Published: Tue, August 22, 2017
Business | By Max Garcia

US Slaps New Sanctions on Chinese and Russian Entities

US Slaps New Sanctions on Chinese and Russian Entities

According to the Washington Post, these sanctions target Chinese entities that have traded energy or mineral resources, provided banking services to North Korea, or that have hired North Korean foreign laborers, whose incomes the us alleges help finance Pyongyang's missile tests. North Korea generates about $1 billion a year from the coal trade, according to the Treasury, which singled out three Chinese coal companies it said was responsible for importing nearly a half-billion dollars in North Korean coal between 2013 and 2016.

Mr Mnuchin said the U.S. would continue to put pressure on North Korea by isolating companies that aided the regime in Pyongyang from the USA financial system.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is cracking down on Chinese and Russian entities and individuals supporting the North Korean Regime.

Targets included those who aided other sanctioned individuals who helped North Korea.

A Chinese customs spokesperson also told reporters that Chinese exports to North Korea rose nearly 30% to $1.67bn in the first half of the year, largely driven by fabrics and other raw materials required to make clothing.

Some of this apparel and textile production is routinely subcontracted to North Korea to take advantage of its cheaper labour - and those products are then labelled as 'Made in China'. They include one Namibia-based subsidiary of a Chinese company and a North Korean entity operating in Namibia. "U.S. Sanctions Chinese, Russian Firms for Aiding North Korea", at 11:33 a.m. ET, incorrectly reported $500 billion of coal imports.

"Once we get through the month of August perhaps, after the Ulchi Freedom exercises and other things that are happening, then perhaps they will come to the table".

"North Korea is bound to respond aggressively to such a move, and those from the House and Senate need to have thought through what that will mean for the Trump administration...(which currently) lacks strategy", Abrahamian continued.

But she emphasized that the US first hoped to get North Korea to credible talks as a result of the latest United Nations sanctions, without any additional measures targeting oil and gas.

The report noted that "Donggang, which is administered by Dandong, northeastern China's Liaoning Province, serves as a national hub for the seafood trade between China and North Korea".

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