US hits China, Russia with punitive sanctions over North Korea
By
Peter Symonds
23 August 2017
The Trump administration yesterday unilaterally imposed sanctions on Chinese and Russian entities and individuals over their alleged trading activities with North Korea. The US Treasury’s announcement is a deliberate slap in the face to Beijing and Moscow after both voted earlier this month in the UN Security Council for tough new UN penalties on Pyongyang over its long-range missile tests in July.
The sanctions target six Chinese-owned companies, one Russian, one North Korean and two based in Singapore. Six individuals—four Russians, one Chinese and one North Korean—have also been hit. As a result, all of the individuals and entities will have any property and funds in the US frozen and will not be able to do business with US corporations, banks or citizens.
US Treasury Secretary Steven Mnuchin declared that it was “unacceptable” for Chinese and Russian individuals and companies “to enable North Korea to generate income” for its weapons programs. While nominally acting to reinforce UN sanctions, Mnuchin’s sweeping statement effectively precludes any company from doing business with North Korea—well beyond the scope of UN resolutions.
Moreover, the US Treasury has not substantiated any of its allegations. Among those targeted are three Chinese companies accused by the US of breaching UN sanctions by importing nearly $500 million worth of coal from North Korea between 2013 and 2016. The purchase of North Korean coal was subject to an annual limit, not a complete ban until this month’s UN sanctions. Earlier this year China suspended further coal imports.
Coal sales are worth more than $1 billion a year for North Korea and represent a significant portion of…