Sunday, February 19, 2017

Coal Sacked

China puts North Korea on notice:
China’s announcement on Saturday that it would suspend all coal shipments from North Korea was a surprise, but not totally unexpected. On Monday of last week, the day after the ballistic missile test, China prevented a North Korean ship from unloading a shipment of 16,295 tons coal, worth about US$1 million, at a Chinese port, and ordered that it be returned to North Korea. However, China blamed the rejection not on the ballistic missile test, but instead on a claim that the coal contained higher-than-permissible level of mercury.

China’s announcement could have significant economic impact on North Korea. In order to import foreign goods, North Korea needs foreign reserves. In order to get foreign reserves, it needs to export goods. About 90% of North Korea’s exports go to China, and most of that is coal. So this announcement will severely limit the foreign goods that North Korea can import.

The intent is that by limiting North Korea’s ability to import, the country will be unable to import that equipment required for further development of ballistic missiles and nuclear weapons. It is not clear that this objective is realistic, as Kim Jong-un has previously been willing to allow his people to starve rather than to allow his nuclear weapons program to starve. No matter what the intent, Kim will let his people starve and will torture, jail and execute anyone who objects.
Don't make Mini Me even more insane than he already is...

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