After the UN Security Council passed new sanctions two weeks ago, the Chinese Commerce Ministry said North Korean firms and joint ventures in China would be closed within 120 days.
Following North Korea’s sixth and largest nuclear test this month, the UN Security Council voted unanimously to expand sanctions on Pyongyang. It has halted the country’s textile exports and capped fuel supplies.
It is the ninth UN Security Council sanctions resolution over North Korea’s ballistic missile and nuclear programs since 2006.
Last week, China’s central bank told the country’s lenders to strictly implement UN sanctions against North Korea.
They were ordered to stop providing financial services to new North Korean customers and to wind down loans with existing customers. Chinese banks have been accused of transferring funds to and from Pyongyang.
Sources told Reuters the banks were warned of the economic losses and risks to their reputation if they did not comply.
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.
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