North Korea has been firing off missiles all summer in an attempt to show off their power, most recently on September 3rd. Their actions have finally led to lasting consequences as President Trump signed a new executive order into law this week at the United Nations.
The law makes countries pick who they do business with–the United States or North Korea. The obvious choice is the United States, as North Korea has been threatening everyone and yet does not have much to offer. This new executive order has resulted in China shutting off their central bank to North Korea, further starving the dictator-run country of resource money, according to Reuters.
Now, banks are going to stop all financial services to the people of North Korea. This will significantly cripple the already financially starved country, as China is their biggest source of income and trade.
Furthermore, North Korean customers are going to have their loans closing down as they are paid off. No new money will be issued via loan or otherwise under these new sanctions.
“At present, management of North Korea-related business has become an issue of national-level politics and national security,” the document to China’s central bank reads. It appears that the message is coming through loud and clear.
The document goes on to explain that the bank is going to fulfill the international obligation to the rest of the world and impose sanctions on North Korea. “As such, we refuse to handle any individual loans connected to North Korea,” the document states.
It is unknown at this time whether or not North Korean customers will be allowed to deposit money into their bank accounts. There is a chance that these accounts could be frozen entirely.
The executive order signed by President Trump goes far beyond typical financial transactions. It also includes trade deals as well, further smothering North Korea and their potential to get their hands on valuable missile-building resources.
President Trump did not directly call out China for their interactions with Kim Jong-un’s country. Instead, he praised their central bank for making such a bold and quick decision.
Reuters goes on to report that the four main state-owned banks in China stopped providing all financial services to North Korean clients. Some of the banks stopped taking new accounts as early as the start of this year.
North Korea has made multiple threats concerning attacking both the US mainland and Guam. Their behavior received strong reactions from President Trump who threatened to totally destroy North Korea at a United Nations meeting earlier this week.
This is the kind of action that needs to be taken against countries who are doing everything they can to incite violence throughout the world. Everyone is at risk, most notably North Korea’s neighbor South Korea, as well as Japan. Multiple missiles have been flown over Japan, showing that North Korea could strike them if provoked.
All we can do as a nation is pray that these sanctions are enough to cut off Kim from his resources and bring about a kind of peace the world has not felt in a long time.