Trump, Xi to dine together as trade, North Korea issues loom

PALM BEACH, Fla., April 6 (Reuters) - U.S. President Donald Trump and Chinese President Xi Jinping arrived in Florida on Thursday for a face-to-face meeting where Trump will face pressure to deliver trade concessions and prevent a crisis with North Korea from spiraling out of control.

The leaders of the world's two biggest economies are to greet each other at the president's Mar-a-Lago retreat in Palm Beach, Florida at 5 p.m. ET (2100 GMT), spending some private time together before dining with their wives and others and kicking off a summit that will conclude with a working lunch on Friday.

"We have been treated unfairly and have made terrible trade deals with China for many, many years. That's one of the things we are going to be talking about," Trump told reporters traveling with him on Air Force One.

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U.S. President Donald Trump welcomes Chinese President Xi Jinping at Mar-a-Lago state in Palm Beach, Florida, U.S., April 6, 2017. REUTERS/Carlos Barria
Chinese President Xi Jinping addresses the media during an official visit in Bern, Switzerland January 16, 2017. REUTERS/Denis Balibouse
U.S. President Barack Obama and Chinese President Xi Jinping shake hands during their meeting ahead of the G20 Summit at the West Lake State Guest House in Hangzhou, China, September 3, 2016. REUTERS/How Hwee Young/Pool
China's President Xi Jinping attends the signing ceremony at the Presidential Palace in Helsinki, Finland April 5, 2017. Lehtikuva/Vesa Moilanen/via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY. NO THIRD PARTY SALES. NOT FOR USE BY REUTERS THIRD PARTY DISTRIBUTORS. FINLAND OUT. NO COMMERCIAL OR EDITORIAL SALES IN FINLAND.
U.S. President Donald Trump and first lady Melania Trump welcome Chinese President Xi Jinping and Madame Peng Liyuan for dinner at the start of their summit at Trump?s Mar-a-Lago estate in West Palm Beach, Florida, U.S. April 6, 2017. REUTERS/Carlos Barria
Chinese President Xi Jinping (R) shakes hands with U.S. Secretary of State Rex Tillerson before their meeting at at the Great Hall of the People on March 19, 2017 in Beijing, China. REUTERS/Lintao Zhang/Pool TPX IMAGES OF THE DAY *** Local Caption *** Xi Jinping;Rex Tillerson
HELSINKI, April 5, 2017 : Chinese President Xi Jinping (L) meets with Speaker of the Finnish Parliament Maria Lohela in Helsinki, Finland, April 5, 2017. (Xinhua/Rao Aimin via Getty Images)
China's President Xi Jinping meets Serbia's President Tomislav Nikolic at the Great Hall of the People in Beijing, China, March 30, 2017. REUTERS/Thomas Peter
China's President Xi Jinping claps during the opening session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China, March 5, 2017. REUTERS/Jason Lee
Chinese President Xi Jinping (R) shakes hands with Madagascar President Hery Rajaonarimampianina (L) during a signing ceremony at the Great Hall of the People on March 27, 2017 in Beijing, China. REUTERS/Lintao Zhang/Pool *** Local Caption *** Xi Jinping;Hery Rajaonarimampianina
China's President Xi Jinping and China's Premier Li Keqiang arrive for the opening session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China, March 5, 2017. REUTERS/Jason Lee
Chinese President Xi Jinping and International Olympic Committee (IOC) President Thomas Bach look at the Beijing 2008 medals during a visit at the Olympic Museum in Lausanne, Switzerland January 18, 2017. REUTERS/Denis Balibouse
Chinese President Xi Jinping (R) and Swiss President Doris Leuthard (C) arrive at the seat of the Swiss federal parliament Bundeshaus in Bern, Switzerland January 15, 2017. REUTERS/Arnd Wiegmann
Chile's President Michelle Bachelet and China's President Xi Jinping listen to their national anthems during a meeting at the government house in Santiago, Chile, November 22, 2016. REUTERS/Ivan Alvarado
Chinese President Xi Jinping (R) shakes hands with Gabon's President Ali Bongo Ondimba after Gabonese and Chinese delegates signed economic contracts at the Great Hall of the People in Beijing, China December 7, 2016. REUTERS/Fred Dufour/Pool
China's President Xi Jinping (L) and Peru's President Pedro Pablo Kuczynski pose for photographers during the APEC (Asia-Pacific Economic Cooperation) Summit in Lima, Peru, November 20, 2016. REUTERS/Mariana Bazo
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Trump promised during the 2016 campaign to stop what he called the theft of American jobs by China and rebuild the country's manufacturing base. Many blue-collar workers helped propel him to his unexpected election victory on Nov. 8 and Trump wants to deliver for them.

Trump, a former real estate magnate, is still finding his footing in the White House and has yet to spell out a strategy for what his advisers called a trade relationship based on "the principle of reciprocity."

He brought his top economic and national advisers to Florida for the meeting, including Defense Secretary Jim Mattis, Treasury Secretary Steve Mnuchin, and Commerce Secretary Wilbur Ross.

"Even as we share a desire to work together, the United States does recognize the challenges China can present to American interests," said Secretary of State Rex Tillerson, also in Florida for the meeting.

DIFFERING PERSONALITIES

Trump and Xi are set to dine in a candle-lit ornate private dining room at 6:30 p.m. (2230 GMT) at a long, formal table set for about 30 people and festooned with red and yellow floral centerpieces.

Their summit brings together two leaders who could not seem more different: the often stormy Trump, prone to angry tweets, and Xi, outwardly calm, measured and tightly scripted, with no known social media presence.

What worries the protocol-conscious Chinese more than policy clashes is the risk that the unpredictable Trump could publicly embarrass Xi, after several foreign leaders experienced awkward moments with the new U.S. president.

"Ensuring President Xi does not lose face is a top priority for China," a Chinese official said.

U.S. labor leaders say Trump needs to take a direct, unambiguous tone in his talks with Xi.

"President Trump needs to come away from the meeting with concrete deliverables that will restore production and employment here in the U.S. in those sectors that have been ravaged by China's predatory and protectionist practices," said Holly Hart, legislative director for the United Steelworkers union.

A U.S. administration official told Reuters that Washington expects to have to use legal tools to fight for U.S. companies, such as pursuing World Trade Organization lawsuits.

"I don't expect a grand bargain on trade. I think what you are going to see is that the president makes very clear to Xi and publicly what we expect on trade," a U.S. official told Reuters, speaking on condition of anonymity.

NORTH KOREA A TEST

The most urgent problem facing Trump and Xi is how to persuade nuclear-armed North Korea to halt unpredictable behavior like missile test launches that have heightened tensions in South Korea and Japan.

North Korea is working to develop an intercontinental ballistic missile capable of hitting the United States.

The White House has said North Korea was a test for the U.S.-China relationship, and Trump has threatened to use trade to try to force China to exert influence over Pyongyang.

"I think China will be stepping up," Trump told reporters. Beijing says its influence is limited and that it is doing all it can but that it is up to the United States to find a way back to talks with North Korea.

Trump consulted on Wednesday with Japanese Prime Minister Shinzo Abe, who said he and the president agreed by phone that North Korea's latest ballistic missile launch was "a dangerous provocation and a serious threat."

A White House strategy review is focusing on options for pressuring Pyongyang economically and militarily. Among measures under consideration are "secondary sanctions" against Chinese banks and firms that do the most business with Pyongyang.

A long-standing option of pre-emptive strikes remains on the table, but despite the tougher recent U.S. talk, the internal review "de-emphasizes direct military action," the U.S. official said, speaking on condition of anonymity.

Analysts believe any military action would likely provoke severe North Korean retaliation and massive casualties in South Korea and Japan and among U.S. troops stationed there. (Additional reporting by David Brunnstrom, Matt Spetalnick, Roberta Rampton, Ayesha Rascoe and Mohammad Zargham in Washington, Gui Qing Koh in New York, Ben Blanchard in Beijing and William Mallard in Tokyo; Editing by Lisa Shumaker and James Dalgleish)

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