Taking Action Against North Korea

Robert Hsu, June 02, 2009

In response to the nuclear device testing and short-range missile firing in North Korea, China recently took a bold step forward to show that it is taking its role as a global economic superpower seriously. By making an effort to be part of the global economy, the Chinese government realizes that it has to take a stance on dealing with rogue states.

So on Monday, the Chinese government suspended government exchanges with North Korea in an effort to stop communication and cut ties with the country. In addition to refusing planned and future visits from North Korean officials, China has halted plans to send its officials to North Korea. If the reports are confirmed, nothing will come or go from China to North Korea or vice versa. This should have a significant impact on North Korea's economy.

China is currently North Korea's biggest ally and strongest trading partner. China accounts for about 75% of the country's foreign trade. The move to close exchanges could cease shipments of food, fuel and goods. China supplies 90% of North Korea's oil, 80% of its consumer goods and almost half of its food.

I think this sends a clear message to North Korea, whose second nuclear test last month occurred 53 miles from China's border, forcing China schools to evacuate.

It seems obvious that aggravating China would be a bad idea for North Korea given its status as a significant supplier. By cutting North Korea's supplies, China is letting North Korean leader Kim Jong-Il know how it feels about nuclear threats.

The United States, Japan and South Korea are also abstaining from assisting North Korea, making China's suspension all the more significant. South Korea and the United States have ceased shipments of weapons of mass destruction. And Japan and the United States are working with the U.N. Security Council to terminate all financial relationships.

It's significant to note that while the United States, South Korea and Japan all have a significant impact on North Korea, it is China who holds the power here. With all of the global trading power China holds, North Korea may be forced to change its ways, though the wait for that to happen may be very long. Should that be the case, China will continue to stand out as the strongest power in Asia.

Want to know more about China's influence on Asia? Find out more in this week's issue of Asia Edge, where I'll discuss China's relationship with North Korean in more detail. Join Asia Edge today!

Taking Action Against North Korea

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