China is a linchpin in the escalating war of words between U.S. and North Korea – especially its banks.
Sanctions against North Korea were unilaterally decided by the United Nations' security council on Saturday. While China has vowed to enforce them, international observers are doubtful of its vigor given in laxity in doing so in the past.
U.S. President Donald Trump may have talked «fire and fury» against North Korea if the rogue state threatened the U.S.
Behind the scenes, his government appears more willing to play out the diplomatic game than his «rhetorical grenade,» as the «Washington Post» put it, suggests.
Breather For Banks
The U.S. seems to be giving Chinese banks a temporary breather on sanctions, «Reuters» reported on Wednesday, despite threats to do so.
Why in the scheme of nuclear war threats from a does it matter? Because the U.S. wants to enlist China to pressure North Korea, China's ally and neighbor, into walking back its weapons threats.
Thus, Washington has not only held back on trade action against China, a key promise Trump made to his voter base; he also seems prepared to look the other way on Chinese bank dealings with North Korea – for now.
Subtle China Threat
The threat of a second layer of sanctions against Chinese firms – among them banks – was reportedly instrumental into swaying China into backing the Korea sanctions in the first place.
Trump officials maintain a list of Chinese banks and other firms which the U.S. would be prepared to levy sanctions against, due to alleged ties to North Korean weaponry programs.
For now, it seems the U.S. is content to simply wait and try to choke North Korea economically: «Reuters» quoted a senior Trump official saying the White House had nothing to say on a so-called secondary sanctions for Chinese firms.
