The United States continues to remain frustrated with the adamant attitude of North Korea and its determination to go ahead with programs related to the development of nuclear missiles. There are already economic sanctions imposed on it, but it is not apparently an adequate deterrent.
The Trump administration has, therefore, imposed additional sanctions on some Chinese individuals and a Chinese bank who are believed to be involved in arranging finances for Pyongyang to carry on with activities about the testing of nuclear weapons.
The role of Chinese banks
New York Times reports that, according to Treasury officials, the bank that has been identified as an instrument engaged in financial activities of North Korea and the activities are not above board. Hence, the Treasury authorities plan to disconnect the bank from the American financial system. It is expected that such an action would harm the interests of the bank and, along with it, the interests of Pyongyang.
Steven Mnuchin, the Treasury secretary, has clarified that the main intention of the sanctions is to exert pressure on the government of North Korea so that it abandons its programs associated with nuclear weapons. Moreover, this will send a clear-cut message that the United States will take firm action against any entity that is believed to be helping the regime.
An expert on the issue of sanctions feels that the U.S. financial system plays a major role in world economy and an action of this nature would have a positive effect.
How will the fresh sanctions help?
Right now, the Trump administration has targeted only one bank and hopes that it would compel the financial sector of China to put more pressure on North Korea to end its nuclear ambitions.
It is possible that other banks could now get jittery and try to obtain assurance from their American counterparts that their engagements with the country would not attract sanctions.
It may be recalled that President Donald Trump wanted China to play a more proactive role on this issue because it was one of North Korea’s only allies and had business deals with it.
He had broached the subject with Chinese President Xi Jinping when the two had met in Florida but, the problem remains. It is evident that new strategies would be needed and imposing sanctions is one of them.
The American think-tank appears to be starved of ideas of how best to handle the situation on the Korean peninsula that threatens to go out of control. US warships are positioned in the region, and there have been rumors of carrying out preemptive strikes. However, there are fears that direct action could have serious repercussions on South Korea and Japan since both of them are allies of the United States. It is a sensitive issue, and Washington must tread with caution because it will not serve the purpose if it escalates into a full-scale confrontation with global ramifications.
