China cuts off oil to North Korea


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It’s about time. China’s national oil company has suspended all oil sales to North Korea because of lack of payment.

The reason North Korea doesn’t have the money to buy oil is largely because it hasn’t been able to sell any coal to China. And the reasons for both is likely China’s increasing desire to rein in North Korea’s missile and nuclear arms programs.

Without oil or coal, North Korea’s leadership will find itself hard-pressed to survive.

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15 comments

  • Orion314

    A heartwarming story , perfect for the upcoming July 4th celebration!

  • LocalFluff

    Maybe this is the long term result of the Nobel prize winner’s leading with his behind while taking a strategic nap? How will the Fake News Network describe it?

  • wodun

    I was reading some other article that noted that while coal exports from China to NK had stopped, other imports had increased and there was a net increase in NK income because of it.

    I am skeptical how much China actually wants to reign in NK.

  • Cotour

    North Korea is China’s tool and they will be using their tool in the long term to dethrone the U.S. from the #1 position in the world. All of China’s activities, building up their military, their navy, building their island air craft carriers in the South China sea and claiming the sea as their own, etc, etc.

    China has no interest in reigning N. Korea and the U.S. up until now has not made their activities have any cost to them. There must be consequence to actions taken and with Obama at the wheel for 8 years China has been able to do as they please when ever they please. Another wonderful consequence to electing an anti America president, twice.

    China is more of a threat to America and the free world than Russia is IMO. China is a promoter of “Globalization”, Globalization IMO is a threat to Russia. Therefore China is aligned with the American Left, I.E. the Democrat party / Soros interests. So an enhanced alliance between Russia and America is IMO a strategic asset rather than a liability. China and Russia have energy business together but long term they seem more enemies than allies.

    This is one of the things that make this “Trump / Russia collusion” story line even more interesting to me. I think that this American Left / Globalist political narrative is designed to sour or make impossible for America and Russia to become closer and in the long term neuter China.

    China has thoughts of world domination, I say that should not be allowed to be fulfilled.

  • Garry

    I’m a little confused by the original posting (“coal from China”) and by Wodun’s comment (“coal exports from China”): I thought that China cut off imports of coal from North Korea. This was one of North Korea’s main sources of foreign currency, which may be the reason they can’t pay for oil from China.

  • wodun

    Gary you are right, I got the flow of trade wrong. China bought other things from NK to make up for the loss of coal revenue for NK.

  • Garry: My mistake. I was not clear. I have clarified the post. China blocked imports of coal from North Korea.

  • LocalFluff

    The Chinese should want to get rid of North Korea. The US can have their leadership executed any day at will. By the push of a button, no Chinese will have any access to any dollar. A billion suddenly unemployed Chinese workers, assisted by a million ex-millionaires, would then hang their politicians in lamp posts.

    South Africa used Fischer-Tropsch process to convert its coal to oil when they were boycotted. I wonder if North Korea can do the same.

  • wayne

    We are making a huge mistake in viewing N Korea as a real-country.

    They counterfeit American currency (which winds up in the Middle East and is extremely high-quality) and their production of methamphetamine(and associated stimulants) is substantial. (which is exported for hard-currency & goods.)

    Coal nets them maybe $100 a ton, Vs. $20K a pound for amphetamine.
    (and, a million dollars in 100’s, fits on a shipping pallet, as the Iranian’s discovered when their ransom payments were received from Obama.)

    China apparently allows N. Korea to access the SWIFT global financial settlement system. Until that ends, everything is just manufactured-drama. (Carly Fiorina, was the only person I ever recall, to bring this up last summer.)

    https://www.swift.com/

  • Cotour

    While the U.S. can and should exert pressure of the financial kind on China to encourage them to dial down their tool N.. Korea. To assert that the flow of financial instruments and cash will be just shut off is naive and would probably be considered an act of war and result in very negative actions.

    The more refined tools of financial manipulation need to be defined and used incrementally to achieve the desired results. Use them properly and ruthlessly.

  • LocalFluff

    No, Cotour, no!
    Any action MUST be perceived as an act of war to take any effect. The Chinese leadership must feel that their personal survival is at stake, immediately. They have to be so scared that their rotten bones rattle. Only then is a line of real communication opened to begin with. Given the hypothetical scenario that they choose to comply rather than be killed, of course.

    The opening move must be total escalation. Because they would lose it. So they would hustle something innovative up really quickly to try to buy themselves a way out. It’s their role to do so in the new Imperial world order.

  • Cotour

    You have a point. I suppose I drift between applying increasing degrees of pressure until the desired effect is accomplished and a step just before your proposal. But I am pretty much there with you.

    Hit them hard before they are a military power strong enough to counter balance our own power.

  • Cotour

    The power of money.

    http://www.dailymail.co.uk/news/article-4652908/China-builds-new-military-facilities-South-China-Sea-islands-think-tank.html

    With becoming enriched comes along the ability to plan and fulfill your plans. China has an interest in keeping America busy “worrying” about what N. Korea may or may not do.

  • LocalFluff

    It is China that’s within range of Kim’s nukes. If they don’t worry about it, they should. China is the natural extortion target for Kim. The US might suggest supporting Kim if he turns his sword the right way. This new South Korean “Moon”(?) president seems to be in on that plan.

    The US has ten very eloquent diplomats, or aircraft carriers as the gunboats are called nowadays. They speak all languages.

  • LocalFluff

    The US selling 300 Tomahawk cruise missiles to North Korea should be tomorrows headline.
    “North Korea isn’t our problem, it’s our market”.

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