U.S. orders China to shut Houston consulate as spying accusations mount

By Cate Cadell and David Brunnstrom

BEIJING/WASHINGTON (Reuters) – The United States gave China 72 hours to close its consulate in Houston amid accusations of spying, marking a dramatic deterioration in relations between the world’s two biggest economies.

The U.S. State Department said on Wednesday the Chinese mission in Houston was being closed “to protect American intellectual property and Americans’ private information.”

China’s foreign ministry said Washington had abruptly issued the demand on Tuesday and called it an “unprecedented escalation.” The ministry threatened unspecified retaliation.

The Chinese Embassy in Washington had received “bomb and death threats” because of “smears & hatred” fanned by the U.S. government, spokeswoman Hua Chunying wrote in a tweet.

“The U.S. should revoke its erroneous decision,” she said. “China will surely react with firm countermeasures.”

Communist Party rulers in Beijing were considering shutting the U.S. consulate in the central city of Wuhan in retaliation, a source with knowledge of the matter said.

U.S.-based China experts said Beijing could also opt to target more important consulates in Hong Kong, Shanghai or Guangzhou, something that could hurt American businesses.

The Houston move comes in the run-up to the November U.S. presidential election, in which President Donald Trump and his Democratic rival, Joe Biden, have both tried to look tough towards China.

Speaking on a visit to Denmark, U.S. Secretary of State Mike Pompeo repeated accusations about Chinese theft of U.S. and European intellectual property, which he said were costing “hundreds of thousands of jobs.”

While offering no specifics about the Houston consulate, Pompeo referred to a U.S. Justice Department indictment on Tuesday of two Chinese nationals over what it called a decade-long cyber espionage campaign that targeted defense contractors, COVID-19 researchers and hundreds of other victims worldwide.

Pompeo also referred to recent speeches by the head of the FBI and others that highlighted Chinese espionage activities.

“President Trump has said: ‘Enough. We are not going to allow this to continue to happen,'” he told reporters. “That’s the actions that you’re seeing taken by President Trump, we’ll continue to engage in this.”

Republican Senator Marco Rubio, acting chairman of the Senate Intelligence Committee, described the Houston consulate on Twitter as the “central node of the Communist Party’s vast network of spies & influence operations in the United States.”

Trump was due to hold a news conference at 5.30 p.m. (2130 GMT), the White House said.

The New York Times quoted the top U.S. diplomat for East Asia, David Stilwell, as saying that the Houston consulate had been at the “epicenter” of the Chinese army’s efforts to advance its warfare advantages by sending students to U.S. universities.

“We took a practical step to prevent them from doing that,” Stilwell told the Times.

Stephen Biegun, the State Department’s number two diplomat, told the U.S. Senate Foreign Relations Committee the decision was made in response to “longstanding areas of concern.”

He said these included intellectual property theft and commercial espionage, as well as unequal treatment of U.S. diplomats, exporters, investors and media in China and abuse by China’s security services of the welcoming U.S. posture toward Chinese students and researchers.

A Chinese diplomat, speaking to Reuters on condition of anonymity, denied the spying allegations and said the Houston mission acted like other Chinese consulates in the United States – issuing visas, and promoting visits and businesses.

‘RACE TO THE BOTTOM’

U.S.-China ties have worsened sharply this year over issues ranging from the coronavirus and telecoms-gear maker Huawei to China’s territorial claims in the South China Sea and clampdown on Hong Kong.

Jonathan Pollack, an East Asia expert with the Brookings Institution, said he could not think of anything “remotely equivalent” to the move against the Houston consulate since the U.S. and China opened full diplomatic relations in 1979.

“The Trump Administration appears to view this latest action as political ammunition in the presidential campaign… It’s part of the administration’s race to the bottom against China,” he said.

Overnight in Houston, firefighters went to the consulate after smoke was seen. Two U.S. government officials said they had information that documents were being burned there.

Chinese Foreign Ministry spokesman Wang Wenbin said the consulate was operating normally.

But its closure within a short period of time by Washington was “an unprecedented escalation of its recent actions against China,” Wang said.

A source with direct knowledge of the matter said China was considering closing the U.S. consulate in Wuhan, where the State Department withdrew staff and their families early this year due to the coronavirus outbreak that first emerged in the city.

China’s foreign ministry did not immediately respond to a request for comment on whether it would shut the consulate.

Wang said the U.S. government had been harassing Chinese diplomats and consular staff for some time and intimidating Chinese students. He said the United States had interfered with China’s diplomatic missions, including intercepting diplomatic pouches. The State Department did not respond to a request for comment on the Chinese accusations.

(Reporting by Cate Cadell in Beijing and David Brunnstrom in Washington; additional reporting by Nikolaj Skydsgaard in Copenhagen, Patricia Zengerle, Daphne Psaledakis, Mark Hosenball, Steve Holland and Arshad Mohammed in Washington, Michelle Nichols and Echo Wang in New York and Rama Venkat in Bengaluru; Writing by David Brunnstrom and Nick Macfie; Editing by Peter Graff and Rosalba O’Brien)

U.S. rejects China’s claims in South China Sea, adding to tensions

By Humeyra Pamuk, Arshad Mohammed and Yew Lun Tian

WASHINGTON/BEIJING (Reuters) – The United States on Monday rejected China’s claims to offshore resources in most of the South China Sea, drawing criticism from China which said the U.S. position raised tension in the region, highlighting an increasingly testy relationship.

China has offered no coherent legal basis for its ambitions in the South China Sea and for years has been using intimidation against other Southeast Asian coastal states, U.S. Secretary of State Mike Pompeo said in a statement.

“We are making clear: Beijing’s claims to offshore resources across most of the South China Sea are completely unlawful, as is its campaign of bullying to control them,” said Pompeo, a prominent China hawk within the Trump administration.

The United States has long opposed China’s expansive territorial claims on the South China Sea, sending warships regularly through the strategic waterway to demonstrate freedom of navigation there. Monday’s comments reflect a harsher tone.

“The world will not allow Beijing to treat the South China Sea as its maritime empire,” Pompeo said.

The U.S. statement supports a ruling four years ago under the UN Convention on the Law of the Sea (UNCLOS) that invalidated most of China’s claims for maritime rights in the South China Sea.

Chinese foreign ministry spokesman Zhao Lijian condemned the U.S. rejection of China’s claim.

“It intentionally stirs up controversy over maritime sovereignty claims, destroys regional peace and stability and is an irresponsible act,” he said at a regular briefing.

“The U.S. has repeatedly sent large fleets of sophisticated military planes and ships to the South China Sea … The U.S. is the troublemaker and destroyer of regional peace and stability.”

China claims 90% of the potentially energy-rich South China Sea, but Brunei, Malaysia, the Philippines, Taiwan and Vietnam also lay claim to parts of it.

About $3 trillion worth of trade passes through the waterway each year. China has built bases atop atolls in the region but says its intentions are peaceful.

MORE CONFIDENT?

Analysts said it would be important to see if other countries adopted the U.S. stance and what, if anything, Washington might do to reinforce its position and prevent Beijing from creating “facts on the water” to buttress its claims.

“The Southeast Asian claimants, especially Vietnam, will feel more confident in asserting their jurisdictional rights under UNCLOS,” said Ian Storey, senior fellow at the ISEAS-Yusof Ishak Institute in Singapore.

The Philippines strongly supported a rules-based order in the South China Sea and urged China to comply with the four-year-old arbitration ruling, its defense minister, Delfin Lorenzana, said.

Taiwan welcomed the U.S. statement.

“Our country opposes any attempt by a claimant state to use intimidation, coercion, or force to resolve disputes,” Taiwan foreign ministry spokeswoman Joanne Ou told reporters.

The relationship between the United States and China has grown increasingly tense recently over various issues including China’s handling of the novel coronavirus and its tightened grip on Hong Kong.

China routinely outlines the scope of its claims in the South China Sea with reference to a so-called nine-dash line on its maps that encompasses about nine-tenths of the 3.5-million-square-kilometer waters.

“This is basically the first time we have called it illegitimate,” Chris Johnson, an analyst with the Center for Strategic and International Studies, said of Pompeo’s statement.

“It’s fine to put out a statement, but what you going to do about it?”

(Reporting by Humeyra Pamuk, Arshad Mohammed, Matt Spetalnick, Daphne Psaledakis. Additional reporting by Yew Lun Tian in Beijing, Ben Blanchard in Taipei, and Karen Lema in Manila; Editing by Leslie Adler and Lincoln Feast, Robert Birsel)

U.S.’s Pompeo: Nations should rethink use of China’s Huawei amid coronavirus

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo on Friday said China’s role in the global coronavirus pandemic is likely to force countries to rethink their telecommunications infrastructure, including the adoption of China-based Huawei’s 5G networks.

Asked about use of Huawei and 5G, Pompeo told Fox Business Network in an interview: “I am very confident that this moment — this moment where the Chinese Communist Party failed to be transparent and open and handle data in an appropriate way — will cause many, many countries rethink what they were doing with respect to their telecom architecture.”

“And when Huawei comes knocking to sell them equipment and hardware, that they will have a different prism through which to view that decision.”

(Reporting by Susan Heavey; Editing by Toby Chopra)

Pompeo says NATO must change, or risk becoming obsolete

Pompeo says NATO must change, or risk becoming obsolete
By Paul Carrel

BERLIN (Reuters) – U.S. Secretary of State Mike Pompeo said on Friday NATO must grow and change or risk becoming obsolete, a day after French President Emmanuel Macron said the alliance was dying.

German Chancellor Angela Merkel has rejected Macron’s comments, in an interview with British weekly The Economist, as “drastic” and Pompeo said on Thursday the alliance was perhaps one of the most important “in all recorded history”.

But he acknowledged the need for NATO to evolve in a question-and-answer session after delivering a speech in Berlin on Friday, one day before the 30th anniversary of the fall of the Berlin Wall.

“Seventy years on … it (NATO) needs to grow and change,” he replied. “It needs to confront the realities of today and the challenges of today.”

“If nations believe that they can get the security benefit without providing NATO the resources that it needs, if they don’t live up to their commitments, there is a risk that NATO could become ineffective or obsolete,” he said.

NATO was founded in 1949 to provide collective security against the Soviet Union and is preparing for a summit in London on Dec. 4.

NATO Secretary-General Jens Stoltenberg wants to project an image of unity when Chinese military might is growing and Russia is accused of trying to undermine Western democracies through cyber attacks, disinformation campaigns and covert operations.

CRITICISM OF CHINA, RUSSIA, IRAN

In his speech, Pompeo criticized Russia’s treatment of political foes and said China used methods against its people that would be “horrifyingly familiar to former East Germans.”

Reflecting on the lessons learnt from the Wall coming down, he said “the West – all of us – lost our way in the afterglow of that proud moment.”

“We thought we could divert our resources away from alliances, and our militaries. We were wrong,” he said. “Today, Russia – led by a former KGB officer once stationed in Dresden ‒ invades its neighbors and slays political opponents.”

Europe’s energy supplies should not depend on Russian President Vladimir Putin, he said.

Pompeo said it would be irrational to consider Russia a “worthy partner” in the Middle East though Washington wanted other countries’ help put pressure on Iran to resume negotiations over its nuclear program and to “cut off its ability to fund terrorist proxies”.

Pompeo said the Chinese Communist Party was “shaping a new vision of authoritarianism” and warned Germany about using Chinese telecom equipment vendor Huawei Technologies <HWT.UL> to build its fifth-generation data network (5G).

In Beijing, China’s Foreign Ministry criticized Pompeo over earlier comments about the Chinese Communist Party, saying those remarks had been “extremely dangerous” and exposed his “sinister intentions”.

(Editing by Thomas Escritt and Timothy Heritage)

Pompeo says North Korea talks have not resumed as quickly as hoped: CBS

FILE PHOTO: U.S. President Donald Trump meets with North Korean leader Kim Jong Un at the demilitarized zone separating the two Koreas, in Panmunjom, South Korea, June 30, 2019. REUTERS/Kevin Lamarque/File Photo

WASHINGTON (Reuters) – The United States has not returned to the negotiation table with North Korea as quickly as it had hoped, Secretary of State Mike Pompeo said on Tuesday, but he added that Washington knew there would be ‘bumps on the road’ in the denuclearization talks.

Speaking in an interview with CBS, Pompeo said Washington was concerned about North Korea’s firing of short-range missiles. “I wish they would not,” he said, referring to the tests.

The latest of the missile tests by North Korea was carried out on Friday as Pyongyang fired two more short-range projectiles into the sea off its east coast.

The launches have complicated attempts to restart talks between U.S. and North Korean negotiators over the future of Pyongyang’s nuclear weapons and ballistic missile programs.

Those denuclearization talks have been stalled despite a commitment to revive them that was made at a June 30 meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un.

“We haven’t gotten back to the table as quickly as we hoped but we’ve been pretty clear all along, we knew there would be bumps along the way,” Pompeo said.

He added that Stephen Biegun, U.S. special envoy for North Korea, was in the region on Tuesday and Wednesday, but did not elaborate on the details of his trip. The State Department said last week that Biegun would travel to Japan and Seoul this week.

(The story was refiled to fix a typographical error in paragraph 6)

(Reporting by Doina Chiacu and Humeyra Pamuk; Editing by Chizu Nomiyama and Paul Simao)

U.S. Secretary of State Pompeo visits Kabul, hopes for a peace deal before September 1

Secretary of State Mike Pompeo walks from a helicopter with U.S. Ambassador to Afghanistan John Bass, as Pompeo returns to his plane after an unannounced visit to Kabul, Afghanistan, June 25, 2019. Jacquelyn Martin/Pool via REUTERS

By Rupam Jain

KABUL (Reuters) – U.S. Secretary of State Mike Pompeo met Afghan President Ashraf Ghani during an unannounced visit to Kabul on Tuesday to discuss ongoing peace talks with the Taliban and the security situation ahead of Afghan presidential polls in September.

Pompeo stopped over on his way to New Delhi for meetings with Indian Prime Minister Narendra Modi and other officials.

His visit to Afghanistan, which lasted about seven hours, comes ahead of a seventh round of peace talks between Taliban leaders and U.S. officials aimed at finding a political settlement to end the 18-year-old war in Afghanistan. The next round of peace talks is scheduled to begin on June 29 in Doha.

“I hope we have a peace deal before September 1. That’s certainly our mission set,” Pompeo said.

The talks between the United States and the Taliban will focus on working out a timeline for the withdrawal of U.S.-led troops from Afghanistan and on a Taliban guarantee that militants will not plot attacks from Afghan soil.

“While we’ve made clear to the Taliban that were prepared to remove our forces, I want to be clear, we’ve not yet agreed on a timeline to do so,” said Pompeo.

About 20,000 foreign troops, most of them American, are in Afghanistan as part of a U.S.-led NATO mission to train, assist and advise Afghan forces. Some U.S. forces carry out counter-terrorism operations.

In return for the withdrawal of foreign forces, the United States is demanding the Taliban guarantee that Afghanistan will not be used as a base for militant attacks.

“We agree that peace is our highest priority and that Afghanistan must never again serve as a platform for international terrorism.”

He said the two sides are nearly ready to conclude a draft text outlining the Taliban’s commitment to join fellow Afghans in ensuring that Afghan soil never again becomes a safe haven for “terrorists”.

The hardline Islamist group now controls more Afghan territory than at any time since it was toppled from power by U.S.-led forces in 2001.

At least 3,804 civilians were killed in the war last year, according to the United Nations. Thousands of Afghan soldiers, police and Taliban were also killed.

Taliban leaders nevertheless vowed this month to sustain the fight until their objectives were reached.

But momentum for talks with the Taliban is steadily building, with a special U.S. peace envoy for Afghanistan, Zalmay Khalilzad, pushing the process and insurgent leaders showing serious interest in negotiating for the first time.

Ghani has also offered repeatedly to talk with the Taliban but the group insists it will not deal directly with the Ghani government.

“All sides agree that finalizing a U.S.-Taliban understanding on terrorism and foreign troop presence will open the door to intra-Afghan dialogue and negotiation,” Pompeo said, adding that next step is at the heart of the U.S. effort.

“We are not and will not negotiate with the Taliban on behalf of the government or people of Afghanistan.”

Pompeo’s meeting with Ghani came as members of the opposition party held a large public gathering in Kabul to protest against his overstaying in power after his five-year term ended in May.

Ghani has refused to step down and Afghanistan&rsquo;s Supreme Court says he can stay in office until the delayed presidential election, now scheduled for September, in which he will seek a second term.

Political opponents of Ghani met Pompeo and U.S. officials.

Preparation for the polls and a crucial chance to end the war with the Taliban are running in parallel, with international diplomats and politicians based in Kabul trying to prevent them running into each other.

Many Afghans are concerned that U.S. President Donald Trump’s administration, in its haste to end the war, could push for concessions that might weaken the democratic gains of the post-Taliban era.

(Additional reporting by Abdul Qadir Sediqi; Editing by Catherine Evans)

Pompeo, in first, accompanies Israeli PM to Jerusalem’s Western Wall

Israeli Prime Minister Benjamin Netanyahu and U.S. Secretary of State Mike Pompeo visit the Western Wall Tunnels in Jerusalem's Old City March 21, 2019. Abir Sultan/ Pool via REUTERS

JERUSALEM (Reuters) – U.S. Secretary of State Mike Pompeo accompanied Israel’s prime minister on a visit to the Western Wall in Jerusalem’s Old City on Thursday in the first such gesture since Washington recognized Jerusalem as Israel’s capital, angering Palestinians.

The ancient Western Wall, the most sacred prayer site in Judaism, is located in the eastern part of the city that Israel captured in the 1967 Middle East war and later annexed in a move not recognized internationally.

Israel has long considered all of Jerusalem as its eternal, indivisible capital, while Palestinians want East Jerusalem as the capital of a future state they seek in territory Israel took in the June 1967 war.

Israeli Prime Minister Benjamin Netanyahu, U.S. Secretary of State Mike Pompeo and U.S. Ambassador to Israel David Friedman touch the stones of the Western Wall during a visit to the site in Jerusalem's Old City March 21, 2019. Abir Sultan/ Pool via REUTERS

Israeli Prime Minister Benjamin Netanyahu, U.S. Secretary of State Mike Pompeo and U.S. Ambassador to Israel David Friedman touch the stones of the Western Wall during a visit to the site in Jerusalem’s Old City March 21, 2019. Abir Sultan/ Pool via REUTERS

Shortly after entering office in January 2017, U.S. President Donald Trump visited the Western Wall, though without Israeli Prime Minister Benjamin Netanyahu.

Later that year Trump reversed decades of U.S. policy and officially recognized Jerusalem as the Israeli capital, though making clear that he was not prejudging a settlement on where the city’s borders should be.

Since that shift, the U.S. ambassador to Israel has paid visits to the Western Wall along with Netanyahu. Pompeo suggested that his own visit as the top U.S. diplomat in Netanyahu’s presence was significant.

“I think it’s symbolic that a senior American official goes there with the prime minister of Israel,” he told reporters prior to arriving in the walled Old City.

The Western Wall is a remnant of the compound of a Jewish temple destroyed by the Romans in 70 AD. The elevated plaza above it is the Noble Sanctuary, the third holiest site in Islam, containing the al-Aqsa mosque and the Dome of the Rock.

Pompeo, Netanyahu and U.S. Ambassador David Friedman together approached the wall and each leaned against its massive stones with one hand. Pompeo then placed a prayer note in between the stones, as is customary.

Before going to the wall, he visited the nearby Church of the Holy Sepulchre, believed to be site of Jesus’ crucifixion and burial.

Pompeo, now on a Middle East tour, visited Kuwait before Israel and is due to proceed to Lebanon. His trip to Israel, three weeks before a closely contested election, was portrayed in local media as a Trump administration boost for the right-wing Netanyahu.

(Reporting by Rami Amichay; Writing by Ari Rabinovitch; Editing by Jeffrey Heller and Mark Heinrich)

Top North Korea envoy meets Pompeo, headed for talks with Trump

U.S. Secretary of State Mike Pompeo escorts Vice Chairman of the North Korean Workers' Party Committee Kim Yong Chol, North Korea's lead negotiator in nuclear diplomacy with the United States, into talks aimed at clearing the way for a second U.S.-North Korea summit as they meet at a hotel in Washington, U.S., January 18, 2019. REUTERS/Joshua Roberts

By David Brunnstrom and Matt Spetalnick

WASHINGTON (Reuters) – A North Korean nuclear envoy held talks with Secretary of State Mike Pompeo on Friday and was then due to meet President Donald Trump at the White House, a diplomatic flurry aimed at laying the groundwork for a second U.S.-North Korea summit.

The visit of Kim Yong Chol, Pyongyan’s lead negotiator with the United States, marked a rare sign of potential movement in a denuclearization effort that has stalled since a landmark meeting between Trump and North Korean leader Kim Jong Un in Singapore last year.

Kim Yong Chol and Pompeo, with tight smiles, posed together for photographs at a Washington hotel before holding about 45 minutes of talks that could determine whether the two sides can make headway. There has been no indication of any narrowing of differences over U.S. demands that North Korea abandon a nuclear weapons program that threatens the United States or over Pyongyang’s demand for a lifting of punishing sanctions.

Hours before Kim Yong Chol’s arrival on Thursday, Trump – who declared after the Singapore summit in June that the nuclear threat posed by North Korea was over – unveiled a revamped U.S. missile defense strategy that singled out the country as an ongoing and “extraordinary threat.”

The State Department said after the meeting that Pompeo had a “good discussion” with Kim Yong Chol “on efforts to make progress on commitments President Trump and Chairman Kim Jong Un made at their summit in Singapore.” But it provided no specifics.

After the talks with Pompeo, Kim Yong Chol, a hardline former spy chief, the White House confirmed that he would hold a meeting with the president in the Oval Office later on Friday.

The high-level visit could yield an announcement of plans for a second summit. Both Trump and Kim have expressed an interest in arranging but some U.S.-based analysts say it would be premature due to the lack of obvious progress so far.

Their first meeting produced a vague commitment by Kim to work toward the denuclearization of the Korean peninsula, but he has yet to take what Washington sees as concrete steps in that direction.

(Reporting By Matt Spetalnick; Editing by Jeffrey Benkoe and Alistair Bell)

Pompeo says new Mexican government ‘great’ on immigration: Fox

FILE PHOTO: U.S. Secretary of State Mike Pompeo speaks to the press before boarding his plane at Mexico City International Airport in Mexico City, Mexico, October 19, 2018. Brendan Smialowski/Pool/via REUTERS

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo on Wednesday praised the new government of Mexico on immigration issues and said the two sides have discussed the importance of stemming the flow of undocumented migrants before they get to the U.S. border.

“The incoming administration’s been great,” Pompeo said in an interview with Fox News, citing conversations about how to control traffic from Guatemala and Honduras along Mexico’s southern border. “We have to control that border that is ours and they have to control that border that is theirs.”

Mexican President-elect Andres Manuel Lopez Obrador took office on Dec. 1. The next day, Pompeo met with Mexico’s incoming foreign minister, Marcelo Ebrard, to discuss border issues.

“We’re happy to support them. We’re happy to try and do the things we can do to help them,” Pompeo said in the Fox interview.

U.S. President Donald Trump has called the migrants effort to seek asylum in the United States an “invasion” and has deployed the military to the border to reinforce security measures.

He has reiterated his campaign promise to build a wall along the U.S.-Mexico border, even after Mexico repeatedly rejected his demand that it pay for the billion-dollar project.

Funding for the border wall has been a sticking point in spending bills before the U.S. Congress, and Trump clashed with leading Democrats over the issue during an Oval Office meeting on Tuesday.

Pompeo said he supports the effort to build a wall.

“We have to have the capacity to control entry to our country everywhere,” he said. “And a wall is a vital component of that.”

(Reporting by Doina Chiacu; Editing by Chizu Nomiyama and Steve Orlofsky)

Frost thaws in U.S.-China ties ahead of G20 meeting

FILE PHOTO: U.S. and Chinese flags are placed for a joint news conference by U.S. Secretary of State Mike Pompeo and Chinese Foreign Minister Wang Yi at the Great Hall of the People in Beijing, China June 14, 2018. REUTERS/Jason Lee/File Photo

By David Brunnstrom and John Geddie

WASHINGTON/SINGAPORE (Reuters) – The United States and China will hold a delayed top-level security dialogue on Friday, the latest sign of a thaw in relations, as China’s vice president said Beijing was willing to talk with Washington to resolve their bitter trade dispute.

The resumption of high-level dialogue, marked by a phone call last week between Presidents Donald Trump and Xi Jinping, comes ahead of an expected meeting between the two at the G20 summit in Argentina starting in late November.

It follows months of recriminations spanning trade, U.S. accusations of Chinese political interference, the disputed South China Sea and self-ruled Taiwan.

China and the United States have both described last week’s telephone call between Xi and Trump as positive. Trump predicted he’d be able to make a deal with China on trade.

In a concrete sign of the unfreezing, the U.S. State Department said Secretary of State Mike Pompeo, Defense Secretary Jim Mattis, Chinese politburo member Yang Jiechi and Defense Minister Wei Fenghe will take part in diplomatic and security talks later this week in Washington.

China said last month the two sides had initially agreed “in principle” to hold the second round of diplomatic security talks in October but they were postponed at Washington’s request amid rising tensions over trade, Taiwan and the South China Sea.

Mattis had been due to hold talks with Wei in Beijing in October, but those plans were upended after Washington imposed sanctions on China’s People’s Liberation Army for buying weapons from Russia.

Mattis did meet Wei in Singapore on Oct. 18 and told him that the world’s two largest economies needed to deepen high-level ties to reduce the risk of conflict.

Speaking in Singapore on Tuesday, Chinese Vice President Wang Qishan, who is close to Xi, reiterated China’s readiness to hold discussions and work with the United States to resolve trade disputes as the world’s two largest economies stand to lose from confrontation.

“Both China and the U.S. would love to see greater trade and economic cooperation,” Wang told the Bloomberg New Economy Forum in Singapore.

“The Chinese side is ready to have discussions with the U.S. on issues of mutual concern and work for a solution on trade acceptable to both sides,” he said.

“The world today faces many major problems that require close co-operation between China and the United States,” Wang said.

Wang echoed comments made by Xi on Monday at a major import fair in Shanghai that Beijing will embrace greater openness.

Trump has railed against China over intellectual property theft, entry barriers to U.S. business and a gaping trade deficit, which U.S. data showed reached a record $40.2 billion in September.

The trade war, which has seen both sides impose tariffs on billions of dollars worth of the other’s imports, is beginning to hurt China’s economy and has battered Chinese shares and the yuan currency.

It has also brought purchases of U.S. soybeans by China to a virtual standstill. Soybeans are the largest U.S. agricultural export to China.

Jim Sutter, CEO of the U.S. Soybean Export Council, told Reuters on the sidelines of the Shanghai import fair that both countries understood the need to maintain their relationship.

“I think both sides are optimistic … more optimistic after the call last week that took place, that some kind of a solution can be reached,” he said.

(Reporting by David Brunnstrom and John Geddie; Additional reporting by Tom Daly and Michael Martina in Shanghai; Writing by Ben Blanchard; Editing by Tony Munroe and Neil Fullick)