US sends sanctions signal to Chinese firms involved in North Korea

On March 22, 2019, the US Treasury Department announced sanctions on two Chinese shipping companies, accusing them of helping North Korea evade US and UN sanctions on its nuclear weapons and missile programs. The two companies are Dalian Haibo Shipping Co., Ltd. and Dalian Haiyi International Shipping Co., Ltd., and they were added to the US list of specially designated nationals and blocked persons, which means that their assets will be frozen, and US citizens and entities will be prohibited from doing any transactions with them.

This is the first set of sanctions against North Korea that the US has taken since the summit between the US and North Korean leaders ended without a deal in late February in Hanoi, Vietnam. US President Donald Trump and North Korean leader Kim Jong-un failed to reach an agreement on North Korea’s denuclearization and the US’s sanctions relief at the summit. The US side said that North Korea demanded the removal of all sanctions, without willing to give up key parts of its nuclear weapons program. The North Korean side denied this claim, saying that it only asked for partial sanctions relief, and that it was willing to close its largest nuclear facility.

US Treasury Secretary Steven Mnuchin said in a statement that the US will continue to pressure North Korea until it completely abandons its nuclear weapons and missile programs. He also urged other countries and businesses to comply with the US and UN sanctions regulations, and not to provide any assistance or support to North Korea. He said: “We will continue to enforce existing sanctions and take additional actions as necessary to stop North Korea’s nuclear weapons and missile programs.”

Chinese Foreign Ministry spokesperson Geng Shuang responded to the US’s sanctions decision at a regular press conference on the same day. He said that China opposes any country imposing unilateral sanctions or “long-arm jurisdiction” on Chinese entities or individuals based on its domestic laws. He said: “We urge the US side to stop its wrong practices immediately, and not to affect China’s legitimate rights and interests, or China-US cooperation.” He also reiterated that China has firmly implemented the relevant resolutions of the UN Security Council on North Korea, and also supports resolving the Korean Peninsula issue through dialogue and consultation.

The US’s sanctions on Chinese firms involved in North Korea show the US’s tough stance on the North Korean issue, and may also exacerbate the tensions between the US and China. The US and China are currently in a stalemate in the trade war, and both sides are seeking to reach a mutually beneficial agreement to end the tariff dispute that has lasted for more than a year. The US’s sanctions on Chinese firms involved in North Korea may pose new obstacles to the trade negotiations, and may also affect the cooperation and communication between the two countries in other areas.