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Chinese Border City Enables Sanctions Evasion, Report Claims

Henry Ridgwell

   LONDON - A new report says the Chinese border city of Dandong continues
   to provide a vital lifeline for North Korea's economy, despite United
   Nations sanctions that have been in place since Pyongyang conducted a
   nuclear missile test three years ago, an incident that many thought
   could have led to war on the Korean peninsula.
   Researchers from Britain's Royal United Services Institute say
   businesses based in Dandong are importing coal and minerals from North
   Korea to sell on global markets, while also procuring goods to send
   back into North Korea that could be used for Pyongyang's nuclear and
   missile programs.
   Dandong sits across the Yalu River from the North Korean town of
   Sinuiju and has long been a major hub for cross-border travel.
   Dandong's financial infrastructure plays a crucial role in sustaining
   North Korean trade. Research from the Royal United Services Institute
   shows that between 2014 and 2017, almost a quarter of North Korea's
   total trade moved through only 150 Dandong-based companies, with a
   value of $2.9 billion.
   Report co-author Joe Byrne, who spoke to VOA in an interview Monday,
   says much of the trade would now be prohibited by U.N. sanctions.
   "For example, the U.S. Treasury has designated in previous years many
   entities that are based in Dandong that have been active in illicit
   trade," Byrne said.
   Just 10 of the 150 companies accounted for nearly two thirds of all the
   reported trade during the period in question. Of these, five have since
   been sanctioned by the U.S. Treasury for their links to the North
   Korean government and its nuclear and missile programs. All are still
   active, says the report.

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