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  • Analysis: Sanctions fail to halt North Korea’s accelerating weapons programs

    Analysis: Sanctions fail to halt North Korea’s accelerating weapons programs

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    WASHINGTON, Nov 4 (Reuters) – Economic sanctions, the primary means the United States has used for years to try to exert pressure on North Korea, have abjectly failed to halt its nuclear and missile programs or to bring the reclusive northeast Asian state back to the negotiating table.

    Instead, North Korea’s ballistic missile program has become stronger and it has carried out a record-breaking testing regime of multiple types of weapons this year – including of intercontinental ballistic missiles designed to reach the U.S. mainland. Expectations are that it may soon end a self-imposed five-year moratorium on nuclear bomb testing.

    Now, U.S. policy makers and their predecessors can do little more than pick through the wreckage and seek to determine what went wrong, and who might be to blame.

    “We’ve had a policy failure. It’s a generational policy failure,” said Joseph DeThomas, a former U.S. diplomat who worked on North Korea and Iran sanctions and served in the administrations of Democratic Presidents Bill Clinton and Barack Obama.

    “An entire generation of people worked on this. It’s failed … so alright, now we have to go to the next step, figure out what we do about it.”

    Biden administration officials concede that sanctions have failed to stop North Korea’s weapons programs – but they maintain they have at least been effective in slowing North Korea’s nuclear program.

    “I would disagree with the idea that sanctions have failed. Sanctions have failed to stop their programs – that’s absolutely true,” a senior administration official told Reuters. “But I think that if the sanctions didn’t exist, (North Korea) would be much, much further along, and much more of a threat to its neighbors to the region and to the world.”

    The State Department, U.S. Treasury and White House’s National Security Council did not immediately respond to requests for comment.

    Former officials and experts say sanctions were never imposed robustly enough for long enough and blame faltering U.S. overtures to North Korea as well as pressures like Russia’s war in Ukraine and U.S-China tensions over Taiwan for making them ineffective and easy for North Korea to circumvent.

    North Korea has long been forbidden to conduct nuclear tests and ballistic missile launches by the U.N. Security Council.

    The Security Council has imposed sanctions on North Korea since 2006 to choke off funding for it nuclear and ballistic missile programs. They now include exports bans coal, iron, lead, textiles and seafood, and capping imports of crude oil and refined petroleum products.

    However U.N. experts regularly report that North Korea is evading sanctions and continuing to develop its programs.

    Russia and China backed toughened sanctions after North Korea’s last nuclear test in 2017, but it is not clear what U.N action – if any – they might agree to if Pyongyang conducts another nuclear test.

    CHINESE AND RUSSIAN INFLUENCE

    The senior Biden administration official told Reuters Washington believes China and Russia have leverage to persuade North Korea not to resume nuclear bomb testing. But the Biden administration has accused China and Russia of enabling North Korean leader Kim Jong Un.

    Anthony Ruggiero, who headed North Korea sanctions efforts under former President Donald Trump, said they were only pursued vigorously enough from the last year of the Obama administration to early in Trump’s second year. They then dropped off in the ultimately vain hope of progress in summit negotiations between Trump and Kim.

    Some critics like sanctions expert Joshua Stanton fault both the Trump and Biden administrations for failing to exert maximum pressure to stop China allowing North Korea’s sanctions evasion. They point to the powerful option of imposing sanctions on big Chinese banks that have facilitated this.

    “The sanctions we don’t enforce don’t work, and we haven’t been enforcing them since mid-2018,” Stanton said, noting that history had shown a correlation between stronger enforcement and North Korea willingness to engage diplomatically.

    “The Biden administration’s most significant failure is its failure to prosecute or penalize the Chinese banks we know are laundering Kim Jong Un’s money,” he said.

    Some experts like DeThomas argue that taking what some call the “nuclear option” of going after Chinese banks could exclude huge Chinese institutions from the international financial system and have catastrophic consequences not just for the Chinese, but for the U.S. and global economies – something Stanton considers unfounded.

    “Going full bore against the Chinese over North Korea is always a possibility, but it’s a high-risk option,” said DeThomas, arguing that such a measure should be reserved for an even more pressing scenario, such as deterring any move by China to all-out support for Russia’s war in Ukraine.

    “You want them to be thinking about that. And you can’t fire that gun twice,” he said. “And even if you sanctioned the Chinese banks, you wouldn’t get the North Koreans to change.”

    Some U.S. academic experts argue that Washington should recognize North Korea for what it is – a nuclear power that is never going to disarm – and use sanctions relief to incentivize better behavior.

    “I do think we can buy things other than disarmament with our economic leverage,” Jeffrey Lewis, a non-proliferation expert at the Middlebury Institute of International Studies told a conference in Ottawa this week.

    “I do think we can buy things other than disarmament with our economic leverage,” Jeffrey Lewis, a non-proliferation expert at the Middlebury Institute of International Studies, told a conference in Ottawa this week.

    The senior Biden administration official said maintaining sanctions was not just punitive, but about the international community showing it is united.

    He rejected the idea that Washington should recognize North Korea as a nuclear-armed state.

    “There is an extraordinarily strong global consensus … that the DPRK should not, and must not, be a nuclear nation,” he said. “No country is calling for this … the consequences of changing policy, I think would be profoundly negative.”

    Additional reporting by Steve Holland and Michelle Nichols
    Editing by Alistair Bell

    Our Standards: The Thomson Reuters Trust Principles.

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  • China says it reserves right to use force over Taiwan

    China says it reserves right to use force over Taiwan

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    BEIJING, Oct 15 (Reuters) – China reserves the right to use force over Taiwan as a last resort in compelling circumstances, though peaceful reunification is its first choice, a Communist Party spokesman said on Saturday.

    Reunification of China and Taiwan meets the interests of all, including Taiwan compatriots, Sun Yeli told a news conference in Beijing.

    President Xi Jinping is poised to win a third five-year term as general secretary of the ruling party, the most powerful job in the country, at the congress to be held in the Great Hall of the People in Beijing for a week starting on Sunday.

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    Reporting by Yew Lun Tian, Writing by Martin Quin Pollard

    Our Standards: The Thomson Reuters Trust Principles.

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  • China has ‘destroyed’ tacit agreement on Taiwan Strait – minister

    China has ‘destroyed’ tacit agreement on Taiwan Strait – minister

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    TAIPEI, Oct 5 (Reuters) – China has destroyed a tacit agreement on military movements in the Taiwan Strait by crossing an unofficial “median line” running down the waterway, Defence Minister Chiu Kuo-cheng said on Wednesday.

    While acknowledging the end of the tacit understanding on the median line, Chiu told Taiwan’s parliament Taiwan would react if China crossed its “red line”.

    He did not say what Taiwan’s “red line” was but suggested it included Chinese aircraft, including drones, flying into Taiwan’s territory. He did not identify the median line as a “red line”.

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    China, which views the democratically governed island as its own territory, mounted large-scale drills including firing missiles over Taipei in August to show its anger over a visit to Taiwan by U.S. House Speaker Nancy Pelosi.

    Chinese military activities near Taiwan have continued since then, though at a much reduced level, and Chinese military aircraft are routinely crossing the median line, which had for years acted as unofficial barrier between the two sides.

    “The median line was supposed to be a tacit agreement for everyone,” Chiu told a parliament committee meeting.

    “That tacit agreement has been destroyed.”

    Taiwan Defence Minister Chiu Kuo-cheng speaks at a rank conferral ceremony for military officials from the Army, Navy and Air Force, at the defence ministry in Taipei, Taiwan December 28, 2021. REUTERS/Annabelle Chih

    China never officially recognised the line that a U.S. general devised in 1954 at the height of Cold War hostility between Communist China and U.S.-backed Taiwan although the People’s Liberation Army had largely respected it.

    The Taiwan Strait is some 180 km (110 miles) wide and at its narrowest, the median line is about 40 km (25 miles) from Taiwan’s waters.

    Some Taiwan officials and security analysts have said it would be difficult for the island to defend the median line without raising the risk of dangerous escalation.

    Chiu said China’s crossings of the median line indicated a new way of doing things, which Taiwan would resist.

    “They want to build a new normal but we do not change … We will stand firm when they come. We do not give in.”

    For years, China tacitly acknowledged the unmarked median line but in 2020 a foreign ministry spokesman stated it “did not exist”. China says its armed forces have a right to operate around Taiwan as it is Chinese territory.

    Taiwan rejects China’s sovereignty claims, saying as China has never ruled Taiwan, only the island’s 23 million people have the right to decide their future.

    Speaking to reporters earlier on Wednesday, Chiu said extending compulsory military service beyond four months was a matter of “urgency”, but the ministry was still in talks with other government agencies to work out details.

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    Reporting By Yimou Lee; Editing by Robert Birsel

    Our Standards: The Thomson Reuters Trust Principles.

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  • Prominent Chinese commentator urges COVID experts to ‘speak out’

    Prominent Chinese commentator urges COVID experts to ‘speak out’

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    BEIJING, Sept 26 (Reuters) – Prominent Chinese commentator Hu Xijin said on Sunday that as China ponders its COVID-19 policies, epidemic experts need to speak out and China ought to conduct comprehensive research and make any studies transparent to the public.

    Hu’s unusual call on Chinese social media for candour and transparency earned him 34,000 likes on the popular Twitter-like microblog Weibo, as well as frank responses from netizens in a normally tightly policed internet quick to censor voices deemed a risk to social stability.

    China’s top leaders warned in May amid the COVID lockdown of Shanghai and widespread restrictions in the Chinese capital Beijing that they would fight any comment or action that distorted, doubted or repudiated the country’s COVID policies. read more

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    “About the future, China needs very rational research and calculations,” said Hu, former editor-in-chief of nationalist state tabloid Global Times.

    “Experts must speak out, and the country should organise comprehensive studies and make them transparent to the public: what are the pros and cons for our common people, and what are the overall pros and cons for the country?”

    China has significantly tightened its COVID-19 policies this year to contain the spread of the highly transmissible Omicron variant even as its death toll since the pandemic began remains low – around 5,226 as of Saturday – and as many other countries let go of tough restrictions and learn to live with the coronavirus.

    “Oppose excessive epidemic prevention,” one Weibo user wrote in response to Hu’s post.

    In the name of putting the lives of people first, entire cities have been subjected to varying degrees of lockdown, while the infected or suspected cases are confined in facilities or at home, and local populations are required to take a PCR test every two to three days or be barred from public amenities and spaces. read more

    “I don’t mind being infected, but I fear you can’t help but stop me from moving freely,” another Weibo user said.

    Even Chinese-controlled Hong Kong is moving to scrap its controversial COVID-19 hotel quarantine policy for all arrivals, more than 2 1/2 years after it was first implemented, and just weeks ahead of a major Communist Party congress in Beijing next month when President Xi Jinping is expected to secure a precedent-breaking third term as China’s leader. read more

    Macau is also planning to reopen its borders to mainland tour groups in November, the Chinese special administrative region surprised with an announcement on Saturday. read more

    “The people must trust the state, but the state must also trust the understanding of the people,” Hu said.

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    Reporting by Ryan Woo; Editing by Toby Chopra and Stephen Coates

    Our Standards: The Thomson Reuters Trust Principles.

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  • Dow posts record closing high, stocks gain for 3rd week; dollar dips

    Dow posts record closing high, stocks gain for 3rd week; dollar dips

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    • S&P 500, Nasdaq end session lower
    • Evergrande averts default with surprise interest payment
    • U.S. 10-year yields lower

    NEW YORK, Oct 22 (Reuters) – The Dow Jones industrial average registered a record closing high on Friday and major equity indexes posted a third straight week of gains while the U.S. dollar slipped.

    On the day, MSCI’s broadest gauge of global shares (.MIWD00000PUS) was flat, and the S&P 500 (.SPX) and Nasdaq (.IXIC) ended lower.

    Stocks came under pressure after Federal Reserve Chair Jerome Powell said the U.S. central bank was “on track” to begin reducing its purchases of assets. read more

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    Intel’s stock (INTC.O)fell 11.7% and was among the biggest drags on the S&P 500. Late Thursday, Intel reported sales that missed expectations and pointed to shortages of chips holding back sales of its flagship processors. read more

    American Express Co’s stock (AXP.N) gained, boosting the Dow after the company beat profit estimates for the fourth straight quarter.

    Next week brings reports from several key mega-cap names including Amazon (AMZN.O). read more

    The dollar pared losses after Powell’s comments, but the dollar index was last down 0.10% at 93.64, and is off from a one-year high of 94.56 last week. read more

    “There’s a bit of a positioning unwind taking place. We’ve obviously seen a firmer dollar since the September” Fed meeting, said Mazen Issa, senior FX strategist at TD Securities in New York. “That also dovetails with the seasonal tendency for the dollar to soften into the end of the month.”

    Investors also digested news that China Evergrande Group (3333.HK) appeared to avert default with a source saying it made a last-minute bond coupon payment. read more

    The Dow Jones Industrial Average (.DJI) rose 73.94 points, or 0.21%, to 35,677.02, the S&P 500 (.SPX) lost 4.88 points, or 0.11%, to 4,544.9 and the Nasdaq Composite (.IXIC) dropped 125.50 points, or 0.82%, to 15,090.20.

    The pan-European STOXX 600 index (.STOXX) rose 0.46% and MSCI’s gauge of stocks across the globe shed 0.03%.

    The MSCI index posted gains for a third straight week along with the three major U.S. stock indexes.

    In the U.S. bond market, yields on longer-dated U.S. Treasuries slid.

    The yield on 10-year Treasury notes was down 1.6 basis points to 1.659% after rising to a five-month high of 1.7064% late Thursday.

    Oil rose and ended up for the week, near multi-year highs. Brent crude futures rose 92 cents to settle at $85.53 a barrel, and registered its seventh weekly gain. U.S. crude futures gained $1.26, to settle at $83.76, and rose for a ninth straight week. read more

    Spot gold was up 0.6% at $1,793.82 per ounce.

    Among cryptocurrencies, bitcoin last fell 2.21% to $60,841.96.

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    Additional reporting by Simon Jessop in London, and Karen Brettell, Sinead Carew and Herbert Lash in New York and Kevin Buckland in Tokyo
    Editing by Hugh Lawson Mark Potter and David Gregorio

    Our Standards: The Thomson Reuters Trust Principles.

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  • White House repeats no Taiwan policy change; experts see Biden gaffe

    White House repeats no Taiwan policy change; experts see Biden gaffe

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    WASHINGTON, Oct 22 (Reuters) – The White House on Friday reiterated that Joe Biden was not signaling a change in U.S. policy toward Taiwan when he said the United States would come to the island’s aid if it was attacked by China, and analysts dismissed the president’s remark as a gaffe.

    While Washington is required by law to provide Taiwan with the means to defend itself, it has long followed a policy of “strategic ambiguity” on whether it would intervene militarily to protect Taiwan in the event of a Chinese attack.

    Biden called that into question when he was asked at a CNN town hall in Baltimore on Thursday night whether the United States would come to Taiwan’s defense if it was attacked by China and he replied: “Yes, we have a commitment to do that.”

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    Shortly after he spoke, a White House spokesperson said there was no change in policy and analysts said it appeared the president misspoke.

    Asked at a Friday news briefing whether it was Biden’s intention to move away from strategic ambiguity to make an unambiguous statement about how the United States would respond to a Chinese attack on Taiwan, White House spokeswoman Jen Psaki said: “Our policy has not changed. He was not intending to convey a change in policy, nor has he made a decision to change our policy.”

    Psaki added that, as stated in Brussels earlier on Friday by U.S. Defense Secretary Lloyd Austin, “nobody wants to see cross-strait issues come to blows, certainly not President Biden, and there’s no reason that it should.”

    Psaki said the U.S. defense relationship with Taiwan was guided by the long-established Taiwan Relations Act, under which Washington would “continue assisting Taiwan in maintaining a sufficient self-defense capability.”

    Another principle of the act was that Washington “would regard any efforts to determine the future of Taiwan by other than peaceful means a threat to the peace and security of the Western Pacific and of grave concern to the United States,” she added.

    Bonnie Glaser, a Taiwan expert at the German Marshall Fund of the United States, called Biden’s remark a “gaffe” and said it was “patently not true” that Washington has a commitment to defend Taiwan.

    “Some are suggesting a deliberate effort to send unclear signals, but in my view, that makes no sense. A confused U.S. policy weakens deterrence,” she said, noting that Biden’s Asia policy czar, Kurt Campbell, had rejected “strategic clarity” over Taiwan.

    Another Taiwan expert, Douglas Paal, a former U.S. representative in Taipei, said Biden was focused at the town hall on selling his domestic economic agenda.

    “Despite his reputation on foreign affairs, he can be occasionally sloppy when distracted,” Paal said. “The White House was right to issue a speedy ‘no-change-in-policy’ correction, because that is where policy is.”

    Biden’s remark comes at an awkward time, while White House officials are gearing up for a virtual meeting between him and Chinese leader Xi Jinping, which, sources say, they hope will show the world Washington can responsibly manage tense relations between the rival superpowers.

    China, which claims self-ruled Taiwan as its own, expressed its displeasure, with a foreign ministry spokesman saying Beijing has no room for concessions on its core interests.

    China urges the United States “not to send the wrong signals to the forces of Taiwan independence, to avoid seriously harming Sino-U.S. ties and peace and stability in the Taiwan Strait,” spokesman Wang Wenbin said.

    Taiwan’s presidential office said its position remained the same, which is that it will neither give in to pressure nor “rashly advance” when it gets support.

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    Reporting by Jeff Mason, Tim Ahmann and David Brunnstrom; Editing by Chizu Nomiyama and Jonathan Oatis

    Our Standards: The Thomson Reuters Trust Principles.

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