April 08, 2019

Operation Obstacle Course: How China Has Disrupted Negotiations with North Korea

As the United States pushes North Korea toward denuclearization, it should focus more on the Chinese lifeline to this rogue regime. An ally and neighbor of North Korea, China is a key player in the United States’ two-track strategy to convince Pyongyang to give up its nuclear arsenal of weapons: maximum financial pressure and diplomatic outreach. The United States should call out China for its insidious enabling of North Korea and point to the Kim regime’s money trails through China.

The overwhelming volume of North Korean commerce flows through China. Conversely, trade with North Korea is an important source of revenue for many Chinese cities bordering North Korea. In a region that primarily relies on coal and manufacturing, both local firms and local government officials rely on North Korean trade to meet growth targets. Forty percent of trade in Dandong, a Chinese border city, comes from North Korea, which explains why so many Dandong-based companies have subsequently been sanctioned for dealing with North Korea in violation of UN and U.S. laws.

Dandong Hongxiang Industrial Development Company, for example, transacted over $500 million worth of business with North Korea before being sanctioned by the United States in September 2016. This kind of business is replicated throughout the provinces of Liaoning and neighboring Jilin. In so doing, numerous Chinese businesses are reportedly defying UN Security Council Resolutions.

Read the full article in The National Interest.

  • Commentary
    • The Wall Street Journal
    • February 4, 2025
    The World Has Changed Since Trump’s First Trade War. Other Countries Are Ready to Fight Back.

    With so many countries armed and ready, the challenge for Trump will be to use economic weapons to advance U.S. interests without leaving America isolated or ruining the world...

    By Edward Fishman

  • Commentary
    • January 20, 2025
    Articulate a Comprehensive, Coherent China Strategy

    President Trump should articulate a comprehensive, coherent China strategy that addresses U.S. objectives, the ways and means to achieve them, and how the strategy can mitigat...

    By Jacob Stokes

  • Video
    • December 2, 2024
    Ziemba: China Could Impose Retaliatory Tariffs on U.S.

    If tariffs and costs continue to rise, it will not be great for oil demand within the US, that's according to Rachel Ziemba, Adjunct Senior Fellow at the Center for a New Amer...

    By Rachel Ziemba

  • Commentary
    • Sharper
    • November 20, 2024
    Sharper: Trump 2.0

    Donald Trump's return to the White House is widely expected to reshape America's global priorities. With personnel choices and policy agendas that mark a significant break fro...

    By Charles Horn & Gwendolyn Nowaczyk

View All Reports View All Articles & Multimedia