Before getting to the heart of the latest announcement it is important to note there is a great deal of rapid economic action taking shape in China ahead of Secretary Rex Tillerson’s arrival. ¹China has stopped the import of recyclables. ²Chinese manufacturing is slowing. ³Comac (chinese aerospace) has successfully tested their latest airliner.
#1 is important because it reflects the opinion of the central economic planners in Beijing that #2 is more severe than currently publicized. #3 is important because Canada’s plan in the Boeing -vs- Bombardier trade dispute was to look toward China to purchase Canadian subsidized aerospace products. Purchases won’t happen because China is creating it’s own airline manufacturing industry with Comac (a Beijing subsidized industry). However, China is more than willing to give the illusion of trade in order to steal Bombardier technology.
Those are all subtle signals of economic activity within China.
However, today the bigger economic story is an outcome of President Trump and Treasury Mnuchin outlining specific sanctions against any entity that engages in economic activity with North Korea.
Beijing understands the consequences to the Trump/Mnuchin sanctions and finds themselves in a tight position where allowing DPRK business interests to operate within China violates the intended purpose to cut off North Korea from it’s economic enablers.
(Via Daily Mail) China has ordered North Korean companies in the country to shut down by January as it applies UN sanctions imposed following Pyongyang’s sixth nuclear test.
The commerce ministry in Beijing said today the companies, including joint ventures with Chinese firms, have 120 days to close from the date the United Nations resolution was adopted on September 12.




