China: No purchase of coal from North Korea this year - BBH
Analysts at BBH note that China unexpectedly announced that it would not purchase coal from North Korea this year.
Key Quotes
“This was understood as a sign of Beijing's increasing frustration with the regime after the latest test of an intermediate range missile and the assassination of Kim Jong Nam, the half-brother of Kim Jong Un. Coal exports to China are thought to be North Korea's largest export.”
“China's move will intensify the economic pressure on North Korea. North Korea's missile tests have justified the establishment of a missile defense system in South Korea that also can, of course, be directed at others in the region, including China.”
“China's move may also be seen implementing the UN agreement, and is consistent with a political and economic solution. Some may see it as an overture to the new US Administration, and underscores another potential area where cooperation between the US and China can be helpful.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
