US drafting fresh sanctions against Chinese firms with ties to North Korea, sources say
Aim is to put more pressure on Beijing to rein in Pyongyang’s missile and nuclear weapons programme, according to two senior US officials
Frustrated that China has not done more to rein in North Korea, the Trump administration could impose new sanctions on small Chinese banks and other firms doing business with Pyongyang within weeks, two senior US officials said.
The measures would initially hit Chinese entities considered “low-hanging fruit,” including smaller financial institutions and “shell” companies linked to North Korea’s nuclear and missile programmes, said one of the officials, while declining to name the targets.
It would leave larger Chinese banks untouched for now, the official said.
The timing and scope of the US action will depend heavily on how China responds to pressure for tougher steps against North Korea when US and Chinese officials meet for a high-level economic dialogue in Washington on Wednesday, the administration sources said.
President Donald Trump and his top aides have signalled growing impatience with China over North Korea, especially since Pyongyang test launched its first intercontinental ballistic missile last week, which experts say could put all of Alaska in range for the first time.
US officials have also warned that China could face American trade and economic pressure – something Trump has held in abeyance since taking office in January – unless it does more to restrain its neighbour.