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China condemns new USA sanctions over North Korea

24 Août 2017

"The Trump administration is sending a message to the Russian leadership to curb its activities with North Korea by targeting Russian companies and individuals for facilitating North Korea's proliferation activities and purchase of commodities subject to USA sanctions", he said.

"It is unacceptable for individuals and companies in China, Russia and elsewhere to enable North Korea to generate income used to develop weapons of mass destruction and destabilize the region", Mnuchin said. But the Chi case, in addition to showing how porous the sanctions have been, underscore how the North Korean weapons program has relied on the country's coal exports to China - which were booming until earlier this year. "On our part we will support the company in question in an informational way".

A second defector, said to have intimate knowledge of North Korea's coal exports to China, corroborated much of what the first defector asserted, according to federal attorneys.

But coal imports slumped by 75%, suggesting Beijing is gradually choking off North Korea's biggest source of foreign currency.

Trump has repeatedly said that China, the only major go-between with the North Korean regime, needs to exert more pressure on Pyongyang.

Chi Yupeng founded a company, Dandong Zhicheng Metallic Material, in 2005 and in recent years it has become the largest importer of North Korean coal.

Not much else is known about Chi, but he is listed as an alumni of Bohai University, where he graduated in 1990.

China condemns new USA sanctions over North Korea
China condemns new USA sanctions over North Korea

According to the lawsuit, Chi Yupeng's companies use a couple of different methods to avoid being caught for violation of trade sanctions.

The other method of evasion more directly involves the front companies, according to the government.

"As far as we are concerned, Washington wants to use such unilateral sanctions to smear China and Russia's worldwide image on issues regarding sanctioning North Korea, painting China and Russian Federation as the destroyers of United Nations sanctions", it said.

At the same time, the US Department of Justice also filed two complaints to forfeit over $11 million from two Asian companies for allegedly laundering funds for North Korea. There's no focus on the efforts of Chinese banks that facilitate these transactions.

China demanded Wednesday that the United States immediately withdraw a package of sanctions on companies and individuals trading with North Korea, warning that the decision by President Donald Trump's administration will damage China-U.S. ties.

China is now engaged in a blockade of South Korean companies because it opposes the deployment of a US missile-defense system, known as Terminal High Altitude Area Defense, in that country.

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China condemns new USA sanctions over North Korea