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The U.S. Can Not Be Trusted – Case XXXIV: Trump Cheats On China Sanction Deal
During the ramp up to new UN sanctions on North Korea the Trump administration threaten to sanction China if it would not commit to further pressure. Trade measures against China were held back while the discussions about the resolution were ongoing:
An opportunity to hit North Korea with new United Nations sanctions has sidelined President Donald Trump’s bid to punish China for its alleged unfair trade practice.
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[O]n Thursday afternoon, senior administration aides postponed the announcement [of trade measures against China] at the urging of United Nations and State Department officials, who are in the sensitive final stages of convincing China to sign on to a U.N. resolution that would impose new sanctions on North Korea. U.N. and State Department officials warned that the trade announcement could kill their chances of winning Beijing’s buy-in, according to the officials.
Trump himself implied that he was willing to go for a quid pro quo:
While past presidents have tried at least ostensibly to keep security and economic issues on separate tracks in their dealings with China, Mr. Trump has explicitly linked the two, suggesting he would back off from a trade war against Beijing if it does more to pressure North Korea. “If China helps us, I feel a lot differently toward trade, a lot differently toward trade,” he told reporters…
A deal was made and the UN Resolution 2371 passed. China immediately implemented the relevant measures:
In an unprecedented move against North Korea, China on Monday issued an order to carry out the United Nations sanctions imposed on the rogue regime earlier this month.
China did its part of the deal. It helped pass the UN resolution against North Korea and it immediately implemented it even while that causes a significant loss for Chinese companies which trade with North Korea.
Now Trump is back at sanctioning Chinese (and Russian) companies:
The Trump administration on Tuesday imposed sanctions on 16 mainly Chinese and Russian companies and people for assisting North Korea's nuclear and ballistic missile programs and helping the North make money to support those programs.
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Among those sanctioned are six Chinese companies, including three coal companies; two Singapore-based companies that sell oil to North Korea and three Russians that work with them; a Russian company that deals in North Korean metals and its Russian director; a construction company based in Namibia; a second Namibia-based company, and its North Korean director, that supplies North Korean workers to build statues overseas to generate income for the North.
These are "secondary sanctions" which block financial transactions and make it nearly impossible for those companies and people to run an international business. Moreover – China had already banned all coal imports from North Korea. It had sent back North Korean coal ships and instead bought coal from the United States. Now Chinese companies get sanctioned over North Korean coal they no longer buy? Furthermore selling fuel oil to North Korea is explicitly allowed under the new UN sanctions. There is no reason to sanction any company over it.
The Chinese feel cheated:
Reuters World @ReutersWorld – 7:12pm · 22 Aug 2017
JUST IN: China urges U.S. to 'immediately correct its mistake' of sanctioning Chinese firms over North Korea – embassy spokesman
If the Trump administration insist of holding up these sanction China and Russia will obviously become negligent in controlling the sanctions imposed on North Korea. Why should they hold to their side of the deal, at great costs, when the U.S. does not hold up its side?
They will also stop at making any further deals with the Trump administration. It has now proven to be just as lying and cheating as the Obama administration has been. The U.S. can forget about ANY further action or sanctions at the UN.
This as extremely shortsighted and stupid way of handling international relations.
How does the U.S. hope to win anything in the long run when it behaves in such untrustworthy ways?
Somewhat related in terms of leverage/sanctions:
http://blogs.rediff.com/mkbhadrakumar/2017/08/15/us-russia-ties-poised-to-take-incredible-turn/
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“The Ukraine crisis — and Russian-American relations — reaches an inflection point with the assessment made by the International Institute of Strategic Studies (IISS) in London that North Korea’s dramatic leap in ballistic missile capability in the past year is attributable to its clandestine acquisition of a Soviet-era technology that is available in a factory near the frontline in Donbass war zone, close to the breakaway region held by Russia-backed separatists. The IISS flags that North Korea’s Hwasong-14 missile, tested for the first time, twice, last month signifies an incredible leap in technology that is simply inconceivable for human ingenuity – that is, unless Pyongyang gained access to foreign technology from an established missile power.
However, the IISS report says,
The engine tested by North Korea does not physically resemble any LPE manufactured by the US, France, China, Japan, India or Iran. Nor do any of these countries produce an engine that uses storable propellants and generates the thrust delivered by the Hwasong-12 and -14 LPE. This leaves the former Soviet Union as the most likely source.
Now, there could have been clandestine transfers of the engines from either Russia or Ukraine with the knowledge of the local authorities – or more likely, there might have been clandestine smuggling by the mafia from factories that are loosely guarded. The mafia is active in both Russia and Ukraine. The IISS is inclined to point the finger at the factory in Ukraine (known as Yuzhnoye which has facilities in Dnipropetrovsk and Pavlograd), which has been in dire straits ever since 2006 when Russia stopped buying from it as part of the Soviet-era supply chain and the once-vaunted factory came to the brink of financial collapse circa 2015. To quote the IISS,
The total number of RD-250 (rocket) engines fabricated in Russia and Ukraine is not known. However, there are almost certainly hundreds, if not more, of spares stored at KB Yuzhnoye’s facilities and at warehouses in Russia… A small team of disgruntled employees or underpaid guards at any one of the storage sites… could be enticed to steal a few dozen engines by one of the many illicit arms dealers, criminal networks, or transnational smugglers operating in the former Soviet Union. The engines (less than two metres tall and one metre wide) can be flown or, more likely, transported by train through Russia to North Korea. Pyongyang has many connections in Russia… North Korean agents seeking missile technology are also known to operate in Ukraine… Today, (Ukrainian) Yuzhnoye’s facilities lie close to the front lines of the Russian-controlled secessionist territory. Clearly, there is no shortage of potential routes through which North Korea might have acquired the few dozen RD-250 engines that would be needed for an ICBM programme.
Several questions arise. Importantly, almost all of them will have implications for the trajectory of US-Russia relations. Most important — the timing of the IISS report. The US-Russia relations are on razor’s edge. (See my blog Russia edgy as US prepares to retaliate.)
Thus, can it be that the Russian intelligence leaked the information already available with it to respectable western sources so as to underscore in western capitals that the West has ended up creating a bleeding wound in Ukraine that is turning gangrene? (After all, IISS has profound links with Smiley’s people.)
It is entirely conceivable that the CIA and the Pentagon are ahead of the IISS’ scientific finding. Has this got something to do with the threatening reports that refuse to die away that the Trump administration is revisiting the moribund idea of supplying lethal weapons to hit at Russia-backed separatists in Donbass — which Russia has been opposing tooth and nail? Simply put, is someone firing a flare into the night sky to make the point that it is a rotten idea to supply lethal weapons to Ukraine which will sooner or later find their way inevitably to non-state actors? This is one thing.
Indeed, Russia is keen to engage with the Trump administration over the Ukraine crisis. But then, Russia also hopes that progress on Ukraine would lead to an easing of Western sanctions. Now, on the contrary, the US Congress’ latest bill on Russia sanctions expressly forbids the White House from negotiating the sanctions removal without its prior approval. If there is ever a Gordian knot, waiting to be cut, this is it.
The IISS concludes by stressing the high importance of the “US and its allies, along with China and perhaps Russia, to negotiate an agreement that bans future missile testing, and effectively prevents North Korea from perfecting its capacity to terrorise America with nuclear weapons. But the window of opportunity will soon close, so diplomatic action must be taken immediately.”
However, such a process demands a high level of Russian-American coordination and cooperation. Of course, ‘Barkis is willing’. But, is the US ready to abandon the sanctions against Russia? There is an existential choice to be made here, because Russian intelligence must be up to date on North Korea. Paradoxically, the US needs Russian intelligence inputs to protect the American people from potential nuclear radiation.”
Posted by: daffyDuct | Aug 23 2017 0:52 utc | 32
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