WASHINGTON: The United States said on Monday it had sanctioned a Chinese industrial machinery and equipment wholesaler, taking a step in tightening the financial noose around North Korea’s nuclear programme that the company has links with.

In a statement on its website, the US Treasury said it was sanctioning Dandong Hongxiang Industrial Development Co and four officials of the firm under US regulations targeting proliferators of weapons of mass destruction.

The US Department of Justice said it had filed criminal charges against the Chinese firm and the individuals for using front companies to evade sanctions on North Korea’s nuclear weapons and ballistic missile programmes.

Those charges accused the firm and the individuals of conspiring to violate sanctions rules and to engage in international money laundering.

The announcement comes after the White House said last week that US President Barack Obama and Chinese Premier Li Keqiang agreed in New York on Sept 20 to step up cooperation in the UN Security Council and in law-enforcement channels after North Korea’s fifth nuclear test on Sept 9.

China’s Foreign Ministry said last week that the Liaoning Hongxiang Group was under investigation following the provisions of UN resolution 2270, which imposed tighter sanctions on North Korea in March.

On Monday, South Korea’s Joong Ang Daily newspaper reported that China was also investigating executives of a North Korean bank that was believed to be financing the illicit procurement of arms and materials related to the isolated country’s banned nuclear programme.

While China is North Korea’s sole major ally, it disapproves of the latter’s nuclear and missile programmes and was angered by its latest nuclear test.

Beijing has said it will work within the United Nations to formulate a necessary response, but questions remain as to whether it is willing to agree tough enough steps to force North Korea to abandon nuclear weapons.

Discussions are under way on a possible new UN sanctions resolution and the senior US diplomat for Asia said on Friday he was confident an agreement would be reached before long, imposing further sanctions and tightening existing ones.

Daniel Russel, the US assistant secretary of state for East Asia, said that among the aims would be to prevent North Korea’s abuse of international infrastructure, including banking and shipping, to further its nuclear programme.

Published in Dawn, September 27th, 2016