As reported here, [a]n exasperated China took a newly tough approach to communist ally North Korea on Friday, siding with the United States in saying the North must back away from nuclear confrontation, and moving to cut Pyongyang's vital supply of hard currency.
Chinese banks have stopped financial transfers to North Korea under government orders, bank employees said Friday. And at an appearance with Secretary of State Condoleezza Rice, China's foreign minister nudged the North to resume negotiations over its nuclear program and assured Washington that China would carry out United Nations sanctions on Pyongyang.
China losing patience with N. Korea and finally siding with the US is a start; cutting off money transfers with N. Korea will definitely hurt them, and may impel Kim to agree to return to the six nation talks, but what I think may really hurt is the cutting off of luxury goods, which go exclusively to the elites in the North, who won't like that at all, and I'm sure they will put pressure on Kim that will actually accomplish something.
1 comment:
The "invisible hand" of the market is at play here.
China is now "too rich" to be unaffected by swings in the global marketplace.
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