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US Threatens to ‘Cut China Off’ from Dollar If It Does Not Uphold Sanctions Against N. Korea

  • US Threatens to ‘Cut China Off’ from Dollar If It Does Not Uphold Sanctions Against N. Korea
    by https://www.rt.com/
    The US could impose economic sanctions on China if it does not implement the new sanctions regime against North Korea, the US Treasury Secretary has warned. Steven Mnuchin said the restrictions could involve cutting off Beijing’s access to the US financial system.

    “North Korea economic warfare works,”
     Mnuchin said Tuesday at the Delivering Alpha Conference in New York City. “We sent a message that anybody who wanted to trade with North Korea – we would consider them not trading with us.”

    The Treasury Secretary echoed the words of the US envoy to the UN, Nikki Haley, by calling the fresh round of sanctions against Pyongyang “historic.”Mnuchin added “if China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system.”

    Washington has, so far, been reluctant to impose economic sanctions on China over concerns of possible retaliatory measures from Beijing and the potentially catastrophic consequences for the global economy.

    Washington runs a $350 billion annual trade deficit with Beijing. China also holds $1 trillion in US debt, which amounts to 28 percent of US Treasury bills, notes and bonds held by a foreign government.

    US lawmakers, however, seemed to be more inclined to exert pressure on Beijing and other countries striking deals with Pyongyang as they demand a “supercharged” response to North Korea’s nuclear tests, including imposing sanctions on companies from China and any other country doing business in North Korea.

    “I believe the response from the United States and our allies should be supercharged,”
     said Ed Royce, chairman of the House of Representatives Foreign Affairs Committee during a hearing Tuesday.


    “We need to use every ounce of leverage… to put maximum pressure on this rogue regime,”
     he said, adding that “time is running out.” Royce also called on Washington to target major Chinese banks, including the Agricultural Bank of China and the China Merchants Bank for dealing with Pyongyang.


    read more.

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September 13, 2017 - Posted by | Economics, GeoPolitics | , , , , ,

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