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North Korea sanctions
ChinaPolitics

US House committee targets major Chinese banks’ lifeline to North Korea

US foreign affairs panel wants big Chinese banks with a large US presence sanctioned to force them to cut off aid for North Korea’s nuclear programme

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Zhenhua Lu

A foreign affairs committee in the US Congress’ lower chamber is pushing to impose unilateral sanctions against major Chinese banks with a large US presence to force them to cut off alleged financial support for North Korea’s nuclear and missile programme.

Ed Royce, chairman of the US House Foreign Affairs Committee, said on Tuesday at a hearing in Washington that the US government can “unilaterally” designate more Chinese banks and companies for a choice between doing business with North Korea or the US.

“We must target major Chinese banks, such as China Merchants Bank and even big state owned-banks like the Agricultural Bank of China that have significant presences in the US, if they do not stop doing business with North Korea,” Royce said.

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Chairman of the House Foreign Relations Committee Ed Royce arrives for a recent closed classified briefing for members of the House of Representatives on North Korea and Afghanistan in Washington. Photo: Reuters
Chairman of the House Foreign Relations Committee Ed Royce arrives for a recent closed classified briefing for members of the House of Representatives on North Korea and Afghanistan in Washington. Photo: Reuters

The move is part of the US Congress’ effort to pursue swift passage and aggressive implementation of legislative tools that will make it easier for the executive branch to take action against foreign banks and companies to further isolate the reclusive country.

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Royce emphasised that the legislative and administrative tools of reining in Pyongyang and the UN Security Council’s resolutions “need to be implemented aggressively”.

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