China bank cuts ties with partner

HONG KONG — The state-controlled Bank of China said Tuesday that it had ended all dealings with a key North Korean bank in what appeared to be the strongest public Chinese response yet to North Korea’s willingness to brush aside warnings from Beijing and push ahead with its nuclear and ballistic missile programs.

Chinese analysts said the Bank of China’s move carried clear diplomatic significance at a time when the Obama administration has been urging China to limit its longtime support for the North Korean government. The Bank of China’s action also dovetails with a long-standing U.S. effort to target the North Korean government’s access to foreign currency. Most countries’ banks already refuse to have any financial dealings with North Korea, making the Bank of China’s role particularly important.

“I personally don’t believe that this would have been a business decision by the bank alone, and it’s probably a signal from the government to reflect its views on North Korea,” said Cai Jian, a professor and the deputy director of the Center for Korean Studies at Fudan University in Shanghai.

“This appears to be a step by the government to show that it’s willing to cooperate with the international community in strengthening sanctions, or perhaps taking steps against illicit North Korean financial transactions,” he said.

In a single-sentence statement Tuesday, the Bank of China said it has “already issued a bank account closing notice to North Korea’s Foreign Trade Bank, and has ceased accepting funds transfer business related to this bank account.”