According to the U.S. government, it has found a basis to connect a Chinese company to the nuclear weapons production in North Korea. Beijing recently protested the action and said that there was no connection.
The Foreign Ministry said China objects to actions that exercise jurisdiction over a Chinese entity or individual, especially if charges are based on domestic laws.
Dandong Hongxiang Industrial Development Co, the company being investigated by the public security authority, is a cross-border trading company registered near the China-South Korea border.
The company is being accused of "violating U.S. laws against supporting weapons of mass destruction proliferators." Four executives are facing charges.
The local government of Liaoning confirmed that that company is engaged in committing "serious economic crimes."
Foreign Ministry spokesman Geng Shuang said, "Any enterprise or individual found in breach of the regulations will be treated seriously. In this process, if necessary, we would like to embark on cooperation with the relevant country on the basis of mutual respect and equality."
The foreign minister said that China is against North Korea's moves to develop nuclear weapons.
Geng said, "However, I want to stress that we oppose any country enacting so-called long-arm jurisdiction, using its own domestic laws against a Chinese entity or individual. We have already communicated this position to the U.S. side."
Analysts believe that the U.S. is using this issue so China will pressure North Korea to stop its weapons production.
Zhang Liangui, an expert on Korean studies at the Party School of the Central Committee of the Communist Party of China, said, "The U.S., in the meantime, knows clearly that the existing sanctions against the D.P.R.K. will not be a success without China's cooperation, so it is navigating the case issue cautiously to avoid angering Beijing."
However, another analyst thinks that the U.S. cannot rely on China.
"The United States cannot rely on China for North Korea," said Shi Yinhong, a professor of international relations at Renmin University in Beijing. "China is closer to North Korea than the United States."