Why should the United States sanction Dandong Bank?

Recently, the U.S. government said: Because China Dandong Bank is engaged in commercial activities with North Korea, it requires American financial institutions to stop their business dealings with the bank.

As early as June 29th this year, Tim Chin, the US Treasury Secretary, announced that as part of the sanctions against North China, Dandong Bank was targeted for sanctions and it was prohibited from trading with American financial institutions. The United States judged that Dandong Bank was suspected of money laundering for North Korea's nuclear development.

This is the first time that the United States has imposed independent sanctions against China's banks. The purpose is to urge China, which has close economic ties with North Korea, to exert influence on North Korea while stepping up pressure. But China may confront, which may also affect the future Sino-US relations.

At the press conference, Mchin stressed: "Before North Korea abandons its nuclear and ballistic missile development plans, it will exert maximum pressure." He also said: "I will not hesitate to take action against individuals, enterprises and financial institutions that support Kim Jong-un's regime in North Korea."

According to the US Treasury Department, North Korea has been using Dandong Bank as a window to trade with financial institutions in other countries such as the United States. Transactions with companies involved in North Korea's nuclear development amount to millions of dollars. It is expected that Dandong Bank will not be able to conduct direct transactions with American financial institutions in the future, nor will it be able to conduct indirect transactions through financial institutions in other countries.

In this regard, a spokesman for China's Ministry of Foreign Affairs repeatedly said at a regular press conference that China opposes other countries' implementation of "long-arm jurisdiction" according to their domestic laws and urges the US to correct its wrong practices.