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US Navy says deadly McCain collision was preventable

TOKYO – The collision of the USS John S. McCain guided missile destroyer with a merchant ship near Singapore in August that killed 10 sailors was preventable, the US Navy said after it relieved the warship’s commander and his deputy from their duties.

“The commanding officer exercised poor judgement, and the executive officer exercised poor leadership of the ship’s training program,” the USS Seventh Fleet said in a statement released in Japan on Wednesday.

A spate of US naval collisions this year has resulted in a major leadership shake up in the US Navy in Asia as it tackles increased tensions with North Korea and engages in operations in the South China Sea that challenge Beijing’s growing control of the waterway.

The US Navy in August ordered a fleet wide probe and removed Seventh Fleet chief Vice-Admiral Joseph Aucoin, citing a lack of confidence in his ability to command. Last month Admiral Scott Swift, responsible for US naval forces in the Pacific, said he plans to retire after being passed over for promotion to the chief of all military forces in the region.

The McCain’s sister ship, the Fitzgerald, almost sank off the coast of Japan in June after colliding with a Philippine container ship. That incident claimed the lives of seven US sailors.

The McCain’s captain, Commander A. Sanchez, and his executive officer, Commander J. Sanchez, were reassigned to other duties in Japan, where the Seventh Fleet is headquartered, the Navy said. – Reuters

No longer just a man’s world

A SMILE CAN sell, and the wine scene in Manila has seen boatloads of handsome men from wineries promoting their wares. But a woman holding a bottle of wine and telling guests how to savor it may be more rare than several vintages. After all, only “approximately 10% of the wineries have a woman as their lead wine maker,” said a study by Lucia Albino Gilbert, Ph.D., and John Carl Gilbert, Ph.D. from Santa Clara University in California, of a US state with about 3,700 wineries (https://webpages.scu.edu/womenwinemakers/facts.php).

“It’s a man’s world, isn’t it?” noted Elena Hernandez of the Tempore Winery in Spain, observing the many wine traders and players, most of them men, at The World of Wine, Marketplace by Rustan’s recent wine fair.

(During The World of Wine, the supermarket released its full arsenal of wines from every wine-producing corner of the globe, and while the fair has since ended – it ran until Oct. 1 – one can still snag bottles at promo prices: this reporter has managed to get a hold of a bottle from Bordeaux for P400.)

Ms. Hernandez works at the Tempore winery as its export manager, under managing director Paula Yago Aznar, a fourth-generation grower. Tempore only started making wines in 2000, and before that, the produce from the vineyards was sold to local cooperatives. Ms. Hernadez went onboard about 10 years ago, when the winery started exporting its bottles. Today, 95% of its production is exported from Spain to most every country, except in the Latin American area. Despite the glamor associated with producing wine, it’s hard, thankless work. A wine maker BusinessWorld once interviewed called his job “glorified farmer.” “We are all together. We go to the harvests, we sample, we taste,” said Ms. Hernandez of the men and women working in the Tempore winery. While her boss Ms. Yago Aznar handles the business side of things, Ms. Yago Aznar’s brother Victor handles the details of the wine production. But, Ms. Hernandez, working in the business side of things as well, asserts her knowledge on the nitty-gritty of the wine business. “You cannot sell something that you do not understand.”

“Things are changing. They’ve been changing for the past seven years, I think. It used to be a man’s world,” said Ms. Hernandez.

In the 1970s and ’80s, coming out of the sexual revolution of the ’60s, gender norms when it came to the workplace were gradually made irrelevant, and more women joined the work force. Still, in 2017, women in top positions are underrepresented. This year’s Fortune 500 only listed 32 companies headed by female CEOs, and that’s rated as an all-time high by The Washington Post.

In the ’70s and ’80s, Ms. Hernandez recalled, “You would not expect a woman to be traveling.” As an export manager for a winery, she travels a lot for her job. “We’ve traveled since we were young. The moment a woman is free to travel, to learn, to do all these things – we are not scared. We’ve never been scared of traveling.

“We are bit by bit getting here, and hopefully there will be more women, to make everything more comfortable for everyone.

“Isn’t it refreshing to see a woman?” she remarked. “Of course.”

In many circles, women who drink are still frowned upon. Well, Ms. Hernandez’s job requires her to drink. “We actually have very good talent in tasting wine. We have very talents in developing wines – and in selling.” While the wine world is dominated by male sommeliers and male wine growers they might have to rethink their hiring strategies: women might be better tasters (and smellers) than men, thanks to genetic and hormonal predispositions wrote Eliza Barclay on NPR.

“We probably are not looking so much to be in the spotlight. Our objective is to work, work, work,” said Ms. Hernandez when asked why women aren’t as visible in the wine industry.

“It’s true that some wineries are still very antique. You have like, the big bosses that they’re very – snobbish – however you want to call it. These are the old wineries.”

As for the newer ones, presumably with younger, more enlightened men on their teams: “I think they find it refreshing to have a girl on the team. They take you in as one more, so it’s great fun. These guys, they love it. They take care of you, actually, and we become good friends after.

“Even though it’s a man’s world, it’s not that they close it. It’s just that we haven’t stepped in. The moment we step in, they welcome us all.”

Her workplace concerns are more universal: the ever-present danger of crime and violence. “The only problem would be maybe, when you go to a dangerous country, to go from the airport to the hotel… instead of maybe taking the taxi, you might take a private transfer.”

Many women climbing up the corporate ladder are sometimes barred by their biology: we talk of course, of motherhood. The pressures of parenthood and the workplace are different, and many people think that a woman may find it difficult to juggle both. “If you bungle raising your children, I don’t think whatever else you do matters very much,” Jacqueline Kennedy, glamorous former First Lady, jet-setter, and eventual career woman (she worked as an editor at a publishing house in New York) once said. “Not all girls were willing or brave enough to travel,”said Ms. Hernandez. “When you have kids, how much are you willing to travel? How much are you willing to be away from your family? Not your husband – because you probably have an open-minded husband like I do.” Ms. Hernandez herself has two children. “They’re used to it,” she said, citing that she disappears for two to three weeks at a time. “Those kids, my children, have a very open mind as to how women can reach the top, and travel.”

At the end of the interview, Ms. Hernandez handed me her card, bearing her full name, Elena Hernandez Hibbert. Used to Anglo-Saxon naming conventions, this reporter asked if Hibbert was her married name. “In Spain, we don’t change our names [when we marry]. We keep our family names. That is my father’s, and that is my mother’s.” – Joseph L. Garcia

Panasonic to launch autonomous car system in 2022

PANASONIC Corp’s autonomous driving system is expected to be launched in commercial vehicles as early as in 2022, in a move that will likely help the Japanese company narrow its gap with rival suppliers in a highly competitive market.

The new autonomous driving system will enable autonomous driving at low- and medium-speed ranges including self-valet parking, Panasonic said.

Panasonic has been pushing to expand its range of advanced driving-related products to better compete with top suppliers such as Bosch and Continental AG.

The firm has said it plans to nearly double its automotive business revenue to 2.5 trillion yen by the year to March 2022, from 1.3 trillion yen in the year to March 2017.

Panasonic established the automotive R&D division in April, transferring about 350 engineers from TV, the company’s mainstay at the time, and other consumer electronics businesses.

To bolster its push into the automotive field, Panasonic took control of auto parts maker Ficosa International SA earlier this year. – Reuters

Coach Norman Black says bringing in Ranidel de Ocampo to Meralco wasn’t planned

BRINGING in veteran Ranidel de Ocampo came in at a perfect time for the Meralco Bolts, who marched their way back to the championship round of the PBA Governors’ Cup and set up a rematch with defending champion Barangay Ginebra Gin Kings.

But for Meralco head coach Norman Black, acquiring Mr. De Ocampo was a product of pure luck.

“We were just lucky,” Mr. Black told BusinessWorld. “We just heard Talk ’N Text is gonna move him so we inquired if we can acquire him. Somehow, we found a way to do that. Now we have him. “

A many-time national team member, former PBA Finals Most Valuable Player and a guy who has a rich championship experience, Mr. De Ocampo has a lot of things to bring on the table, according to Mr. Black.

“We talked about Ranidel’s ability to shoot as he’s one of the best floor spacers in the league, but he can also post up. Ranidel is a very good passer and is a very good rebounder for his size even at his age. He gives us more than just floor spacing. He’s the inbounder in the endgame because he makes the best decisions plus he’s a decent defender,” added Mr. Black.

Messrs. De Ocampo and Black found themselves reunited. They had their championship runs with Talk ’N Text before and the opportunity of winning another one is presented on these two gentlemen.

For Mr. De Ocampo, being back in the finals means another opportunity to win a big one.

“When I was with TNT, I remember Danny Seigle telling me that he wanted to win a championship before retiring for TNT. I could imagine because he’s been so long in the league. His chances of winning a title is very limited,” added Mr. De Ocampo. “I’m close to getting there, so it’s definitely a blessing for me to play for the championship. I just hope the opportunity won’t be wasted. I guarantee I won’t waste it.”

Getting to the championship round is sweeter for Mr. De Ocampo as he will be making his second consecutive finals appearance. Last conference, he also played in the finals when TNT reached the championship round but eventually lost to the San Miguel Beermen.

Not only is Mr. De Ocampo excited to play for the finals anew, he is also relishing this moment and sharing it with his old coach.

“I’m happy for the back-to-back finals appearance. This doesn’t happen all the time. This is also a big opportunity to play alongside Coach Norman (Black). He was responsible for bringing me here and I want to reward that trust and confidence he had given me,” added Mr. De Ocampo. – Rey Joble

DA sees no inflationary impact from hike in palay buying price

AGRICULTURE Secretary Emmanuel F. Piñol said he will continue to push for an increase in the government’s buying price for unmilled rice, or palay, to P20 from the current P17, and denied that such a move would increase inflation.

The decision to raise the purchase price rests with the National Food Authority (NFA) Council, which decided to refer the matter to the government’s economic managers because of budgetary constraints and fears that the price hike will have an impact on inflation.

Mr. Piñol said his proposal will prop up domestic rice production and keep farmers motivated.

“My proposal to the president, that the buying price of NFA be increased from P17 per kilo to P20, should be tackled. The NFA should position itself or focus on provinces where there are depressed buying prices for rice,” Mr. Piñol told reporters on Monday.

“Instead of focusing on rice importation, the NFA should just focus on the procurement of local rice,” he added.

The NFA has proposed its own buying price of P22 starting next year, but was rebuffed by the NFA Council.

Mr. Piñol said he does not believe that adjusting the palay buying price rice will immediately translate to a faster rise in consumer goods prices.

“How much do rice traders buy right now? Between P18 to P20 in Region 2. And this is for rice sold in the market for P40. They’re making a lot of money,” he said.

The NFA effectively sets the guaranteed minimum rate for domestic farmers, who can also sell to private traders for a higher price. The NFA’s rice purchases make up the government’s buffer stock, which it uses to stabilize prices or ensure supply to certain calamity-hit regions. – Janina C. Lim

Drilon seeks probe of missing P1,000 that spared ex-BI execs from plunder raps

SENATE MINORITY leader Franklin M. Drilon wants an investigation into the P1,000 shortfall that the Department of Justice (DoJ) admitted prevents the filing of plunder charges against two former Immigration officials accused of receiving a P50-million bribe from gambling tycoon Jack Lam. The admission, made during the deliberations on the DoJ’s proposed 2018 budget on Wednesday, Oct. 11, roused the suspicions of Mr. Drilon and other senators that the P1,000 may have been deliberately taken to ensure that the alleged payoff to former Bureau of Immigration (BI) assistant commissioners Michael B. Robles and Al C. Argosino would fall just short of the P50-million threshold for plunder, which is a capital, therefore non-bailable, offense. — interaksyon.com

>> See full story on https://goo.gl/un8SRE

PEZA says LuLu eyes warehouse in Pampanga

MIDDLE EASTERN retail giant LuLu Group is looking to establish a logistics warehouse inside the Pampanga economic zone, according to a top Philippine Economic Zone Authority (PEZA) official.

PEZA Director-General Charito B. Plaza said LuLu Hypermarket, a unit of Abu Dhabi-based LuLu Group, has expressed its intention to  acquire a 1,000-hectare lot for the warehouse.

“They (LuLu representatives) came [last Friday] because they will already start buying food supply in the Philippines, putting up warehouses and start looking at possible agricultural areas where they can raise their vegetables and crops,” Ms. Plaza told reporters on Monday.

Aside from establishing a warehouse, Ms. Plaza said LuLu also plans to put up a food processing facility that will distribute products to its chain of 134 hypermarkets across Africa, Asia and the Middle East.

In 2016, LuLu Group recorded an annual turnover of $6.9 billion, and is said to be the top retailer in Middle East and North Africa.

LuLu Group has been establishing its own sourcing and food processing units around the world, in an effort to ensure continuous supply and competitive pricing. It has sourcing centers in the United Kingdom, United States, Turkey, Vietnam, China, among others.

Ms. Plaza noted foreign investors are keen to enter the Philippines due to its “strategic location, a young labor force that speaks and understand English, and for having only two types of weather.”

At the same time, the PEZA chief said Qatari government is eyeing a trade deal for agriculture, food and other industries. 

“We have a lot of intent for [a] huge food industry. I was sad that what they are ordering from the Philippines is labor… Allegedly, they are hiring farmers and cattle raisers from the Philippines. I said no, even if out people are in demand for labor, we have millions of hectares [for you to use],’” Ms. Plaza said. — Anna Gabriela A. Mogato

(Financial) Fitness first

Last Friday, I defended my dissertation proposal for my Doctor of Business Administration degree. As a financial management major and a registered financial planner, I want to determine the factors that would affect a person’s financial literacy and eventually lead to his or her intentions to invest in the stock market. According to Roel Refran, chief operating officer of the Philippine Stock Exchange, fewer than 1% of Filipinos invest in the stock market. Hopefully, my study will help potential investors to face their fears, and assume risks, and increase the percentage of Filipino stock market players.

Most of us have life goals that will require financial resources; hence our need to be financially fit. Over my 15 years of experience, I have learned the following financial lessons that I would like to share with you. Some of them relate to the stock market; others do not.

1 Always have at least six months’ worth of expenses as an emergency fund. If you lose your job or get sick, you have a buffer to draw from as you look for a new job or recover from sickness.

2 Follow the reverse rule of how much of your salary to spend. Most of us have learned that Savings is equal to Income minus Expenses. However, the better equation to follow is Expenses are equal to Income less Savings. This paradigm shift induces you to save a percentage of your income and spend only what is left. When you have savings, eventually you will have funds to invest.

3 Have both active and passive income. An active income is one that you devote time and work to such as a full-time job; passive income is one that you earn without devoting time to it such as stock dividends.

4 Follow the Rule of 72. Divide 72 by the annual compounded interest to determine how many years it will take for your money to double. For example, if an investment pays 10% per year, your money will double in 7 years. Obviously, the higher the interest rate, the shorter the time it will take for your money to double. I use this measure to see whether I should invest or not.

5 Buy low, sell high. This concept applies to all investments, whether they be property, stocks, mutual funds, or bonds. I bought a house and lot that cost less than a million pesos in 2010; now the market value is almost twice the original cost. Unfortunately, I also bought a lot that did not appreciate in value because of problems of the property developer.

6 Buy insurance policies. There are some reasons why people should not invest in insurance: they won’t ever get sick, no one depends on them, and they will not die. In other words, all of us need both life and health insurance. I myself have two life insurance policies and two health insurance policies.

7 Diversify your investments. Doing so allows you to spread your risks and minimize your losses. Several investments I have are in property, stocks, unit investment trust funds (UITFs), and life insurance. Each of these investments has its own purposes. For example, I invest in UITFs to fund my son’s tuition and other school fees that I pay in cash annually. I also have a diversified portfolio that includes only blue chip stocks.

I would like to end this by quoting a universal bank’s tag line for its financial literacy advocacy: “It is not how much you have, but what you do with what you have.”

Let us all be financially literate and achieve our life goals!

Azenith H. Castillo teaches Corporate Social Responsibility and Corporate Governance at De La Salle University.

azenith.castillo@dlsu.edu.ph

Emerging market inflows seen at $1.1 trillion in 2017

THE Institute of International Finance (IIF) expects capital inflows to emerging markets to exceed the trillion-dollar mark, despite global protectionism risk and looming overseas monetary policy tightening.

The IIF said that it expects non-resident capital inflows to emerging markets to rise to $1.1 trillion in 2017 and $1.2 trillion in 2018 — which would be equivalent to 4% of emerging markets’ gross domestic product (GDP).

This would be an improvement from the $763 billion in emerging markets (EM) inflows last year, which accounted for about 2.9% of GDP.

Portfolio debt inflows are expected to rise to $242 billion, doubling from the $102 billion recorded a year earlier, as well as “other investment” inflows, which are largely banking-related, to $293 billion, from $112 billion in 2016.

However, the IIF revised its 2017 foreign direct investment (FDI) forecast to $467 billion from $520 billion.

“The exception was a fourth yearly decline in FDI flows, to $467 billion, probably due to the lagged impact of falling commodity prices, protectionism and onshoring — a concern as FDI had been a very stable component of otherwise volatile capital flows to EMs,” IIF said in its report released yesterday.

It also noted uncertainties about the future of the US tax regime, offshoring and rising competition for FDI.

IIF said that the US Federal Reserve’s unwinding of assets and a looming rate hike pose challenges for EM inflows.

“Geopolitical risks remain elevated, and hot spots such as North Korea could escalate further to threaten a disruption of shipping and other commercial activity with negative fallout for the global economy,” it added.

For the group of countries it called the Asia Six — India, Indonesia, South Korea, Malaysia, the Philippines and Thailand — foreign capital inflows are expected to rise to $240 billion this year from around $140 billion in 2016.

This is because efforts to encourage residents to invest and lend abroad to mitigate upward pressures on currencies from a surplus in its balance of payments position, IIF said.

However, overseas central bank policies are noted to stand as immediate risks to the outlook.

If the Fed and European Central Bank continue with a hawkish stance, investors will turn more risk-averse.

“This could mean abrupt repricing in global bond markets, hitting in particular non-resident portfolio debt flows to EMs, which have been running at multi-year highs on the back of record bond issuance.” — Elijah Joseph C. Tubayan

Local stocks decline as investors pocket gains

INVESTORS succumbed to profit taking on Wednesday due to the lack of significant catalysts to drive the market upward.

The Philippine Stock Exchange index slumped 0.47% or 39.57 points to 8,358.47.

The broader all-shares index dropped 0.30% or 14.83 points to 4,907.88.

“The market technically is just consolidating between the record high and support level at 8,300,” Summit Securities, Inc., President Harry G. Liu said in a phone interview, noting that the finalization of the tax reform package, ongoing infrastructure developments, and the upcoming Association of Southeast Asian Nations gathering may prop up the index soon.

“Philippine markets gave in to profit taking while US Stocks finished slightly higher last Tuesday,” said Regina Capital Development Corp. Managing Director Luis A. Limlingan in a mobile phone message.

Stocks around the world rose on Tuesday as Wall Street eked out record highs ahead of earnings season, while US Treasury prices pared gains after Catalonia’s leader allowed for talks with Madrid even as he proclaimed independence from Spain.

The Dow Jones Industrial Average rose by 0.31% to 22,830 points, its eighth gain in the past 10 sessions, while the S&P 500 ended the day 0.23% higher at 2,551 points.

“Investors are taking money off the table to wait for more hints on [the] next movement of the [Federal Reserve] with the next rate hike,” Mr. Limlingan added.

Back home, sector counters were mostly down. Industrials plummeted 1.16% or 129.60 points to 10,967.48; services fell 0.91% or 15.89 points to 1,729.76; mining and oil went down 0.81% or 113.19 points to 13,733.64; holding firms slid 0.45% or 39.13 points to 8,587.15; and property declined 0.31% or 12.22 points to 3,856.96. Only financials posted gains, climbing 0.52% or 10.61 points to 2,027.67.

Decliners trumped advancers at 97 to 90 while 56 issues were unchanged.

Value turnover expanded to P11.63 billion from P7.17 billion the previous day, with 894.07 million shares changing hands.

Foreigners dumped shares anew on Wednesday to log net sales worth P1.3 billion, reversing the net buying worth P496.23 million seen on Tuesday.

Meanwhile, Southeast Asian shares were mixed. Indonesian shares fell on Wednesday as foreign investors turned net sellers ahead of the release of the US Federal Reserve’s September meeting minutes.

Indonesian shares slipped as much as 0.8% to their lowest in nearly two weeks, set for a second day of losses.

The Fed minutes due later in the day may bolster views of a December rate hike and provide clues on the pace of US monetary policy tightening.

Malaysian shares slipped 0.3%, hurt by losses in telecom and consumer stocks,

In contrast with the broader trend, Thai stocks climbed as much as 0.7% to a fresh 24-year high. — with Reuters

Cardinals look to Peterson

Heading into the 2017 season of the National Football league, the Cardinals appeared to have an even chance of making the playoffs. And they were bent on doing so, too; among other considerations, they aimed to give quarterback Carson Palmer and wide receiver Larry Fitzgerald, already in the twilight of distinguished careers, fitting send-offs. As soon as primary running back David Johnson suffered an injury in their campaign opener, however, their objective became much tougher. And, five games in, they sought to improve their plight, and rightly so; they could have gone winless had they not managed to eke out overtime victories against the supposedly overmatched Colts and Niners.

Enter Adrian Peterson, he of the sterling resume and chip-on-shoulder aspirations to prove to all and sundry that he still has the mojo to make a difference at 32 and fresh off a knee injury. He flopped with the Saints, limited to 81 yards off 27 carries through four matches while playing behind veteran Mark Ingram and rookie standout Alvin Kamara. Still, he remained confident of his skills, and pined for a larger role given “the type of player that I am, knowing that I have so much left in the tank.” With the Cardinals, he gets his wish. And because he cost just a conditional sixth-round pick next year, he’s a gamble that he insists will reap significant dividends.

Needless to say, the Cardinals are crossing their fingers Peterson will live up to promise. He hasn’t had a truly productive year since 2015, and, for all his reputation, he doesn’t figure to be a miracle worker able to address glaring offensive-line woes from the get-go. If the red and black have been worst in the league in rushing yards per game and per carry, it isn’t just because of the backfield; as coach Bruce Arians has repeatedly admitted, much of the blame likewise lies in the blocking, which is so poor as to allow the most number of sacks, hits, hurries, and pressures thus far in the season.

Against this backdrop, the Cardinals are, perhaps, looking to Peterson on a wing and a prayer. That said, they can at least say they tried, and they owe as much to Palmer and, especially, Fitzgerald. And should success elude them, they will have lost only a late pick, not to mention justified a transition to Rebuild Mode. Desperate times, desperate measures.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

US warship sails near Paracel Islands

WASHINGTON – A US Navy destroyer sailed near islands claimed by China in the South China Sea on Tuesday, three US officials told Reuters, even as President Donald J. Trump’s administration seeks Chinese cooperation in reining in North Korea’s missile and nuclear programs.

The operation was the latest attempt to counter what Washington sees as Beijing’s efforts to limit freedom of navigation in the strategic waters. But it was not as provocative as previous ones carried out since Mr. Trump took office in January.

The officials, speaking on condition of anonymity, said the Chafee, a guided-missile destroyer, carried out normal maneuvering operations that challenged “excessive maritime claims” near the Paracel Islands, among a string of islets, reefs and shoals over which China has territorial disputes with its neighbors.

Speaking in Beijing, Chinese Foreign Ministry spokeswoman Hua Chunying said China had lodged “stern representations” with the United States, and reiterated that the Paracels were Chinese territory.

“China immediately sent naval vessels and military jets to investigate and identify, as well as warn to the vessel and ask it to leave,” she told a daily news briefing on Wednesday.

“China will continue to take resolute measures to protect Chinese sovereign territory and maritime interests. China urges the US to conscientiously respect China’s sovereign territory and security interests, conscientiously respect the efforts regional countries have made to protect peace and stability in the South China Sea, and stop these wrong actions.”

Next month, Mr. Trump makes his first visit to Asia as president, including a stop in China, which he has been pressuring to do more to rein in North Korea. China is North Korea’s neighbor and biggest trading partner.

Unlike in August, when a US Navy destroyer came within 12 nautical miles of an artificial island built up by China in the South China Sea, officials said the destroyer on Tuesday sailed close to but not within that range of the islands.

Twelve nautical miles mark internationally recognized territorial limits. Sailing within that range is meant to show the United States does not recognize territorial claims.

The Pentagon did not comment directly on the operation, but said the United States carried out regular freedom-of-navigation operations and would continue to do so.

China’s claims in the South China Sea, through which about $5 trillion in shipborne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

Experts and some US officials have criticized former president Barack Obama for potentially reinforcing China’s claims by sticking to innocent passage, in which a warship effectively recognized a territorial sea by crossing it speedily without stopping.

The US military has a long-standing position that its operations are carried out throughout the world, including in areas claimed by allies, and that they are separate from political considerations.

The United States has said it would like to see more international participation in freedom-of-navigation operations in the South China Sea.

Trump’s trip to Asia will likely be dominated by the North Korean nuclear threat. He will also visit South Korea, Japan, Vietnam and the Philippines. – Reuters