U.S. vows all-out defense against ‘grave’ North Korean threat

U.S. Secretary of State John Kerry (R) holds a 2+2 ministerial meeting with South Korea's Minister of Foreign Affairs Yun Byung-se and Minister of National Defense Han Min-koo (L) at the State Department in Washington, U.S.

By David Brunnstrom and Arshad Mohammed

WASHINGTON (Reuters) – The United States and South Korea agreed on Wednesday to step up military and diplomatic efforts to counter North Korea’s nuclear and missile programs, saying they posed a “grave” security threat following repeated tests this year.

After talks in Washington between their foreign and defense ministers, the countries said they had agreed to set up a high-level Extended Deterrence Strategy and Consultation Group to leverage “the full breadth of national power – including diplomacy, information, military coordination, and economic elements” in the face of the North Korean threat.

U.S. Secretary of State John Kerry said the United States      would do “whatever is necessary” to defend itself, South Korea and other allies against North Korea.

Kerry and U.S. Defense Secretary Ash Carter reaffirmed that any attack by North Korea would be defeated, and any use of nuclear weapons “met with an effective and overwhelming response,” a joint statement said.

It said Kerry and Carter reiterated the “ironclad and unwavering” U.S. commitment “to draw on the full range of its military capabilities, including the U.S. nuclear umbrella, conventional strike, and missile defense capabilities, to provide extended deterrence” to South Korea.

Asked what the United States could do to prevent North Korea conducting more nuclear tests after those in January and September, Kerry told a news conference:

“We will up and energize those three things that we have already been doing and put greater pressure, put greater diplomacy to work, and put greater deterrence to work so that in every case we will underscore the futility of what Kim Jong-un and North Korea are pursuing.”

He said the military option was a last resort and Washington was working to tighten sanctions, including by trying to close a loophole in U.N. steps that allowed North Korea to export coal for “livelihood” purposes.

Kerry said this was “obviously being abused … because the greatest amount of coal, and the greatest amount of revenue, historically, has just passed between China and North Korea.”

As part of the military effort, Kerry said the United States would deploy the Terminal High Altitude Area Defense anti-missile system to South Korea “as soon as possible.”

China strongly opposes deployment of the U.S. system, saying it would impinge on its own strategic deterrence.

South Korean Foreign Minister Yun Byung-se said North Korea was nearing the “final stage of nuclear weaponization” and the allies would mobilize “all tools in the toolkit” to defend themselves.

“What is most important is to continuously demonstrate our capability and deterrence with our commitment and actions so that Pyongyang can feel the panic under their skins,” he said.

South Korea’s Yonhap news agency said “extended deterrence” could include permanent deployment of U.S. “strategic assets” in South Korea, such as nuclear-capable B-52 and B-1B bombers, F-22 stealth fighter jets and nuclear-powered submarines.

Yun said he understood this would be discussed in talks between Han and Carter at the Pentagon on Thursday, but declined to elaborate.

The Pentagon did not immediately respond when asked about the possibility of such deployments, but Carter said earlier that Washington and Seoul would “continue to modernize our alliance, seize new opportunities and address evolving threats.”

(Reporting by David Brunnstrom, Arshad Mohammed and Lesley Wroughton; Editing by Chris Reese and Tom Brown)

Despite failures, North Korea could field missile next year: U.S. expert

A test-fire of strategic submarine-launched ballistic missile is seen in this undated photo released by North Korea's Korean Central News Agency

By David Brunnstrom

WASHINGTON (Reuters) – In spite of the apparent failure of another North Korean missile test at the weekend, the country’s aggressive testing schedule could see its Musudan intermediate ballistic missile entering operational service sometime next year – much sooner than expected, a leading U.S. expert said on Monday.

The U.S. military said on Saturday it had detected a failed launch of a Musudan, the latest in a series in violation of United Nations resolutions.

The U.S. Strategic Command said the missile failed in a launch near North Korea’s northwestern city of Kusong. South Korea’s military said the missile failed immediately after launch, but neither it nor the Pentagon suggested reasons.

The Musudan has range of some 3,000 km (1,860 miles), posing a threat to South Korea and Japan, and possibly the U.S. territory of Guam. Pyongyang claims that it has succeeded in miniaturizing a nuclear warhead that can be mounted on a missile, but this have never been independently verified.

John Schilling, an aerospace engineer specializing in rocket propulsion, said it was noteworthy that North Korea had launched the missile from its west coast, rather than from its purpose-built test facility.

“Moving to a roadside near Kusong is like taking the training wheels off the bicycle, seeing if you really have mastered something new,” he wrote on the 38 North website that monitors North Korea.

Schilling said the move showed that in spite of only one successful launch to show for seven attempts this year, North Korea was not simply repeating old failures.

“They are continuing with an aggressive test schedule that involves, at least this time, demonstrating new operational capabilities. That increases the probability of individual tests failing, but it means they will learn more with each test,” he wrote.

“If they continue at this rate, the Musudan intermediate -range ballistic missile could enter operational service sometime next year – much sooner than had previously been expected,” Schilling said

The latest test comes ahead of a meeting on Wednesday in Washington of U.S., Japanese and South Korean defense and foreign ministers expected to focus on North Korea’s missile and nuclear programs.

The top U.S. diplomat for East Asia said last month Washington would speed up deployment of the U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system to South Korea given the pace of North Korea’s missile tests.

Japanese government sources told Reuters Japan may accelerate around $1 billion of planned spending to upgrade its ballistic missile defenses.

(Reporting by David Brunnstrom; Editing by Alistair Bell)

Satellite images show activity at North Korea nuclear test site

A satellite image of the area around North Korea's Punggye-Ri nuclear test site shows graphics pointing to what monitoring group 38 North says are signs of increased activity, in a photo released by the 38 North group

SEOUL (Reuters) – An increase in activity at North Korea’s nuclear test site could signal preparations for a new test or a collection of data from its last one, a U.S.-based monitoring group said on Friday, citing satellite images.

The 38 North group, run by Johns Hopkins University’s School of Advanced International Studies, said there was activity at all three tunnel complexes at the Punggye-ri nuclear test site involving a large vehicle and personnel.

“One possible reason for this activity is to collect data on the Sept. 9 test although other purposes cannot be ruled out, such as sealing the portal or other preparations related to a new test,” the group said, referring to the last nuclear test.

The North is believed to be ready for another nuclear test at any time and there has been speculation it could mark the Oct. 10 anniversary of the founding of its Workers’ Party with another underground detonation.

North Korea conducted its first nuclear test in 2006 and has since then defied U.N. sanctions and rejected international talks to press ahead with the development of the weapons and missiles to carry them, which it says it needs for its defense.

In January, it conducted its fourth nuclear test and last month its fifth and biggest, on the anniversary of the nation’s founding.

The United States and South Korea are pushing for tighter sanctions against North Korea by closing loopholes left in a U.N. Security Council resolution in March.

South Korea’s Unification Ministry spokesman Jeong Joon-hee told a briefing there were no particular indication of a plan for a nuclear test timed to coincide with the Oct. 10 anniversary.

South Korea’s Yonhap news agency cited an unidentified government official that there was activity at the North’s rocket launch station near the west coast that could be preparations for a long-range missile launch.

Last month, the North said it had successfully conducted a ground test of a new rocket engine that would  be used to launch satellites. South Korea said the engine could be used for a long-range missile.

North Korea last month fired three missiles that flew about 1,000 km (600 miles). In August, it tested a submarine-launched ballistic missile that international experts said showed considerable progress.

Japan said the possibility of further “provocative action” by North Korea could not be ruled out.

“The government is taking all possible measures in gathering information, exercising vigilance and taking surveillance activities to be able to respond to any situations,” Japan’s   Chief Cabinet Secretary Yoshihide Suga told a news conference.

(Reporting by Jack Kim and Ju-min Park; Editing by Robert Birsel)

South Korea’s new wedding crashers are graft-busters

Moon Seoung-ok, president of the Headquarters of Reporting for Public Good, poses for photographs as he demonstrates a glasses shaped spycam during a class in Seoul, South Korea,

By Ju-min Park

SEOUL (Reuters) – A pair of aspiring paparazzi staked out two weddings in Seoul’s high-end Gangnam district recently, but they weren’t looking for celebrities. Their target: officials receiving gifts that might violate South Korea’s tough new anti-corruption law.

About 4 million people are estimated to be directly covered by the law – civil servants, employees at state-owned enterprises, teachers, journalists – which limits the value of meals and gifts that can be accepted.

With rewards worth up to 200 million won ($181,691), it is also fuelling a cottage industry of camera-wielding, receipt-scavenging vigilantes targeting expensive restaurants and fancy weddings in a country with a deep tradition of entertaining and gift-giving.

Some of them come for training in the art of espionage at a school that calls itself the Headquarters of Reporting for Public Good, including the two that went to the weddings.

“You can get rich and become a patriot at the same time,” school president Moon Seoung-ok told students participating in a recent class that included tips on using hidden cameras.

“You can pick up credit card receipts from garbage at restaurants,” Moon told his students at his classroom housed in an office near a Seoul courthouse, where he hands out booklets about the anti-graft law. “You need to obtain evidence.”

THE 3-5-10 RULE

South Korea ranked 27th among 34 Organization for Economic Cooperation and Development (OECD) countries in the 2015 Corruption Perceptions Index compiled by Transparency International.

Since the law took effect on Sept. 28, golf course reservations have plunged and fewer guests are attending weddings, while hospitals have posted warnings against thank-you gifts, media have reported. Some groups of diners are splitting bills – a practice once almost-unheard of in the country.

Consumer and entertainment companies could lose up to 11.6 trillion won ($10.43 billion) under the law, the Korea Economic Research Institute said in June.

The law limits the value of meals that can be accepted by public servants and others to 30,000 won. Gifts are capped at 50,000 won in value, while cash gifts that are traditionally handed over in envelopes at weddings and funerals are limited to 100,000 won, under prohibitions now known as the “3-5-10” rule.

Violators can expect fines, but would face criminal prosecution for more serious infringements, such as receiving a gift of more than 1 million won, or for receiving a total of over 3 million won worth of gifts in a year.

Businesses are scrambling to adjust. The lobby group for the Korean conglomerates known as chaebol, the Federation of Korean Industries (FKI), held a seminar on Sept. 8 attended by about 400 people on how corporate officials should comply with the law.

CHECK THE OBITUARIES

In South Korea, the term “paparazzi” applies not only to photographers chasing celebrities but to individuals who can win cash in other “report and reward” schemes that cover offenses such as running traffic lights or dropping cigarette butts on the street.

The Kim Young-ran anti-bribery law, named after the former Supreme Court justice who proposed it, has spawned the term “ran-parazzi”.

Moon tells his students to find their way into weddings and funerals.

“You have to look into who you are targeting,” Moon said in an interview. “Check obituaries in newspapers to find out who’s holding a funeral among the upper class.”

While Moon’s school does not charge tuition for the “ran-parazzi” in training, it offers to sell students gadgets, including pens and spectacles with hidden cameras. A recent classroom session was attended by 10 students.

One of them, Otgoutugs Ochir, a 46-year-old housewife originally from Mongolia, said she hopes to earn enough money to buy an apartment. But she also professes patriotism as a motive.

“If the number of those who make money illegally declines, my kids can live in a better environment,” she said.

FLORAL DISPLAYS

An official with the government’s Anti-Corruption and Civil Rights Committee said citizens reporting violations should provide detailed evidence.

“Anyone reporting should submit a paper document with his or her name on it. A single photo is difficult to build a case with,” said the official, who declined to be named because he is not authorized to speak to media.

The weddings the two students staked out did not feature the congratulatory floral displays that are standard at such occasions. One of the students, Song Byung-soo, 60, saw that as a pre-emptive measure.

“Things have already changed lot,” said Song, who is looking to supplement the income he earns working for a company that sells auto parts but does not expect to hit the jackpot.

“I was hesitant because I have to hurt someone by doing this, but after the training, I think it is alright. If ran-parazzi can make our society clean without special favors or corruption, I think it is a good thing after all,” Song said.

($1 = 1,100.7700 won)

(Reporting by Ju-min Park; Editing by Tony Munroe and Bill Tarrant.)

China paper says U.S., South Korea will ‘pay the price’ for planned missile system

THAAD missile system

BEIJING (Reuters) – The United States and South Korea are destined to “pay the price” for their decision to deploy an advanced missile defense system which will inevitably prompt a “counter attack”, China’s top newspaper said on Saturday.

Tension on the Korean peninsula has been high this year, beginning with North Korea’s fourth nuclear test in January, which was followed by a satellite launch, a string of tests of various missiles, and its fifth and largest nuclear test last month.

In July, South Korea agreed with the United States to deploy the U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system to protect against any North Korean threats.

South Korea aims to deploy the system on a golf course, a defense ministry official said on Friday.

But the plan has angered China, which worries that THAAD’s powerful radar would compromise its security and do nothing to lower temperatures on the Korean peninsula.

In a commentary, the ruling Communist Party’s official People’s Daily said China’s opposition to THAAD would never change as it was a serious threat to the regional strategic security balance.

“Like any other country, China can neither be vague nor indifferent on security matters that affect its core interests,” the newspaper said in the commentary, published under the pen name “Zhong Sheng”, meaning “Voice of China”, often used to give views on foreign policy.

The United States and South Korea have to wake up to the fact that the Korean peninsula is no place to take risks, it added.

“If the United States and South Korea harm the strategic security interests of countries in the region including China, then they are destined to pay the price for this and receive a proper counter attack,” the paper added, without elaborating.

NO DETAILS YET

China has repeatedly promised to take specific steps to respond since the THAAD decision was announced, but has given no details about what it may do.

The United States and South Korea have said THAAD does not threaten China’s security or target any country other than North Korea.

China is North Korea’s most important diplomatic and economic partner, but Beijing has been infuriated by its nuclear and missile tests and has signed up for strong United Nations sanctions against North Korea.

However, China has continued to call for talks to resolve the North Korean issue and said sanctions are not the ultimate solution.

At a reception in Pyongyang on Friday for China’s National Day, Chinese Ambassador Li Jinjun said his country wanted to consolidate its friendship with North Korea, China’s Xinhua news agency said on Saturday.

The report made no mention of the nuclear issue.

(Reporting by Ben Blanchard; Editing by Richard Borsuk)

Fore! South Korea golf course may get anti-missile battery

THAAD

By Ju-min Park and Hyunjoo Jin

SEOUL (Reuters) – South Korea’s military aims to deploy an advanced U.S. missile defense unit on a golf course, a defense ministry official said on Friday, after it had to scrap its initial site for the battery in the face of opposition from residents.

Tension on the Korean peninsula has been high this year, beginning with North Korea’s fourth nuclear test in January, which was followed by a satellite launch, a string of tests of various missiles, and its fifth and largest nuclear test this month.

In July, South Korea agreed with the United States that a U.S. Terminal High Altitude Area Defense (THAAD) anti-missile unit would be deployed in the Seongju region, southeast of the capital, Seoul, to defend the country.

But residents of the melon-farming area protested over worries about the safety of the system’s powerful radar and the likelihood it would be a target for North Korea, which warned of retaliation, if war broke out.

The plan to deploy the system has also angered China, which worries that the THAAD’s powerful radar would compromise its security.

The new site for the missile battery would be a golf course at the high-end Lotte Skyhill Seongju Country Club, the South Korean ministry official said told Reuters, confirming media reports.

The club is owned by the Lotte Group conglomerate and had been considered as an alternative due to its high altitude and accessibility for military vehicles, the defense official said.

It was not clear how the military would acquire the property, reportedly worth about 100 billion won ($90.54 million).

“We will positively consider the deployment of THAAD at the golf course considering the grave situation regarding national security,” Kim Byung-wook, an official at the club, told Reuters by phone.

He said the company had received a notice from the defense ministry about the plan on Thursday.

The United States said this week that it would speed up deployment of the system given the pace of North Korea’s missile tests, and it would be stationed in South Korea “as soon as possible”.

The United States and South Korea have said THAAD does not threaten China’s security or target any country other than North Korea.

In Beijing, Chinese Foreign Ministry spokesman Geng Shuang said deployment of the system should be stopped, and again promised unspecified countermeasures.

“The United States’ deployment of THAAD in South Korea cannot resolve the relevant parties’ security concerns,” he told a daily news briefing.

The military analyzed three possible locations for the system and found the golf course to be the most feasible, the defense official said, as the other two would require additional engineering which would delay the deployment.

The official declined to be identified as he was not authorized to speak to media.

(Additional reporting by Hyunjoo Jin, and Michael Martina in Beijing; Editing by Tony Munroe, Robert Birsel)

Squeezing North Korea: old friends take steps to isolate regime

Friendship bridge between China and North Korea

By Ju-min Park and Tony Munroe

SEOUL (Reuters) – From kicking out North Korean workers and ending visa-free travel for its citizens, to stripping flags of convenience from its ships, Cold War-era allies from Poland to Mongolia are taking measures to squeeze the isolated country.

More such moves, with prodding from South Korea and the United States, are expected after North Korea recently defied U.N. resolutions to conduct its fifth nuclear test.

North Korea’s limited global links leave most countries with few targets for penalizing the regime on their own.

Mounting sanctions over the years have made Pyongyang more adept at evasion and finding alternative sources for procurement, a recent paper by experts at Harvard University and the Massachusetts Institute of Technology found.

Nonetheless, South Korea has been especially active in pushing the North’s allies for unilateral action in hopes of reining in Pyongyang’s arms program.

“If long-standing friends of North Korea continue to publicly curb their ties with the country, Pyongyang will have fewer places overseas where its illicit networks can operate unhindered or with political cover from the host capital,” said Andrea Berger, deputy director of the proliferation and nuclear policy program at the Royal United Services Institute (RUSI).

South Korean officials have declined to say whether they have made inducements to countries to punish North Korea.

“Presumably in the course of that diplomatic interaction it is also being made clear to Pyongyang’s partners that deeper trade ties with economies like South Korea will not be fully realizable” without taking steps against North Korea, Berger said.

Angola, for one, has suspended all commercial trade with Pyongyang, banning North Korean companies from operating there since the U.N. toughened sanctions in March, a South Korean foreign ministry official told Reuters recently.

Angola was suspected of buying military equipment in 2011 from North Korea’s Green Pine Associated Corp, which is under U.N. sanction, according to a 2016 U.N. report. North Korea had also cooperated with Angola in health care, IT and construction, South Korea’s embassy there said in December.

Angolan officials did not respond to requests for comment, but the country told the U.N. in July it had not imported any light weapons from North Korea in recent years.

North Korea’s export of cheap labor has also been targeted.

Earlier this year, Washington urged countries to curb the use of North Korean workers, who number roughly 50,000 and generate between $1.2 billion and $2.3 billion annually for Pyongyang, according to a 2015 U.N. report.

Poland, which hosted as many as 800 North Korean workers, according to some estimates, this year stopped renewing visas, as did Malta.

Travel restrictions have also increased, with Ukraine recently revoking a Soviet-era deal that allowed visa-free visits for North Koreans.

Singapore, which has been a hub for North Korea-linked trade, will require visitors from the country to apply for visas starting next month, its immigration authority said in July.

DE-FLAGGED

The vast majority of North Korea’s trade is with China, and experts warn sanctions will have limited impact without Beijing’s backing. China condemns Pyongyang’s nuclear program but is also its chief ally and is unwilling to pressure leader Kim Jong Un’s regime too far, fearing a collapse that would destabilize the entire region. That means agreeing significantly tightened U.N. sanctions could be difficult.

Some of the most tangible results of recent efforts to isolate North Korea have seen countries ban its ships from their registries. North Korean-owned vessels are suspected of using other flags to camouflage the movement of illicit cargo.

Landlocked Mongolia, which is among Pyongyang’s steadiest allies but also has close ties with Seoul, canceled the registrations of all 14 North Korean vessels flying its flag, according to a report it submitted to the U.N. in July, even though sanctions compelled it to act on just one of them.

Cambodia, once the most popular flag of convenience for North Korea, ended its registry scheme for all foreign ships in August, although it did not single out North Korea.

The flags of 69 North Korean ships, none of them on a U.N. blacklist, have been de-registered since the U.N. tightened sanctions in March, South Korea’s foreign minister said last month. The North’s merchant fleet is estimated by the U.N. at roughly 240 vessels.

Still, one-off measures by various countries mean Pyongyang can simply shift its business elsewhere – a shortcoming of unilateral actions in general.

China and Russia employ the bulk of North Korean workers and have publicly shown no inclination to halt the practice.

Last week, North Korean state media announced the Sept 19 “inauguration” of its embassy in the Belarusian capital Minsk. However, on Monday, the Belarus foreign ministry said there was no North Korean embassy there, although it did not immediately give further information.

Pyongyang has been known to use diplomatic personnel, several whom have been caught with large amounts of gold or cash, to procure banned equipment or fund illegal activities.

China, experts say, remains the key.

“Rather than being efficient, unilateral actions put psychological pressure on the North,” said Chang Yong-seok, a senior researcher at the Institute for Peace and Unification Studies at Seoul National University. “But like criminal gangs, North Korea won’t cringe much under psychological pressure.”

(Additional reporting by Andrei Makhovsky in Minsk, Herculano Coroado in Luanda and Prak Chan Thul in Phnom Penh; Editing by Lincoln Feast)

U.S. bombers fly over South Korea for second time since North’s nuclear test

US Air Bomber

By Yoo Han-bin

OSAN, South Korea (Reuters) – Two U.S. supersonic bombers flew over South Korea on Wednesday, with one of them landing at an air base 40 km (25 miles) south of the capital, the second such flight since North Korea’s Sept. 9 nuclear test.

U.S. Forces Korea said the flight by a pair of B-1B Lancer strategic bombers based in Guam was a show of force and of U.S. commitment to preserve the security of the peninsula and the region.

The United States, which has about 28,500 troops in South Korea, flew two B-1 bombers on Sept. 13 escorted by U.S. and South Korean fighter jets in a show of solidarity with Seoul.

The North condemned the earlier flight as an armed provocation that mobilized “ill-famed nuclear killing tools”. It did not immediately respond to Wednesday’s flight.

The U.S. Air Force said the Wednesday flight was the closest ever to North Korea by a B-1 bomber.

“Today marks the first time the airframe has landed on the Korean peninsula in 20 years, as well as conducting the closest flight near North Korea ever,” the U.S. Air Force said on its website which also showed a B-1B bomber landing at the base in South Korea.

The South’s Yonhap news agency said the aircraft flew over a U.S. live-fire training site in the Pocheon area bordering the North.

North Korea has ignored global condemnation of its fifth nuclear test on Sept. 9, and this week said it had successfully tested a new rocket engine that would be used to launch satellites, again in violation of U.N. sanctions.

The leaders of the United States and China, which is the North’s main diplomatic ally and economic benefactor, condemned the latest nuclear test and pledged to step up cooperation at the United Nations and in law enforcement channels.

CHINA URGES RESTRAINT

U.N. diplomats say the two countries have begun discussions on a possible U.N. resolution in response to the latest nuclear test, but China has not said directly whether it would support tougher steps against North Korea.

China, which has objected to a planned U.S. deployment of a THAAD missile defense system in the South to counter the North’s missile threat, called on “all parties to exercise restraint and to avoid any actions that could further escalate tensions”.

South Korea’s prime minister, Hwang Kyo-ahn, told parliament South Korea wanted existing U.N. sanctions against the North tightened by removing loopholes that allow it to trade in minerals if it is for subsistence.

North Korea has been testing nuclear weapons and ballistic missiles at an unprecedented rate this year, beginning with its fourth nuclear test in January and including the launch of a satellite in February that was widely seen as a test of long-range ballistic missile technology.

The North’s test of a new rocket engine for satellite launchers this week was believed to be part of a long-range missile program, according to the South’s military.

North Korea’s leader, Kim Jong Un, ordered preparations for the launch of a satellite “as soon as possible” on the basis of the successful test, its state media reported.

North Korea this month fired three missiles that flew about 1,000 km (600 miles), and in August tested a submarine-launched ballistic missile that experts said showed considerable progress.

It also launched an intermediate-range missile in June that experts said marked a technological advance for the isolated state after several failed tests.

South Korean Defence Minister Han Min-koo told parliament the North was developing all types of missiles, from short- to long-range, and its advances were “considerable”.

(Refiles to clarify the flight was the closest to border by a B-1 bomber in paragraph five)

(Additional reporting by James Pearson in Seoul and Michael Martina in Beijing; Writing by Ju-min Park, Jack Kim; Editing by Paul Tait, Robert Birsel)

Between reckless ally and old rival, China in a bind over North Korea

A general view shows the unfinished New Yalu River bridge that was designed to connect China's Dandong New Zone, Liaoning province, and North Korea's Sinuiju.

By Benjamin Kang Lim and Michelle Nichols

BEIJING/UNITED NATIONS (Reuters) – China is in a bind over what to do about North Korea’s stepped-up nuclear and missile tests, even though it is annoyed with its ally and has started talks with other U.N. Security Council members on a new sanctions resolution against Pyongyang.

China shares a long land border with North Korea and is seen as the only country with real power to bring about change in the isolated and belligerent nation. However, Beijing fears strengthening sanctions could lead to collapse in North Korea, and it also believes the United States and its ally South Korea share responsibility for growing tensions in the region.

China is in a difficult spot, a source close to the Chinese leadership told Reuters when asked if Beijing’s attitude to North Korea had changed after its fifth nuclear test last week.

“On the one hand, China is resolutely opposed to North Korea developing nuclear weapons for fear of triggering a nuclear arms race in the region,” the source said, referring to Japan and South Korea following in Pyongyang’s footsteps.

“On the other hand, North Korea is a big headache but regime change is not an option,” the source added. “Collapse of the regime would lead to chaos in (China’s) northeast” bordering North Korea, the source said, requesting anonymity.

The prospect of a unified Korea under Seoul’s leadership and the possibility of U.S. troops on China’s borders has long been a nightmare for Beijing.

A collapse in North Korea, sending a flood of refugees across the relatively porous border into China’s rustbelt northeastern provinces, would also be deeply destabilizing to Beijing’s rule as well as a huge economic cost.

Those concerns have been around for years, but now Beijing is also deeply angered by a U.S. decision to deploy an advanced anti-missile system in South Korea, the Terminal High Altitude Area Defense (THAAD) system. It has said its own security has been compromised and that North Korea’s recent belligerence is due to this deployment.

Publicly, China has not linked the THAAD deployment with whether it will support sanctions on North Korea. It condemned the latest missile and nuclear tests but said sanctions alone could not resolve the issue and has called for a resumption of talks with Pyongyang.

Beijing has also said it will work within the United Nations to formulate a necessary response to its fifth nuclear test.

“We’re in negotiations on a U.N. Security Council resolution,” Samantha Power, the U.S. ambassador to the United Nations, said on Thursday.

Diplomats said the talks were at an early stage and negotiations were likely to be long and tough.

IRRITATION AND CONSENSUS

One senior U.N. diplomat said Beijing made displeasure with Pyongyang clear at an earlier Security Council meeting called after North Korea tested three medium range missiles at an embarrassing time – when U.S. President Barack Obama and other world leaders were gathered for the G20 summit in the eastern Chinese city of Hangzhou this month.

“The tone of the whole discussion was much more consensual, it didn’t feel like there was two camps fighting arguing with each other,” said the diplomat. “Of course there continue to be different views about sanctions.”

The United States has called on Beijing to use its influence to get North Korea to give up its nuclear ambitions, and to close sanctions “loopholes”, since the existing ones had done little to prevent Pyongyang from pursuing its nuclear and missile programs.

Shen Wenhui, a researcher at the Chinese Academy of Social Sciences, told influential state-run newspaper the Global Times last week that crippling sanctions would cause a “humanitarian disaster” in North Korea.

“In putting sanctions on North Korea, the international community must reduce the effect on ordinary people to the greatest possible extent,” Shen wrote.

China’s concerns also include the larger issue of what Beijing sees as Washington’s attempts to surround it under Obama’s strategic “rebalance” towards Asia. Besides THAAD, the dispute in the South China Sea, cybersecurity and human rights have marred ties between the world’s two biggest economies.

Chinese officials also say that the West over-estimates its influence with North Korea.

“I think any idea to ask North Korea to abandon nuclear weapons would fail, and any idea to ask South Korea to abandon THAAD would fail,” said Shen Dingli, a professor at Shanghai’s elite Fudan University and director of the school’s Program on Arms Control and Regional Security.

North Korea is useful for China, Shen added. “China needs North Korea to counter the United States.”

In Seoul, some are already accepting that China will not do much more to punish North Korea.

“The sanctions that North Korea will not be able to endure will be all blocked by China even without being asked by the North,” Chun Yung-woo, a former South Korean national security adviser, told Reuters. “So the North is hiding behind that and comfortably pursuing the nuclear programmer’s.”

(Additional reporting by Michael Martina in Beijing, James Pearson, Jack Kim and Ju-min Park in Seoul and David Brunnstrom in Washington; Writing by Ben Blanchard; Editing by Raju Gopalakrishnan)

North Korea says ready for ‘another attack’ against U.S. ‘provocations’

A rally celebrating the success of a recent nuclear test is held in Kim Il Sung square in this undated photo released by North Korea's Korean Central News Agency

CARACAS, Venezuela (Reuters) – North Korea’s Foreign Minister said on Thursday the country was ready to launch another attack against the “provocations” of the United States, whose bombers this week flew over South Korea in a show of solidarity with its ally after Pyongyang’s latest nuclear test.

North Korea set off its most powerful nuclear blast to date this month, saying it had mastered the ability to mount a warhead on a ballistic missile and ratcheting up a threat that its rivals and the United Nations have been powerless to contain.

Two U.S. B-1 bombers flew over South Korea on Tuesday, drawing condemnation from the North.

“The people of Korea are ready to stage another attack against the provocations of the United States,” said Foreign Minister Ri Yong Ho during a speech at a meeting of the Non-Aligned Movement countries in Venezuela that was translated into Spanish.

Seoul has also said North Korea was ready to conduct an additional nuclear test at any time.

North Korea’s latest test has launched a fresh push by the United States and South Korea for more sanctions. Pressure for further sanctions was “laughable”, North Korea has said, vowing to continue to strengthen its nuclear power.

(Reporting by Diego Ore; Editing by James Dalgleish)