A portrait of Ma Xiaohong, the founder and owner of Dandong Hongxiang Industrial Development. Co., as published in a corporate publication. PHOTO: CHUN HAN WONG/THE WALL STREET JOURNAL
Reuters: China upset as U.S. sanctions firm tied to North Korea nuclear program
China said on Tuesday it was opposed to any country using its own laws to carry out "long arm jurisdiction", after the United States sanctioned a Chinese industrial machinery wholesaler tied to North Korea's nuclear program.
The U.S. Treasury said it was sanctioning Dandong Hongxiang Industrial Development Co and four of its executives, including the firm's founder, Ma Xiaohong, under U.S. regulations targeting proliferators of weapons of mass destruction.
It accused the firm of acting on behalf of North Korea's Korea Kwangson Banking Corp (KKBC), which has been under U.S. and U.N. sanctions for supporting proliferation of such weapons.
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WNU Editor: This company has deep Chinese political connections, and when the U.S. targets these "connected" firms .... the Chinese always react. I am not aware of the specific details in this case, but I suspect that before the U.S. slapped these sanctions the Chinese were informed privately on what was happening .... and to tell them to stop. The Chinese ignored these warnings .... hence the sanctions.
More News On The U.S. Imposing Sanctions On A Major Chinese Firm Accused Of Assisting North Korea's Nuclear Program
U.S. Indicts Chinese Businesswoman, Trading Company for Helping North Korea Evade Sanctions -- WSJ
Chinese firm charged with plotting to evade US sanctions against North Korea’s nuclear programme -- AP
US hits Chinese firm with sanctions over North Korea ties -- BBC
U.S. charges four Chinese, firm with aiding Pyongyang’s nuclear program -- Washington post
Chinese Company Charged with Facilitating North Korea Money Laundering --VOA
US indicts Chinese executives, firm linked to North Korea nuclear program -- Asian Correspondent
U.S. Targets Chinese Company For Supporting N. Korean Nuclear Program -- NPR
"hence the sanctions." These are only effective as long as the US dollar is world reserve currency. As I've pointed out here and elsewhere, this is coming to an end sooner rather than later.
ReplyDeleteAnytime sanctions against powerful countries or individuals are imposed the demise of the dollar as world reserve currency is sped up and the desired "soft landing" when it does happen becomes more problematic. Furthermore this company will not be affected by this in a material way as they will just find a way around them and those seeking to business with them will simply ignore the sanctions.
With that said we could definitely use Chinese assistance in containing North Korea. A better approach might be some sort of negotiated settlement. For example, you help us with North Korea and we will recognize certain claims in the South China Sea. Perhaps that would not work but it does seem clear that sanctions will defintitely not work.