Top U.S., China Diplomats Meet Amid Trade, Security Tensions

(Bloomberg) --

Chinese Foreign Minister Wang Yi stressed the importance of cooperation with the U.S. following talks with Secretary of State Michael Pompeo, one day after the latest negotiations in Shanghai yielded incremental signs of concrete progress in their trade war.

The Thursday meeting on the sidelines of a regional forum was expected to be chilly, but the readout from China was low-key.

"China and the US need to view each other’s strategic intentions in a correct manner," a statement quoted Wang Yi as saying. "The two sides need to properly handle differences and sensitive issues. It is neither fair nor possible to try to obstruct China’s development," the statement read, noting, "It will not be stopped by anyone."

Wang said Beijing supports the continuation of "step-by-step" U.S.-North Korea talks with the aim of full denuclearization.

Pompeo described the talks as an "in-depth exchange of views" on U.S.-China relations and North Korea, tweeting "when it advances U.S. interests, we are ready to cooperate with China."

He’s been one of the Trump administration’s most prominent critics of China. During a similar sitdown in Beijing last year, Wang delivered an unusually public rebuke to Pompeo and accused the U.S. of undermining mutual trust between the countries.

The Chinese side has sought to play down the meeting, with Foreign Ministry spokeswomen Hua Chunying telling reporters on Wednesday that it was “imperative for China and the U.S., as two major countries, to stay in communication and have candid discussions on important issues.”

Disagreements between the world’s two biggest economies have escalated into concerns over trade, human rights, the South China Sea, Taiwan and Huawei Technologies Co. So far, there are few signs of a resolution. In a defense white paper released last week, China accused the U.S. of undermining global stability and provoking competition among major countries.

The most recent flash point came as China for the first time laid direct blame on Washington for instigating Hong Kong protests, calling recent violence the “creation of the U.S.,” and urging Washington to remove its “black hand” from the demonstrations.

China has leveled increasingly blunt criticism against the U.S. secretary of state -- with the foreign ministry accusing Pompeo of “lies and fallacies” and state media claiming he was fueling tensions between the two countries, saying it was “this era’s tragedy” that the world was forced to deal with him in June.

One area of cooperation has been North Korea, which has been compelled to enter nuclear talks with the U.S. in part by sanctions backed by China. Beijing’s key role was highlighted by Xi Jinping’s landmark visit to Pyongyang in June, during which the Chinese president encouraged North Korean leader Kim Jong Un to resume talks with the U.S.

--With assistance from Siraphob Thanthong-Knight, Natnicha Chuwiruch and Bibhudatta Pradhan.

To contact Bloomberg News staff for this story: Philip J. Heijmans in Singapore at pheijmans1@bloomberg.net;Dandan Li in Beijing at dli395@bloomberg.net

To contact the editors responsible for this story: Brendan Scott at bscott66@bloomberg.net, Ruth Pollard

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With assistance from Bloomberg