Cash remittances begin again; border trade is as usual
China is confirmed to have eased some financial sanctions against North Korea after Pyongyang decided to return to the six-party talks on its nuclear program. China imposed sanctions against the North under resolutions by the United Nations in the wake of Pyongyang’s missile test on July 5 and its nuclear test on October 9. In addition, media reports saying that China shut down its customs offices at the North Korean border in the wake of the nuclear test were proved false. A report released by the state-run Korea Institute for International Economic Policy showed that China has lifted some financial sanctions against North Korea, citing businessmen trading between China and North Korea. The report was written by researchers Jo Myeong-cheol and Jeong Seung-ho. The report is based on on-site surveying performed during late October and this month. The report said that China’s top four state-run commercial banks stopped remittance services to North Korea after Pyongyang’s nuclear test. In particular, Kwangsun Bank, which had been an important channel for Chinese companies to send to or receive money from their North Korean counterparts, was banned from operation beginning October 18. However, after North Korea announced that it would return to the six-party talks on October 31, the bank resumed remittance services to North Korea beginning November 16, and other commercial banks followed suit.In the Chinese border city of Dandong, transport of goods across the border by ship, rail, and road has been at normal levels since the nuclear test. In addition, customs offices in Dandong were confirmed to be maintaining operations after the nuclear test. Shipments of luxury goods to North Korea were confirmed to be restricted, as outlined by the U.N. Security Council resolution following the test, the report said. After on-site surveys at China-North Korea border areas, Jeong said that "China’s financial sanctions against North Korea is limited to a few regions, and the level of sanctions is seen as relatively weak." Please direct questions or comments to [englishhani@hani.co.kr]
