China Walks The Line On North Korea

THE LIKELY PRICE of China’s support for the tough new sanctions on trade and investment that the United Nations has voted to impose on North Korea is that they do not include oil. That will mitigate the risk of economic collapse in North Korea that Beijing so fears will trigger a tidal wave of refugees into its north-east provinces and the breakdown of internal order in the northern half of the peninsular that could leave US or US-allied troops hard against its border.

Beijing is having to play a difficult game in keeping the Trump administration in Washington from reverting to unilateral military action to stop Pyongyang’s nuclear programme, with all the uncertain consequences that might bring. Our man at the UN sends word that Russia, presumably with China’s support, tried but failed to get the United States to avow military action.

At the same time, Beijing’s erstwhile ally in Pyongyang continues to see the benefits of being a nuclear-armed regime as far outweighing any economic pain it has to endure to get there. Regime survival rather than national well-being is its underlying priority.

In the end, as this Bystander has previously suggested, the rest of the world may have to accept a nuclear-armed North Korea and bring it into the arrangements the nuclear powers use to ensure such weapons are not deployed but remain deterrents.

However, Pyongyang still has a way to go in its nuclear arsenal before it can feels secure with deterrence. It may have an intercontinental ballistic missile that it can lob on the United States, but not yet the capability for that missile to deliver a targeted nuclear strike.

The United States is determined that Pyongyang’s nuclear programme be rolled back, so it does not reach that point. That does not seem something that Pyongyang will accept, as its still inflammatory rhetoric implies. Threats of engulfing the US in “an unimaginable sea of fire” will do little to mollify US President Donald Trump.

China has called on Pyongyang to halt its tests (in exchange for the suspension of large-scale U.S.-South Korean military drills), in a bid to lower the temperature and get the six-party talks going again. Much of the being-the-scenes activity at the ASEAN meeting now underway in Manila and where all the actors including North Korea will be present, will be to that end.

Footnote: The latest UN sanctions ban North Korean exports of coal, iron, iron ore, lead, lead ore and seafood. In November, the Security Council capped the North’s coal exports at $400 million annually. China, the largest buyer, suspended imports in February.

Reuters news agency quotes a U.N. diplomat as saying that the expected value of North Korea’s exports of iron and iron ore in 2017 was $251 million, with $113 million coming from lead and lead ore, and $295 million from seafood.

The latest available full year figures from trade data, for 2015, show North Korea’s exports of minerals and metals at $1.4 billion, accounting for 49.9% of exports. Seafood exports totalled $115 million.

The new sanctions also prohibit countries from hiring additional North Korean labourers working abroad, bans new joint ventures with North Korea and any new investment in current joint ventures.

In 2015, a UN human rights investigator estimated that Pyongyang had sent more than 50,000 people to work abroad, mainly in Russia and China, earning between $1.2 billion and $2.3 billion a year for the government.

Enforcement of the sanctions falls heavily on China, which buys 83% of North Korea’s exports.

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Filed under China-Koreas, China-U.S.

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