Beijing has started implementing a new, strict United Nations Security Council resolution against North Korea. As per the resolution, China has instructed banks, ports, shipping and trading companies not to transact business with Pyongyang.

Adam Szubin, the US Treasury Department undersecretary, said China is taking the implementation of the sanctions seriously and has been taking steps to follow the UN resolution against North Korea to the letter.

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Szubin said the sanctions were not merely adding more North Korean companies on the sanctions list or blacklisting individuals suspected of funding Pyongyang's nuclear programme.

Money flow

The undersecretary said the new sanctions zero in on cutting the money flow to Pyongyang to prevent it from further financing its nuclear programme.

"The new UN resolution targets every major aspect of North Korea's access to international shipping, international trade and international banking to develop for its missile and illicit nuclear programme, " Szubin said.

Cheng Xiaohe, the People's University international relations expert, said economic trade between China and North Korea reached $6.39 billion in 2014.  

Chinese companies

With the new sanctions, Chinese companies are going to take the hit where it hurts, said Cheng.

"At the same time as we protect our national security interests, we must be prepared to sacrifice some of our own economic interests in order to accurately target North Korea with sanctions," he said.

Political observers say that while the US has few economic trade ties with Pyongyang to sever, China stand to lose economically with its implementation of the UN sanctions.

Impact

Analysts said whether the impact of international sanctions against North Korea will work or fail depend to a large degree on how strictly China implements them.

"I know from my meetings here in Beijing that my counterparts have very much taken the resolution to heart," Szubin said.

Szubin visited Beijing this week to meet with his Chinese counterparts to discuss the new UN resolution.

Decision-making calculus

According to the secretary, the new sanctions will 'hit hard enough to change Pyongyang's decision-making calculus.'

Analysts say that although Beijing appears committed, the new sanctions puts it in a tough spot both economically and politically.

TagsUnited Nations resolution, economic sanctions, North Korea, economic loss, international sanctions, $6.39 billion, china