New | More Chinese firms under probe for violating US sanctions against North Korea

The coordinator for US sanctions policy indicated on Wednesday that more Chinese firms were under US investigation for suspected breaches of sanctions on North Korea and Chinese banks and firms should understand that dealing with North Korea was “risky.”

Asked at a congressional hearing if other Chinese firms were under investigation after the United States imposed sanctions on a Chinese industrial machinery wholesale firm on Monday, Daniel Fried, coordinator for sanctions policy at the U.S. State Department, said he “wouldn’t argue” with the suggestion.

The United States took the step after North Korea conducted its fifth and largest nuclear test on September 9. Discussions are also under way on a possible new UN sanctions resolution on North Korea.

The United States accused the Chinese firm of acting on behalf of North Korea’s Korea Kwangson Banking Corp (KKBC), which has been under US and UN sanctions for supporting proliferation of such weapons.