U.S. Considers New Sanctions on Chinese Banks and Firms Over Ties With North Korea

The Trump administration may impose new sanctions on small Chinese banks and firms within weeks for not being more strict in their trade with North Korea, two senior U.S. officials told Reuters Thursday.

The timing and scope of the economic sanctions will depend on how China responds to this increased pressure during an upcoming meeting, an official told Reuters.

The threat on Chinese firms comes after North Korea successfully launched its first intercontinental ballistic missile on July 4. The Trump administration has continuously urged Beijing to pressure its neighbor on its missile tests, and the new sanctions would specifically target smaller companies with connections to North Korea’s nuclear and missile programs, an official told Reuters.

Larger companies would not be affected, at least initially, by the sanctions, an official explained.

Chinese Foreign Ministry spokesperson Geng Shuang said Thursday in a press briefing that the ongoing iron ore trade between China and North Korea – which has increased by 10.5 percent since the start of this year – does not violate either the U.S. or United Nations’ sanctions against Pyongyang.

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SOURCE: U.S. News & World Report, Katelyn Newman