The US government has sanctioned 13 Chinese and North Korean companies the Treasury Department claims contributed to the illicit funding of Pyongyang’s nuclear and ballistic missile programmes.
Three of the Chinese firms are said to have conducted trade worth more than $750 million with North Korea.
One company, Dandong Dongyuan Industrial, owned by Sun Sidong, was allegedly responsible for exporting goods estimated to be worth over $28 million to North Korea over a number of years, including motor vehicles, electrical machinery, radio navigational items, aluminium, iron, pipes, and items associated with nuclear reactors.
Dongyuan has also been associated with front companies linked to North Korean organisations thought to have been involved in the attempted procurement of weapons of mass destruction.
According to the Treasury Department, the sanctions are intended to target entities with long-standing commercial ties to North Korea, as well as the transportation networks that facilitate the repressive nation’s revenue generation and operations.
The entities the sanctions apply to will be barred from holding US assets, and can no longer conduct any business with American companies or financial institutions.
“As North Korea continues to threaten international peace and security, we are steadfast in our determination to maximise economic pressure to isolate it from outside sources of trade and revenue while exposing its evasive tactics,” commented Treasury Secretary Steven Mnuchin.
“These designations include companies that have engaged in trade with North Korea cumulatively worth hundreds of millions of dollars. We are also sanctioning the shipping and transportation companies, and their vessels, that facilitate North Korea’s trade and its deceptive manoeuvres.”
Responding to the sanctions, Chinese foreign ministry spokesman Lu Kang said China opposed unilateral action on North Korea, adding that Beijing is more than capable of investigating companies alleged to have contravened its own laws or international obligations.
“We consistently oppose any country adopting unilateral sanctions based on its own domestic laws and regulations and the wrong method of exercising long-arm jurisdiction,” Lu said.
“If other parties wish to have effective cooperation with China on this issue and really have a grasp of certain matters, they can totally share intelligence with China and cooperate with China to appropriately handle the issue.”
The sanctions were announced a day after US President Donald Trump placed North Korea back on a US list of state sponsors of terrorism.
Speaking at White House on Monday, Trump said: “Today, the United States is designating North Korea as a state sponsor of terrorism. Should have happened a long time ago. Should have happened years ago.”
A number of Russian and Chinese firms were hit with sanctions back in August, when the Treasury Department said 16 entities and individuals had been found to be helping Pyongyang access US and international financial systems.
North Korea has consistently been able to get round US and UN sanctions by buying goods from foreign firms happy to ignore the blockades put in place against the isolated nation.
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