China's upstart chip companies aim to topple Samsung, Intel and TSMC
Push into semiconductor market raises fears of a supply glut
CHENG TING-FANG, Nikkei staff writer
April 25, 2018 15:00 JST
SHANGHAI/TAIPEI -- Business is booming at the Shanghai Integrated Circuit Museum.
For most of its nine-year history, the museum has been mostly a place for school children to learn about the uses of computer chips. But it has become a hot ticket for officials from all over China ever since Beijing declared that creating a world-leading semiconductor industry was a top national priority.
On a recent weekday this spring, Lance Long, the museum's director, was hosting a tour for officials from Urumqi, the Xinjiang capital known for being the world's most landlocked city. Before that, Long hosted groups from distant provinces such as Gansu and Yunnan and even Mongolia. All told, some 200 groups came last year for an education in China's next big thing.
"Many of these representatives knew very little about chips, but they all want to capture this once-in-a-lifetime investment opportunity being led by high-ranked policymakers," Long told the Nikkei Asian Review.
This national enthusiasm reflects China's towering ambitions for its semiconductor industry. China, and its young chipmakers, are clear about their goal: to break the dominance of American, South Korean, Taiwanese and Japanese semiconductor companies. The government wants to create Chinese versions of most of the industry's leaders, then leapfrog them in the race for advanced chips used in artificial intelligence.
In March, Premier Li Keqiang named semiconductors as the top priority of the 10 industries China wants to foster in its "Made in China 2025" initiative. But China's ambitions were already clear in 2014 when it launched the National Integrated Circuit Industry Investment Fund -- better known as the Big Fund -- in 2014 with 138 billion yuan ($21.9 billion) in seed capital, which it hoped would turbocharge investment from local governments and the private sector. The Big Fund is in its second phase of fundraising for at least 150 billion yuan. Credit Suisse estimates China's total investment to be around $140 billion.
China wants to end its reliance on foreign technology -- its annual imports of $260 billion worth of semiconductor-related products have recently risen above its spending on oil. It also wants to move its manufacturing sector to higher-value products.
But there are also national security concerns. Chips serve as the brains for every electronic device -- from smartphones and PCs to connected cars and data centers -- and therefore have strong implications for intelligence. China wants to defend against the types of national security breaches exposed by Edward Snowden's 2013 leaks, which revealed connections between American technology providers and the U.S. National Security Agency's vast surveillance program.
This position is a mirror-image of the increasingly hard-line U.S. stance toward China. American regulators have cited national security concerns when it has curbed chip and other deals with Chinese groups, and has recently fired the opening shots in a trade war to penalize China for stealing high-tech intellectual property. To Beijing, such moves point to an all-out U.S. effort to slow China's aggressive attempt to become a new semiconductor superpower.
"The U.S. is really feeling the threat," said Jerry Peng, an analyst at research unit IEK of Industrial Technology Research Institute in Taiwan.
There is no guarantee of success for China's chip push, however. The country's previous efforts to build a chip industry, including a major drive in the 1990s, were mostly unsuccessful. Its technology is far behind that of global giants such as Samsung Electronics and Intel, making China's goal of producing 75% of the chips it uses domestically by 2025 seem highly ambitious, analysts at Natixis say.
Unlike its previous efforts, when its investments were scattered and ill-placed, China is seeking to bring in expertise from the outside by luring foreign companies to set up advanced production facilities within its territories. This will help create a full supply chain and attract talent. The latest move by the U.S. to bar American companies from selling any components to ZTE, a Chinese telecom equipment provider and smartphone maker, has only strengthened China's determination to replace as many foreign suppliers as possible, according to multiple industry executives.
The recent U.S. move to bar American companies from selling components to ZTE has made China more determined to create its own chip ecosystem. © Getty Images
Analysts also say China has learned from its past mistakes.
"It's totally different from decades ago when China suffered through a frustrating experience to build semiconductors out of nowhere," Mark Li, an analyst at Bernstein Research said. "This time, it's a totally different story as the country has all the right ingredients, including a massive market and strong local makers of smartphones, TVs, PCs, and automobiles ... . It could be just a matter of time for them to bear fruit."
Memory chip push
The first fruits of Beijing's big investment in chips could come as soon as the end of next year, when it will begin shipping its first batch of memory chips. Right now, China has yet to produce such chips in substantial volumes. But industry executives say Chinese memory chips could cause a major disruption in the market once its manufacturers are able to produce them in sufficient quantities, which they expect to happen in three to five years.
When that happens, it could have an impact on two markets: NAND flash memory and DRAM memory chips.
Production of global NAND flash memory-- a $58 billion market annually -- is controlled by only six companies: Samsung Electronics, Toshiba, Western Digital, SK Hynix, Micron Technology and Intel.
DRAMs are dominated by an even smaller group of companies: Samsung, SK Hynix and Micron, which together held 95% of the $71 billion global market in 2017, according to Taipei-based research company TrendForce.
Helped by strong demand and tight supplies, Samsung and SK Hynix alone generated some $85 billion in memory chip sales in 2017, higher than the gross domestic product of Luxembourg. The combined semiconductor operating profit from both companies -- about $46 billion -- would be 1.6 times higher than what the two biggest Japanese companies, Toyota Motor and SoftBank Group, earned together in fiscal 2017.
"It's so unhealthy about the recent memory price hike, and it's so unfair that such important components are controlled by very few companies," a Chinese chip industry executive told the Nikkei Asian Review. "The road could be bumpy, but we need to have our domestic memory chips for sure, and we wouldn't care at first whether we could make a profit or whether we cause a price crash in the market."
Yangtze Memory Technologies is spending $24 billion to build one of China's first advanced memory chip factories in the city of Wuhan. (Courtesy of Tsinghua Unigroup)
A little-known state-backed conglomerate called Tsinghua Unigroup will play a key role in determining whether Chinese chipmakers can successfully challenge the dominance of Samsung, SK Hynix and Toshiba in the memory market.
Tsinghua initially tried to buy its way into the market, but its $23 billion bid to acquire Micron and a separate attempt to become the largest shareholder of Western Digital were blocked by the U.S. government. At the same time, the industry's dominant players were reluctant to license their technology to the aggressive latecomer. But those setbacks did not dampen Tsinghua's enthusiasm.
The group's affiliate, Yangtze Memory Technologies, is spending $24 billion to build the country's first advanced memory chip factories in the city of Wuhan. It has poached thousands of engineers from Samsung, SK Hynix, Micron and Nanya Technology, and on April 11, it began moving equipment into the factory.
Tsinghua Unigroup Chairman Zhao Weiguo announced that the company should begin producing its first batch of 32-layer NAND flash memory chips this year. But Avril Wu, a longtime market watcher at TrendForce, said it is likely that Yangtze Memory will not be ready to ship the more advanced 64-layer chips, currently the industry standard, until the end of 2019 at the earliest.
Tsinghua Unigroup Chairman Zhao Weiguo © Reuters
Apple, the world's biggest consumer of NAND flash memory, recently visited Yangtze Memory to learn about its development status, according to people familiar with the matter. It is not clear whether the iPhone maker received pressure from China to evaluate a potential supply deal, but Apple will undoubtedly want to continue diversifying its memory chip suppliers in order to reduce its reliance on Samsung, multiple industry sources and analysts have said.
Roger Sheng, an analyst at Gartner, said Chinese memory chipmakers still have a long way to go before they make a dent in the market. Still, his company expects that in the NAND flash memory segment, Yangtze Memory could come to replace some low-end providers in three years and compete with first-tier players in five years.
Samsung Electronics CEO Kim Ki-nam and Micron CEO Sanjay Mehrotra are aware of China's offensive, but both say Chinese chipmakers face high technological barriers to entering the market. "We recognize that the Chinese government is supporting [these emerging players] actively ... but it's difficult to narrow technological gaps in the short term solely through big investments," Samsung's Kim said at the company's annual general meeting in March.
The memory chip market is notoriously volatile, swinging between periods of supply shortages and serious gluts. Despite China's technological hurdles, executives from top memory chipmakers worry that Chinese companies could flood the market with cheap semiconductors, leading to a repeat of the massive oversupply that hit the industry a decade ago.
There may be good reason for such concern -- the planned capacity from China is huge. Yangtze Memory has set out to make 300,000 NAND flash wafers a month in years to come, equivalent to some 20% of current global output. "Even if only some one-third or even less of [planned production] is realized in three to five years, it could cause a major price drop for memory chips and hurt the profitability of current suppliers," said Sean Yang, an analyst at Shanghai-based CINNO.
Chinese chipmakers will have the advantage of a vast end market of local gadget makers eager to use more domestic chips. Chinese brands controlled roughly 50% of the global smartphone market and 36% of the PC and tablet computer market in 2017, according to Gartner. Government agencies would also be first-wave adopters.
Another potential hurdle -- intellectual property, including chip design and production techniques -- is not a worry for Chinese chipmakers, analysts say. "Intellectual property issues would never be a roadblock for these newcomers," said IEK's Peng. "The most important task is to deliver the results, and even if there is any concerns with IPs, they can always later come back to negotiate with these big guys to settle the case with a certain license fee."
A dilemma for foreign chipmakers
While IP may not be a worry for the Chinese companies, it is a very real concern for foreign chip giants such as Intel, Samsung, Taiwan Semiconductor Manufacturing Co. (TSMC) and SK Hynix. Like companies in other sectors, high-tech groups are eager to have access to the Chinese market, but wary of handing over valuable technology secrets to state-sponsored competitors.
For China, bringing in as many world-class foreign chip producers as possible is the easiest way to achieve its goal of cultivating a supply chain ecosystem to support its new industry.
"For the longer term, expanding advanced production sites in China could be a trade-off for the existing players because they are potentially helping their competitors," said a Taiwanese chip industry executive who asked not to be named. "It's like these newcomers can go to Harvard or MIT near their home rather than going abroad."
TSMC, for instance, has spent $3 billion on an advanced 12-inch chip facility in the Chinese city of Nanjing, which began production ahead of schedule in April. The world's No. 1 contract chipmaker relies on Apple, Qualcomm, Nvidia and other U.S. clients for 60% of its revenue, but Chinese customers are its fastest growing, making up some 11% of sales in 2017, up from 9% the previous year.
Tsinghua Unigroup plans to build a memory chip production site the size of 2,380 basketball courts in Nanjing. (Photo by Cheng Ting-Fang)
Not far away from TSMC's Nanjing facility, Tsinghua Unigroup is planning to build a $30 billion megasite the size of 2,380 basketball courts to produce memory chips. The Tsinghua project would benefit from any suppliers that TSMC brings to the community.
"It's very difficult for emerging players to secure good support from best-in-class chip equipment and material suppliers, but foreign chipmakers would bring a whole cluster of them even to some distant cities should they have a facility there," said Gartner's Sheng. "And these foreign chipmakers could help us train a huge group of engineers that could later work for local Chinese companies."
This complicated dynamic will only be exacerbated once homegrown Chinese chipmakers make it to the global stage.
"We will see more and more conflicts of interests later -- between countries and also between local and foreign suppliers later," said CINNO's Yang. "This ongoing trade friction between the U.S. and China is just one example."
Nikkei staff writers Hiromi Sato in Silicon Valley, Kim Jaewon in Seoul and Lauly Li in Taipei contributed to this report.
Friday, April 27, 2018
Prince Louis Arthur Charles - William and Kate name their baby - Reuters
APRIL 27, 2018 / 8:07 PM / UPDATED 12 MINUTES AGO
Prince Louis Arthur Charles - William and Kate name their baby
Reuters Staff
LONDON (Reuters) - Prince William and his wife Kate have named their newborn son Louis Arthur Charles, who will be known as His Royal Highness Prince Louis of Cambridge, Kensington Palace said on Friday.
Britain's Catherine, the Duchess of Cambridge and Prince William leave the Lindo Wing of St Mary's Hospital with their new baby boy in London, April 23, 2018. REUTERS/Hannah Mckay
The prince, who is fifth in line to the British throne, was born at 1001 GMT on April 23 weighing 8 lbs 7oz.
Louis is William’s fourth name as well as being that of Earl Mountbatten, to whom William’s father Prince Charles was particularly close. Mountbatten was the uncle of Prince Philip, 96, great-grandfather of the new prince.
Charles, heir to the throne, has said it was a great joy to have another grandchild.
William and Kate now have three children: Louis joins Charlotte, 2, and George, 4.
For a boy, the leading bets were for Albert, Arthur, Alexander, James and Philip. The betting odds indicated just a 5 percent chance of Louis.
Reporting by Guy Faulconbridge and Alistair Smout; editing by Stephen Addison
Prince Louis Arthur Charles - William and Kate name their baby
Reuters Staff
LONDON (Reuters) - Prince William and his wife Kate have named their newborn son Louis Arthur Charles, who will be known as His Royal Highness Prince Louis of Cambridge, Kensington Palace said on Friday.
Britain's Catherine, the Duchess of Cambridge and Prince William leave the Lindo Wing of St Mary's Hospital with their new baby boy in London, April 23, 2018. REUTERS/Hannah Mckay
The prince, who is fifth in line to the British throne, was born at 1001 GMT on April 23 weighing 8 lbs 7oz.
Louis is William’s fourth name as well as being that of Earl Mountbatten, to whom William’s father Prince Charles was particularly close. Mountbatten was the uncle of Prince Philip, 96, great-grandfather of the new prince.
Charles, heir to the throne, has said it was a great joy to have another grandchild.
William and Kate now have three children: Louis joins Charlotte, 2, and George, 4.
For a boy, the leading bets were for Albert, Arthur, Alexander, James and Philip. The betting odds indicated just a 5 percent chance of Louis.
Reporting by Guy Faulconbridge and Alistair Smout; editing by Stephen Addison
Joint police action 'punches big hole' in Isis propaganda ability - Guardian
Joint police action 'punches big hole' in Isis propaganda ability
Computer servers seized in two-day operation in Europe, US and Canada to prevent radicalisation
Jamie Grierson
@JamieGrierson
Fri 27 Apr 2018 20.21 AEST Last modified on Fri 27 Apr 2018 20.58 AEST
Rob Wainwright, director of Europol
Law enforcement authorities have “punched a big hole” in Islamic State’s propaganda machine, targeting news agencies and radio stations used by the jihadi group to radicalise people across the world.
Isis computer servers in the Netherlands, Canada and the US, as well as digital evidence in Bulgaria, France and Romania, have been seized in a two-day takedown operation co-ordinated by Europol.
UK authorities took part in the operation, dealing with top-level domain registrars – companies that register websites – abused by Isis.
The action targeted Isis-branded media outlets such as Amaq and Nashir news agencies and al-Bayan radio, hitting the extremist organisation’s ability to broadcast and publicise terrorist material.
Rob Wainwright, executive director of Europol, said: “With this groundbreaking operation we have punched a big hole in the capability of IS [Isis] to spread propaganda online and radicalise young people in Europe.”
The data captured as part of the operation will help to identify the administrators behind Isis media outlets, Europol said.
Home Office unveils AI program to tackle Isis online propaganda
Amaq is the main mouthpiece for Isis and has been used to claim responsibility for terrorist attacks in Paris, Brussels, Barcelona, Berlin and Trebes. Europol and law enforcement across Europe have been targeting the news agency and other Isis outlets since 2015.
In June 2017, an operation targeted at Amaq’s web assets and infrastructure led to the identification of radicalised individuals in more than 100 countries.
The EU security commissioner, Julian King, said: “This shows that by working together we can stamp out the poisonous propaganda Daesh [Isis] has used to fuel many of the recent terror attacks in Europe. For too long the internet has been open to terrorists and those who seek to do us harm. Those days are coming to an end thanks to this type of co-ordinated global work.”
Computer servers seized in two-day operation in Europe, US and Canada to prevent radicalisation
Jamie Grierson
@JamieGrierson
Fri 27 Apr 2018 20.21 AEST Last modified on Fri 27 Apr 2018 20.58 AEST
Rob Wainwright, director of Europol
Law enforcement authorities have “punched a big hole” in Islamic State’s propaganda machine, targeting news agencies and radio stations used by the jihadi group to radicalise people across the world.
Isis computer servers in the Netherlands, Canada and the US, as well as digital evidence in Bulgaria, France and Romania, have been seized in a two-day takedown operation co-ordinated by Europol.
UK authorities took part in the operation, dealing with top-level domain registrars – companies that register websites – abused by Isis.
The action targeted Isis-branded media outlets such as Amaq and Nashir news agencies and al-Bayan radio, hitting the extremist organisation’s ability to broadcast and publicise terrorist material.
Rob Wainwright, executive director of Europol, said: “With this groundbreaking operation we have punched a big hole in the capability of IS [Isis] to spread propaganda online and radicalise young people in Europe.”
The data captured as part of the operation will help to identify the administrators behind Isis media outlets, Europol said.
Home Office unveils AI program to tackle Isis online propaganda
Amaq is the main mouthpiece for Isis and has been used to claim responsibility for terrorist attacks in Paris, Brussels, Barcelona, Berlin and Trebes. Europol and law enforcement across Europe have been targeting the news agency and other Isis outlets since 2015.
In June 2017, an operation targeted at Amaq’s web assets and infrastructure led to the identification of radicalised individuals in more than 100 countries.
The EU security commissioner, Julian King, said: “This shows that by working together we can stamp out the poisonous propaganda Daesh [Isis] has used to fuel many of the recent terror attacks in Europe. For too long the internet has been open to terrorists and those who seek to do us harm. Those days are coming to an end thanks to this type of co-ordinated global work.”
Mueller won't find a 'stitch of evidence' that Trump colluded with Russians: Giuliani - ABC News
Mueller won't find a 'stitch of evidence' that Trump colluded with Russians: Giuliani
By JOHN SANTUCCI Apr 25, 2018, 9:33 PM ET
WATCHGiuliani: Mueller won't find a 'stitch of evidence' Trump colluded with Russians
Email
President Donald Trump's old campaign pit bull is already reclaiming his role of defending his friend.
Interested in Russia Investigation?
Add Russia Investigation as an interest to stay up to date on the latest Russia Investigation news, video, and analysis from ABC News.
Russia Investigation Add Interest
Former New York City Mayor Rudy Giuliani, who last week formally joined the president's legal team handling the Russia probe, is already firing off at special counsel Robert Mueller's team.
"I can guarantee you this: When Mueller is finished, no matter whatever he does, he’s not going to have a stitch of evidence that [Trump] colluded with the Russians. Now, that's a disgrace. The case should be over,” Giuliani, who is also a former federal prosecutor, told ABC affiliate WMUR in an interview Wednesday.
The Trump legal team, including Giuliani, met with Mueller’s team on Tuesday, sources with direct knowledge confirmed to ABC News. One source said the meeting is “part of ongoing negotiations.” The source added the president remains apprehensive about agreeing to an interview of any kind with the special counsel at this time but negotiations are continuing.
News of the meeting was first reported by The Washington Post.
What Giuliani's past tells us about how he may represent Trump
Former NYC Mayor Rudy Giuliani joining Trump legal team along with others
"First of all, [Trump is] innocent. There isn't a person in the world who thinks he's guilty of collusion with the Russians,” Giuliani went on to tell WMUR.
For months prior to Giuliani's arrival, the president's lawyers have had multiple meetings with the special counsel's office regarding a potential interview by the president. The options, according to sources familiar with the negotiations, have included a formal sit down with parameters or a questionnaire.
Yet ever since an early morning raid was carried out against Trump's personal attorney Michael Cohen, sources close to the president say the commander-in-chief is "less inclined" to sit down for an interview with Mueller.
Mueller's office has declined to comment on the alleged meetings with Trump's lawyers.
By JOHN SANTUCCI Apr 25, 2018, 9:33 PM ET
WATCHGiuliani: Mueller won't find a 'stitch of evidence' Trump colluded with Russians
President Donald Trump's old campaign pit bull is already reclaiming his role of defending his friend.
Interested in Russia Investigation?
Add Russia Investigation as an interest to stay up to date on the latest Russia Investigation news, video, and analysis from ABC News.
Russia Investigation Add Interest
Former New York City Mayor Rudy Giuliani, who last week formally joined the president's legal team handling the Russia probe, is already firing off at special counsel Robert Mueller's team.
"I can guarantee you this: When Mueller is finished, no matter whatever he does, he’s not going to have a stitch of evidence that [Trump] colluded with the Russians. Now, that's a disgrace. The case should be over,” Giuliani, who is also a former federal prosecutor, told ABC affiliate WMUR in an interview Wednesday.
The Trump legal team, including Giuliani, met with Mueller’s team on Tuesday, sources with direct knowledge confirmed to ABC News. One source said the meeting is “part of ongoing negotiations.” The source added the president remains apprehensive about agreeing to an interview of any kind with the special counsel at this time but negotiations are continuing.
News of the meeting was first reported by The Washington Post.
What Giuliani's past tells us about how he may represent Trump
Former NYC Mayor Rudy Giuliani joining Trump legal team along with others
"First of all, [Trump is] innocent. There isn't a person in the world who thinks he's guilty of collusion with the Russians,” Giuliani went on to tell WMUR.
For months prior to Giuliani's arrival, the president's lawyers have had multiple meetings with the special counsel's office regarding a potential interview by the president. The options, according to sources familiar with the negotiations, have included a formal sit down with parameters or a questionnaire.
Yet ever since an early morning raid was carried out against Trump's personal attorney Michael Cohen, sources close to the president say the commander-in-chief is "less inclined" to sit down for an interview with Mueller.
Mueller's office has declined to comment on the alleged meetings with Trump's lawyers.
Romania's president calls on PM to quit over Israel embassy move - Reuters
APRIL 27, 2018 / 7:12 PM / UPDATED 15 MINUTES AGO
Romania's president calls on PM to quit over Israel embassy move
Radu-Sorin Marinas
BUCHAREST (Reuters) - Romania’s president called on the prime minister to resign on Friday after she endorsed a secret deal to move the country’s embassy in Israel to Jerusalem, overstepping her powers on foreign policy.
Romanian Prime Minister Viorica Dancila speaks during a visit at Yad Vashem Holocaust History Museum in Jerusalem, April 25, 2018. REUTERS/Ammar Awad
The head of state cannot dismiss the premier but President Klaus Iohannis’ call could trigger a no-confidence vote, something Prime Minister Viorica Dancila should easily survive given her party’s robust majority in parliament.
“Mrs. Dancila is not coping with her position of prime minister of Romania and thus is turning the government into a liability for Romania. That is why I am calling publicly for her resignation,” Iohannis said in a statement.
Any decision on embassy relocation rests with the president, who said he was not consulted about that or the state visit Dancila paid to Israel this week along with the leader of her Social Democrat party, Liviu Dragnea.
Dancila has said the memorandum she approved was confidential and could not be made public yet.
Iohannis - who has the final say in foreign policy matters - said moving the embassy to Jerusalem, which is not widely recognized as Israel’s capital due to competing sovereignty claims by the Palestinians, has said the move could break international law.
“A secret document, a secret foreign policy memorandum, was discussed last week in the government. That was a big mistake,” Iohannis said.
“Because in foreign policy matters, if we are talking about secret documents, which obviously are sensitive otherwise they should not be secrets, the president should have been consulted, which did not happen,” Iohannis added.
Dancila has yet to comment on his call for her to resign.
Romania would be the first EU country and one of very few countries in the world to relocate its embassy following U.S. President Donald Trump recognition of Jerusalem as Israel’s capital in December.
The Romanian foreign ministry had said the memorandum was only the start of a wide consultation process and that it sought to identify the best way for Romania to position itself.
It added Romania’s position regarding the Israeli-Palestinian situation “has traditionally been a balanced one, including ... bilaterally recognizing the Palestinian state.”
Last week, Israeli Prime Minister Benjamin Netanyahu said that “at least half a dozen” countries were considering moving their embassies to Jerusalem. The U.S. Embassy is due to relocate on May 14.
Editing by Robin Pomeroy
Romania's president calls on PM to quit over Israel embassy move
Radu-Sorin Marinas
BUCHAREST (Reuters) - Romania’s president called on the prime minister to resign on Friday after she endorsed a secret deal to move the country’s embassy in Israel to Jerusalem, overstepping her powers on foreign policy.
Romanian Prime Minister Viorica Dancila speaks during a visit at Yad Vashem Holocaust History Museum in Jerusalem, April 25, 2018. REUTERS/Ammar Awad
The head of state cannot dismiss the premier but President Klaus Iohannis’ call could trigger a no-confidence vote, something Prime Minister Viorica Dancila should easily survive given her party’s robust majority in parliament.
“Mrs. Dancila is not coping with her position of prime minister of Romania and thus is turning the government into a liability for Romania. That is why I am calling publicly for her resignation,” Iohannis said in a statement.
Any decision on embassy relocation rests with the president, who said he was not consulted about that or the state visit Dancila paid to Israel this week along with the leader of her Social Democrat party, Liviu Dragnea.
Dancila has said the memorandum she approved was confidential and could not be made public yet.
Iohannis - who has the final say in foreign policy matters - said moving the embassy to Jerusalem, which is not widely recognized as Israel’s capital due to competing sovereignty claims by the Palestinians, has said the move could break international law.
“A secret document, a secret foreign policy memorandum, was discussed last week in the government. That was a big mistake,” Iohannis said.
“Because in foreign policy matters, if we are talking about secret documents, which obviously are sensitive otherwise they should not be secrets, the president should have been consulted, which did not happen,” Iohannis added.
Dancila has yet to comment on his call for her to resign.
Romania would be the first EU country and one of very few countries in the world to relocate its embassy following U.S. President Donald Trump recognition of Jerusalem as Israel’s capital in December.
The Romanian foreign ministry had said the memorandum was only the start of a wide consultation process and that it sought to identify the best way for Romania to position itself.
It added Romania’s position regarding the Israeli-Palestinian situation “has traditionally been a balanced one, including ... bilaterally recognizing the Palestinian state.”
Last week, Israeli Prime Minister Benjamin Netanyahu said that “at least half a dozen” countries were considering moving their embassies to Jerusalem. The U.S. Embassy is due to relocate on May 14.
Editing by Robin Pomeroy
Germany's Merkel next to visit Trump on a mission of 'damage limitation' - CNBC News
Germany's Merkel next to visit Trump on a mission of 'damage limitation'
Touching down in the afterglow of her French counterpart's three-day visit, Merkel arrives in Washington to try to find a compromise with the president on a raft of divisive issues.
The Iran nuclear deal, the prospect of U.S. tariffs on European metals products and Berlin's military spending are all politically sensitive topics seen as likely to come up during Merkel's working lunch with Trump.
Eurasia Group's Charles Lichfield said Macron's trip to the U.S. had no implications on the balance of power in Europe because the so-called "Trump-whisperer didn't actually get him to agree to very much."
Sam Meredith | @smeredith19
Published April 27, 2018
CNBC.com
President Donald Trump (R), French President Emmanuel Macron (L) and German Chancellor Angela Merkel (C) chat at the start of the first working session of the G20 meeting in Hamburg, northern Germany, on July 7, 2017.
John MacDougall | AFP | Getty Images
President Donald Trump (R), French President Emmanuel Macron (L) and German Chancellor Angela Merkel (C) chat at the start of the first working session of the G20 meeting in Hamburg, northern Germany, on July 7, 2017.
German Chancellor Angela Merkel is embarking on a one-day working visit to meet President Donald Trump on Friday, harboring no illusions of matching the "special relationship" formed by France's Emmanuel Macron.
Touching down in the afterglow of her French counterpart's three-day visit, Merkel arrives in Washington to try to find a compromise with the president on a raft of divisive issues.
The Iran nuclear deal, the prospect of U.S. tariffs on European metals products and Berlin's military spending are all politically sensitive topics seen as likely to come up during Merkel's working lunch with Trump.
"Macron has a good personal relationship with Trump and Merkel has a bad relationship with him, but it's not necessarily a problem. In fact, I don't actually think she cares that much about it," Charles Lichfield, Europe associate at Eurasia Group, told CNBC in a phone interview on Friday.
"This trip is about damage limitation. We are almost in crisis mode with tariffs being threatened, so her focus has to be on that," he added.
'Horrible deal'
Merkel is visiting the U.S. in the hope of averting a trade war between the world's largest economy and the European Union (EU). It is thought German officials will try to convince Trump that Washington's trade deficit with Berlin is not just shrinking, but some of the factors behind their trade partnership are out of the chancellor's control.
Nonetheless, Trump is seen as unlikely to shift from his current position that the trading relationship between the two is clearly biased in Europe's favor.
U.S. President Donald Trump talks to German Chancellor Angela Merkel before the first working session of the G20 meeting in Hamburg, Germany, July 7, 2017.
Kay Nietfeld | Pool | Getty Images
U.S. President Donald Trump talks to German Chancellor Angela Merkel before the first working session of the G20 meeting in Hamburg, Germany, July 7, 2017.
France's Macron had initially sought to persuade the Trump administration to abandon its combative stance on both trade and the Iran nuclear accord. However, some analysts questioned whether his tactile relationship with Trump had yielded any tangible results for the EU.
Eurasia Group's Lichfield said Macron's trip to the U.S. had no implications on the balance of power in Europe because the so-called "Trump-whisperer didn't actually get him to agree to very much."
In fact, Trump said Thursday that Macron "really came to recognize" his viewpoint on the Iran nuclear deal.
"He is viewing, I believe, Iran a lot differently than he did before he walked into the Oval Office and I think that's important," Trump said on Fox News. He went onto reaffirm his belief the Obama administration had agreed to a "horrible deal" to freeze Iran's nuclear weapons program.
Macron and Merkel's trips to the U.S. come shortly before a May 12 deadline, set by Trump, to improve on an international deal to curb Iran's nuclear program.
The president has threatened to pull out from the accord between Tehran and six world powers, signed in 2015 before he took office — unless Germany, France and Britain helped to agree on a follow-up pact by that date.
Germany's 'shrinking' global role
Merkel, who was once seen as the torchbearer for liberal democracy, has not enjoyed a warm alliance with Trump. And since losing ground in September's general election, Germany's premier has been accused of being in a strategic retreat on the international stage. In a recent Der Spiegel editorial, the newspaper lamented Berlin's "incredibly shrinking role" as a global player.
That is in sharp contrast to just two years earlier when, shortly after Trump's election victory in November 2016, former President Barack Obama flew to Germany and hailed Merkel as the "closest international partner" of his eight years in office. Thereafter, domestic newspapers had declared Merkel as the somewhat reluctant "leader of the free world."
— Reuters contributed to this article.
Touching down in the afterglow of her French counterpart's three-day visit, Merkel arrives in Washington to try to find a compromise with the president on a raft of divisive issues.
The Iran nuclear deal, the prospect of U.S. tariffs on European metals products and Berlin's military spending are all politically sensitive topics seen as likely to come up during Merkel's working lunch with Trump.
Eurasia Group's Charles Lichfield said Macron's trip to the U.S. had no implications on the balance of power in Europe because the so-called "Trump-whisperer didn't actually get him to agree to very much."
Sam Meredith | @smeredith19
Published April 27, 2018
CNBC.com
President Donald Trump (R), French President Emmanuel Macron (L) and German Chancellor Angela Merkel (C) chat at the start of the first working session of the G20 meeting in Hamburg, northern Germany, on July 7, 2017.
John MacDougall | AFP | Getty Images
President Donald Trump (R), French President Emmanuel Macron (L) and German Chancellor Angela Merkel (C) chat at the start of the first working session of the G20 meeting in Hamburg, northern Germany, on July 7, 2017.
German Chancellor Angela Merkel is embarking on a one-day working visit to meet President Donald Trump on Friday, harboring no illusions of matching the "special relationship" formed by France's Emmanuel Macron.
Touching down in the afterglow of her French counterpart's three-day visit, Merkel arrives in Washington to try to find a compromise with the president on a raft of divisive issues.
The Iran nuclear deal, the prospect of U.S. tariffs on European metals products and Berlin's military spending are all politically sensitive topics seen as likely to come up during Merkel's working lunch with Trump.
"Macron has a good personal relationship with Trump and Merkel has a bad relationship with him, but it's not necessarily a problem. In fact, I don't actually think she cares that much about it," Charles Lichfield, Europe associate at Eurasia Group, told CNBC in a phone interview on Friday.
"This trip is about damage limitation. We are almost in crisis mode with tariffs being threatened, so her focus has to be on that," he added.
'Horrible deal'
Merkel is visiting the U.S. in the hope of averting a trade war between the world's largest economy and the European Union (EU). It is thought German officials will try to convince Trump that Washington's trade deficit with Berlin is not just shrinking, but some of the factors behind their trade partnership are out of the chancellor's control.
Nonetheless, Trump is seen as unlikely to shift from his current position that the trading relationship between the two is clearly biased in Europe's favor.
U.S. President Donald Trump talks to German Chancellor Angela Merkel before the first working session of the G20 meeting in Hamburg, Germany, July 7, 2017.
Kay Nietfeld | Pool | Getty Images
U.S. President Donald Trump talks to German Chancellor Angela Merkel before the first working session of the G20 meeting in Hamburg, Germany, July 7, 2017.
France's Macron had initially sought to persuade the Trump administration to abandon its combative stance on both trade and the Iran nuclear accord. However, some analysts questioned whether his tactile relationship with Trump had yielded any tangible results for the EU.
Eurasia Group's Lichfield said Macron's trip to the U.S. had no implications on the balance of power in Europe because the so-called "Trump-whisperer didn't actually get him to agree to very much."
In fact, Trump said Thursday that Macron "really came to recognize" his viewpoint on the Iran nuclear deal.
"He is viewing, I believe, Iran a lot differently than he did before he walked into the Oval Office and I think that's important," Trump said on Fox News. He went onto reaffirm his belief the Obama administration had agreed to a "horrible deal" to freeze Iran's nuclear weapons program.
Macron and Merkel's trips to the U.S. come shortly before a May 12 deadline, set by Trump, to improve on an international deal to curb Iran's nuclear program.
The president has threatened to pull out from the accord between Tehran and six world powers, signed in 2015 before he took office — unless Germany, France and Britain helped to agree on a follow-up pact by that date.
Germany's 'shrinking' global role
Merkel, who was once seen as the torchbearer for liberal democracy, has not enjoyed a warm alliance with Trump. And since losing ground in September's general election, Germany's premier has been accused of being in a strategic retreat on the international stage. In a recent Der Spiegel editorial, the newspaper lamented Berlin's "incredibly shrinking role" as a global player.
That is in sharp contrast to just two years earlier when, shortly after Trump's election victory in November 2016, former President Barack Obama flew to Germany and hailed Merkel as the "closest international partner" of his eight years in office. Thereafter, domestic newspapers had declared Merkel as the somewhat reluctant "leader of the free world."
— Reuters contributed to this article.
Kushner Brothers Can’t Seem to Avoid Each Other’s Shadow - Bloomberg
Kushner Brothers Can’t Seem to Avoid Each Other’s Shadow
By David Kocieniewski and Caleb Melby
April 27, 2018, 6:00 PM GMT+10
Archrivals tangled in an effort to remake Jersey City skyline
Charles Kushner says city Democrats treating him unfairly
Buildings stand ahead of the Manhattan skyline in this aerial photograph taken above Weehawken, New Jersey, U.S. Photographer: Craig Warga/Bloomberg
The epic rivalry between Charles and Murray Kushner, wealthy New Jersey brothers with competing real estate empires, has intermittently flared up into lawsuits, fraud allegations and sordid revenge plots.
Now their competition has become entwined in a policy dispute in Jersey City, where both men are trying to remake the skyline.
Charles Kushner, whose son Jared is a senior adviser and son-in-law to President Donald Trump, this week accused the leaders of the staunchly Democratic city of trying to curry favor with anti-Trump voters by unfairly blocking tax incentives he needs to build two 56-story towers in Journal Square.
Comparing the city’s actions to religious or racial bigotry, Charles Kushner said Jersey City had discriminated against his company, Kushner Cos., by denying it the kind of tax subsidies Jersey City has offered other developers.
Left unsaid -- but widely known in Jersey City real-estate circles -- is that one of the most prominent companies to receive tens of millions of dollars in subsidies from the government is Kushner Real Estate Group, or KRE, which is owned by Charles Kushner’s brother and archrival, Murray.
Building Momentum
Neither Kushner Cos. or KRE responded to questions on the rivalry.
In the early 2000s, when the brothers were still in business together, Murray Kushner began to believe his brother was mismanaging the firm’s funds and sued him. That sparked a legal battle that would eventually send Charles Kushner, at that time a prominent Democratic fundraiser, to prison after it was revealed that he made illegal campaign contributions and he hired a prostitute to entrap his brother-in-law.
KRE was the first major developer to commit to a major project in Jersey City’s blighted Journal Square area, receiving a package in 2013 of more than $40 million in tax breaks and subsidized loans. KRE’s development, called Journal Squared, opened a 54-story high rise last year and broke ground on a second tower that is slated to rise to 72 stories. It has plans for a third building too.
KRE’s project generated such momentum to redevelop the area that by 2015, Charles Kushner’s project, One Journal Square, was on track to receive $10 million in subsidized bonds, another $34 million in tax breaks, plus $59 million from the state of New Jersey. The sites of the two projects are less than a block away.
The rival Kushner real estate companies had long competed for tenants in Jersey City, and, according to two people who spoke with Charles Kushner about the negotiations, he was pleased to receive more public financing than his brother’s project had been allotted.
But that plan began to collapse last year, after the anchor tenant, WeWork Cos., left the project, taking with it $59 million in state subsidies tied to it being a tenant. Kushner Cos. maintains it made the decision not to pursue a partnership with WeWork.
Kushner Cos. also dealt the proposal a self-inflicted wound last spring. Top company officials flew to China to raise money using the controversial EB-5 investment-for-visa program and their pitch featured a photo of Donald Trump, which many viewed as a conflict of interest.
LANDSCAPE SHIFTED
Kushner Cos. said it had been unaware the event promoter made references to Jared Kushner and Trump in the promotional material and said it would no longer seek EB-5 money for the project. (Jared Kushner has sold his interest in the company to family members.)
By the time Kushner Cos. and their partner in the deal, the KABR Group, came back with a revised plan last fall, the political landscape had shifted. Jersey City activists organized protests outside the site and blasted city officials for offering subsides that might enrich the family of the president’s son-in-law.
Mayor Steven Fulop, a Democrat who faced an election challenge last year, eventually dropped his support for the project. Charles Kushner said this week Fulop once acknowledged that the city was discriminating against Kushner Cos., but Fulop’s spokeswoman said she could not confirm that conversation ever took place.
The spokeswoman, Hannah Peterson, said the mayor’s decision was based on the merits of the redesigned project, which has struggled to obtain financing. She didn’t respond to questions on the rivalry between the brothers.
Earlier this month, Fulop said he hopes another developer comes in to replace Kushner Cos. The mayor also a tweeted that Charles Kushner, his longtime supporter, was out of line.
"There is a sense of entitlement that the developer has towards a subsidy,” he wrote. “We as a city just don’t see it the same way.”
‘Trump Connection’
Others in city government are more sympathetic to Charles Kushner’s complaints.
Michael Yun, a Jersey City councilman who has overseen studies of the city’s subsidies to developers, said, "It’s a good project, and if it weren’t for the Trump connection, I don’t think you’d be seeing people oppose it this way."
Still, he said, it would be inappropriate for Charles Kushner’s company to expect the same level of support that Murray’s got.
"When someone goes to redevelop an area first, they’re taking the most risk and deserve incentives to help make sure it works," Yun said. "But once there’s already an established development there and things are starting to happen, it’s a safer investment. So there’s no reason for such big tax breaks."
By David Kocieniewski and Caleb Melby
April 27, 2018, 6:00 PM GMT+10
Archrivals tangled in an effort to remake Jersey City skyline
Charles Kushner says city Democrats treating him unfairly
Buildings stand ahead of the Manhattan skyline in this aerial photograph taken above Weehawken, New Jersey, U.S. Photographer: Craig Warga/Bloomberg
The epic rivalry between Charles and Murray Kushner, wealthy New Jersey brothers with competing real estate empires, has intermittently flared up into lawsuits, fraud allegations and sordid revenge plots.
Now their competition has become entwined in a policy dispute in Jersey City, where both men are trying to remake the skyline.
Charles Kushner, whose son Jared is a senior adviser and son-in-law to President Donald Trump, this week accused the leaders of the staunchly Democratic city of trying to curry favor with anti-Trump voters by unfairly blocking tax incentives he needs to build two 56-story towers in Journal Square.
Comparing the city’s actions to religious or racial bigotry, Charles Kushner said Jersey City had discriminated against his company, Kushner Cos., by denying it the kind of tax subsidies Jersey City has offered other developers.
Left unsaid -- but widely known in Jersey City real-estate circles -- is that one of the most prominent companies to receive tens of millions of dollars in subsidies from the government is Kushner Real Estate Group, or KRE, which is owned by Charles Kushner’s brother and archrival, Murray.
Building Momentum
Neither Kushner Cos. or KRE responded to questions on the rivalry.
In the early 2000s, when the brothers were still in business together, Murray Kushner began to believe his brother was mismanaging the firm’s funds and sued him. That sparked a legal battle that would eventually send Charles Kushner, at that time a prominent Democratic fundraiser, to prison after it was revealed that he made illegal campaign contributions and he hired a prostitute to entrap his brother-in-law.
KRE was the first major developer to commit to a major project in Jersey City’s blighted Journal Square area, receiving a package in 2013 of more than $40 million in tax breaks and subsidized loans. KRE’s development, called Journal Squared, opened a 54-story high rise last year and broke ground on a second tower that is slated to rise to 72 stories. It has plans for a third building too.
KRE’s project generated such momentum to redevelop the area that by 2015, Charles Kushner’s project, One Journal Square, was on track to receive $10 million in subsidized bonds, another $34 million in tax breaks, plus $59 million from the state of New Jersey. The sites of the two projects are less than a block away.
The rival Kushner real estate companies had long competed for tenants in Jersey City, and, according to two people who spoke with Charles Kushner about the negotiations, he was pleased to receive more public financing than his brother’s project had been allotted.
But that plan began to collapse last year, after the anchor tenant, WeWork Cos., left the project, taking with it $59 million in state subsidies tied to it being a tenant. Kushner Cos. maintains it made the decision not to pursue a partnership with WeWork.
Kushner Cos. also dealt the proposal a self-inflicted wound last spring. Top company officials flew to China to raise money using the controversial EB-5 investment-for-visa program and their pitch featured a photo of Donald Trump, which many viewed as a conflict of interest.
LANDSCAPE SHIFTED
Kushner Cos. said it had been unaware the event promoter made references to Jared Kushner and Trump in the promotional material and said it would no longer seek EB-5 money for the project. (Jared Kushner has sold his interest in the company to family members.)
By the time Kushner Cos. and their partner in the deal, the KABR Group, came back with a revised plan last fall, the political landscape had shifted. Jersey City activists organized protests outside the site and blasted city officials for offering subsides that might enrich the family of the president’s son-in-law.
Mayor Steven Fulop, a Democrat who faced an election challenge last year, eventually dropped his support for the project. Charles Kushner said this week Fulop once acknowledged that the city was discriminating against Kushner Cos., but Fulop’s spokeswoman said she could not confirm that conversation ever took place.
The spokeswoman, Hannah Peterson, said the mayor’s decision was based on the merits of the redesigned project, which has struggled to obtain financing. She didn’t respond to questions on the rivalry between the brothers.
Earlier this month, Fulop said he hopes another developer comes in to replace Kushner Cos. The mayor also a tweeted that Charles Kushner, his longtime supporter, was out of line.
"There is a sense of entitlement that the developer has towards a subsidy,” he wrote. “We as a city just don’t see it the same way.”
‘Trump Connection’
Others in city government are more sympathetic to Charles Kushner’s complaints.
Michael Yun, a Jersey City councilman who has overseen studies of the city’s subsidies to developers, said, "It’s a good project, and if it weren’t for the Trump connection, I don’t think you’d be seeing people oppose it this way."
Still, he said, it would be inappropriate for Charles Kushner’s company to expect the same level of support that Murray’s got.
"When someone goes to redevelop an area first, they’re taking the most risk and deserve incentives to help make sure it works," Yun said. "But once there’s already an established development there and things are starting to happen, it’s a safer investment. So there’s no reason for such big tax breaks."
Does Trump deserve the credit for peace talks with North Korea? - BBC News
Does Trump deserve the credit for peace talks with North Korea?
27 April 2018
Claim: Donald Trump and South Korean President Moon Jae-in agree the US President deserves credit for peace talks with North Korea.
Verdict: Only the historical record will reveal what influenced these talks, but evidence suggests it was the South Koreans who encouraged dialogue with the North, along with pressure from Chinese enforced sanctions.
Leaders of North and South Korea are expected to meet 27 April, for their third leaders' summit since the Korean War armistice was signed in 1953. Then in May or June, Donald Trump is expected to meet North Korean leader Kim Jong-un, for the first ever meeting between a leader of the North and a sitting US president.
After mounting tension and military threats traded between the US and North Korea, the historic talks may bring about a de-escalation of hostilities, as well as a peace treaty to end the 68-year Korean War.
On 4 January 2018, US President Donald Trump tweeted: "With all of the failed 'experts' weighing in, does anybody really believe that talks and dialogue would be going on between North and South Korea right now if I wasn't firm, strong and willing to commit our total 'might' against the North. Fools, but talks are a good thing!"
South Korean President Moon Jae-in said publicly too that President Trump deserved big credit for bringing about talks to discuss peace with the North. "It could be a resulting work of the US-led sanctions and pressure."
US-led sanctions enforced by UN
Since North Korea detonated its first nuclear test in 2006, the US and a number of allies imposed sanctions on North Korea. As well, the United Nations Security Council passed nine rounds of sanctions on North Korea - many of these proposed by the US.
Over the years, these sanctions became more strict. The initial UN sanctions in 2006 banned the supply of heavy weaponry, missile technology and luxury goods. By December 2017, the UN sanctions restricted oil imports, metal, agriculture and demanded the deportation of North Koreans working abroad.
While these most recent sanctions were US-led under the administration of President Trump, it may be China's recent enforcement of UN sanctions that hit North Korea hardest. China accounts for more than 90% of North Korea's trade, and while the Security Council member voted in favour of the UN sanctions against their long-time ally, they rarely upheld those, reports the Council on Foreign Relations. However, in this past year, China appears to have enforced the sanctions.
Having already proved his military capabilities, Mr Kim is now turning his attention to economic growth, says Dr John Nilsson-Wright, a senior research fellow at Chatham House. So while the sanctions didn't stop Mr Kim from developing weapons, this latest development could hinder his economic plan for the long term.
Image copyrightHUW EVANS PICTURE AGENCY
Image caption
In a campaign to abolish nuclear weapons, activists wear masks of President Trump and Mr Kim, in front of the American embassy in Berlin
Tough talks and threats of military action
On 2 January 2018, President Trump tweeted: "North Korean Leader Kim Jong-un just stated that the 'nuclear button is on his desk at all times'. Will someone from his depleted and food-starved regime please inform him that I too have a nuclear button, but it is a much bigger and more powerful one than his, and my button works."
On 23 September 2017, President Trump tweeted: "Just heard [the] foreign minister of North Korea speak at [the] UN. If he echoes [the] thoughts of Little Rocket Man, they won't be around much longer."
To compare, President Obama, in 2014, warned North Korea that "we don't use our military might to impose these things on others, but we will not hesitate to use our military might to defend our allies and our way of life".
In 2016, President Obama told CBS News North Korea was "erratic enough" and "irresponsible enough that we don't want them getting close".
"We could, obviously, destroy North Korea with our arsenals. But aside from the humanitarian costs of that, they are right next door to our vital ally, the Republic of Korea," he added.
President Bush, for his part, labelled North Korea part of the "axis of evil."
America has for years used words and threats of military might.
Kim Yo Jong (top right), sister of the North Korean leader, attends the Olympics in South Korea, along with President Moon Jae-in (bottom left)
The influence of South Korean engagement
Two presidents prior to Moon Jae-in, Lee Myung-bak (2008-2013) took a hard-line approach to North Korea. The next president, Park Geun-hye (2013-2017), promised engagement with the North, a strategy that ended in early 2016 following missile and nuclear tests.
In his inauguration speech, Mr Moon said he would "do everything I can to build peace on the Korean peninsula".
This is a return to the Sunshine Policy of Presidents Kim Dae-Jung (1999-2003) and Roh Moo-Hyun (2003-2008), who were the only other two South Korean presidents to meet North Korean leadership - during the Inter-Korean Summits of 2000 and 2007. Kim Dae-jung won a Nobel Peace Prize for his efforts.
"More credit should go to the South Koreans, because they actually made sure to have the North Koreans come to the Olympics and that was organised very very quickly," said senior lecturer Dr Virginie Grzelczyk, of Aston University. "The invitation to have the North Korean delegation and Kim Jong-un's sister…has been really critical to organise the summit that we are going to see at the end of the week."
So why is the South giving credit to Trump?
South Korea is acting strategically, says Dr Grzelczyk, to bring the Americans around to a place of dialogue "because both Koreas have at some point, been perplexed and concerned by American policy".
27 April 2018
Claim: Donald Trump and South Korean President Moon Jae-in agree the US President deserves credit for peace talks with North Korea.
Verdict: Only the historical record will reveal what influenced these talks, but evidence suggests it was the South Koreans who encouraged dialogue with the North, along with pressure from Chinese enforced sanctions.
Leaders of North and South Korea are expected to meet 27 April, for their third leaders' summit since the Korean War armistice was signed in 1953. Then in May or June, Donald Trump is expected to meet North Korean leader Kim Jong-un, for the first ever meeting between a leader of the North and a sitting US president.
After mounting tension and military threats traded between the US and North Korea, the historic talks may bring about a de-escalation of hostilities, as well as a peace treaty to end the 68-year Korean War.
On 4 January 2018, US President Donald Trump tweeted: "With all of the failed 'experts' weighing in, does anybody really believe that talks and dialogue would be going on between North and South Korea right now if I wasn't firm, strong and willing to commit our total 'might' against the North. Fools, but talks are a good thing!"
South Korean President Moon Jae-in said publicly too that President Trump deserved big credit for bringing about talks to discuss peace with the North. "It could be a resulting work of the US-led sanctions and pressure."
US-led sanctions enforced by UN
Since North Korea detonated its first nuclear test in 2006, the US and a number of allies imposed sanctions on North Korea. As well, the United Nations Security Council passed nine rounds of sanctions on North Korea - many of these proposed by the US.
Over the years, these sanctions became more strict. The initial UN sanctions in 2006 banned the supply of heavy weaponry, missile technology and luxury goods. By December 2017, the UN sanctions restricted oil imports, metal, agriculture and demanded the deportation of North Koreans working abroad.
While these most recent sanctions were US-led under the administration of President Trump, it may be China's recent enforcement of UN sanctions that hit North Korea hardest. China accounts for more than 90% of North Korea's trade, and while the Security Council member voted in favour of the UN sanctions against their long-time ally, they rarely upheld those, reports the Council on Foreign Relations. However, in this past year, China appears to have enforced the sanctions.
Having already proved his military capabilities, Mr Kim is now turning his attention to economic growth, says Dr John Nilsson-Wright, a senior research fellow at Chatham House. So while the sanctions didn't stop Mr Kim from developing weapons, this latest development could hinder his economic plan for the long term.
Image copyrightHUW EVANS PICTURE AGENCY
Image caption
In a campaign to abolish nuclear weapons, activists wear masks of President Trump and Mr Kim, in front of the American embassy in Berlin
Tough talks and threats of military action
On 2 January 2018, President Trump tweeted: "North Korean Leader Kim Jong-un just stated that the 'nuclear button is on his desk at all times'. Will someone from his depleted and food-starved regime please inform him that I too have a nuclear button, but it is a much bigger and more powerful one than his, and my button works."
On 23 September 2017, President Trump tweeted: "Just heard [the] foreign minister of North Korea speak at [the] UN. If he echoes [the] thoughts of Little Rocket Man, they won't be around much longer."
To compare, President Obama, in 2014, warned North Korea that "we don't use our military might to impose these things on others, but we will not hesitate to use our military might to defend our allies and our way of life".
In 2016, President Obama told CBS News North Korea was "erratic enough" and "irresponsible enough that we don't want them getting close".
"We could, obviously, destroy North Korea with our arsenals. But aside from the humanitarian costs of that, they are right next door to our vital ally, the Republic of Korea," he added.
President Bush, for his part, labelled North Korea part of the "axis of evil."
America has for years used words and threats of military might.
Kim Yo Jong (top right), sister of the North Korean leader, attends the Olympics in South Korea, along with President Moon Jae-in (bottom left)
The influence of South Korean engagement
Two presidents prior to Moon Jae-in, Lee Myung-bak (2008-2013) took a hard-line approach to North Korea. The next president, Park Geun-hye (2013-2017), promised engagement with the North, a strategy that ended in early 2016 following missile and nuclear tests.
In his inauguration speech, Mr Moon said he would "do everything I can to build peace on the Korean peninsula".
This is a return to the Sunshine Policy of Presidents Kim Dae-Jung (1999-2003) and Roh Moo-Hyun (2003-2008), who were the only other two South Korean presidents to meet North Korean leadership - during the Inter-Korean Summits of 2000 and 2007. Kim Dae-jung won a Nobel Peace Prize for his efforts.
"More credit should go to the South Koreans, because they actually made sure to have the North Koreans come to the Olympics and that was organised very very quickly," said senior lecturer Dr Virginie Grzelczyk, of Aston University. "The invitation to have the North Korean delegation and Kim Jong-un's sister…has been really critical to organise the summit that we are going to see at the end of the week."
So why is the South giving credit to Trump?
South Korea is acting strategically, says Dr Grzelczyk, to bring the Americans around to a place of dialogue "because both Koreas have at some point, been perplexed and concerned by American policy".
North Korea crisis in 300 words - BBC News
April 27, 2018
North Korea crisis in 300 words
The North Korean stand-off is a crisis that, at worst, threatens nuclear war. The sudden prospect of direct talks with the US might mean there's a chance at peace, but it's complicated. Let's take a step back.
Why does North Korea want nuclear weapons?
The Korean peninsula was divided after World War Two and the communist North developed into a Stalinesque authoritarian system.
Isolated on the global stage, it says nuclear weapons are its only deterrent against an outside world seeking to destroy it.
Could they carry out a nuclear attack?
Probably, but likely won't.
North Korea has carried out six nuclear tests. One, it says, was a hydrogen bomb.
It claims, though this remains unverified, to have developed a nuclear bomb small enough to be carried by a long-range missile.
It has also has a ballistic missile that experts believe could reach the US, Pyongyang's main adversary.
In response the UN, the US, the EU and have implemented increasingly tough sanctions.
Why can't Kim just be removed?
The North has missiles aimed at the South and Japan. A pre-emptive strike against Pyongyang could trigger devastating retaliation. It would also kill countless North Koreans.
As the biggest Asian power, China is concerned about regime collapse, and that a unified Korea would bring US forces currently stationed in the South directly to its border.
An unprecedented turnaround?
Previous attempts to negotiate aid-for-disarmament deals have failed.
But in January, the North embarked on direct talks with Seoul, attended the Winter Olympics in South Korea and in April the two leaders met for a historic inter-Korean summit.
Pyongyang also offered direct talks with the US - an offer Mr Trump accepted - and ordered a halt to nuclear and missile tests.
Talks between the two would be unprecedented, but the details, agenda and timing of the summit are yet to be confirmed.
Want to know more?
Why has Kim Jong-un halted North Korean tests now?
Did sanctions push N Korea into US talks?
The political gamble of the 21st Century
North Korea-Trump talks in 400 words
Have the Olympics repaired North-South Korea relations?
What are North Korea's other WMDs?
What missiles does North Korea have?
How advanced is North Korea's nuclear programme?
What North Korea missile tests achieved
North Korea crisis in 300 words
The North Korean stand-off is a crisis that, at worst, threatens nuclear war. The sudden prospect of direct talks with the US might mean there's a chance at peace, but it's complicated. Let's take a step back.
Why does North Korea want nuclear weapons?
The Korean peninsula was divided after World War Two and the communist North developed into a Stalinesque authoritarian system.
Isolated on the global stage, it says nuclear weapons are its only deterrent against an outside world seeking to destroy it.
Could they carry out a nuclear attack?
Probably, but likely won't.
North Korea has carried out six nuclear tests. One, it says, was a hydrogen bomb.
It claims, though this remains unverified, to have developed a nuclear bomb small enough to be carried by a long-range missile.
It has also has a ballistic missile that experts believe could reach the US, Pyongyang's main adversary.
In response the UN, the US, the EU and have implemented increasingly tough sanctions.
Why can't Kim just be removed?
The North has missiles aimed at the South and Japan. A pre-emptive strike against Pyongyang could trigger devastating retaliation. It would also kill countless North Koreans.
As the biggest Asian power, China is concerned about regime collapse, and that a unified Korea would bring US forces currently stationed in the South directly to its border.
An unprecedented turnaround?
Previous attempts to negotiate aid-for-disarmament deals have failed.
But in January, the North embarked on direct talks with Seoul, attended the Winter Olympics in South Korea and in April the two leaders met for a historic inter-Korean summit.
Pyongyang also offered direct talks with the US - an offer Mr Trump accepted - and ordered a halt to nuclear and missile tests.
Talks between the two would be unprecedented, but the details, agenda and timing of the summit are yet to be confirmed.
Want to know more?
Why has Kim Jong-un halted North Korean tests now?
Did sanctions push N Korea into US talks?
The political gamble of the 21st Century
North Korea-Trump talks in 400 words
Have the Olympics repaired North-South Korea relations?
What are North Korea's other WMDs?
What missiles does North Korea have?
How advanced is North Korea's nuclear programme?
What North Korea missile tests achieved
Koreas make nuclear pledge after summit - BBC News
April 27, 2018
Koreas make nuclear pledge after summit
Kim Jong-un makes pledge for peace with South Korea
The leaders of North and South Korea have agreed to work to rid the peninsula of nuclear weapons after holding a historic summit.
The announcement was made by the North's Kim Jong-un and Moon Jae-in of South Korea after talks at the border.
The two also agreed to push towards turning the armistice that ended the Korean War in 1953 into a peace treaty this year.
It comes just months after warlike rhetoric from North Korea.
LIVE: Latest updates from the historic summit
The confidantes Kim brought along to the summit
Details of how denuclearisation would be achieved were not made clear and many analysts remain sceptical about the North's apparent enthusiasm for engagement.
Following discussions at the summit on Friday, Mr Kim said that both leaders had agreed to co-ordinate closely to ensure that there was not a repeat of the region's "unfortunate history" in which previous progress had "fizzled out".
"There may be backlash, hardship and frustration," he said, adding: "A victory cannot be achieved without pain."
Other points the leaders agreed on in a joint statement were:
An end to "hostile activities" between the two nations
Changing the demilitarised zone (DMZ) that divides the country into a "peace zone" by ceasing propaganda broadcasts
An arms reduction in the region pending the easing of military tension
To push for three-way talks involving the US and China
Organising a reunion of families left divided by the war
Connecting and modernising railways and roads across the border
Further joint participation in sporting events, including this year's Asian Games
How the summit unfolded
The leaders were met on Friday by an honour guard in traditional costume on the South Korean side. The pair walked to the Peace House in Panmunjom, a military compound in the DMZ between the two countries.
Mr Kim then invited the South Korean president to step briefly across the demarcation line into North Korea, before the pair stepped back into South Korea - all the while holding hands.
It was an apparently unscripted moment during a highly choreographed sequence of events.
The meeting is aimed at ending the decades-long conflict on the peninsula
When the first session ended, the pair separated for lunch and Mr Kim returned to the North in a heavily guarded black limousine.
Diplomacy on the menu: How food can shape politics
When he returned in the afternoon, the two leaders took part in a ceremony consisting of the planting of a pine tree using soil and water from both countries.
The pair shovelled soil on the roots of the tree and unveiled a stone marker featuring their names, official titles and a message that read: "Planting peace and prosperity."
Mr Kim returns to the North in a car surrounded by jogging bodyguards
A banquet will later be held on the South's side where Mr Kim will be served the Swiss potato dish rösti - a nod to his time studying in Switzerland - along with the North's signature dish of cold noodles, and a North Korean liquor.
Kim's sister and North Korea's secret weapon
Mr Kim arrived for the symbolic discussions on Friday accompanied by nine officials, including his powerful and influential sister Kim Yo-jong.
Koreas make nuclear pledge after summit
Kim Jong-un makes pledge for peace with South Korea
The leaders of North and South Korea have agreed to work to rid the peninsula of nuclear weapons after holding a historic summit.
The announcement was made by the North's Kim Jong-un and Moon Jae-in of South Korea after talks at the border.
The two also agreed to push towards turning the armistice that ended the Korean War in 1953 into a peace treaty this year.
It comes just months after warlike rhetoric from North Korea.
LIVE: Latest updates from the historic summit
The confidantes Kim brought along to the summit
Details of how denuclearisation would be achieved were not made clear and many analysts remain sceptical about the North's apparent enthusiasm for engagement.
Following discussions at the summit on Friday, Mr Kim said that both leaders had agreed to co-ordinate closely to ensure that there was not a repeat of the region's "unfortunate history" in which previous progress had "fizzled out".
"There may be backlash, hardship and frustration," he said, adding: "A victory cannot be achieved without pain."
Other points the leaders agreed on in a joint statement were:
An end to "hostile activities" between the two nations
Changing the demilitarised zone (DMZ) that divides the country into a "peace zone" by ceasing propaganda broadcasts
An arms reduction in the region pending the easing of military tension
To push for three-way talks involving the US and China
Organising a reunion of families left divided by the war
Connecting and modernising railways and roads across the border
Further joint participation in sporting events, including this year's Asian Games
How the summit unfolded
The leaders were met on Friday by an honour guard in traditional costume on the South Korean side. The pair walked to the Peace House in Panmunjom, a military compound in the DMZ between the two countries.
Mr Kim then invited the South Korean president to step briefly across the demarcation line into North Korea, before the pair stepped back into South Korea - all the while holding hands.
It was an apparently unscripted moment during a highly choreographed sequence of events.
The meeting is aimed at ending the decades-long conflict on the peninsula
When the first session ended, the pair separated for lunch and Mr Kim returned to the North in a heavily guarded black limousine.
Diplomacy on the menu: How food can shape politics
When he returned in the afternoon, the two leaders took part in a ceremony consisting of the planting of a pine tree using soil and water from both countries.
The pair shovelled soil on the roots of the tree and unveiled a stone marker featuring their names, official titles and a message that read: "Planting peace and prosperity."
Mr Kim returns to the North in a car surrounded by jogging bodyguards
A banquet will later be held on the South's side where Mr Kim will be served the Swiss potato dish rösti - a nod to his time studying in Switzerland - along with the North's signature dish of cold noodles, and a North Korean liquor.
Kim's sister and North Korea's secret weapon
Mr Kim arrived for the symbolic discussions on Friday accompanied by nine officials, including his powerful and influential sister Kim Yo-jong.
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