US Employs Sanctions on Hongxiang Group: Additional Action Required from China as a Sign of Integrity

Liaoning Hongxiang Industrial, a Chinese conglomerate alleged to have supplied goods necessary for North Korea’s nuclear missile program, has become the target of American sanctions. The U.S. placed sanctions on four persons, including the company’s chairwoman, Ma Xiaohong. This is a case of a so-called “secondary boycott” that is directed to third-country organizations and persons doing business with North Korea, and it is the first time a Chinese company has been the subject of sanctions related to North Korea’s nuclear missile program.

It is evident why the U.S. government drew its sword on the Chinese company for trading with the North: Washington believes it was through the business between this company and North Korea that the county conducted its fifth underground nuclear test and developed its ballistic missile capability, despite being under the sanctions of the international community. In fact, the Hongxiang Group has secretly traded high-purity aluminum oxide and such with North Korean organizations, including Kwangson Banking Corp., which has been the subject of American sanctions since 2009, for over five years.

Beijing’s additional actions against the North will be crucial to the success of recent U.S. policies. There is a prediction that the Chinese government, which has supposedly arrested Ms. Ma, will extend the punishment to those government officials who are engaged in the trade, but this is not central to the issue. What is clear is that the U.S. will eventually put more pressure on China by expanding sanctions to include other Chinese companies if Beijing fails to employ additional measures to enforce sanctions on North Korea. In a worst-case scenario, such a failure would inevitably lead to a clash between the two countries.

China has traditionally put emphasis on its cause. Given that, there is neither a cause nor a justification for defending the North when it actively initiates the development of weapons of mass destruction. Beijing has been lukewarm toward pressing North Korea so far, permitting the importation of coals as an “exceptional measure for the livelihoods of the [Chinese] people.” The Chinese government should bear in mind that its integrity will be questioned not only by us, but also by the international community if it fails to take additional actions to effectively put pressure on the North.