China limits oil trade to North Korea and bans textile trade


China will limit exports of refined petroleum products to North Korea starting October 1, its commerce ministry said, confirming Beijing's participation in new United Nations sanctions meant to rein in its rogue neighbour.

The Ministry of Commerce will implement UN Security Council Resolution 2375 by halting the export of liquified natural gas and gas condensate and limit exports of refined oil.

It wasn't immediately clear how big the reduction might possibly be as China doesn't disclose details of trade with isolated North Korea.

The export limit and import ban were taken within the framework of the UNSC sanctions against North Korea, said the statement.

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Prohibition of the imports of North Korean textiles should be carried out immediately from the date of announcement, and for the volume of transactions that have been concluded prior to the passage of the United Nations resolution, the import procedure must be completed by December 10, the ministry said. North Korea relies heavily on textiles, it's one last major source of foreign revenue.

"Textiles are believed to be the North's biggest source of foreign revenue following rounds of United Nations sanctions under which Beijing cut off purchases of coal, iron ore, seafood and other goods", the AP says.

China, the closest ally of North Korea, accounts for about 90 per cent of Pyongyang's foreign trade.

Frustrated that China had not done more to rein in North Korea, the Trump administration considered new sanctions in July on small Chinese banks and other firms doing business with Pyongyang, two senior US officials told Reuters.

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They have supported the latest rounds of UN Security Council sanctions but are reluctant to push Pyongyang too hard for fear the government might collapse.

"Donald Trump mocked Kim as a "Rocket Man" on a" suicide mission" at the UN General Assembly.

"Foreign financial institutions are now on notice that going forward they can choose to do business with the United States or with North Korea, but not both", Mnuchin said, after President Donald Trump allowed for possible sanctions against nearly any business trading with North Korea.

The U.S. put its own sanctions on North Korea on Thursday, against banks or companies doing business with the country.

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Petroleum exports for use in the North's ballistic missile program or other activities are banned by United Nations sanctions, the Commerce Ministry said.