Chinese govt orders all North Korean firms to close in China
BY Agencies28 Sept 2017 8:07 PM IST
Agencies28 Sept 2017 8:07 PM IST
BEIJING: China on Thursday ordered North Korean-owned businesses to close, cutting foreign revenue for the isolated North under UN sanctions imposed over
its nuclear and missile programmes.
China is North Korea's main trading partner, making Beijing's cooperation essential to the success of sanctions imposed in an effort to top the North's pursuit of weapons technology.
China has long been North Korea's diplomatic protector but has gone along with the latest penalties out of growing frustration with leader Kim Jong Un's government.
North Korean businesses and ventures with Chinese partners must close within 120 days of the September 11 approval of the latest sanctions, according to the ministry of commerce. That would be early January.
North Korean companies operate restaurants, trading outfits and other ventures in China, helping to provide the North with foreign currency.
The latest round of sanctions approved by the UN Security Council ban member countries from operating joint ventures with North Korea.
The sanctions also ban sales of natural gas to North Korea and purchases of the North's textile exports, another key revenue source. They order other nations to limit fuel supplies to the North.
China, which provides the bulk of North Korea's energy supplies, announced on Saturday it would cut off gas and limit shipments of refined petroleum products, effective January 1. It made no mention of crude, which makes up the bulk of
Chinese energy supplies to North Korea and is not covered by the UN sanctions.
China also has banned imports of North Korean coal, iron and lead ore, and seafood since early September.
On Thursday, the ministry of commerce defended its recent imports of North Korean coal as permitted by UN sanctions.
A ministry spokesman, Gao Feng, said imports that were reported in August trade data were allowed by a "grace period" for goods that arrived before the UN ban took effect.
The imports are "in line with the (UN) resolution," Gao said.
The UN Security Council voted unanimously on 12 September to increase sanctions on North Korea, banning its textile exports and capping fuel supplies.
The UN action was triggered by North Korea's sixth and largest nuclear test this month. It was the ninth Security Council sanctions resolution over North Korea's ballistic missile and nuclear programmes since 2006.
China's decision will be welcome news to the Trump administration.
The US President described China's earlier move to prevent banks working with North Korea as "very bold" and "somewhat unexpected", and he thanked Chinese President Xi Jinping. China, which provides most of North Korea's energy supplies also announced on Saturday it would cut off gas and limit the amount of refined petroleum products it ships to the country.
But the ministry made no mention of plans to reduce crude oil shipments, which make up a significant portion of the energy China supplied to North Korea, but is not covered by UN sanctions.
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