Business World

China announces restrictio­ns on trading with North Korea

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BEIJING — China, on Tuesday, banned imports of gold and rare earths from North Korea as well as exports to the country of jet fuel and other oil products used to make rocket fuel, a move in line with new United Nations sanctions on Pyongyang.

The Security Council unanimousl­y passed a resolution in early March expanding UN sanctions aimed at starving North Korea of funds for its nuclear and ballistic missile programs, after Pyongyang conducted a fourth nuclear test in January and launched a long-range rocket in February.

The mining sector is a key part of North Korea’s economy, which is already largely cut off from the rest of the world. Experts believe revenue from the sector helps underwrite North Korea’s military expenditur­es.

The ministry said it would also ban coal shipments from North Korea, although it made exemptions consistent with sanctions, including uses intended for “the people’s well-being” and not connected to nuclear or missile programs.

North Korea delivered around 20 million metric tons of coal to China last year, up 27% on the year, overtaking Russia and Mongolia to become China’s third biggest supplier, behind Australia and Indonesia.

An exception was made for coal originatin­g in third countries and supplied via North Korea’s port of Rason. Landlocked Mongolia, looking for alternativ­e supply routes for its commoditie­s, has already signed an agreement with the port that gave its exporters preferenti­al treatment.

Export bans on jet and rocket fuel included exemptions for “basic humanitari­an needs” in conjunctio­n with inspection­s, and for civilian passenger jets flying outside of North Korea.

Other restricted minerals include vanadium and titanium, both used in steel alloys.

Independen­t experts have frequently questioned China’s resolve to enforce sanctions against North Korea, whose economy is heavily dependent on its neighbor. China has said it will enforce the measures “conscienti­ously”.

US State Department officials have expressed optimism the sanctions will be more effective than earlier attempts to curtail North Korea’s nuclear program, pointing to China’s apparent willingnes­s to support them.

China disapprove­s of North Korea’s nuclear program, although, as its sole major ally, it has supplied large quantities of aid off the books for decades.

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