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Korean Peninsula set to become more volatile after China stops buying coal from North

Ban by China comes ahead of joint military exercise between US and South Korea

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Trucks from North Korea cross a bridge on the border with China in this photo taken from Dandong in China's Liaoning province in September. Beijing said it would suspend all imports of coal from North Korea for at least the remainder of the year. Photo: Kyodo

The situation on the Korean Peninsula may become more unpredictable with North Korea’s economy expected to be hit hard by a Chinese ban on buying its coal, and as the United States and South Korea prepare for joint military drills.

These could push the reclusive state into further provocations, observers said.

The ban, announced on Saturday, signals that Beijing is joining other nations in the region in the effort to curb Pyongyang’s nuclear missile development.

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The Ministry of Commerce said China would suspend all imports of coal from North Korea for the rest of the year, in accordance with existing United Nations sanctions over Pyongyang’s nuclear and missile programme.

A UN resolution passed in November limits North Korea’s coal exports for 2017 to 7.5 million tonnes, worth about US$400 million, but down 62 per cent from exports in 2015.

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