Mustafa AY – TDO – 06.07.2017- Following a successful intercontinental ballistic missile test (ICBM) launched by N. Korea, US government has just widened the extent of sanctions not only for North Korea, but also for other Asian countries. With this decision, US government shows the severity of the situation on the grounds that US department of treasury took other Asian financial institutions under monitoring and surveillance. This situation reasonably leaves an unfavorable impression because North Korea has now available-to-launch IBCM which has enough range to hit USA. US Treasury Secretary, Steve Mnuchin, uttered that Chinese finance named ‘Bank of Dandong’ is monetarily endorsing North Korea in the meantime of US financial operation aimed at revealing both financial and commercial institutions helping N. Korea. The reason why Washington made this decision is that Bank of Dandong would have subsided North Korean ICBM tests.
President Trump indirectly called Xi Jinping to take his financial institutions under scrutiny. Trump’s aim here is to hinder public opinion against his sanction-decisions. That US government expand its crackdown across the region likely substantiates the allegation of North Korea’s infiltration into US financial framework with aid of Bank of Dandong. Whole these turn of events bothering USA would be such a valid worry that North Korea would have transferred the Money earned from USA to ICBM tests. In case of possible scenarios that would come to true, US department of treasury and intelligence agencies – CIA and NSA – will be perceived like ‘they fell into infirmity’. For this reason, US intelligence agencies as well as department of treasury may likely be subject to loss of reputation on global political arena.
Chinese Bank of Dandong may have subsided not only ICBM programmer, but also other field of works of North Korea. In detail, it may have subsided cyber-attacks, served for Kim Jong-Un’s obsession to luxury goods and illicit trafficking activities. The motive why this claims were come up by US government are attributable to N. Korean cyber-attack on US banks. Besides, with limited technological, qualified human and educational infrastructure, it is very hard to conduct such attacks. For this reason, Chinese bank may have provided North Korea with all those resources. However, during press conference, Steve Mnuchin did refuse to shed lights on all those doubts occupying minds. Illicit drug and endangered animal species trafficking, 1 million dollars’ worth Mercedes limousine, luxurious yacht and hotels requires 650 million dollars budget to be allocated by Kim Jong regime. However, to be able to take all those luxuries into service, Kim Jong-Un has to create surplus from the country’s foreign trade. Because N. Korea has no producing power that can compete in global economy. But only agriculture is available in the country which is peculiar to interventionist state.
Annual export of North Korea is in the level of approximately 2.85 billion dollars. 82 percent of total export are being traded with China. Remaining 18 percent are being traded with other neighboring Asian countries. When it comes to annual import of N. Korea, it is worth of 3.47 billion dollars. 85 percent of total import are being traded with China again. Remaining 15 percent are being traded with those countries that N. Korea exported its goods. This values generates almost 700 million dollars’ worth foreign trade deficit. Although North Korea has no sufficient budget to afford all these and has been going through severe poverty and famine, Kim Jong-Un regime can afford. This raises doubts with regards to if Chinese bank helped them.