[imText1]Since the passing of the U.N. North Korea Resolution 1718, there has been an urgent focus on China’s measures on North Korea. Although China did not elucidate that it would adopt the sanctions, in reality, acquaintances of North Korea-China trade are saying that the sanctions are having effects on certain locations.
Even until now, the Chinese government has not revealed any measures to implement North Korea sanctions
Liu Jianchao spokesperson for China’s Ministry of Foreign Affairs said, “Although we may act compliantly to the Security Council’s resolution, China’s aim is not for sanctions. Countries related must not take this issue upon their own discretion and escalate this situation to make it worse.”
Tradesman ‘A’ met on the 25th in Liaoning, Dandong China said that little had changed in trade operations around the North Korean border. However, inspection at customs has tightened drastically, and whether or not new investments into North Korea has rapidly decreased or that banks are experiencing turmoil, warning signals are on the rise. The biggest threat amongst tradesmen is the increased feeling of insecurity.
‘A’ said, “The (Chinese) government has advised that investments in North Korea should not exceed $300,000,” and that “Conditions in North Korea are risky, so investments should be made with this in mind. Isn’t this basically saying, don’t make investments?”
He said, “There are rumors spreading in North Korea that the Chinese government will dismantle the customs house in 40 days. Although there are not many people who believe this rumor, we only hear these rumors because people are feeling insecure.”
Tradesman ‘B’ said, “Though remittances to North Korea can be made much the same as before, it has become very strict and difficult to create new accounts. Rather than being a directive from the government, it seems that banks are independently taking measures for their own protection.”
In the past, when a Chinese bank made transactions with North Korea, they would have to work in collaboration with the North Korean Gwang Sung Bank. A Chinese businessman would deposit funds into the Chinese bank and the North Korean businessman would collect the money through North Korea Gwang Sung Bank. This system has not been completely stopped. In ‘B’s’ opinion, transaction details and procedures have merely become more strict.
As deposit transactions between North Korea and China become inconvenient, more and more tradesmen are turning to cash transactions. Various media have reported that 4 banks in Dandong have begun to make restrictions on foreign transactions with people or corporations of North Korean origin.
Though China’s North Korea sanction is rough on independent private-sectors, this is an indication that the Chinese government is taking action in response. to the Security Council’s resolution.