A-OK AT APEC: Biden’s hoping to smooth tensions with Chinese paramount leader XI JINPING so the White House can instead focus its energy on Israel, Ukraine and the upcoming reelection campaign, three senior administration officials told our own PHELIM KINE, JONATHAN LEMIRE and GAVIN BADE. The pair will hold their high-stakes meeting Wednesday amid a growing threat of military conflict between the world’s two largest economies and a deepening mistrust that has pushed relations to their lowest point in a half century. Adding to the tension: Biden is expected to press Xi on China’s ties with Iran, including how the Chinese leader can use his influence with Tehran to prevent Iran and its proxies from turning the Israel-Hamas war into a wider regional conflict, the officials told our colleagues, “Both sides need to avoid blowing each other up,” former Deputy Assistant Secretary of State RICK WATERS, the inaugural coordinator of the State Department’s China House, said about the rising risk of conflict between the two countries. “That’s the type of signal you need from a meeting like this.” ‘DISPROPORTIONATE FORCE’: The Netherlands’ defense attaché in Tel Aviv believes Israel is using “disproportionate force” — and targeting civilian areas — in Gaza to show its strength during the retaliation against Hamas, according to a confidential memo reported by Dutch outlet NRC. Per the report, the defense attaché argued the Israeli army is using lethal force in an attempt to limit its own losses and “showcase credible military force to show Iran and its proxies that they will stop at nothing.” This strategy has the “intention of deliberately causing massive destruction to the infrastructure and civilian centers” in Gaza, targeting houses, bridges and roads, and causing massive civilian casualties, which explains the “high number of deaths” among civilians, the memo says. Israel’s military has said it's working to limit civilian casualties and assist people in Gaza, blaming Hamas for hiding among the general population. More than 11,000 Palestinians have been killed in widespread airstrikes, including thousands of women and children. Meanwhile, there are questions about Israeli claims that Hamas militants use the al-Shifa hospital for military purposes, The Associated Press’ JOSEF FEDERMAN reports. Last week, Secretary of State ANTONY BLINKEN suggested Hamas had tunnels underneath schools, mosques and hospitals, seemingly confirming a long-running Israeli claim. Today, National Security Council spokesperson JOHN KIRBY confirmed that Hamas is using Gaza hospitals, including al-Shifa, for their military operations. As the military operation continues, Israel and Hamas are nearing a deal to release a handful of hostages, The Washington Post’s DAVID IGNATIUS reports. “Israel wants the release of all 100 women and children taken from Israel, but the initial number is likely to be smaller. Hamas has indicated it is ready to release 70 women and children … The number of Palestinian women and young people who might be released is unclear, but an Arab official told me last week that there were at least 120 in prison,” he wrote. The deal could be announced in days, an Israeli official told Ignatius, if the final details are resolved. Biden is losing support for his Israel policy from many within the administration. “More than 400 political appointees and staff members representing some 40 government agencies sent a letter to President Biden on Tuesday protesting his support of Israel in its war in Gaza,” The New York Times reports. “We call on President Biden to urgently demand a cease-fire; and to call for de-escalation of the current conflict by securing the immediate release of the Israeli hostages and arbitrarily detained Palestinians; the restoration of water, fuel, electricity and other basic services; and the passage of adequate humanitarian aid to the Gaza Strip,” reads the letter. The U.S. and U.K. today imposed new sanctions on Hamas leaders and financiers, including complicating Iran’s funding of Palestinian militant and designated terror groups. TALIBAN WANTS HOSTAGE TRADE: The United States is working to secure the release of RYAN CORBETT, who is currently held hostage by the Taliban, but Washington feels the militant group-turned-administration is making unrealistic demands. As The Wall Street Journal’s BRETT FORREST reports, “Taliban officials are interested in MUHAMMAD RAHIM AL-AFGHANI, an Afghan who has been held in extrajudicial detention at the U.S. prison at Guantanamo Bay since 2008 … U.S. intelligence considers Rahim a continuing significant threat to national security, and his release would require approval from the prison’s periodic review board, which has denied him on numerous occasions.” “It’s not a real demand because real demands are things that could conceivably be had,” a U.S. official told Forrest. “Asking for something unavailable smacks of purporting to negotiate in good faith while really prolonging a situation that’s inhumane and unacceptable.” Corbett, 40, was taken in August 2022 while traveling in Afghanistan. He is not the only American held in the country. RUSSIAN OIL IN DOD SUPPLY CHAIN: Russian oil is still used in a Greek refinery that services the U.S. military, The Washington Post’s EVAN HALPER, DALTON BENNETT and JONATHAN O’CONNELL revealed in an investigation — even with all the sanctions placed on Russia following the invasion of Ukraine. “Petroleum products that originated in Russia kept flowing to the Motor Oil Hellas refinery on the Aegean Sea in Greece,” they wrote, citing shipping and trade data. “They just took a new route, hundreds of miles out of the way through an oil storage facility in Turkey, a journey that obscured Russia’s imprint as ownership of the products changed hands multiple times before they reached Greece.” “On the surface, the refinery’s sourcing of fuel oil from the Dortyol shipping terminal in Turkey seemed to affirm pronouncements by the White House and European leaders that embargoes on Russian oil were working as planned, depriving President VLADIMIR PUTIN of crucial revenue to fund his military aggression in Ukraine. The fact that those shipments contained material that originated in Russia underscores the porousness of the sanctions and the failure to aggressively enforce them,” they continued. It’s unclear, though, how much of the Russian product the Pentagon purchases, namely because those products are refined and intermingle with other substances. DOD says it has no knowledge of purchasing Russian-origin products, partly because of that complication, while Motor Oil Hellas, the Greek refinery, said it “does not buy, process or trade Russian oil or products. All its imports are certified of non sanctioned origin.” IT’S TUESDAY: Thanks for tuning in to NatSec Daily. This space is reserved for the top U.S. and foreign officials, the lawmakers, the lobbyists, the experts and the people like you who care about how the natsec sausage gets made. Aim your tips and comments at award@politico.com and mberg@politico.com, and follow us on X at @alexbward and @mattberg33. 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