China, North Korea’s largest trading partner, purchased North Korean coal weighing at 1.64 million tons last August. What is shocking is that the two countries performed the trade regardless of the fact that there was a ban implemented by Beijing in compliance with the sanctions of the United Nations (UN) Security Council surrounding coal exchanges with North Korea.
Mining.com reported that the coal imports of China had an increase in the month of August, which accumulated to $138.1 million, according to the Chinese customs figures. The upsurge occurred six months after the country announced its suspension of all North Korean imports in hopes of forcing the Pyongyang government to cease its nuclear weapons program and activities.
Also take note that back in January, the country’s coal imports was almost $122.5 million. They declined in February, reaching $98.1 million, and in March, the imports dropped to zero.
According to experts, the explanation behind China’s action is that the country scrambled in dealing with some shipments that already arrived following the sudden implementation of the ban last February. China had to get rid of these cargos before the Sept. 5 deadline of the sanctions came.
After the sanctions had been issued, China declared that it would not entertain North Korean coal in the country despite that they were in Chinese soil already.
Even with the news of China receiving coal from North Korea after the U.N. issued its sanctions, it is still considered that China did not commit any violations of the U.N. Security Council’s resolutions. But upon hearing this news, some analysts like Foundation for Defense of Democracies senior fellow Anthony Ruggiero think that China is not a dependable partner.
North Korea sanctions
In early August, the U.N. Security Council enacted a ban on North Korea regarding its exports of coal, lead, lead ore, iron, iron ore, and seafood. The ban also forbade countries from accepting more North Korean workers to their workforces and making new joint ventures and investments in existing ventures.
The United States composed the resolution and is also collaborating with South Korea for military drills. The drills drew the ire of North Korea and blamed the two countries for bringing more tension.
The ban’s impact on North Korea
According to Nikki Haley, the U.S. ambassador to the UN, the sanctions are made in an effort to hinder the further development of its nuclear weapons, per ABC News. Aside from banning the export of base metals, coal, seafood and workers, North Korea is also not allowed to trade its textiles outside the country.
The ban would result in the disturbance of North Korea’s top exports and the introduction of restrictions on its Foreign Trade Bank. The country would also lose nearly $1 billion of its revenue, putting a dent in its economy. However, it is not yet certain if the ban will indeed abbreviate the nuclear weapons program’s progress.
Haley further stated that North Korean officials will suffer as a result of the sanctions. Still, it is unknown if and how the general North Korean population would be affected by the ban.
Blockchain technology can help the energy industry be more efficient
BlockApps has entered into a partnership agreement with the consulting firm Optimum to develop block solutions for tracking how energy...
Cannabis oversupply prompts stores to offer huge discounts
The surplus on the Oregon cannabis market is so high that existing stocks may last up to 6,5 years. As...
Pub owners in Germany resort to crowdfunding to cope with the pandemic
The Coronavirus has paralyzed the social life. Those who suffer particularly are those who benefit financially from social activities. These...
Africa’s economy on the edge of plunging into a new crisis
Beyond the health crisis, the economic crisis is already looming in Africa. Regional financial institutions are deploying measures to respond...
The fintech sector is benefiting from the current situation
The fintech sector is one of the areas to benefit from the current crisis. The use of fintech applications has...
- Featured6 days ago
Why should banks and FinTech operators ally?
- Business7 days ago
Half Life: Alyx has thrust VR into the spotlight, XRApplied will bring it into the mainstream
- Business7 days ago
Draganfly, Inc. (DFLY) is fighting the coronavirus with a “pandemic drone” straight out of science fiction
- Crypto7 days ago
How can BTC protect us from the threat of hyperinflation?