The risk of a direct trade war between the United States and China continue to rise as the Trump administration tightens its screw on China’s trade policies as well as its dealings with North Korea. Earlier this month, US commerce department imposed countervailing duties on Aluminium foil imported from China accusing unfair trade practices. Moreover, this month, United States officially announced probing into China’s controversial intellectual property laws. Now, Yesterday, U.S. treasury department announced that it is imposing sanctions against 10 foreign entities largely Chinese and Russian and against 6 individuals for dealings with North Korea in violation of existing UN resolution.

In an official statement, the Treasury Secretary Steven Mnuchin said, ““Treasury will continue to increase pressure on North Korea by targeting those who support the advancement of nuclear and ballistic missile programs, and isolating them from the American financial system…….It is unacceptable for individuals and companies in China, Russia, and elsewhere to enable North Korea to generate income used to develop weapons of mass destruction and destabilize the region. We are taking actions consistent with UN sanctions to show that there are consequences for defying sanctions and providing support to North Korea, and to deter this activity in the future.”

Here are details of the sanctions on Chinese companies and individuals,

• OFAC designated China-based Dandong Rich Earth Trading Co., Ltd. for its support to UN- and U.S.-designated Korea Kumsan Trading Corporation over imports of Vanadium ore.
• OFAC also designated China- and Hong Kong-based Mingzheng International Trading Limited (“Mingzheng”).
• OFAC designated three Chinese coal companies collectively responsible for importing nearly half a billion dollars’ worth of North Korean coal between 2013 and 2016. Dandong Zhicheng Metallic Materials Co., Ltd. (“Zhicheng”), JinHou International Holding Co., Ltd., and Dandong Tianfu Trade Co., Ltd.
• Zhicheng’s director and majority owner, Chi Yupeng, was also designated.
• OFAC also designated Qingdao Construction, a Namibia-based subsidiary of a Chinese company

After the sanctions were imposed a spokesperson of Chinese embassy said that China opposes unilateral sanctions out of UN Security Council (UNSC) framework and stressed that China is implementing the UNSC resolution entirely. The spokesman warned, “We strongly urge the US to immediately correct its mistake, so as not to impact bilateral cooperation on relevant issues”.

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