An unpublished and confidential report leaked recently that North Korea is trying to evade sanctions on nuclear arms testing. The report indicated that China has been protecting Pyongyang.
The report is contrary to what China's seeming intention of following the request from the U.S. of getting North Korea to abide by U.N. policies.
The U.N. report was completed by an eight-member team that is led by a British expert. The team is composed of other experts from China, Russia and the U.S.
"North Korea is flouting sanctions through trade in prohibited goods, with evasion techniques that are increasing in scale, scope, and sophistication," said the report.
The support given by China to North Korea is apparently beyond limiting the importation of products. The report indicated that China has imported coal, gold, and iron from North Korea.
The confidential report revealed that in the latter part of 2016, China has imported 2 million metric tons of coal from North Korea. The U.N.'s ceiling is 1 million tons.
China has been a hub for illicit trade and North Korea's front companies in China are still operating. When China was confronted by diplomats from America and Japan, the government refused to respond.
The front companies have been North Korea's access to international markets and get funds for nuclear weapons development. The firms have already established a wide network.
With the economic sanctions imposed by China, North Korea is still able to sustain its economic lifeline.
According to the report, "North Korea's business "networks are adapting by using greater ingenuity in accessing formal banking channels as well as bulk cash and gold transfers."
William Newcomb, a former member of the U.N. sanctions panel on North Korea, said, "You have designated entities that have continued to operate in China. It's not an accident. China's security services are good enough to know who is doing what inside their country."
China wants to maintain good relations with the U.N. Security Council but has shown little effort on implementing the U.N.'s interest to stop Pyongyang from trading nuclear weapons.
The U.S. is investigating a number of companies who are suspected to be fronts for North Korea. One of these companies is Dandong Hongxiang Industrial Development Co.
The company was sanctioned by Washington and should serve as a warning, according to Daniel Fried, sanctions policy coordinator at the U.S. State Department.