction, Green added.

“I think that whatever we might get for an agreement, it will be a pause, because the U.S. government is still going to move forward in the telecoms sector, on law enforcement and legal action, and on sanctions-related issues.”

U.S. Secretary of State Mike Pompeo cautioned allies on Monday against deploying equipment from Chinese telecoms giant Huawei Technologies Co Ltd on their soil, saying it could make it more difficult for Washington to “partner alongside them.”

The United States and its Western allies believe Huawei’s apparatus could be used for espionage, and see its expansion into central Europe as a way to gain a foothold in the European Union market.

Both the Chinese government and Huawei have dismissed these concerns.

(Reporting by Philip Wen, Ben Blanchard and Michael Martina; Additional reporting by Susan Heavey and Lisa Lambert in Washington; Editing by Clarence Fernandez, Nick Macfie and Jeffrey Benkoe)

Struggle between big powers spells hostile future: report

Munich Security Conference (MSC) chairman Wolfgang Ischinger presents the Munich Security Report for 2019 in Berlin, Germany, February 11, 2019. REUTERS/Annegret Hilse

BERLIN (Reuters) – A new age of competition between major global powers like China, the United States and Russia leaves the world facing an unpredictable and more hostile future, the hosts of a major security conference said on Monday.

Entitled “The Great Puzzle: Who Will Pick Up the Pieces?”, their report aims to set the agenda for leaders at the Munich Security Conference annual meeting from Thursday.

U.S. Vice President Mike Pence is due to attend the event in the Bavarian capital, which comes after Washington said earlier this month it would suspend compliance with a landmark nuclear missile pact with Russia.

“Given the prevailing strategic outlooks in Washington, Beijing, and Moscow, expectations of a new era of great power competition are seeming to turn into a self-fulfilling prophecy,” the report read.

“If everyone prepares for a hostile world, its arrival is almost preordained … The post-Cold War period and the general optimism associated with it has come to an end.

“But it is unclear what kind of new order will emerge … and whether the transition period will be peaceful.”

Conference chairman Wolfgang Ischinger, a former German ambassador to Washington, urged policymakers from mid-sized powers including the European Union to do more to preserve a liberal international order.

In a newspaper interview, Ischinger suggested France’s nuclear arsenal should serve the purpose of shielding the whole of the EU and not just France. This would mean EU countries would have to share the cost of maintaining France’s nuclear weapons, he told the Funke group of newspapers.

Chancellor Angela Merkel, who addresses the conference on Saturday, is using her last term to focus on a foreign policy aimed at defending and refreshing multilateralism.

But the report said Berlin and Paris needed to work together more effectively to boost the capacity of the “ill-prepared” EU to deal with heightened great power competition.

“With domestic contexts in both capitals unlikely to become less complicated, the coming year will show whether the tandem can work out its differences or whether another window of opportunity has been missed,” the report read.

Running through other mid-sized powers, the report turned to Britain and said “Brexit proceedings will continue to inflict wounds on both sides of the Channel for years to come.”

Looking further east, it said: “Those counting on Japan to anchor security in East Asia may yet have to temper their expectations.”

(Writing by Paul Carrel; Editing by Andrew Cawthorne)

U.S.-China trade talks to resume in Beijing next week: White House

FILE PHOTO - A worker places U.S. and China flags near the Forbidden City ahead of a visit by U.S. President Donald Trump to Beijing, in Beijing, China November 8, 2017. REUTERS/Damir Sagolj

NEW YORK (Reuters) – The United States and China will hold trade talks in Beijing next week, with deputy-level meetings to start on Monday and high-level talks to follow, a White House spokeswoman said on Friday.

The two countries are trying to hammer out a trade deal weeks ahead of a March deadline when U.S. tariffs on Chinese goods are scheduled to increase.

Escalating tensions between the United States and China have cost both countries billions of dollars and roiled global financial markets. Top-level negotiators and President Donald Trump met last week in Washington, but it’s unclear that the two sides will have a deal agreed by March 2.

U.S. Trade Representative Robert Lighthizer and Secretary of the Treasury Steven Mnuchin will travel to Beijing for principal-level meetings that will take place Feb. 14-15, the White House statement said. Deputy-level meetings led by Deputy U.S. Trade Representative Jeffrey Gerrish kick off on Monday.

(Reporting by Chris Prentice; Editing by Chizu Nomiyama and Phil Berlowitz)

Trump, Xi unlikely to meet before March 1 trade deadline: U.S. officials

U.S. President Donald Trump and China's President Xi Jinping chat as they walk along the front patio of the Mar-a-Lago estate after a bilateral meeting in Palm Beach, Florida, U.S., April 7, 2017. REUTERS/Carlos Barria

WASHINGTON (Reuters) – U.S. President Donald Trump and Chinese President Xi Jinping are unlikely to meet before their countries’ March 1 deadline to reach a trade deal, two U.S. administration officials and a source familiar with the negotiations said on Thursday.

The countries had taken a 90-day hiatus in their trade war to hammer out a deal, and another round of talks is scheduled for next week in China.

White House economic adviser Larry Kudlow told reporters on Thursday that the leaders of the two economic superpowers could still meet later.

“At some point, the two presidents will meet, that is what Mr. Trump has been saying. But that is off in the distance still at the moment,” he said.

(Reporting by Steve Holland and Jeff Mason; Additional reporting by Alexandra Alper; Writing by Lisa Lambert; Editing by Doina Chiacu and Alistair Bell)

Rights campaigners seek U.N. probe on China’s Xinjiang camps

FILE PHOTO: Residents at the Kashgar city vocational educational training centre dance for visiting reporters and officials in a classroom during a government organised visit in Kashgar, Xinjiang Uighur Autonomous Region, China, January 4, 2019. REUTERS/Ben Blanchard/File Photo

By Stephanie Nebehay

GENEVA (Reuters) – Rights activists urged European and Muslim nations on Monday to take the lead in establishing a U.N. investigation into China’s detention and what they call its “forced indoctrination” of up to one million Uighurs and other Muslims in Xinjiang province.

Beijing, which faces growing international concern over its “de-radicalisation” program for Muslims in its far western province, said last month it would welcome U.N. officials if they avoided “interfering in domestic matters”.

Groups including Human Rights Watch and Amnesty International appealed to the United Nations Human Rights Council, which opens its main annual session on Feb. 25, to send an international fact-finding mission to Xinjiang.

FILE PHOTO: Islamic studies students attend a class at the Xinjiang Islamic Institute during a government organised trip in Urumqi, Xinjiang Uighur Autonomous Region, China, January 3, 2019. REUTERS/Ben Blanchard/File Photo

FILE PHOTO: Islamic studies students attend a class at the Xinjiang Islamic Institute during a government organised trip in Urumqi, Xinjiang Uighur Autonomous Region, China, January 3, 2019. REUTERS/Ben Blanchard/File Photo

“The abuse in Xinjiang today is so severe that it cries out for international action,” Kenneth Roth, executive director of Human Rights Watch, told a briefing at the Geneva Press Club.

“The purpose of this detention is to erase the ethnic and religious identities of Turkic Muslims and ensure their loyalty to only the Chinese government, the Communist Party and the would-be leader for life, (President) Xi Jinping,” he said.

China denies such accusations. In January, Beijing organized a visit to three facilities, which it calls vocational education training centers, for foreign reporters including Reuters. In the centers, Turkic-speaking Uighur students learned in Mandarin about the dangers of Islamist ideas.

“OPEN-AIR PRISON”

Campaigners say one million Uighurs, Kazakhs and other Muslim minorities – nearly 10 percent of Xinjiang’s total population – are being held in mass detention, deprived of any legal rights and subjected to mistreatment.

“Today Xinjiang has become an open-air prison – a place where Orwellian high-tech surveillance, political indoctrination, forced cultural assimilation, arbitrary arrests and disappearances have turned ethnic minorities into strangers in their own land,” Kumi Naidoo, secretary-general of Amnesty International, said by video.

“Member states must not be cowed by China’s economic and political clout,” he said.

China says it protects the religion and culture of its ethnic minorities and that security measures in Xinjiang are needed to counter groups that incite violence there.

China is currently a member of the 47-nation Geneva forum, where it often leads opposition to setting up investigations into allegations of rights abuses in specific countries.

The Organisation of Islamic Cooperation (OIC), which acts as the collective voice of the Muslim world, worked with the European Union last September to launch a U.N. body to prepare evidence of crimes in Myanmar against Muslim Rohingya, including possible genocide, for any future prosecution.

“In our view Xinjiang demands a similar response,” Roth said.

Michael Ineichen of the International Service for Human Rights said: “It is really a test of the credibility of the Human Rights Council… We think it is time that membership also comes with scrutiny.”

(Reporting by Stephanie Nebehay; Editing by Gareth Jones)