NK Businesses Out

[Anchor Lead]

The Chinese government has told North Korean businesses operating in the country to leave. The U.S. State Department welcomed the decision, saying that China is changing. The move came shortly before U.S. Secretary of State Rex Tillerson's visit to China on Saturday. Attention is now being drawn to how this will affect Beijing-Pyongyang relations.

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China's Ministry of Commerce announced sanctions on North Korean businesses in the country in a notice posted on its official website. It ordered all joint ventures between North Korea and China both at home and abroad to be shut down in accordance with a United Nations Security Council resolution. The deadline is January tenth next year, which is within 120 days of the resolution's passage. However, non-profit and non-commercial organizations are exempt from the decision. China already banned the exports of liquefied natural gas (LNG) and other petroleum products to the North and the imports of textiles from the regime on September 23rd, after the latest resolution was passed on September 12th. Just five days later, Beijing again made an unexpected announcement of its decision to shut down North Korean firms. It is interpreted as Beijing's demonstration of its will to pressure North Korea with U.S. Secretary of State Rex Tillerson coming to China on Saturday.

[Soundbite] Lu Kang(Chinese Foreign Ministry Spokesman) : "Chinese and American high-level officials are working together very closely. The two countries' ties are in very good and normal condition."

Chinese authorities have never revealed the exact number of North Korean businesses and joint ventures operating in the country. However, diplomatic sources said that the number would not be that large, due to the North's lack of financial resources.