Treasury Secretary Steven Mnuchin said in a statement that the department is "committed to protecting the USA financial system from North Korean abuse and maximizing pressure on the Government of North Korea until it abandons its nuclear and ballistic missile programs".
The U.S. Department of the Treasury announced a new set of actions Thursday aimed at increasing pressure on North Korea, including cutting off a Chinese bank that is accused of laundering money and providing financing to North Korea in violation of worldwide sanctions.
But experts who have closely watched the new administration's effort to encourage China to weigh heavier pressure on North Korea have long predicted Trump and his advisers would eventually hit a wall - just as past administrations have in similar efforts to elicit stronger cooperation from the Chinese on the North Korean nuclear issue.
The Treasury Department unveiled new sanctions on a Chinese company and two Chinese citizens tied to North Korea Thursday in response to North Korea's weapons program and its disregard for U.N. Security Council resolutions.
"While I greatly appreciate the efforts of President Xi & China to help with North Korea, it has not worked out", Trump tweeted on June 20.
Dandong "acts as a conduit for North Korea to access the U.S. and global financial systems, including by facilitating millions of dollars of transactions for companies involved in North Korea's WMD and ballistic missile programs", Treasury said. Treasury's actions reflect growing USA frustration over China's efforts to enforce global sanctions meant to starve North Korea of revenue for its nuclear and missile programs.
President Donald Trump Meet up Narendra Modi
But Indian officials have downplayed those differences, insisting that Modi was alert to Trump's concerns over jobs and trade. Trump, who has made jobs his first priority, also noted pointedly India's shopping for a large consignment of Boeing jets.
"If we find other activity, we will sanction other entities".
Mnuchin said the Bank of Dandong has facilitated millions of dollars of transactions for companies involved in North Korea's weapons of mass destruction and ballistic missile programs.
He says the U.S.is committed to cutting off all illegal funds to North Korea, which conducts 90 percent of its foreign trade through China.
"The designation will make reputable Western banks ask questions about larger financial institutions in China", said Ruggiero, now a senior fellow at the non-profit Foundation for Defense of Democracies. It named the two individuals as Sun Wei and Li Hong Ri.
Washington has repeatedly urged China to exert more economic and diplomatic pressure on North Korea.