Trade down, output growth slows in RP

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Trade down, output growth slows in RP

ASEAN+ August 12, 2017 01:00

By PHILIPPINE DAILY INQUIRER
ASIA NEWS NETWORK
MANILA

TOTAL TRADE declined while manufacturing growth slowed in June, prompting Philippine state planning agency National Economic and Development Authority (Neda) to push for further diversification of export markets.

Preliminary Philippine Statistics Authority (PSA) data showed that merchandise exports in June inched up 0.8 per cent year-on-year to $4.91 billion, bringing first-half exports to $31.04 billion, up 13.6 per cent.

Imports fell by 2.5 per cent year-on-year to $7.06 billion in June, although the total for the first six months was still up by 9.6 per cent year-on-year to $44.22 billion.

In June alone, total trade fell 1.2 per cent year-on-year to $11.97 billion, while trade-in-goods deficit narrowed to $2.15 billion from $2.37 billion a year ago. The lacklustre trade performance in June reversed the double-digit increase in both exports and imports in May.

At the end of the first half, total merchandise trade jumped by 11.2 per cent to $75.26 billion, with the trade-in-goods deficit widening to $13.17 billion from $12.99 billion last year.

“We expect Philippine trade to recover, as the global economic recovery is seen to be on firmer footing in the second half of the year,” said Socioeconomic Planning Secretary Ernesto M. Pernia.

“In tapping new export markets, the country can take advantage of its European Union-Generalised System of Preferences Plus (GSP+) preferential status,” said Pernia, who is also the Neda chief, referring to the tax perks given to Philippine products in the EU.

“In light of our hosting of the Asean Summit this year, our country is in a better position to push for a reduction in non-tariff barriers within the region,” Pernia added. He claimed that non-tariff barriers to intra regional trade rose from 1,634 to 5,975 between 2000 and 2015, even as the Asean integration into one economic community was in full swing.

Neda noted that the growth in exports to Asean and the EU of 4.8 per cent and 3.9 per cent, respectively, in June, “cushioned the decline in traditional markets such as the US (down 8.7 per cent), Japan (down 9 per cent) and China (down 2.4 per cent).”

“For Philippine imports, growth in Asean (up 4.5 per cent) and the EU (up 0.5 per cent) helped offset the decline in imports from the US (down 8.2 per cent), China (down 3.7 per cent) and Taiwan (down 33.1 per cent)” in June, Neda added.

Manufacturing growth, as measured by the Volume of Production Index (VoPI), slowed to 8.1 per cent in June from 9.8 per cent a year ago, the PSA’s Monthly Integrated Survey of Selected Industries showed.

Amazon yet to win over everyone after Singapore debut

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Amazon yet to win over everyone after Singapore debut

ASEAN+ August 12, 2017 01:00

By THE STAR
ASIA NEWS NETWORK
KUALA LUMPUR

IT’S BEEN two weeks since Amazon, the world’s largest online retailer, arrived in Singapore.

While many expected “everything” to be offered online, synonymous with its “the everything store” tag line, some were left “less than satisfied” after visiting the app and website.

They found the product range “limited”, although others liked the “two-hour delivery” promise, unrivalled in the republic until now.

We can’t fault anyone for expecting too much because Amazon has built a reputation for itself … that it can provide “everything”.

Amazon has evolved from a book delivery company into the world’s largest online retailer, taking advantage of technology to sell almost everything online.

It has in place all that is required to make its business work in its markets – merchants, warehouses, logistics and financing methods.

Its global sales from April to June this year amounted to US$38 billion. Southeast Asia is a market full of potential but it is still in its infancy and Amazon is using Singapore as its gateway to the region.

However, it is a latecomer compared to China’s Alibaba and Tencent. Lazada has also established a strong foothold here in six countries in Southeast Asia.

Alibaba paid $1 billion in June to increase its stake in Lazada, while Tencent invested in both Tokopedia (the largest e-commerce platform in Indonesia) and Thailand’s Sanook. The presence of Alibaba and Tencent in the region explains why Amazon is here.

Southeast Asia has its own unique issues, from regulation and language barriers to logistics, given the many islands around, especially in the Philippines, as well as traffic jams.

Also not to be forgotten is that broadband connectivity is not the same in every country – some are fast while others still operate at a snail’s pace.

Logistics, delivery issues and payment methods are things Amazon has to iron out before it ventures into other countries in the region.

There are also several other online sites that it will have to conten. Insofar as malaysia is concerned, the competing sites include Zalora, 11street Malaysia, lelong.my, eBay Malaysia, Fave and EZBuy Malaysia.

The attraction is the region’s market of 640 million people, of which 70 per cent are below the age of 40, middle class and with huge purchasing power.

There are more than 260 million Internet users and the figure is expected to grow to more than 480 million by 2020.

Frost & Sullivan has forecast online product sales to grow to $71 billion by 2021 from $16 billion in 2016, which explains why Amazon is here.

China is the biggest online retail market; sales last year reached $752 billion and are expected to increase to $1.089 trillion by 2021, while India’s online market is estimated to be at $64 billion by then.

Amazon’s entry certainly sets a new dimension in online sales in Southeast Asia from product range to quality and pricing, and may accelerate the maturing of the regional e-commerce market.

It could also force industry consolidation, where the bigger players buy or merge with smaller ones, creating bigger giants in this region.

More importantly, it is an opportunity for our merchants to explore all these sites to sell online, which is the way forward.

Vietnamese banks want rise in credit growth limit

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Vietnamese banks want rise in credit growth limit

ASEAN+ August 12, 2017 01:00

By VIET NAM NEWS
ASIA NEWS NETWORK
HANOI

MANY of Vietnam’s commercial banks have asked the country’s central bank to expand the credit growth limit as they have almost used up the assigned quota for the whole year.

The State Bank of Vietnam (SBV) assigns an annual credit growth quota for each bank to control lending and thus ensure money supply and inflation control as targeted by the government.

The chairman of Vietcombank Nghiem Xuan Thanh said the central bank had set the bank’s quota at 16 per cent for the whole year, but in the first half of the year it had reached 13 per cent growth. Vietcombank has therefore requested a higher credit growth cap to meet rising capital demands, especially at the end of the year during peak business and spending seasons.

The Vietnam International Commercial Joint Stock Bank (VIB) has also used up almost all its entire credit growth quota of 16 per cent assigned for 2017. Its outstanding loans reached nearly 75.7 trillion dong in the first half, up by 15.7 per cent.

VIB’s general director Han Ngoc Vu said the bank had asked SBV to expand the credit growth limit to provide more scope for lending at the end of the year.

HDBank’s credit growth by the end of June also reached 18 per cent, compared with 20 per cent assigned by the central bank. The bank’s lending growth in the first half was mainly from short-term loans worth 50 trillion dong, accounting for 51.6 per cent of the bank’s total outstanding loans.

Outstanding loans of the Vietnam Prosperity Commercial Joint Stock Bank (VPBank) in the first half also grew by 12 per cent to 162 trillion dong. VPBank has only 4 per cent left from the assigned credit growth limit of 16 per cent to develop lending in the remaining six months of 2017.

Noble’s debt load presents stark options

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Noble’s debt load presents stark options

ASEAN+ August 12, 2017 01:00

By THE STRAITS TIMES
ASIA NEWS NETWORK
SINGAPORE

SINGAPORE-listed Noble Group’s rising debt load is adding to speculation that it will need to restructure its obligations, even after the embattled commodity trader obtained a crucial covenant waiver that buys it more time.

“Noble’s current capital structure is not sustainable,” said Annisa Lee, head of Asia ex-Japan flow credit analysis at Nomura International (Hong Kong) Ltd. “It is still my base case that it will have to go for restructuring or liquidation eventually.”

The company is fighting for survival more than two years into a crisis punctuated by accounting criticisms and a collapse in its securities. It reported a US$1.75 billion loss for the second quarter on Thursday and announced that it would retreat to its Asian roots by selling its gas and power unit, according to a Bloomberg report. Noble Group, which was founded by chairman-emeritus Richard Elman, has lost more than 90 per cent of its market value since 2015.

Liquidity headroom – a metric that gauges the amount of capital available to fund its business – slumped to US$1.4 billion as at June 30, compared with US$2.4 billion as of March 31 and US$2 billion at the end of 2016.

JPMorgan Chase & Co said that a key disappointment for the second quarter was on the cash flow, as the firm burnt over US$500 million in operating cash flows.

Noble Group’s total debt stood at US$4.6 billion at end-June, down from US$4.8 billion at March 31, but still up from US$4 billion at end 2016, according to the company’s exchange filing. Its net debt surged by US$945 million from the start of the year to US$3.82 billion at the end of June.

“Our base case remains that Noble will eventually conduct a liability-management exercise,” wrote Jit Ming Tan, analyst at Barclays, adding that this will likely come in the form of a debt exchange or extension plan.

Some holders of Noble Group’s dollar bonds have hired Houlihan Lokey as their financial adviser, people with knowledge of the matter said this week.

Noble Group now has two months to restore confidence among its banks, counterparties and investors. It said it had secured a covenant waiver until October 20 from lenders on its revolving credit facility due May 2018, matching the maturity of another key credit facility that was extended in June.

Shoot-to-kill: India hunts serial killer elephant

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Shoot-to-kill: India hunts serial killer elephant

ASEAN+ August 11, 2017 20:21

By Agence France-Presse

NEW DELHI – India’s top hunter on Friday led a shoot-to-kill pursuit of an elephant whose murderous rampage through villages has left 15 people dead.

The government has turned to sharpshooter Nawab Shafat Ali Khan ahead of World Elephant Day on Saturday to hunt the animal who crushed four victims in the eastern state of Bihar in March before crossing into neighbouring Jharkhand and killing 11 more.

Jharkhand’s chief forest and wildlife conservator L.R. Singh said the decision to kill the animal was made after a team failed to tranquilise and capture the elephant during a week-long mission.

Singh blamed the rocky terrain and thick vegetation in Sahibganj district. “The visibility is only 15 feet and it’s become next to impossible to tranquilise the animal,” Singh told AFP.

“It has already killed so many people. There have been two deaths just in the last four days.

“Despite all the efforts by the forest department and our teams working 24-7, we had no option but to order the shooting of the animal,” he added.

The marauding elephant, believed to have lost its way after becoming separated from its herd, has strayed into villages in hillier parts of Sahibganj.

The area is inhabited by the Paharia tribe, one of the poorest indigenous tribal communities in India.

Of the 11 deaths in the state, nine of the victims were Paharias, Singh said.

Khan has been flown in from the southern city of Hyderabad to kill the prey.

“He is one of the best out there. He has vast experience in shooting such rogue animals and that’s why he has been given the responsibility to shoot the elephant,” he said.

“We expect him to get the animal anytime now — today, tonight, tomorrow — anytime.”

In 2014, Khan was licensed by the northern state of Uttar Pradesh to capture or kill a man-eating tiger that was believed to have killed eight people.

Elephants kill roughly 60 people every year in forested Jharkhand, Singh said. An estimated 1,100 people died across India from elephant or tiger attacks in the three years to May.

The environment ministry estimates a human dies every day in India in clashes with endangered animals — the vast majority crushed by elephants.

Violent encounters between elephants and humans were an “increasing trend”, said Singh, as vast swathes of forest are cleared for human settlements and industry.

China earthquake death toll rises to 23

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  • A rescuer walks past a damaged section of road in Jiuzhaigou, two days after a 6.5-magnitude earthquake hit southwest China’s Sichuan province, on August 10, 2017. // AFP PHOTO
  • This photo taken on August 10, 2017 shows rescuers walking through the damaged InterContinental Resort Jiuzhai Paradise in Jiuzhaigou in China’s southwestern Sichuan province. // AFP PHOTO

China earthquake death toll rises to 23

ASEAN+ August 11, 2017 20:16

By Agence France-Presse

BEIJING – The death toll from an earthquake that scarred a scenic region of southwest China’s Sichuan province rose to 23 on Friday as authorities found three more bodies.

The Aba prefecture emergency response office said in a statement that the bodies were found inside a bus in a river valley in Zhangzha. It did not give more details about what had happened to the vehicle.

The statement said at least 493 were injured in Tuesday’s 6.5-magnitude earthquake, which struck Jiuzhaigou, a popular tourist destination with a national park, forested mountains and over 140 lakes that has been recognised as a UNESCO World Heritage site.

More than 70,000 people have been evacuated from quake-hit towns and villages, state media reported.

The tremor evoked memories of a devastating 8.0-magnitude earthquake in the region in 2008 that left 87,000 people dead or missing.

Spain calls in police to help with Barcelona airport strike

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A Spanish Civil Guard (L) keeps watch as travelers queue in front of security control points during a partial strike called by airport's security guards at Barcelona El Prat airport, in Barcelona, northeastern Spain. // EPA PHOTO
A Spanish Civil Guard (L) keeps watch as travelers queue in front of security control points during a partial strike called by airport’s security guards at Barcelona El Prat airport, in Barcelona, northeastern Spain. // EPA PHOTO

Spain calls in police to help with Barcelona airport strike

ASEAN+ August 11, 2017 20:09

By Agence France-Presse

MADRID – Spain on Friday called in police to help with security checks at Barcelona’s busy airport as a strike continues at the peak of the holiday season, causing long queues and safety concerns.

The El Prat airport, Spain’s second busiest after Madrid, has been hit by a partial work stoppage at baggage control since Friday last week, as guards complain about their workload, staffing levels and salaries.

The 360 employees, contracted by multinational firm Eulen, have stopped work for four hours on specific days.

But after negotiations with their company and a government mediator broke down — with workers rejecting an 18 per cent salary rise — they will launch into a full-time strike from Monday.

Public Works Minister Inigo de la Serna told reporters that as a result the government had decided to call in the Guardia Civil police force to help out.

The Eulen employees are required by law to ensure at least 90-per cent service during their strike, and the police officers will assist them in implementing full-body and luggage checks, he said.

“No one can forget the terrorism alert level we have,” he said, adding the measures were taken “to avoid any problem of this kind from happening.”

Spain is currently on a level four terror alert out of a maximum of five.

Passenger traffic at El Prat rose by more than 60 per cent from 2009 to 2016.

The airport has become a European hub for low-cost airlines lured by the Mediterranean city’s attraction as a tourist destination.

Guam tourism sees silver lining in North Korean threats

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  • Morning traffic makes its way to the Anderson Air Force base in Yigo on the island of Guam on August 11, 2017. // AFP PHOTO
  • Tourists walk past a wall painted with the slogan “I love Guam” in the Tumon district on the island of Guam on August 11, 2017. // AFP PHOTO

Guam tourism sees silver lining in North Korean threats

ASEAN+ August 11, 2017 15:22

By Agence France-Presse

HAGATNA, Guam – Tourism-dependent Guam is looking to cash in on its new-found fame as a North Korean missile target, tapping an unlikely promotional opportunity to attract visitors to the idyllic island and prove that all publicity is good publicity.

Pyongyang’s threats to launch four missile strikes near the US territory has stirred global curiosity in the remote Pacific destination, with it trending heavily on search engines as social media users wondered, “what is Guam?”

Although Guam hosts two US military installations and 6,000 US soldiers, making it the target of North Korea’s wrath, tourism authorities are keen to dispel any impression of danger to the tranquil island and its secluded beaches.

“The circumstance are unfortunate but this is a good opportunity for us to educate the world about Guam and our culture, about where we are, and who we are,” said Josh Tyquiengco, marketing director at Guam Visitors Bureau, the official agency for the island.

“Guam is more than a military base. We are a safe family destination. We reassure potential visitors that we continue to be a safe… place to visit,” Tyquiengco told AFP Friday.

Despite North Korea’s threats to prepare plans within days that would surround Guam with “enveloping fire”, fears of a potential attack have not deterred tourists from visiting Guam, he said.

“We heard about a few booking cancellations from South Korea, but it’s too minimal to affect the industry,” he said.

As aircraft after aircraft — packed with tourists — landed Friday at Guam’s international airport, the latest visitors to the island appeared untroubled by the prospect of missile strikes.

Sun Doojin, who arrived with her husband and two-year-old daughter on a flight from Seoul, responded with an emphatic “no” when asked if she was concerned about an attack during her visit.

The Guam Daily Post, in an editorial, said the spotlight on the territory offered an opportunity to show the world why an island of 162,000 people draws more than 1.5 million tourists a year.

“The beach waters are crystal clear, beaches aren’t overrun, and nature hiking trails are very accessible.

“The different cultures that are showcased on the island through food, make Guam a hidden gem, a tropical vacation getaway but with the amenities and comforts of some of the small cities stateside.”

Guam’s history of earthquakes and typhoons mean its infrastructure is built to robust standards and authorities insist that the island is prepared for any emergency, including a North Korean strike.

Homeland Security spokeswoman Jenna Gaminde told the Guam Daily News that in the event of an attack, residents would be immediately notified by sirens from the All-Hazards Alert Warning System located throughout the island.

“If you hear the sirens, tune into local media — radio, print, television — for further instructions,” she said.

Pyongyang has said it would take less than 18 minutes for a missile to cross the 3,400-kilometre (2,100 miles) distance to the US territory.

In addition to the US military bases, Guam is also equipped with the sophisticated THAAD weapons system which is capable of destroying intermediate-range missiles in the final phase of flight.

Officials, however, have sought to brush off fears and say there has been no change in the threat level for now.

“I don’t think there’s anything to worry about. No missile is going to land on Guam,” said Carl Peterson, who serves on the Guam Chamber of Commerce’s armed forces committee.

“We’ve got defence mechanisms in place… they have the ability to seek out the missiles with kinetic energy and destroy it.”

Trump to North Korea: ‘Be very, very nervous’

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US President Donald Trump, with National Security Advisor H. R. McMaster (L), Vice President Mike Pence (2nd R) and CIA Director Mike Pompeo (R), speaks during a security briefing Thursday at his Bedminster National Golf Club in New Jersey./AFP
US President Donald Trump, with National Security Advisor H. R. McMaster (L), Vice President Mike Pence (2nd R) and CIA Director Mike Pompeo (R), speaks during a security briefing Thursday at his Bedminster National Golf Club in New Jersey./AFP

Trump to North Korea: ‘Be very, very nervous’

ASEAN+ August 11, 2017 07:59

By Agence France-Presse

WASHINGTON – President Donald Trump on Thursday warned North Korea it should be “very, very nervous” of the consequences if it even thinks of attacking US soil, after nuclear-armed Pyongyang said it was readying missile launch plans on the Pacific territory of Guam.

The Republican billionaire dismissed any criticism of his “fire and fury” warning, saying it possibly “wasn’t tough enough,” given threats made by the regime of Kim Jong-Un to both Washington and its allies.

Trump also said China, Pyongyang’s main diplomatic ally, could “do a lot more” to pressure Kim to end his country’s nuclear weapons and ballistic missile programs.

Trump’s comments, made from his golf club retreat in New Jersey, came after the North announced a detailed plan to send four missiles over Japan and towards Guam, where some 6,000 US soldiers are based.

Pyongyang said the scheme to target the island, a key US military outpost in the western Pacific, was intended to “signal a crucial warning” as “only absolute force” would have an effect on a US leader “bereft of reason.”

Trump fired back with gusto.

“If North Korea does anything in terms of even thinking about an attack on anybody we love or we represent or our allies or us, they can be very, very nervous,” he told reporters, with Vice President Mike Pence at his side.

“And they should be… because things will happen to them like they never thought possible.”

‘Better get their act together’

Relations between Washington and Pyongyang have been tense for months, in the wake of the North’s repeated missile tests, including two successful intercontinental ballistic missile (ICBM) test launches in July.

Those launches put the US mainland in range. Some experts believe the second missile could potentially reach New York.

The escalating saber-rattling took an unexpected turn Tuesday when Trump seemed to borrow from the North’s arsenal of rhetoric, saying it faced “fire and fury like the world has never seen” if it continued to threaten the US.

That prompted a defiant Pyongyang to threaten a missile attack on Guam.

The war of words has set off diplomatic alarm bells, and raised fears of a miscalculation that could lead to catastrophic consequences on the Korean peninsula and beyond.

The region is facing “a mini Cuban missile crisis,” John Delury, a professor at Seoul’s Yonsei University, told AFP.

Trump dismissed the notion that his administration was delivering mixed messages and said Washington remained open to negotiations.

But he once again suggested that he expected China to “do a lot more” to bring North Korea into line.

“I will tell you this, North Korea better get their act together or they’re going to be in trouble like few nations have ever been in trouble in this world, okay?” he added.

The United Nations imposed a seventh set of sanctions on Pyongyang at the weekend that could cost North Korea $1 billion a year, with even China voting for the US-drafted proposal.

The European Union announced Thursday that it was expanding its North Korean sanctions blacklist.

Unusual detail

In North Korea, General Kim Rak-Gyom, the commander of the North’s missile forces, dismissed Trump’s “fire and fury” remarks as “a load of nonsense,” according to Pyongyang’s official Korean Central News Agency.

“Sound dialogue is not possible with such a guy bereft of reason,” he added.

The military was expected to finalize its Guam plan by mid-August and submit it to Kim for consideration, he said.

The unusually precise statement said the four missiles would be launched simultaneously and overfly the Japanese prefectures of Shimane, Hiroshima and Kochi.

They would have a flight time of 17 minutes 45 seconds, travel 3,356.7 kilometers (around 2,086 miles) and come down 30 to 40 kilometers away from Guam, it said — just outside US territorial waters.

Japan, which has in the past warned it would shoot down any North Korean missiles that threaten its territory, responded that it could “never tolerate” provocations from the reclusive state.

Professor Yang Moo-Jin of Seoul’s University of North Korean Studies said the level of detail in Pyongyang’s statement was unusual.

“The North appears to be saying what it is going to do is within international laws,” he told AFP.

“Therefore, it cannot be ruled out that the North may translate this plan into reality.”

‘Life and death’

Analysts said a North Korean launch towards Guam would put the US in a dilemma: if it did not try to intercept the missiles, its credibility would be damaged and the North would feel emboldened to carry out a full-range ICBM test.

But if an intercept were attempted and failed in any way, it would undermine the effectiveness of the United States’ ballistic missile defense system.

Tensions on the Korean peninsula tend to increase when Seoul and Washington launch major military joint exercises, and the next, Ulchi Freedom Guardian, is set to kick off around August 21.

“Pyongyang’s interpretation of rhetoric from Washington is different from the way the West regards the North’s habitual threats,” said Hong Hyun-Ik, a senior researcher with the Sejong Institute.

“It views such fiery rhetoric from Trump as a matter of life and death.”

Thousands of North Koreans marched through central Pyongyang Wednesday, waving clenched fists, as authorities put on a show of support for their stance.

One banner proclaimed: “10 million hearts burn with vows to defend the fatherland until death.”

N Korea war would be ‘catastrophic,’ diplomacy bearing fruit: Mattis

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N Korea war would be ‘catastrophic,’ diplomacy bearing fruit: Mattis

ASEAN+ August 11, 2017 07:51

WASHINGTON – US Defense Secretary Jim Mattis on Thursday warned that war with North Korea would be “catastrophic” and said diplomatic efforts were yielding results.

Speaking at an event in California, Mattis said his mission and responsibility was to have military options ready “should they be needed” but stressed the US effort is currently focused on diplomacy.

“The American effort is diplomatically led, it has diplomatic traction, it is gaining diplomatic results and I want to stay right there right now,” Mattis said at an event in California.

“The tragedy of war is well-enough known it doesn’t need another characterization beyond the fact that it would be catastrophic,” he added.

Mattis’s comments came shortly after President Donald Trump warned North Korea it should be “very, very nervous” if it thinks of attacking America, and doubled down on a vow to rain “fire and fury” on Pyongyang if it continued to threaten the US.

Mattis did not elaborate on the diplomatic results he referenced, but the UN Security Council at the weekend passed a new set of sanctions against Pyongyang over its weapons program, including bans on the export of coal, iron and iron ore, lead and lead ore as well as fish and seafood.

In a diplomatic win for the United States, the measures were approved unanimously — including by Russia and China, the North’s sole major ally.

The Pentagon chief on Wednesday issued a carefully worded statement telling North Korea it would be “grossly” outmatched in any conflict with the US, and warning Pyongyang to stop considering any action that risked “the destruction of its people.”