Washington sanctions Chinese bank and sells arms to Taiwan
30 Jun 2017 5:20 PM GMT
Relations between the world's two largest economies look to be entering a new phase of turbulence after the US punctured Chinese celebrations of the anniversary of Hong Kong's return by unveiling sanctions against a Chinese bank linked to North Korea and a major arms sale to Taiwan. The US state department on Thursday gave the green light to a total of $1.4bn in arms sales to Taiwan, a self-governing island which China considers its own territory. Sanctions were also announced targeting a Chinese bank accused of serving as "a conduit for illicit North Korean financial activity".
Two Chinese individuals and the Bank of Dandong, which US Treasury Secretary Steve Mnuchin said was an institution of "primary money-laundering concern", were blacklisted from the US financial system.
"This bank has served as a gateway for North Korea to access the US and international financial systems, facilitating millions of dollars of transactions for companies involved in North Korea's nuclear and ballistic missile programs," Mnuchin told reporters. "The United States will not stand for such action," Mnuchin claimed the move was not retribution for a lack of Chinese action over North Korea. "This is not directed at China, this is directed at a bank, as well as individuals and entities in China," he said. However, both the sanctions and the arms sale are likely to anger China and experts said both moves clearly represented a deliberate response from a Trump White House that is losing patience with Beijing.
The US also chose the first day of Xi's visit to call for more democracy in Hong Kong saying China should respect civil liberties, including press freedom. The timing of the US actions—just ahead of the 20th anniversary of Hong Kong's return to Beijing on 1 July— was particularly provocative, experts in US-China relations said. Trump, who had once accused China of being a top US enemy, hailed Xi as "a great guy".
Next Story
