By Associated Press June 17 at 11:33 AM WASHINGTON — The United States says Myanmar should reform its constitution to allow its citizens a free choice over who should be its next president, but Myanmar’s government said Tuesday that’s none of Washington’s business. A Myanmar parliamentary committee last week voted against changing a constitutional clause that bars opposition leader and Nobel laureate Aung San Suu Kyi from becoming president. National elections are due in 2015. State Department spokeswoman Jen Psaki said that enabling the Myanmar people to freely choose who they want to lead them in the next phase of its democratic transition will help to ensure stability. “We believe constitutional reform should pave the way for the Burmese to freely choose their president in a free and fair 2015 election,” Psaki said in a written response to a question posed at a news briefing Monday. Reform should also address ethnic minority rights and decrease the role of active-duty military in political structures, she said. In response, Myanmar presidential spokesman Ye Htut said Tuesday it’s the responsibility of Myanmar’s parliament and people to decide how the constitution should be amended. “It is not the concern of the United States. It is inappropriate for us to tell how the U.S. should amend their constitution and likewise the U.S should not dictate how it should be amended,” he told The Associated Press by email. That testy response reflects signs of fraying in U.S.-Myanmar relationship. Over the past two years, the Obama administration has been a staunch supporter of President Thein Sein’s quasi-civilian government as he steers the Southeast Asian nation from decades of oppressive military rule. The U.S. has restored full diplomatic relations and rolled back sanctions, helping Myanmar to shake off its pariah status. But the U.S. has also been critical of the government’s response to bouts of anti-Muslim violence in the predominantly Buddhist nation. Last week the State Department voiced serious concerns about proposals to criminalize interfaith marriage. The current constitution gives the military an effective veto over constitutional amendments, and includes a clause that bars anyone whose spouse or children are loyal to foreign countries from becoming president or vice president. Suu Kyi’s late husband and her two sons are British citizens. If the parliamentary committee’s recommendation is endorsed by the full parliament, it is likely to have a significant impact on the 2015 election. Suu Kyi’s National League for Democracy party is expected to mount a strong challenge, with a good possibility of winning, but without Suu Kyi as a prospective president, its backers may flag in their support. Suu Kyi is widely respected in Washington because of her long and peaceful struggle against military rule. She spent years under house arrest before her release in 2010 and election to parliament in 2012. ____ Aye Aye Win reported from Yangon, Myanmar. Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Wednesday, June 18, 2014
Thursday, June 5, 2014
Putin looks east to bolster ties with North Korea
FILE - In this May 9, 2014 file photo, Russian President Vladimir Putin heads to speak at a navy parade marking Victory Day in Sevastopol, Crimea. Angry with the West’s response over Ukraine, Russia is moving rapidly to bolster ties with North Korea in a diplomatic nose-thumbing that could complicate the U.S.-led effort to squeeze Pyongyang into giving up its nuclear weapons program. Russia’s proactive strategy in Asia- which also involves cozying up to China and had been dubbed “Putin’s Pivot” - began years ago as Moscow’s answer to Washington’s much touted rebalancing of its military forces in the Pacific. (Ivan Sekretarev, File/Associated Press) By Associated Press June 4 at 10:32 AM TOKYO — Angry with the West’s response over Ukraine and eager to diversify its options, Russia is moving rapidly to bolster ties with North Korea in a diplomatic nose-thumbing that could complicate the U.S.-led effort to squeeze Pyongyang into giving up its nuclear weapons program. Russia’s proactive strategy in Asia, which also involves cozying up to China and has been dubbed “Putin’s Pivot,” began years ago as Moscow’s answer to Washington’s much-touted alliance-building and rebalancing of its military forces in the Pacific. But it has gained a new sense of urgency since the unrest in Ukraine — and Pyongyang is already getting a big windfall with high-level political exchanges and promises from Russia of trade and development projects. Moscow’s overtures to North Korea reflect both a defensive distancing from the EU and Washington because of their sanctions over Ukraine and a broader, long-term effort by Russia to strengthen its hand in Asia by building political alliances, expanding energy exports and developing Russian regions in Siberia and the Far East. For North Korea, the timing couldn’t be better. Since the demise of the Soviet Union and the largesse it banked on as a member of the communist bloc, the North has been struggling to keep its economy afloat and has depended heavily on trade and assistance from ally China. Sanctions over its nuclear and missile programs have further isolated the country, and Pyongyang has long feared it could become too beholden to Beijing. Better ties with Russia could provide a much needed economic boost, a counterbalance against Chinese influence and a potentially useful wedge against the West in international forums — and particularly in the U.S.-led effort to isolate Pyongyang over its development of nuclear weapons. “By strengthening its relationship with North Korea, Russia is trying to enhance its bargaining position vis-à-vis the United States and Japan,” said Narushige Michishita, a North Korea and Asia security expert at Japan’s National Graduate Institute for Policy Studies. Michishita added that showing Washington he will not be cowed by the sanctions was “one of the most important factors” why Putin is wooing Pyongyang now. Moscow remains wary of having a nuclear-armed North Korea on its border. But over the past few months it has courted the North with various economic projects, political exchanges and a vote in the Duma, the top Russian legislative body, to write off nearly $10 billion in debt held over from the Soviet era. It has pledged to reinvest $1 billion that Pyongyang still owes into a trans-Siberian railway through North Korea to South Korea — a project that is still in the very early stages. That, together with a pipeline, would allow Russia to export gas and electricity to South Korea. Michishita noted that the same day the United Nations’ General Assembly passed a resolution condemning Russia’s annexation of Crimea, Russia and North Korea were busy signing an economic trade cooperation pact. The warming began around July last year, but it has accelerated as Moscow’s antagonism with the West has grown. Moscow sent a relatively low-ranking representative to the 60th anniversary of the end of fighting in the Korean War that month. But since then, it has hosted North Korea’s head of state at the opening of the Olympic Games in Sochi and, in March, sent its minister in charge of Far East development to Pyongyang. A three-day visit in April by Deputy Prime Minister Yuri Trutnev, who is also the presidential envoy for Russia’s far eastern federal district, marked the “culmination of a new phase in Russian-North Korean relations taking shape — a sort of renaissance if you will,” Alexander Vorontsov, a North Korea expert at the Russia Academy of Sciences, wrote recently on the influential 38 North blog. “It is still an open question whether the current crisis in Ukraine will result in any more substantial shifts in Russian policy toward North Korea, particularly in dealing with the nuclear and missile issues,” Vorontsov said in his blog post. “With the West increasing pressure on Russia as a result of differences over Ukraine, the very fact that Moscow and Pyongyang are subject to U.S. sanctions will objectively draw them together, as well as with China.” Since 2003, a series of multilateral talks have been one of the primary means of pressuring North Korea to denuclearize and to coordinate policy between the six main countries involved — China, Russia, the United States, Japan and North and South Korea. Though still seen as one of the best tools the international community has to pressure Pyongyang on the nuclear issue, the talks were fraught from the start because of the North’s unwillingness to back down and the lack of a unified stance among the five other nations. With North Korea showing no signs of giving up its nuclear option, some analysts believe a widening rift between Russia and the U.S. could weaken future six-party talks. “North Korea’s motivations and actions are driven by the leadership’s perceptions, world view, and ideology,” said Seoul-based analyst Daniel Pinkston, of the International Crisis Group. “That remains the same. As long as the leadership is wedded to son’gun (Military First) ideology, they will not denuclearize before the rest of the world does. And that’s exactly what their government and media say repeatedly.” Michishita, the Japanese security expert, said the Moscow-Pyongyang thaw could just muddy the waters. “North Korea will not denuclearize anyway,” he said. “A better relationship with Russia might be a positive factor for North Korea in coming back to the six-party talks. But North Korea will certainly try to use it to enhance its position vis-à-vis not only the United States and Japan, but also China.” ___ Talmadge is the AP’s Pyongyang bureau chief. Follow him on Twitter at twitter.com/EricTalmadge. Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Sunday, May 25, 2014
Russia-China Natural Gas Pipeline to Create New Global Price Benchmark
Russia’s landmark deal to supply China with natural gas via pipeline over 30 years will have profound impacts globally and create a new price benchmark that may pressure other producers, as consumers choose from a variety of supply sources, according to analysts. OAO Gazprom on Wednesday clinched a contract with China National Petroleum Corp. (CNPC) to sell an estimated $400 billion worth of gas over 30 years beginning in 2018 (see Daily GPI, May 21). By the end of this decade, Russia could be supplying almost 10% of China’s gas supplies. The deal to supply 38 billion cubic meters (bcm) a year via pipeline is priced at around US$10.00/Mcf, versus a current price of $14.00-15.00 for Asia Pacific imports, close to what most European utilities have agreed to pay over the past two years under discounted long-term contracts. “We, Russia and Gazprom, have discovered the Asian gas market for ourselves,” said Gazprom CEO Alexey Miller on Thursday at a forum. The transaction “will influence the whole gas market,” pressuring LNG projects in North America, Australia and Africa. Several analysts agreed that the partnership is a landmark for the global gas market. The compact “sets a new benchmark for what China is willing to pay for natural gas over longer-term contracts,” said Fitch Ratings. Asia liquefied natural gas (LNG) spot prices today are about $13.70/MMBtu, versus U.S. prices of about $4.50 (Henry Hub). “The deal changes the level playing field,” Societe Generale analyst Thierry Bros wrote. “China has now secured some new gas at a competitive price,” which means LNG shipped after the pipeline is completed “would need to be competitive.” China “now has a powerful stick with which to beat down LNG prices…They can tell their LNG suppliers ‘either you bring your price below Russian piped costs, or we will install a second line from Russia and cut you out.’” Russia “has thrown down the gauntlet to LNG producers courting Chinese buyers,” said London-based Timera Energy Director David Stokes. “Russian pipeline exports, which look to be competitively priced versus LNG, are set to have a material impact in eroding Chinese LNG demand. There is likely to be an important knock-on impact on the global LNG supply and demand balance, given the central role China plays in growth projections.” Expanding Gazprom’s Reach For Gazprom, the deal also gives it a brand-new market that’s roughly the size of Europe, said Wood Mackenzie Ltd.’s Stephen O’Rourke. Russia now supplies about one-third of Europe’s gas supplies, but more important, about 80% of Gazprom’s revenues are from Europe. “With European gas demand growth uncertain and the Ukraine crisis leading to calls for Europe to reduce its reliance on Russian gas, Gazprom now needs a ‘new Europe’ — enter China,” said O’Rourke. Gazprom could increase export volumes to China without affecting its ability to deliver to existing European customers, by developing untapped reserves in eastern Russia, said Fitch Managing Director Alex Griffiths, who heads natural resources and commodities. “Some have portrayed the deal as Russia turning away from Europe, in light of the ongoing situation in Ukraine. While it certainly begins to give Gazprom options in where to export, the company’s challenge historically has been to find ways to monetize its 23 trillion cubic meters of reserves at acceptable prices — and the best scenario for the company is an increase in production. “The deal is therefore positive for Gazprom’s medium- to long-term prospects, especially if it opens the door for a further deal to sell gas from its developed western fields to China in due course…” The price Russia fetched may be comparable to that of Gazprom contracts with Western Europe customers, but it’s “far above the prices at which gas can be sold in Russia,” said Griffiths. “A key difference is that gas to be sent to China will come from largely undeveloped fields, implying a significant upfront investment, which President Putin announced as US$55 billion. The 38 bcm announced is equal to about a quarter of Gazprom’s annual deliveries to Europe.” Russia also has announced it may abolish the mineral extraction tax for gas fields that deliver gas to China, potentially adding even more to Gazprom’s bottom line, he said. Russia likely is looking well beyond China for customers. Rumors are circulating that a transaction similar to the one with China is being negotiated with India. Russia is building new facilities and expanding other LNG export plants on its Pacific coast, near Sakhalin Island, where ExxonMobil Corp. and others are partnering. ExxonMobil struck an alliance with Russia’s OAO Rosneft in 2011 (see Daily GPI, Aug. 31, 2011). The pipeline to China would position Gazprom with leading Asia Pacific gas buyers, putting it at an advantage geographically over exports from North America and elsewhere. China Gas Demand Expected to Quadruple by 2035 However, the Asia Pacific region will need a lot of gas to keep up with demand. The International Energy Agency has predicted that China’s gas demand will quadruple by 2035. Russia exports will be a “drop in the bucket” as far as Asia Pacific’s thirst for gas, said Ziff Energy’s Ed Kallio, who directs gas consulting. “It doesn’t even come close. This doesn’t even scratch the surface.” And China hasn’t placed all of its bets on Russia, with large investments in gas schemes around the world, including British Columbia (BC), where a dozen-plus LNG export terminals are on the table. It’s also a big investor in Australia export projects. As well, China is planning to build at least 15 gas import terminals, which would make it the biggest gas importer after Japan. BC Premier Christy Clark said she didn’t think the Russia agreement would satisfy China’s thirst, nor its need to diversify supply. “I don’t think there’s a country in the world that today wants to depend on Russia as their sole supplier of natural gas,” said Clark. “Providing the assurance that we are not going to play politics with energy — I think that’s worth a lot to our potential partners out there, I think, especially China…We’ve certainly seen the way that Russia likes to do business these days, and we certainly know that the Chinese want a dependability of supply. We can supply that.” Calgary-based Talisman Energy Inc. CEO Hal Kvisle isn’t overly concerned about the deal pressuring Canada LNG. The former chief of TransCanada Corp. discussed the tie-up during a conference call during Talisman’s annual investor day. The quantity of gas directed to China isn’t enough “to swamp the market…It certainly doesn’t shut the door on LNG exports from Canada.” Woodside Petroleum Ltd. CEO Peter Coleman, whose company is Australia’s biggest gas exporter by volume, agreed that China would need a lot of gas from a lot of sources. Australia export facilities, including those backed by Chevron Corp., Anadarko Petroleum Corp. and ConocoPhillips, have faced huge cost overruns and labor shortages, but the backers haven’t signaled a slowdown. “China’s growth is coming off such a small base at the moment…It’s got a lot of headroom in it,” Coleman said. Wood Mackenzie’s Gavin Thompson, who heads Asia gas research, said the “comparisons with the development of Gazprom’s export business into Europe are clear, with almost identical population sizes between Northeast China and Western Europe. Gazprom’s exports to Western Europe first reached 38 bcm by the mid-1980s and have since increased to over 150 bcm into the whole of Europe. “We anticipate overall gas demand from China over the next two decades will grow more rapidly than that witnessed in Europe from the mid-1980s.” He said eight provinces in Northeast China would receive the East Siberian gas; the area has a population of around 360 million, roughly equal to that in Western Europe. The region also experiences “extremely cold winters and suffers from a shortage of indigenous supply options.” By 2025, Wood Mackenzie estimates that total gas demand from the eight provinces alone will reach 125 bcm; the Power of Siberia gas pipeline system would meet “over a quarter of regional gas demand by this time.” Without that eastern Russian supply, the region was facing increased reliance on imported LNG, Thompson said. Qatar, the world’s largest LNG producer, already is negotiating with CNPC and state-owned PetroChina Co. to supply 7 million metric tons/year (mmty); China now has long-term contracts for around 5 mmty. Major gas fields offshore Mozambique and Tanzania also hold promise. Too Much Gas? With gas reserves increasingly growing worldwide as unconventional drilling techniques improve, will there be enough buyers? “There will be more gas than needed, so those who get to the market first and cheapest will win,” said Sasol Petroleum International’s Ebbie Haan, managing director. There’s also the political strength that China and Russia gain through the gas alliance. “From the perspective of international relations,” said Thompson, “this deal also signals a deepening of energy ties between Russia and China. They now cooperate across a range of different commodities and have established a broad base for further increases in trade in oil, gas, LNG, coal and electricity.” The crisis in Ukraine, which has strained Russia relations with Europe and the United States gave “new urgency to the Russian desire to branch out to new markets,” said Credit Suisse analysts. “The implied price comes out at just under $10.00/MMBtu, but more importantly, provides China with something of a lever to cap ‘expensive’ LNG.”
OPINION: Asians cannot count on "magic bullets" from U.S. for their problems
By Hiroki Sugita TOKYO, May 1, Kyodo Every time the U.S. president visits Asia, there are agreements, such as the "Global Alliance" or the "Strategic Partnership," which are well received in Asian countries but very modest in terms of concrete actions and effectiveness. In his late April visit to Asia, President Barack Obama was gracious enough to tell the people in the countries he visited exactly what they wanted to hear. Of course, Asians are happy right now, but we cannot ignore deeper doubts about whether he will follow through on what he said. In Tokyo, the first stop of President Obama's Asian trip, he said that the Senkaku Islands fall under the Japan-U.S. security treaty, in a show of U.S. commitment to defending the Japanese-administered islands against any attempt by China to seize them. Prime Minister Shinzo Abe of Japan praised Obama's statement, which no previous U.S. president has voiced, as "epoch-making." Japanese security experts say that the statement is the best way to deter China from starting any military operations against the islands in the East China Sea. Then, in Seoul, Obama rebuked Japan and pleased South Korea. At a press conference with President Park Geun Hye he described "comfort women" as a "terrible and egregious" violation of human rights and for the first time urged Mr. Abe to address the issue with the South Korean government. Many of the comfort women who were forced to work at Japanese military brothels during World War II were from the Korean Peninsula. President Park followed Obama by saying delightedly, "I really look forward to efforts made by the Japanese side." In Manila, Obama announced a defense pact that would give American forces greater access to Philippine military bases and facilities, including airfields and seaports. The main purpose of the pact is to fend off China's military expansion in the South China Sea. Asians except Chinese welcome all of Obama's words and policies. Many Japanese even support the "comfort women" statement. Although Obama's comfort women comment clearly puts Abe in an awkward position, it may act as a catalyst to end the bickering between Japan and South Korea over this issue. According to U.S. National Security Adviser Susan Rice, the remark was in line with the purpose of Obama's trip, namely to cement ties with Japan and South Korea and to encourage improved dialogue between these nations. However, the question is: to what extent can Obama oversee the implementation of these words and agreements? Asians were joyful when Obama announced the U.S. pivot to Asia three years ago after its long and enduring Middle East military ventures. But, we soon found in dismay the policy (later called "rebalancing") more rhetorical than real, as it lacked follow-up measures. Since the pivot announcement, Obama has cancelled two trips to Asia to deal with domestic political affairs, and last year he gave silent approval to China's Air Defense Identification Zone, over protests from Japan. One of the pillars of the pivot is the Trans-Pacific Partnership, or TPP, which was intended to create an Asia-Pacific free trade zone. During this trip to Asia, Obama made it clear that the United States would not make meaningful concessions to Japan and other TPP countries on trade negotiations for fear of angering some U.S. industries. Again, it is clear that Obama places domestic politics above Asia rebalancing. Even the Senkaku statement is not so assuring. At the Tokyo press conference, Obama avoided answering a question about the use of U.S. military force if China were to make a military incursion into the Senkakus. He explained that what he had said about the U.S. commitment to the islands was nothing new; it just repeated the U.S.'s historical interpretation of the U.S.-Japan security treaty. This response gave the impression that he would be very hesitant to use any kind of force. Given Obama's weak reaction to his declared redline regarding the use of chemical weapons in Syria and his ineffective response to the crisis in Ukraine, some Japanese naturally wonder whether the Senkaku statement is another Obama redline that would be easily ignored. Considering China's substantial economic and military strength, it is highly unlikely that the United States would get involved in a confrontation with China over a group of small and inhabited islands. Because of strict budget cuts, the U.S. military cannot meaningfully strengthen its presence. Yoko Iwama, a professor at the National Institute for Policy Studies in Tokyo, noted, "The Ukraine crisis shows the U.S. still has to put a great deal of efforts into Europe to counter Russia. It is too much to ask the U.S. to show strong presence both in Asia and Europe." Although security ties with the United States are the foundation for stability in the region, Asian countries would be wise not to expect much from the United States in the events of conflicts. It is equally important that Asian countries strengthen their own individual defense capabilities and build better relations with China. Obama has a unique capability to please host countries, as we saw in his April trip to Asia. In November, he will go to Beijing to attend the annual Asia-Pacific leaders' meeting. He most likely will reiterate strategic relationships with China for global and regional agendas, which the Japanese and Filipinos will not be happy to hear. In Tokyo he called on Japan to have talks to de-escalate the tension over the Senkakus saying, "I've said directly to the prime minister that it would be a profound mistake to continue to see escalation around this issue rather than dialogue and confidence building measures between Japan and China." If the issue is not resolved by November, then Obama in China may blame Abe for not doing enough. Asians should not be happy or disappointed each time the U.S. president makes a statement on the region. We can't expect magic bullets from the United States for Asian problems because they do not have quick solutions. Therefore, we Asians must find our own solutions to the Senkakus, comfort women, China, and any other issues we face. (Hiroki Sugita is managing feature writer of Kyodo News.) ==Kyodo
Friday, May 23, 2014
China's Xi Warns Asian Countries on Military Alliances
May 21, 2014 2:54 AM Chinese President Xi Jinping warned Asian countries against building what he sees as unhelpful military alliances, in what is seen as a swipe at nations that have developed closer defense ties with the United States. The comments came Wednesday in Shanghai at the Conference on Interaction and Confidence-building Measures in Asia (CICA), a regional grouping China hopes to use to offset U.S. influence. "We should stick to the basic norms in international relations such as the respect for the independence of sovereignty and integrity of territory, mutual non-interference into internal affairs. We should respect the political systems and development methods different countries choose willingly. We should respect and look after the reasonable security concerns of every country. It is disadvantageous to the common security of the region if military alliances with third parties are strengthened,” said Xi. Many of China's neighbors have boosted their military cooperation with the U.S. in response to what they see as China's increasing use of force and intimidation in its many territorial disputes. In particular, Beijing's maritime spats with Vietnam and the Philippines in the South China Sea and Japan in the East China Sea have worsened in recent months. During a visit to Asia last month, President Barack Obama sought to reassure allies such as Japan and the Philippines that his long-promised strategic shift towards Asia and the Pacific, widely seen as aimed at countering China's rising influence, was real. The CICA grouping includes Vietnam, while the Philippines and Japan are not members but had representatives at the meeting. The group also excludes the U.S., while including nations such as Iran and Russia. Anti-Chinese violence flared in Vietnam last week after Chinese state oil company CNOOC deployed an oil rig 150 miles off the coast of Vietnam in waters also claimed by Hanoi. The rig was towed there just days after Obama left the region. The move was the latest in a series of confrontations between China and some of its neighbors over the potentially oil-and-gas rich South China Sea. Washington has responded with sharpened rhetoric toward Beijing, describing a pattern of “provocative” actions by China. The CICA is relatively obscure in comparison to other Asian regional groupings, such as the Asia-Pacific Economic Cooperation (APEC) or the Association of Southeast Asian Nations (ASEAN), but Beijing, which took over as chair of the CICA from Turkey this week, hopes to use the group and others like it to help expand Chinese influence across the region. President Xi said the grouping should help create a "new regional security cooperation architecture." Although he provided few details, he said this could include a "defense consultation mechanism" and a "security response center" in case of regional emergencies. Addressing China's territorial feuds, he said Beijing is "committed to seeking peaceful settlement of disputes with other countries over territorial sovereignty, and maritime rights and interests." State broadcaster China Central Television aired the arrival of various leaders for the meeting live, but, underscoring the sensitivity of China's territorial disputes, it cut away from images of Xi shaking hands with the representatives from Vietnam, the Philippines and Japan. Chinese President Xi Jinping warned Asian countries against building what he sees as unhelpful military alliances, in what is seen as a swipe at nations that have developed closer defense ties with the United States. The comments came Wednesday in Shanghai at the Conference on Interaction and Confidence-building Measures in Asia (CICA), a regional grouping China hopes to use to offset U.S. influence. "We should stick to the basic norms in international relations such as the respect for the independence of sovereignty and integrity of territory, mutual non-interference into internal affairs. We should respect the political systems and development methods different countries choose willingly. We should respect and look after the reasonable security concerns of every country. It is disadvantageous to the common security of the region if military alliances with third parties are strengthened,” said Xi. Many of China's neighbors have boosted their military cooperation with the U.S. in response to what they see as China's increasing use of force and intimidation in its many territorial disputes. In particular, Beijing's maritime spats with Vietnam and the Philippines in the South China Sea and Japan in the East China Sea have worsened in recent months. During a visit to Asia last month, President Barack Obama sought to reassure allies such as Japan and the Philippines that his long-promised strategic shift towards Asia and the Pacific, widely seen as aimed at countering China's rising influence, was real. The CICA grouping includes Vietnam, while the Philippines and Japan are not members but had representatives at the meeting. The group also excludes the U.S., while including nations such as Iran and Russia. Anti-Chinese violence flared in Vietnam last week after Chinese state oil company CNOOC deployed an oil rig 150 miles off the coast of Vietnam in waters also claimed by Hanoi. The rig was towed there just days after Obama left the region. The move was the latest in a series of confrontations between China and some of its neighbors over the potentially oil-and-gas rich South China Sea. Washington has responded with sharpened rhetoric toward Beijing, describing a pattern of “provocative” actions by China. The CICA is relatively obscure in comparison to other Asian regional groupings, such as the Asia-Pacific Economic Cooperation (APEC) or the Association of Southeast Asian Nations (ASEAN), but Beijing, which took over as chair of the CICA from Turkey this week, hopes to use the group and others like it to help expand Chinese influence across the region. President Xi said the grouping should help create a "new regional security cooperation architecture." Although he provided few details, he said this could include a "defense consultation mechanism" and a "security response center" in case of regional emergencies. Addressing China's territorial feuds, he said Beijing is "committed to seeking peaceful settlement of disputes with other countries over territorial sovereignty, and maritime rights and interests." State broadcaster China Central Television aired the arrival of various leaders for the meeting live, but, underscoring the sensitivity of China's territorial disputes, it cut away from images of Xi shaking hands with the representatives from Vietnam, the Philippines and Japan. Some information in this report was contributed by Reuters.
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