The Washington Post reports: "China warned President Obama on Tuesday not to spark a fire in Asia after he announced the lifting of a long-standing embargo on lethal arms sales to Vietnam....The United States and Vietnam must not spark a 'regional tinderbox,' the Communist Party mouthpiece, China Daily, warned in an editorial Tuesday, noting concerns that Obama's move was meant to 'curb the rise of China.'...The nationalist Global Times tabloid called Obama's claim that the Vietnam move was not aimed at China 'a very poor lie,' adding that it would exacerbate the 'strategic antagonism between Washington and Beijing.'"
The New York Times reports: "The United States is rescinding a decades-old ban on sales of lethal military equipment to Vietnam, President Obama announced at a news conference in Hanoi on Monday, ending one of the last legal vestiges of the Vietnam War. The United States has long made lifting the embargo contingent on Vietnam's improving its human rights record, and recently administration officials had hinted that the ban could be removed partly in response to China's buildup in the South China Sea. But Mr. Obama portrayed the decision as part of the long process of normalizing relations between the two countries after the Vietnam War."
The Wall Street Journal reports: "Behind closed doors in March, some of China's most prominent economists and bankers bluntly asked the People's Bank of China to stop fighting the financial markets and let the value of the nation's currency fall....In August 2015, the PBOC said it would make the yuan's value more market-based, an important step in liberalizing the world's second-largest economy. In reality, though, the yuan's daily exchange rate is now back under tight government control....The flip-flop is a sign of policy makers' deepening wariness about how much money is fleeing China, a problem driven by its slowing economy. For now, at least, officials believe the benefits of freeing the yuan are outnumbered by the number of threats."