UPDATE 2-Pompeo criticises China after meeting top diplomat in Bangkok

(Adds additional comment from Pompeo)
By Cate Cadell and Patpicha Tanakasempipat
BANGKOK, Aug 1 (Reuters) - U.S. Secretary of State Mike
Pompeo on Thursday criticised China's actions in Asia after
meeting his Chinese counterpart for the first time this year
amid political tension between the two countries.
Pompeo spoke out against Chinese "coercion" of Southeast
Asian neighbours in disputes over the South China Sea and its
dam-building on the Mekong River.
His comments highlighted the U.S. divide with China at a
meeting in Bangkok of the Association of Southeast Asian Nations
(ASEAN).
After meeting China's top diplomat, Wang Yi, Pompeo said
both countries wanted to improve ties that have soured on issues
ranging from trade, U.S. sanctions on Chinese telecoms giant
Huawei, Taiwan and the busy South China Sea waterway.
"We are working with them on many fronts," Pompeo said.
"But we are also very candid about the places we are hoping
China will behave in ways that they are not behaving today and
we talked about each of those as well."
Earlier, Wang had struck a more conciliatory tone, saying he
and Pompeo had discussed ways to promote China-U.S. ties.
"There may be at various times issues and problems between
China and the United States, but no matter how many problems, it
is important for both sides to sit down and have face-to-face
discussions," Wang said after the meeting of about 30 minutes.
U.S. and Chinese negotiators ended a brief round of trade
talks in Shanghai on Wednesday with little sign of progress and
agreed to meet again in September, prolonging an uneasy truce in
a year-long trade war between the world's two largest economies.
In Bangkok, Pompeo said he had urged regional allies to
speak out against Chinese coercion in the South China Sea and
earlier said Chinese dam-building upstream on the Mekong River
had caused decade-low water levels in the river's lower basin in
Southeast Asia.
Both officials are in the Thai capital of Bangkok for
security meetings with countries of the Association of Southeast
Asian Nations (ASEAN) grouping, on the front line of rivalry
between the United States and an increasingly muscular China.
Immediately after his meeting with Wang, Pompeo had also
painted a rosier picture, saying on Twitter that he had an
in-depth exchange of views with the Chinese official on
U.S.-China relations, North Korea and other topics.
"When it advances U.S. interests, we are ready to cooperate
with China," he said.
But in an appearance later in the day with his Thai
counterpart, Pompeo returned to U.S. talking points on issues
such as the plight of Rohingya refugees who have fled ASEAN
member state Myanmar, and rising tension with Iran after attacks
on tankers in the Strait of Hormuz.
The United States blames the tanker attacks on Iran, but it
denies that.
Pompeo said he had urged allies "to maintain the sanctions
that spur diplomacy with North Korea, to speak out against
Chinese coercion in the South China Sea, to advocate for the
voluntary safe and dignified return of the Rohingya to their
homeland, and to confront Iranian aggression".
He added that the United States was ready to restart
denuclearisation talks, even though North Korea test-launched a
missile the previous day.
"We stand ready to continue our diplomatic conversations
with the North Koreans. I regret, looks like I'm not going to
have an opportunity to do that while I'm here in Bangkok. But we
are ready to go," Pompeo said.
North Korean Foreign Minister Ri Yong Ho cancelled a trip to
the ASEAN conference in Bangkok.