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USA considers sanctions on Chinese companies over North Korea

USA considers sanctions on Chinese companies over North Korea

U.S. President Donald Trump said on July 5 that China hadn't done enough to pressure its neighbor, after Pyongyang successfully tested its first intercontinental ballistic missile.

China has insisted that it is committed to enforcing United Nations sanctions against North Korea, even though its own figures show that trade between the two countries increased by more than 10 per cent.

"Trade between China and North Korea grew nearly 40 percent in the first quarter".

New Defense Minister Song Young-moo vowed to drastically "reform" South Korea's military in the face of growing provocations from the North, saying Friday during an inaugural speech in Seoul that achieving "self-reliant defense capabilities" was the goal. But it is especially anxious about the collapse of the regime with which it shares a border, and fears both an influx of millions of North Korean refugees and the possibility of a unified Korea with USA troops again at the Yalu River.

Cui Tiankai, China's ambassador to Washington, said Monday that secondary sanctions were "not acceptable".

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Sanctions are also the measure with the greatest potential to rankle Beijing, which considers unilateral sanctions a violation of national sovereignty and fears the economic disruption that sanctions might cause.

"Make no mistake, the Security Council's sanctions on [North Korea] can not be equated with all-encompassing economic sanctions".

Now, the Trump administration is reportedly considering a fresh round of sanctions against small Chinese financial firms and shell companies that conduct business with North Korea, two senior US officials told Reuters.

Foreign Ministry spokesman Geng Shuang said Chinese exports of iron to North Korea for civilian purposes do not relate to the sanctions targeting Pyongyang's nuclear and missile programs, and China will continue implementing the resolutions "in an all-out manner".


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