The US Treasury department has severed a small Chinese bank’s ties with the US financial system over its alleged support for North Korea’s nuclear weapons programme.
The measures against Bank of Dandong come days before Donald Trump’s first official visit to China and indicate that questions over China’s relationship with North Korea will continue to dog the relationship between the US president and his Chinese counterpart Xi Jinping.
The Treasury’s financial crimes unit said in a statement late on Thursday that the bank in Dandong, on China’s border with North Korea, had acted “as a conduit for illicit North Korean financial activity”.
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