Report: China bans North Korea financial transactions

Nov. 13 (UPI) -- China is enforcing secondary North Korea sanctions that impact domestic firms as North Korea faces a long hard winter, according to a South Korean press report.

Financial transactions that involve funds flowing from China to North Korea are being strictly curtailed after months of reports of greater business exchange, Yonhap reported Tuesday.

A source in the northeastern Chinese city of Shenyang told the South Korean news agency exchange between the two sides has "decreased significantly" since July and August.

"We know the Chinese authorities instructed local businesspeople to not send money to North Korea on any condition," the China-based source said.

Authorities did approve of "investment consultations" or the signing of memoranda of understanding with North Korean business partners, but has banned large sums of money changing hands.

The rule began to be enforced sometime between late September and October, or around the time the Trump administration imposed additional tariffs on Chinese imports.

Chinese trade with North Korea is also down this year, according to Chinese media.

Caixin recently reported China-North Korea trade was down 57.8 percent for January to August 2018, year on year. Total goods traded are estimated to be about $1.51 billion, according to the news service.

North Korea could be facing a food shortage following a scorching heat wave this summer.

In rural areas in North Korea, "screams and wails" can be heard, Yonhap's source said. North Korea's state-sanctioned traders in China have been instructed to buy food.

Rations have dropped in Yanggang and North Hamgyong provinces, according to the report.