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Russia and China are engaging in underhanded business practices involving American oil and gas companies, according to Energy Secretary Rick Perry.
During an appearance on Fox Business Tuesday morning, Perry said it “shouldn’t surprise anybody that there is corporate espionage going on” in Russia and China, particularly with U.S. companies that are involved in hydraulic fracturing or fracking.
The secretary also addressed a recent column from Fox Business contributor James Freeman, which detailed a congressional investigation into allegations of a Russian effort to undermine and “suppress our domestic oil and gas industry, specifically hydraulic fracking,” according to a statement from House Science Committee Chairman Lamar Smith.
“When you think about Russia and China a lot of the businesses there have direct links back to their government,” Perry said. “So the idea that there are people trying to manipulate, to put propaganda out on a particular type of fuel, that doesn’t surprise me.”
He added that his case highlights the importance of cybersecurity.
“We need to be sophisticated when it comes to how we deal with Russia, how we deal with China,” he said. “Those are our competitors out there and we know that they may play with a different set of rules and we just need to be smart enough to identify.”
U.S. military operations, the security and the well being of U.S. military personnel, the effectiveness of
equipment, and readiness. China apparently uses these intrusions to fill gaps in its own research
programs, map future targets, gather intelligence on U.S. strategies and plans, enable future military
operations, shorten research and development (R&D) timelines for military technologies, and identify
vulnerabilities in U.S. systems and develop countermeasures.
China’s cyber espionage against U.S. commercial firms poses a significant threat to U.S. business
interests and competiveness in key industries.
General Keith Alexander, Director of the National Security Agency and commander of U.S. Cyber Command, assessed that the financial value of these losses is about $338 billion a year, including intellectual property losses and the down time to respond to penetrations, although not all those losses are to Chinese activity. Chinese entities engaging in cyber and other forms of economic espionage likely conclude that stealing intellectual property and proprietary information is much more cost
effective than investing in lengthy R&D programs.
***
Example/2015: WASHINGTON—Six Chinese citizens, including two professors who trained together at the University of Southern California, stole sensitive wireless technology from U.S. companies and spirited it back to China, the Justice Department charged.
Example/2014: In one of the most notable actions, Dongfan “Greg” Chung, a naturalized American citizen who worked on NASA’s space shuttle program, was convicted in 2009 after investigators found hundreds of thousands of sensitive papers under his California home. Prosecutors said he gave some of the documents to Chinese officials, revealing details of military and space-related technology. Chung, a former Boeing employee, was sentenced to more than 15 years in prison.
***
Chinese Industrial Espionage:Technology Acquisition and Military Modernization provides the most thorough and insightful review to date of the covert and overt mechanisms China uses to acquire foreign technology. Delving into China’s “elaborate, comprehensive system for spotting foreign technologies, acquiring them by every means imaginable and converting them into weapons and competitive goods,” the book concludes that “there is nothing like it in the world.” (2-3) The People’s Republic of China (PRC) is implementing “a deliberate, state-sponsored project to circumvent the costs of research, overcome cultural disadvantages and ‘leapfrog’ to the forefront by leveraging the creativity of other nations,” thereby achieving “the greatest transfer of wealth in history.” (78, 216)
Although PRC espionage is global in scope, the most important target is the United States. Relying primarily on Chinese-language government and non-government sources, the coauthors intend to raise awareness of the threat nationally and alert decisionmakers to the gravity of the problem. Trained as Chinese linguists, with considerable experience dealing with Chinese affairs, they are uniquely qualified for the task. William C. Hannas has a Ph.D. in Asian languages, published two books on Asian orthography and served in various US government posts, including at the Joint Special Operations Command. James Mulvenon is a leading expert on Chinese cyber issues and has published widely on China’s military affairs and communist party-army relations. Senior analyst Anna B. Puglisi studied in Beijing and subsequently was a visiting scholar at Nankai University, where she studied China’s science and technology (S&T) policies and infrastructure development.
War is an ugly thing is clearly an understatement.
Then there is Aleppo, Syria.
WashingtonPost: In 1165, Benjamin of Tudela, a medieval Spanish Jewish traveler, approached the city of Mosul on the banks of the Tigris. A visitor, even a thousand years ago, could marvel at its antiquity. “This city, situated on the confines of Persia, is of great extent and very ancient,” he wrote in the chronicle of his journey. He gestured to the adjacent ruins of Nineveh, which had been sacked 15 centuries before his arrival.
Mosul, perched in Mesopotamia’s fertile river basin, was a walled trade city at the heart of the proverbial cradle of civilizations, linked to caravan routes threading east and other venerable urban centers like Aleppo to the west. It’s a city that has endured centuries of war and conflict, devastation and renewal. And even a millennium ago, though they couldn’t fathom its later uses, people were aware of Mosul’s great natural resource: Oil.
“To the right of the road to Mosul,” noted another 12th century Arab traveler, “is a depression in the earth, black as if it lay under a cloud. It is there that God causes the sources of pitch, great and small, to spurt forth.”
***
Mosul in the Middle Ages
In the wake of the First Crusade, which led to a string of Christian Crusader states taking root along the eastern coast of the Mediterranean, Mosul became one of the main staging grounds for the Muslim riposte. At the time, the city was ruled by Seljuks, a Turkic tribe that had settled across swathes of the Middle East.
In 1104, an army led by the Seljuk “atabeg,” or governor, of Mosul marched west and routed a Crusader force on a plain close to what’s now the modern-day Syrian city of Raqqa, the de facto capital of the Islamic State. “For the Muslims, it was an unequaled triumph,” wrote one Arab chronicler. “The morale of the Muslims rose, their ardor in defense of their religion was enhanced.” In 1127, Imad ad-din Zengi became Mosul’s atabeg and went on to forge a regional empire that united Aleppo with Mosul and successfully took the Crusader fortress at Edessa.
Zengi’s dynasty, installed in Mosul, went on to rival both the Christian knights in the Levant and the Caliph in Baghdad. Even when the famed Kurdish general Salah ad-Din, the greatest Muslim hero in the history of the Crusades, took over a vast swathe of the Middle East toward the end of the 12th century, the Zengids of Mosul held out. Their resistance was broken in the following century — not by Crusaders or rival Muslim armies, but the conquering hordes of the Mongols.
Despite all the conflict, the city and its environs would preserve its diverse character and remain home to Muslims, Jews, Christians and other sects, as well as a busy commercial entrepot for all sorts of goods. Though produced much farther east in Bengal, the ultra-soft and light fabric known as “muslin” derives its name from Mosul, because that was the point from which this textile entered the European imagination.
An Ottoman province
By the mid-16th century, Mosul fell under Ottoman control following the successful campaigns of Turkish armies against those of Persia’s Safavid dynasty. Most of what we know as the Arabic-speaking Middle East now ruled by the Ottomans. The Ottoman-Persian rivalry, which included a dimension of Sunni-Shia strife, shaped the region’s geopolitics for centuries. The lands that now constitute Iraq, particularly its rugged north, would be the site of myriad border wars, skirmishes and sieges.
In the early 19th century, Mosul became the capital of an Ottoman vilayet, or province, that stretched over what’s now northern Iraq. After the empire’s collapse, British colonial rulers would stitch together the vilayets of Mosul, Baghdad and Basra — a sea port to the south whose environs were home to a mostly Shiite population — into the new nation of Iraq.
A legacy of Sykes-Picot
A British army marched into Mosul in 1918 toward the end of World War I, forever ending Turkish rule in Iraq. The map above, though, depicts a post-war settlement that never came about. The infamous Sykes-Picot agreement — a secret deal hatched in 1916 by the British and French diplomats whose name it still carries — carved up the lands of the Ottoman Middle East between rival spheres of British and French influence. In the initial scheme, Mosul would fall under a French protectorate; the city was seen as more closely linked to Aleppo in Syria than Baghdad at the time.
But the British coveted Mosul’s oil, while the French sought to maintain control of Syria, even though British forces had been the ones to take Damascus from the Ottomans during the war. A deal was struck that gave the British a mandate over Mosul and the French colonial rights over Syria and Lebanon. The Europeans reneged on assurances they had given Arab allies during World War I that they would allow an independent Arab state to emerge. Instead, the political map of the Middle East was shaped by British and French colonial concerns and “Sykes-Picot” became short-hand for a toxic legacy of foreign meddling and domination.
The integration of Mosul into the other vilayets to the south, writes Middle East historian Juan Cole, compelled the “British to depend on the old Ottoman Sunni elite, including former Ottoman officers trained in what is now Turkey. This strategy marginalized the Shiite south, full of poor peasants and small towns, which, if they gave the British trouble, were simply bombed by” the British air force.
The template was set. Iraq, under the rule of a British-installed monarchy, achieved independence in 1932. In a matter of decades, the monarchy would be abolished and, after a series of coups, the authoritarian Baathist party of Saddam Hussein took over. A cadre of Sunni political and military elites went on to dominate a majority Shiite nation until the 2003 U.S. invasion.
The Turkey that never was
In 1920, in its last session, a defeated Ottoman parliament declared in a six-point manifesto the conditions on which it would accept the end of World War I following the armistice in 1918. There are differing versions of the proposed borders of a shrunken Turkish state that the nationalists in the Ottoman parliament put forward — one of them is reproduced above. Some areas indicated would be allowed to hold referendums; others were considered integral Turkish territory. As you can see, though, Mosul was very much part of this vision.
Instead, the Ottoman court signed the withering Treaty of Sevres in 1920, which would have seen what’s now Turkey carved up into various spheres of influence controlled by the West, Kurds, Armenians and others. That never came to pass: Turkish nationalists in the Ottoman army mobilized and eventually forced out foreign forces. In the 1923 Treaty of Lausanne, Turkey’s modern borders were set.
Mosul, though, was a sticking point, with Turkish nationalists laying claim to it and demanding Britain hold a plebiscite in the region that’s now northern Iraq. That didn’t happen, and after some fitful politicking at the League of Nations, Turkey and Britain eventually agreed to an arrangement in 1926 where Ankara dropped its claim to Mosul and the nearby cities of Kirkuk and Sulaimanyah in exchange for a portion of the region’s oil revenues over the next 25 years.
This history has bubbled up once more in the wake of the Mosul offensive: Turkish President Recep Tayyip Erdogan, adamant that his country’s forces play a role in the mission, invoked the 1920 document when justifying his nation’s right to be “at the table.” Officials in Baghdad were not impressed.
The chaos of the moment
And here’s the current state of play. Mosul is now at the center of a regional conflagration: It’s occupied by an extremist Sunni organization that rose to power as the Iraqi and Syrian states imploded. An Iraqi government backed by pro-Iranian Shiite militias is seeking to retake the city with the aid of Kurdish peshmerga forces, whose fighters are well aware of their own people’s long, bitter quest for an independent Kurdish homeland. And it’s eyed by Turkey, wary of the growing aspirations of Kurdish nationalists in the region and eager to reassert its own influence in a part of the world that was once under its sway.
Notice that for years, no terrorist has been captured on the battlefield, they have simply been killed per the edict of the Obama administration. It has made intelligence collection and cultivation almost impossible and in some cases under the previous administration has led to the deaths of innocent civilians due to collateral damage or bad ground control.
The most recent capture was in 2014 of Abu Khattalah of Benghazi, the only terrorist detained and he is presently being held in the Washington DC area.
The Trump administration appears to be making its first moves toward fulfilling a campaign promise to fill the Guantanamo Bay prison camp with “bad dudes.”
Attorney General Jeff Sessions and Deputy Attorney General Rod Rosenstein visited the prison on Friday to get an update on current operations, the first concrete action the administration has taken on the facility since taking office.
Up until now, Guantanamo has been running on autopilot; the executive order from former President Obama calling for the facility to be shut down is still technically the law of the land. More here from The Hill.
ABC
GUANTANAMO BAY NAVAL BASE, Cuba — In the highest-ranking known visit by a Trump administration official, Attorney General Jeff Sessions and the Director of National Intelligence, Dan Coats, were visiting this remote outpost Friday to get “an up-to-date understanding” of current war-on-terror operations.
Rod Rosenstein, Sessions’ deputy, was also on the tour. Its first stop was the war court compound, Camp Justice, where the Pentagon holds pretrial hearings in the death penalty case against five alleged plotters of the Sept. 11 terror attacks, and others accused of terrorism and war crimes.
They also toured the Detention Center Zone where, after an extensive Obama administration downsizing effort, the Pentagon holds 41 war prisoners, 10 charged with crimes and five cleared for release through Obama or Bush administration review boards.
“Keeping this country safe from terrorists is the highest priority of the Trump administration,” Justice Department spokesman Ian D. Prior said in a statement issued before the VIP party landed at the base and took a special boat rather than the large ferry across Guantanamo Bay.
A court hearing was postponed until afternoon to accommodate the visit. It comes as the chief war court judge, Army Col. James L. Pohl, has been openly complaining about insufficient resources to mount a robust schedule of 2018 hearings in the 9/11 and USS Cole cases.
Other attorneys general have visited the site, including Michael Mukasey for the Bush administration in 2008 and Eric Holder for the Obama administration in 2009. This visit — coming more than five months into the Trump administration, even as the White House has yet to officially rescind Barack Obama’s 2009 closure order — may be seen as a signal of support for the detention operation and the war court where six men are in pretrial, death penalty proceedings for the Sept. 11 and USS Cole attacks.
The one-day visit was announced hours before a Saudi man was due at the war court for a pre-sentencing hearing. Ahmed al-Darbi pleaded guilty to war crimes in February 2014, in exchange for a commitment to let him serve out his sentence of up to 15 years in his homeland starting next year.
“Recent attacks in Europe and elsewhere confirm that the threat to our nation is immediate and real,” Prior said in his statement, “and it remains essential that we use every lawful tool available to prevent as many attacks as possible.”
He said the goal of the visit was for the officials to meet with “the people on the ground who are leading our government-wide efforts at GTMO,” using the Navy acronym from for the 45-square-mile base in southeast Cuba. “In addition to the Department of Justice’s role in handling detainee-related litigation,” he added, “it is important for the Department of Justice to have an up-to-date understanding of current operations.”
Coats’ spokesman, Timothy L. Barrett, issued an identical statement to the Department of Justice’s on the trip’s purpose: “To gain an understanding of current operations by meeting with the people on the ground who are leading our government-wide efforts at GTMO.”
Others on the tour included Adm. Kurt Tidd, the commander of the U.S. Southern Command, which has oversight of the prison; Navy Rear Adm. Edward Cashman, the detention center commander; and Col. Steve Gabavics, the head of the guard force, said Pentagon spokesman Air Force Maj. Ben Sakrisson.
He declined to say whether they visited the prison’s clandestine Camp 7, where former CIA captives are kept in military custody, in what he called a “standard tour of the camps.” The group had lunch in the Detention Center Zone at the Seaside Galley mess hall where guards and other prison staff eat.
Sessions first visited in late January 2002 as a U.S. senator and has long been one of the most enthusiastic supporters of the prison and military commissions system, whose rules are a hybrid of U.S. military and federal legal systems.
The visit comes as the U.S. Southern Command, not so long ago run by Homeland Security Secretary John Kelly, is proposing an up to $100 million construction project to house 13,000 temporary migrants and 5,000 support staff on the base near the airstrip. The Navy, in announcing the proposal, called it a “contingency mass migration complex.”
The war court and Detention Center Zone staffed by 1,500 troops and civilians are on the opposite side of the base, requiring a ferry ride across Guantanamo Bay.
No such mass exodus is foreseen. First, the Obama administration canceled a decades-old “wet foot, dry foot” policy that let Cubans who reach U.S. shores gain legal entry. Now the Trump administration is pursuing deportations of undocumented immigrants, a program championed by Sessions.
“There are no detention facilities involved in this project,” Southcom spokesman Army Maj. Vance Trenkel said by email on Thursday. “This project is to assist with mass migration operations … caused by things such as a natural disaster.”
In the 1990s the base was used to shelter more than 50,000 Cubans and Haitians who were stopped at sea from reaching the United States.
Graphic on the estimated global atomic weapons stockpile
Primer:
After almost five years of difficult negotiations, Russia and China moved to a new level of arms trade in 2015. Russia finally agreed to sell China 24 Sukhoi‑35 (Su-35) combat aircraft and four S-400 SAM systems for approximately USD $7 billion. These are currently among the most advanced weapons Russia produces. This agreement marked a turning point. It was the first significant sale of Russian major weapons to China since the mid-2000s, representing a sizeable addition to Russia’s total annual value of arms exports, which has hovered between USD $13.5 billion and USD $15 billion in recent years.
The agreement could herald a new phase of large sales of Russia’s most sophisticated arms to China. However, it could also be viewed as a last chance for Russia to gain some income from arms sales to China before the latter becomes self-sufficient. The first scenario would fit the picture of warming Russian–Chinese relations, following the crisis in Ukraine. The second scenario is more tightly bound to Russian financial hardships and the difficulties in its arms industry since 2015. This sale could well be the last chance for Russia to engage in a major sale of military equipment to China. At the same time as the Su-35 and S-400 are due for delivery, China will be introducing its own more advanced Jian-20 (J-20) combat aircraft, as well as its own advanced jet engines, large transport aircraft, helicopters and long-range SAM systems—many of which are on a par with or even better than Russian systems.
When it comes to the arms trade, China has not only learned from Russia, but succeeded in challenging it. Given its financial and defence industrial base, China is likely to have more chances to develop new military technologies than Russia. China’s electronics, composites, advanced materials and shipbuilding industries are all more advanced than those in Russia. The size of the Chinese economy means that it has many more resources and much more manpower to invest in research and development. Thus, it is more than likely that China’s military technology will surpass that of Russia on all levels. More detail and history here.
SEOUL, July 7 (Yonhap) — South Korean President Moon Jae-in sought to rally support from other global leaders Friday in condemning North Korea for its recent missile provocation and ridding the communist state of its nuclear ambitions, his presidential office Cheong Wa Dae said.
“It is not a scheduled topic for discussion, but as president of the Republic of Korea I cannot but talk to you about another serious challenge that urgently requires the joint interest and action of the G20,” the South Korean president said in the Leaders’ Retreat on the sidelines of the Group of 20 summit held in Hamburg, Germany, referring to South Korea by its official name.
“And that is North Korea’s nuclear and missile provocations,” he added, according to a script of his remarks released by Cheong Wa Dae.
Moon’s remarks came after the communist North launched what it claimed to be its first intercontinental ballistic missile (ICBM) earlier in the week, prompting fresh condemnations from Seoul and its allies.
In a three-way meeting with U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe in Hamburg on Thursday, the South Korean leader was joined by his U.S. and Japanese counterparts in calling for stronger sanctions by the international community to bring North Korea to a dialogue table to discuss its denuclearization.
“To resolve the North Korean nuclear issue that has become a global threat, the international community will have to put enhanced pressure on North Korea,” partly by issuing a new U.N. Security Council resolution, Moon told other G20 leaders at their retreat.
“By doing so, we must make the North Korean regime realize that its nuclear arms and missiles will never guarantee its existence and come to the dialogue table,” he added.
The South Korean president also rallied support for what he called the “clear determination” of G20 leaders to jointly address the issue at their gathering this week, apparently seeking a joint reaction or a statement from the global leaders condemning the North’s missile provocations.
“I ask for you, G20 leaders’ full interest and support,” he said.
Kim Jong Un’s Big Nuclear Push Is Closing In on America
Bloomberg: Kim Jong Un has sped up North Korea’s nuclear program since he took power in late 2011, testing more powerful weapons and developing longer-range missiles to carry them.
On July 4, North Korea said it had successfully test-fired an intercontinental ballistic missile called the Hwasong-14, a claim that brings the isolated state closer to its aim of building a device capable of hitting the U.S. mainland with a nuclear warhead. The United Nations Security Council will hold an emergency meeting later Wednesday after the U.S. confirmed North Korea’s rocket launch was its first intercontinental ballistic missile.
Still, the launch risks a serious escalation with North Korea’s neighbors and the U.S. over its weapons program. The regime is thought to possess rockets that can hit South Korea and Japan with as many as 20 atomic bombs. More here with graphics.
According to Reuters, Moscow said it believes North Korea fired an intermediate-range ballistic missile on Tuesday.
The Trump administration has confirmed it was, in fact, a longer-range intercontinental missile that has the potential to reach the U.S.
“The rationale is that based on our (Ministry of Defense’s) assessment we cannot confirm that the missile can be classified as an ICBM,” Russia’s U.N. mission said in an email to its Security Council colleagues, Reuters reported.
“Therefore we are not in a position to agree to this classification on behalf of the whole council since there is no consensus on this issue,” the email said.
U.S. Ambassador to the United Nations Nikki Haley criticized Russia’s reluctance to recognize North Korea launched an intercontinental missile capable of reaching the U.S. according to experts, a threshold North Korea has not reached before.
“If you need any sort of intelligence to let you know that the rest of the world sees this as an ICBM, I’m happy to provide it,” she told the Security Council on Wednesday.
Security Council resolutions have to be agreed to by all 15 members.
Reuters reported it’s uncertain if the U.S. will negotiate with Russia to adjust the resolution.
Primer: Moscow hired thousands of North Koreans to build the infrastructure for the Sochi Olympics. Russia still uses North Korean slaves for mining and forestry. The North Koreans are hired slaves that have to send their pay checks back the the Kim regime. Not to be outdone, Qatar is doing the same with slaves from the DPRK, as they are hired to build the stadium for the FIFA World Cup Soccer games in 2020.
North Koreans are hired out to foreign corrupt governments to work 20 hours a day with a pay rate of $100 per month (US$) and 70% of that goes back to Pyongyang as a loyalty payment.
By the way, China, Kuwait, Libya, Africa, Oman and several other countries hire the slaves and their living conditions don’t even qualify as slums, they are much worse.
So, while there is much worry about the missile and nuclear program at the hands of North Korea, China is a major culprit in full assistance and cooperation in that regard. Further, China has aided North Korea and other terror regimes in skirting not only United States sanctions, but those from applied by other nations.
Over the last eight years, the Obama administration has hardly taken any aggressive stance with regard to North Korea and consequences except to shut off humanitarian exports to the country. President Trump meanwhile is trusting Russia and China to deal with North Korea? Worse mistake yet.
Deeper dive…
The Global Web That Keeps North Korea Running
Pyongyang’s ties with 164 countries help it amass money and know-how to develop nuclear weapons
By: Jonathan Cheng in Seoul, Jeremy Page in Beijing and Alastair Gale in Tokyo
WSJ: North Korea may be one of the world’s most isolated countries, but the tightening sanctions regime it has lived under for the past two decades is anything but impermeable.
An examination of North Korea’s global connections reveals that even as it becomes increasingly dependent on China, Pyongyang maintains economic and diplomatic ties with many nations. Those links—from commercial and banking relationships to scientific training, arms sales, monument-building and restaurants—have helped it amass the money and technical know-how to develop nuclear weapons and missiles.
The nature and extent of North Korea’s global ties comes from current and formal officials, researchers, North Korean defectors, U.N. decisions, NGO’s and an analysis of economic statistics.
North Korea: What Comes After the ICBM Test?
In some cases, North Korea leans on old allies, particularly those like Cuba from the former Communist bloc, or those like Syria that are similarly hostile to the U.S. In others, notably in Africa, it has more transactional relationships to supply items such as cheap weaponry or military training. In the Middle East, it supplies laborers for construction work and pockets almost all their earnings.
Sanctions against North Korea haven’t been as broad as those applied to Iran over its nuclear program, nor as rigidly enforced.
David S. Cohen, undersecretary of the Treasury for terrorism and financial intelligence during the Obama administration, wrote in an op-ed in April that “North Korea has gotten off relatively easy, especially as compared with Iran.”
Trying to crack down on North Korean business activities is like a game of Whac-A-Mole. North Korean defectors have detailed how the regime uses front companies to conceal its commercial activities in foreign countries, or adopts business names that obscure their identity by avoiding using North Korea’s full name, thereby benefiting from confusion over whether the entity is North or South Korean.
Pyongyang maintains diplomatic ties with 164 countries and has embassies in 47, according to the National Committee on North Korea, a Washington-based nongovernmental organization, and the Honolulu-based East-West Center.
Although it lags far behind China, India has been North Korea’s second biggest trade partner in the past couple of years, buying commodities including silver and selling it chemicals among other goods. Russia has exported petroleum products to North Korea and imported items such as garments and frozen fish. Last year, North Korea attempted to export military communications equipment to Eritrea via front companies in Malaysia, according to a recent U.N. report.
Most North Koreans abroad are involved in providing funds for the state, defectors say. One of the primary roles of North Korean diplomats is to help develop and maintain cash flows for the regime, according to former embassy officials. North Korea missions typically have to be self-financed to maximize revenue for the state, these people say.
In recent months, under pressure from the Trump administration, there are signs more countries have begun to clamp down on North Korea. In February, Bulgaria had Pyongyang send home two diplomats in its embassy in Sofia, in line with U.N. Security Council resolutions passed in September calling on countries to reduce the number of North Korean diplomats abroad.
Italy this year moved four North Koreans studying at the International Center for Theoretical Physics in Trieste to switch to less-sensitive majors in line with a Security Council resolution calling for member nations not to provide education that could aid Pyongyang’s weapons program.
In March, Senegal said it suspended issuing visas for artisans from North Korea’s Mansudae Art Studio, a state-run organization that has erected monumental sculptures across Africa.
This image, from North Korea’s KRT, shows what it said was the launch of a Hwasong-14 intercontinental ballistic missile. Photo: /Associated Press
More than 50,000 North Korean workers are employed abroad, according to the Asan Institute for Policy Studies, a Seoul-based think tank, many in construction or factory jobs. For these workers, wages are paid directly to North Korean officials, raising hundreds of millions of dollars a year for the state, human-rights groups say.
These ties are under scrutiny as Pyongyang’s success at launching a missile that could reach Alaska is escalating the crisis over its weapons program. This week’s missile test took place on the back of a Chinese truck imported to North Korea for logging purposes, according to analysts.
U.N. sanctions are primarily intended to block North Korea’s illegitimate trade and revenue streams that have a suspected link to its weapons programs. The U.N. doesn’t target all of Pyongyang’s business activities abroad, such as the chain of restaurants it operates in Asia and the Middle East, or its dispatch of laborers.
U.S. sanctions go further in trying to disrupt North Korea’s trade and revenue, including a recent move to block access to the U.S. financial system for a bank in China on which Pyongyang relied. The U.S. has sanctioned North Korean leader Kim Jong Un, a move that would freeze any of his assets in America.
Video from a North Korean state news bulletin Tuesday was said to show leader Kim Jong Un applauding after the launch. Photo: Yonhap News/Zuma Press
This week, Sen. Cory Gardner (R., Colo.), chairman of the Senate Foreign Relations Committee’s subpanel on East Asia, said he was drafting legislation that he says would create a “global embargo” on North Korea.
“We need to shut off North Korea’s access to oil, to trade, to currency, to financial institutions,” he said in an interview Thursday, calling for “Iran-style” sanctions. “They are far from being ‘sanctioned out.’ They are certainly isolated, but they have to recognize they ain’t seen nothing yet.”
China has had close ties to North Korea since the 1950s when it sent troops to fight U.S.-led forces backing the South in the Korean War.
In 2001, China accounted for around 18% of North Korea’s exports and 20% of its imports, ranking behind Japan on both measures, according to customs figures compiled by Harvard University’s Atlas of Economic Complexity.
Since U.N. sanctions on North Korea were tightened in 2009, Japan and other countries have curtailed commercial ties with Pyongyang, leaving China as by far its biggest trade partner.
For the past five years, China has accounted for more than 80% of North Korea’s imports and exports, providing an economic lifeline even as political relations between Beijing and Pyongyang have deteriorated.
During that period, China has imported mostly industrial raw materials from North Korea, especially coal, but also seafood and clothing such as men’s suits and overcoats.
In recent days, President Donald Trump has expressed frustration with China for expanding trade with North Korea despite U.S. appeals to exert more pressure.
China says it enforces U.N. sanctions and since February it has banned imports of North Korean coal—one of Pyongyang’s main sources of hard currency.
However, U.N. sanctions still allow trade that isn’t deemed to benefit North Korea’s nuclear and missile programs, and China’s customs figures show that its exports to North Korea have increased this year. Crucially, China continues to be North Korea’s biggest source of crude oil, according to diplomats and experts on the region.
Much of North Korea’s trade takes place over the 880-mile land border with China, which is porous and sparsely guarded. Small Chinese and North Korean companies quietly ferry coal, iron ore and other resources over the border, far from checkpoints.
U.N. sanctions introduced in March 2016 banned exports of North Korean iron ore unless they were exclusively for “livelihood purposes”—a loophole China continues to exploit.
While North Korea gained notoriety in the early 2000s for state-backed exports of illegal drugs and counterfeit U.S. dollars, Pyongyang has mostly shifted its strategy to allow private North Korean enterprises to take the lead, with the regime collecting bribes from these enterprises in a primitive system of taxation, says Justin Hastings, a lecturer at the University of Sydney who has researched North Korea’s overseas smuggling networks.
The shift in strategy means that North Korea can outsource some of the risk involved in the trade while continuing to fill its coffers.
“North Korea is not infinitely adaptable, but it’s far more adaptable than people have thought and its ability to adapt to sanctions has not been reached yet,” Mr. Hastings said.
One informal Chinese trader that Mr. Hastings interviewed for a soon-to-be-published academic paper was importing truckloads and boatloads of North Korean iron ore and other minerals across the river into China for resale as recently as a year ago, when the interview took place.
ABC
