China government orders shutdown of all North Korea-connected businesses

A ministry of Commerce order has said that businesses owned by North Korean companies or individuals must close within 120 days of the 11 September approval of the latest UN sanctions, according to reports in the Chinese media.

Following North Korea’s sixth and most powerful nuclear test this month, the UN Security Council unanimously voted to expand sanctions on Pyongyang. It has since halted the country’s textile exports and capped fuel supplies.

It was the ninth UN Security Council sanctions resolution over Pyongyang’s ballistic missile and nuclear programmes, since 2006. 

Last week, China’s central bank told the country’s lenders to strictly implement UN sanctions against the North Korean state. They were thus ordered to stop providing financial services to new North Korean customers and to wind down loans with existing customers.

The banks were warned of the economic losses and risks to their reputation if they did not comply, according to unnamed sources.

On Tuesday, the US announced sanctions against eight North Korean banks and 26 individuals. The new punitive measures followed President Trump’s executive order targeting North Korea’s access to the international banking system.

Washington repeatedly raised concerns that Beijing has not been tough enough over Pyongyang’s nuclear tests, warning that any threat from North Korea would trigger an "overwhelming" response.

China's President Xi Jinping assured President Trump that Beijing remains committed to denuclearizing North Korea and remains firm in its wish to resolve the issue through talks leading to a peaceful settlement.