China announced today that it was suspending coal imports from North Korea for three weeks, in line with the latest UN sanctions against the hermit state.
"After the adoption of UN Security Council resolution 2321... China is suspending North Korean coal imports," the government said in a statement.
The three-week suspension starts tomorrow and ends on December 31, according to the statement.
More From This Section
It limits North Korea's coal exports next year to 7.5 million tonnes or just over USD 400 million, down 62 per cent on 2015.
The cap represents a fraction of the North's current annual exports to China, the isolated country's sole ally and its main provider of trade and aid.
China imported 1.8 million tonnes of coal worth USD 101 million from North Korea in October alone, according to the most recent figures available on the Chinese Customs website. The volume was up nearly 40 per cent year-on-year.
Under previous sanctions, the Security Council authorised the purchase of coal from North Korea provided revenues were not used to finance Pyongyang's nuclear programme.
However, the UN did not specify any assessment criteria, which allowed Beijing to increase its imports considerably while saying it was acting in good faith.
Between March and October, 24.8 million tonnes of coal was imported, three times the annual limit now allowed by the UN.
Although Beijing has traditionally protected Pyongyang diplomatically, believing that Kim Jong-Un's regime is preferable to its collapse, it has grown frustrated by its neighbour's defiance.
Disclaimer: No Business Standard Journalist was involved in creation of this content