Across The Border | How US sanctions against North Korea could affect Chinese banks
Hawks in Washington want to impose secondary sanctions on Chinese banks that it alleges may have dealings with north Korean companies, and analysts say the banks would have little choice but to accept them
Chinese banks will be closely watching the ongoing slanging match between Washington Pyongyang over sanctions by the US on North Korea, as they could be hard hit should hawkish voices prevail and economic measures on the DPRK become tighter.
Some of these voices in the United States have suggested that so-called secondary sanctions should be imposed on Chinese banks that hold money for companies that do business with the DPRK.
Senator Chris Van Hollen told US cable news network MSNBC on Thursday: “We say to China, ‘You have a choice whether you do business with North Korea, or you do business with the US’, but you can’t do both.”
In July, Van Hollen sponsored a bill that would impose secondary sanctions targeting banks that did business with North Korean entities.
Sino-North Korean trade was worth US$2.6 billion in the first half of this year, according to Chinese customs figures, with trade in oil and coal being key components.