Washington caps year of drills to deter China with ten-day military exercise

By Tim Kelly

USS CARL VINSON (Reuters) – The United States on Tuesday completed ten days of joint military drills in Asian waters with Japan and other allies as it ups the ante on deterring China from pursuing its territorial ambitions amid growing tension in the region over Taiwan.

The ANNUALEX drill included 35 warships and dozens of aircraft in the Philippine Sea off Japan’s southern coast. The U.S. and Japanese forces were led by the nuclear-powered USS Carl Vinson carrier, which was also joined by ships from Canada, Australia, and for the first time, Germany. On Tuesday, the Vinson was being shadowed by a Chinese navy ship.

“We try to deter aggression from some nations that are showing burgeoning strength that maybe we haven’t experienced before,” U.S. Seventh Fleet commander Vice Admiral Karl Thomas said at a briefing aboard the carrier.

The exercise was meant to “tell those nations that maybe today is not the day,” he said.

Thomas was accompanied by the commander of the exercise, Japan Maritime Self-Defense Force Vice Admiral Hideki Yuasa. Home to the biggest concentration of American forces outside the United States, Tokyo is Washington’s key ally in the region.

Increasing pressure by China on Taiwan is causing concern in both Japan and the United States. Japan worries that key sea lanes supplying it will come under Beijing’s sway should it gain control of the island. That move would also threaten U.S. military bases in the region.

China, which views Taiwan as a breakaway province, says its intentions in the region are peaceful.

The ten-day exercise caps a year of drills between the United States, Japan and other countries, including Britain, France, Germany and the Netherlands.

London this year deployed its new $4.15 billion aircraft carrier the HMS Queen Elizabeth to the region, culminating in a visit to Japan in September along with two destroyers, two frigates and a submarine.

To get there, it sailed through the contested South China Sea, of which China claims 90%. Also in September, Britain’s HMS Richmond passed through the Taiwan Strait separating the island from mainland China, prompting a rebuke from Beijing.

Tokyo, in its latest annual defense strategy paper, identifies China as its main national security threat and said it had a “sense of crisis” regarding Taiwan as Chinese military activity around the island intensifies.

The British carrier joined a Japanese carrier, along with the Vinson – which operates F-35 stealth jets – and the USS Ronald Reagan, for a rare four-carrier training exercise in the waters around Japan.

(Reporting by Tim Kelly; Editing by Bernadette Baum)

U.S. puts Chinese firms helping military on trade blacklist

WASHINGTON (Reuters) -The U.S. Commerce Department put a dozen Chinese companies on its trade blacklist on Wednesday citing national security concerns and in some cases their help with the Chinese military’s quantum computing efforts.

The department also said 16 entities and individuals from China and Pakistan were added to the blacklist for contributing to Pakistan’s nuclear activities or ballistic missile program.

In total, 27 new entities were added to the list from China, Japan, Pakistan, and Singapore.

Commerce Secretary Gina Raimondo said in a statement that the move will help prevent U.S. technology from supporting the development of Chinese and Russian “military advancement and activities of non-proliferation concern like Pakistan’s unsafeguarded nuclear activities or ballistic missile program.”

The Commerce Department said Hangzhou Zhongke Microelectronics Co. Ltd., Hunan Goke Microelectronics, New H3C Semiconductor Technologies Co. Ltd., Xi’an Aerospace Huaxun Technology, and Yunchip Microelectronics were placed on the Commerce Department’s entity list for their “support of the military modernization of the People’s Liberation Army.”

It also added Hefei National Laboratory for Physical Sciences at Microscale, QuantumCTek, and Shanghai QuantumCTeck Co. Ltd. to the list for “acquiring and attempting to acquire U.S.-origin items in support of military applications.”

Suppliers to these companies will need to apply for a license before selling to them, which is likely to be denied.

(Reporting by Chris Sanders and Karen Freifeld; Editing by Chizu Nomiyama and David Clarke)

U.S. warns China after South China Sea standoff with Philippines

(Reuters) – The United States on Friday warned China after a standoff in the South China Sea between China and the Philippines, saying it stood by Manila amid an “escalation that directly threatens regional peace and stability.”

Beijing “should not interfere with lawful Philippine activities in the Philippines’ exclusive economic zone,” U.S. State Department Ned Price said in a statement.

On Thursday, the Philippines condemned “in strongest terms” the actions of three Chinese coast guard vessels that it said blocked and used water cannon on resupply boats headed towards a Philippine-occupied atoll in the South China Sea.

“The United States stands with our Philippine allies in upholding the rules-based international maritime order and reaffirms that an armed attack on Philippine public vessels in the South China Sea would invoke U.S. mutual defense commitments,” Price said.

“The United States strongly believes that PRC (People’s Republic of China) actions asserting its expansive and unlawful South China Sea maritime claims undermine peace and security in the region,” he added.

The incident came as U.S. President Joe Biden and Chinese President Xi Jinping discussed a range of issues in a three-hour video call.

(Reporting by Akriti Sharma in Bengaluru and Susan Heavey in Washington; editing by Philippa Fletcher)

Biden says U.S. considering diplomatic boycott of Beijing Olympics

By Trevor Hunnicutt

WASHINGTON (Reuters) -The United States is considering a diplomatic boycott of the Beijing Olympics, President Joe Biden confirmed on Thursday, a move that would be aimed at protesting China’s human rights record, including what Washington says is genocide against minority Muslims.

“Something we’re considering,” Biden said when asked if a diplomatic boycott was under consideration as he sat down for a meeting with Canadian Prime Minister Justin Trudeau.

A diplomatic boycott would mean that U.S. officials would not attend the opening of the Beijing Winter Olympics in February.

A U.S. decision not to send diplomats would be a rebuke of Chinese President Xi Jinping just days after Xi and Biden worked to ease tensions in a virtual summit, their first extensive talks since Biden took office in January.

Activists and members of Congress from both parties have been pressing the Biden administration to diplomatically boycott the event given that the U.S. government accuses China of carrying out a genocide against Muslim ethnic groups in its western Xinjiang region, something that Beijing denies.

White House spokesperson Jen Psaki told a regular briefing on Thursday that U.S. consideration of a diplomatic boycott of the Winter Olympics was driven by concerns about human rights practices in Xinjiang province.

“There are areas that we do have concerns: human rights abuses,” Psaki told reporters. “We have serious concerns.”

“Certainly there are a range of factors as we look at what our presence would be,” she said, while declining to provide a timeline for a decision.

“I want to leave the president the space to make decisions,” she said.

Sources with knowledge of the administration’s thinking have told Reuters there was a growing consensus within the White House that it should keep U.S. officials away from the Games.

Last week, U.S. Secretary of State Antony Blinken said Washington was talking to countries around the world about “how they’re thinking about participation,” but left a deadline for a decision unclear.

A bipartisan group of U.S. senators in October proposed an amendment to an annual defense policy bill that would prohibit the U.S. State Department from spending federal funds to “support or facilitate” the attendance of U.S. government employees at the Games.

Democratic House Speaker Nancy Pelosi has also called for a diplomatic boycott, saying global leaders who attend would lose their moral authority.

Some Republican lawmakers have been calling for a complete boycott of the Olympics.

Senator Tom Cotton of Arkansas told a news conference on Thursday that a diplomatic boycott of what he called the “genocide Olympics” would be “too little, too late” and said no U.S. athletes, officials, or U.S. corporate sponsors should take part.

Nikki Haley, a Republican former U.S. ambassador to the United Nations, also had called for a complete boycott, saying attending would send a message that America was willing to turn a blind eye to genocide.

(Reporting by Trevor Hunnicutt, Steve Holland and David Brunnstrom; Writing by Katharine Jackson and David Brunnstrom; Editing by Tim Ahmann and Bill Berkrot)

China’s Communist Party passes resolution amplifying President Xi’s authority

BEIJING (Reuters) -China’s ruling Communist Party approved a rare resolution on Thursday elevating President Xi Jinping’s status in its history, in a move seen as consolidating his authority and likelihood of securing an unprecedented third leadership term next year.

The resolution on the party’s “achievements and historical experiences” since its founding 100 years ago was passed at the end of a four-day, closed-door meeting of more than 300 top leaders on its Central Committee, state media reported.

It puts Xi on the same pedestal as Mao Zedong and Deng Xiaoping, two previous leaders who cemented their position as pre-eminent leader with the only other two such resolutions passed, in 1945 and 1981 respectively.

At this week’s meeting, known as the Sixth Plenum, the party elevated the role of Xi in one of its ideologies by crediting him for the first time in an official document as “the main innovator” behind “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.”

The party had previously defined this ideology as the product of “the experiences and collective wisdom of the party and the people.”

Experts say “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era” might be shortened to simply “Xi Jinping Thought” by the Party Congress in the latter half of next year, when Xi is almost certain to secure a precedent-breaking third term as party leader.

According to the end-of-meeting communique reported by state media, the party decided that a conclusion to draw from its century of his was that it must “resolutely uphold Comrade Xi Jinping’s core position” in the party.

Commenting on the move Jude Blanchette, an expert on Chinese politics at Washington-based think tank Center for Strategic and International Studies, said the messaging around Xi from the party was assuming “cult-like features.”

Party delegates, seated in rows facing Xi, voted the resolution by a show of hand, news footage of the meeting on state television CCTV showed.

“Given the party’s emphasis on discipline and loyalty, the consequences of not supporting the resolution for any party member would be disastrous,” Yang Chaohui, a lecturer of political science at Peking University, told Reuters.

Xi is widely seen as China’s most powerful leader since Mao.

(Reporting by Yew Lun Tian, Gabriel Crossley and Tony Munroe; Editing by Toby Chopra, Clarence Fernandez and Alex Richardson)

U.S. and allies would ‘take action’ if Taiwan attacked – Blinken

WASHINGTON (Reuters) – The United States and its allies would take unspecified “action” if China were to use force to alter the status quo over Taiwan, U.S. Secretary of State Antony Blinken said on Wednesday.

Blinken was asked at a forum hosted by the New York Times whether the United States would step in to defend Taiwan in the event of an attack by China. He repeated regular U.S. statements that Washington’s role is to make sure the island has the means to defend itself, as is required under U.S. law.

“At the same time, I think it’s fair to say that we’re not alone in this determination to make sure that we preserve peace and stability in that part of the world,” Blinken added.

“There are many countries, both in the region and beyond, that would see any unilateral action to use force to disrupt the status quo as a significant threat to peace and security, and they too would take action in the event that that happens.”

Blinken did not say what sort of action he was referring to.

U.S. President Joe Biden caused a stir last month when he said the United States would come to Taiwan’s defense if China attacked.

Those remarks appeared to depart from a long held policy of “strategic ambiguity”, not making clear how the United States would respond. But the White House quickly said Biden was not signaling a change in policy, and some analysts dismissed his comments as a gaffe.

The Democratic chairman of the influential House Intelligence Committee, Adam Schiff, last week urged the Biden administration to be less ambiguous about what he called a U.S. obligation to defend Taiwan from attack by China.

Blinken’s remarks came ahead of a planned virtual meeting between Biden and Chinese leader Xi Jinping, which a source briefed on the matter told Reuters will be held as soon as next week.

Asked if the meeting would happen next week, Blinken said it was “coming up soon” but was not more specific.

(Reporting by David Brunnstrom; Editing by Mark Heinrich)

Chinese stock up on staples after government ‘just in case’ advice prompts confusion

By Dominique Patton and Martin Quin Pollard

BEIJING (Reuters) – Beijing shoppers stocked up on cabbage, rice and flour for the winter on Wednesday, after the government urged people to keep stores of basic goods in case of emergencies, though it assured them there were sufficient supplies after some panic-buying.

The Ministry of Commerce on Monday published a seasonal notice encouraging authorities to do a good job in ensuring food supplies and stable prices ahead of the winter, following a recent spike in the prices of vegetables and a growing outbreak of COVID-19.

But the ministry’s advice to households to also stock up on daily necessities in case of emergencies prompted confusion, sending some rushing to supermarkets for extra supplies of cooking oil and rice.

China’s cabinet late on Wednesday said it would guarantee supplies of daily necessities, including meat and vegetables, and stabilize prices, state media reported.

China’s instructions also pushed up domestic edible oil futures as well as Malaysian palm oil.

“It’s going to be a cold winter, we want to make sure we have enough to eat,” said one woman loading rice on to a bicycle outside a supermarket in central Beijing.

A long line formed at the supermarket’s cabbage stall, as people bought supplies of the vegetable that is traditionally stored at home and consumed over the winter months.

But many residents said there was no need to buy more food than normal.

“Where could I stockpile vegetables at home? I get enough for my daily needs,” said a Beijing retiree surnamed Shi leaving another Beijing supermarket.

Others said they did not expect any shortages, particularly in the capital.

Government advice to residents to buy supplies ahead of the winter is issued every year, said Ma Wenfeng, an analyst at A.G. Holdings Agricultural Consulting.

“It is necessary because there is often heavy snowfall in the winter … and it seems there will be some uncertainty about the weather conditions this year. So I think this is quite a normal matter,” he said.

China’s National Meteorological Center is predicting a plunge in temperatures over the weekend in the northwest, southwest and most central and eastern regions.

China’s state broadcaster CCTV reported on Tuesday that there had been some “over-interpretation” of the ministry’s advice.

“Currently, the supply of daily necessities in various places is sufficient, and the supply should be fully guaranteed,” it quoted Zhu Xiaoliang, director of the ministry’s Department of Consumption Promotion, as saying.

Some cities including Tianjin in the north and Wuhan further south have released winter vegetables from stockpiles for sale at lower prices in supermarkets.

But some panic-buying appeared to continue on Wednesday, with several people complaining online of empty supermarket shelves, attributed largely to a growing COVID-19 outbreak.

China reported its highest number of new locally transmitted COVID-19 cases in almost three months on Wednesday, including nine new infections in Beijing, the biggest one-day increase in the capital this year.

“Even bulk rice has been stripped off (shelves),” said a resident in the southern city of Nanjing, writing on China’s microblog Weibo.

“There is uncertainty about the occurrence of the COVID-19 outbreaks. Once an outbreak occurs, people’s livelihoods will be affected. That’s why people are stocking up on winter supplies to avoid the impact of COVID-19,” said Ma at A.G. Holdings.

Chinese authorities typically respond to COVID-19 cases by locking down entire communities where they occur, restricting movement in and out of affected areas.

(Reporting by Dominique Patton and Martin Quin Pollard. Additional reporting by Beijing Newsroom. Editing by Karishma Singh, Christian Schmollinger and Nick Macfie)

U.S. successfully tests hypersonic booster motor in Utah

By Mike Stone

WASHINGTON (Reuters) – The Pentagon successfully tested a booster rocket motor on Thursday designed to power a launch vehicle carrying a hypersonic weapon aloft, the Navy said.

The United States and its global rivals have intensified their drive to build hypersonic weapons – the next generation of arms that rob adversaries of reaction time and traditional defeat mechanisms. Defense contractors hope to capitalize as they make the weapons and develop new detection and defeat mechanisms.

This week, the top U.S. military officer confirmed a Chinese hypersonic weapons test that military experts say appears to show Beijing’s pursuit of an Earth-orbiting system designed to evade American missile defenses.

“We are on schedule for the upcoming flight test of the full common hypersonic missile,” said Vice Admiral Johnny Wolfe Jr, Director, Navy’s Strategic Systems Programs, lead designer on the program. That flight test, of the combined boost rocket and hypersonic weapon, is slated to happen before Autumn 2022.

Last week in Kodiak, Alaska, the U.S. failed a hypersonic weapon test when the booster failed.

U.S. military services will use the common hypersonic missile as a base to develop individual weapon systems and launchers tailored for launch from sea or land.

The common hypersonic missile will consist of the first stage solid rocket motor as part of a new missile booster combined with the Common Hypersonic Glide Body (CHGB).

This static fire test marked the first time the first stage solid rocket motor included a thrust vector control system, the Navy said. Thrust vector control systems allow the rocket motors to be maneuverable in flight.

The U.S. Navy’s Strategic Systems Programs conducted two prior tests of the solid rocket motor used in the development of the Navy’s Conventional Prompt Strike (CPS) offensive hypersonic strike capability and the Army’s Long Range Hypersonic Weapon (LRHW).

Arms makers Lockheed Martin Corp, Northrop Grumman Corp and Raytheon Technologies Corp all touted their hypersonic weapons programs at the top of their quarterly earnings calls this week as world focus shifted to the new arms race for an emerging class of weapon.

(Reporting by Mike Stone in Washington; Editing by David Gregorio and Marguerita Choy)

Biden’s CIA director creates high-level unit focusing on China

By Mark Hosenball

WASHINGTON (Reuters) – The career diplomat U.S. President Joe Biden named to lead the Central Intelligence Agency is creating a high-level unit aimed at sharpening the agency’s focus on China, at a time of tense relations between the world’s two largest economies.

CIA Director William Burns said on Thursday that the China Mission Center he was setting up “cuts across all of the agency’s mission areas,” while noting that the CIA’s concern is that “the threat is from the Chinese government, not its people.”

A senior CIA official compared Burns’ creation of the China unit to the agency’s tight focus on Russia during the Cold War and to its concentration on counter-terrorism following the Sept. 11, 2001 attacks on New York and Washington. No such high-level unit focusing explicitly on China had previously been set up by the agency, even in the wake of harsh attacks on China by former President Donald Trump and his aides.

The new China unit was one of several re-shuffles resulting from a broad review the agency launched last spring, the senior official said, speaking on condition of anonymity.

In the Biden administration’s first months, relations with Beijing soured over deep differences on many issues including human rights, Hong Kong and the South China Sea. But top officials from both countries met this week to improve communication and set the stage for a virtual meeting of presidents by the end of the year.

Other agency moves include merging an Iran Mission Center set up by the Trump administration into a broader Middle East unit and merging a unit focusing on Korea with a broader East Asia-Pacific unit, the official said.

Burns said the CIA also was creating a position for a Chief Technology Officer as well as a new office called the Transnational and Technology Mission Center. This unit, the senior official said, would enable the agency to focus more tightly on issues such as global health, climate change, humanitarian disasters and disruption caused by new technologies.

The agency will also create a program under which it would encourage qualified employees to serve as “technology fellows” for a year or two in private industry.

The senior official said the agency had also set up an “incident cell” to oversee responses to the mysterious illness known as “Havana Syndrome” which has affected numerous diplomats and CIA employees, some of whom have been “diagnosed with real harm.”

(Reporting By Mark Hosenball; editing by Mary Milliken and Richard Pullin)

Taiwan plans $9 billion boost in arms spending, warns of ‘severe threat’

By Ben Blanchard and Yimou Lee

TAIPEI (Reuters) -Taiwan proposed on Thursday extra defense spending of T$240 billion ($8.69 billion) over the next five years, including on new missiles, as it warned of an urgent need to upgrade weapons in the face of a “severe threat” from giant neighbor China.

Taiwan President Tsai Ing-wen has made modernizing the armed forces – well-armed but dwarfed by China’s – and increasing defense spending a priority, especially as Beijing ramps up military and diplomatic pressure against the island it claims as “sacred” Chinese territory.

The new money, which comes on top of planned military spending of T$471.7 billion for 2022, will need to be approved by parliament where Tsai’s ruling party has a large majority, meaning its passage should be smooth.

Taiwan’s Defense Ministry said China’s military strength had grown rapidly and it had continued to invest heavily in defense.

“In the face of severe threats from the enemy, the nation’s military is actively engaged in military building and preparation work, and it is urgent to obtain mature and rapid mass production weapons and equipment in a short period of time,” it said in a statement.

Deputy Defense Minister Wang Shin-lung told reporters the new arms would all be made domestically, as Taiwan boosts its own production prowess, though the United States will probably remain an important provider of parts and technology.

Taiwan has been keen to demonstrate that it can defend itself, especially amid questions about whether the United States would come to its aid if China attacked.

“Only if we ensure our security and show determination will the international community think well of us,” said Cabinet spokesman Lo Ping-cheng. “Others will only help us if we help ourselves.”

The additional cash will likely be well received in Washington, which has been pushing Taiwan to modernize its military to make it more mobile so it can become a “porcupine,” hard for China to attack.

Ingrid Larson, one of Washington’s unofficial representatives for Taiwan, stressed there was “a real and urgent need” for Taiwan to pursue defense reforms.

“As allies and partners in the region and around the globe increasingly push back on China’s aggressive action, it is important that Taiwan remain committed to the changes that only it can make for itself,” she told the Center for a New American Security think tank.

“Taiwan must build as strong a deterrent as possible and as quickly as possible. Taiwan needs truly asymmetric capability, and a strong reserve force. Asymmetry means systems which are mobile, survivable and lethal.”

Larson is managing director of the Washington office of the American Institute in Taiwan, which handles U.S. relations with Taiwan in the absence of formal diplomatic links.

The weapons Taiwan aims to buy with the money include cruise missiles and warships, the defense ministry said.

Taiwan has been testing new, long-range missiles off its southern and eastern coasts, and while it has not given details, diplomats and experts have said they are likely to be able to hit targets far into China.

Taiwan has already put into service a new class of stealth warship, which it calls an “aircraft carrier killer” due to its missile complement, and is developing its own submarines.

The announcement comes as Taiwan is in the middle of its annual Han Kuang military drills.

On Thursday, its army simulated fending off an invasion, firing artillery out to sea from a beach on its southern coast.

($1 = 27.6330 Taiwan dollars)

(Reporting by Ben Blanchard and Yimou Lee; Additional reporting by Roger Tung and Jeanny Kao and David Brunnstrom in Washington; Editing by Muralikumar Anantharaman, Sam Holmes and Jonathan Oatis)