China probes company accused of North Korea trade violations

Chinese authorities are investigating a company that researchers say sold North Korea materials that can be used by its growing nuclear weapons program in a crackdown that reflects Beijing's growing frustration with its isolated neighbor.
The announcement about Hongxiang Industrial Development Co. In Dandong, a northeastern border city in Liaoning province, was unusually explicit for Beijing, whose dealings with the North are shrouded in secrecy.
Hongxiang is suspected of unspecified "serious economic crimes," according to separate announcements by police in Liaoning and China's foreign ministry. They gave no details but a South Korean think tank said last month it supplied aluminum oxide and other materials that are used in processing nuclear bomb fuel.

Beijing has long been North Korea's main source of aid and diplomatic support but President Xi Jinping's government is showing growing frustration with Pyongyang's pursuit of nuclear weapons in defiance of foreign pressure.
China signed on in March to UN sanctions that limit trade with the North and has tightened controls on cross-border flows of goods. Security Council resolutions prohibit nuclear weapons development by the North and all ballistic missile activity.
The government of North Korean leader Kim Jong Un conducted its fifth nuclear test on September 9. That raised concern abroad it was moving closer to its goal of a nuclear-armed missile that could one day strike the US mainland.

"China will definitely take harsher measures including economic sanctions and more proactive measures to prevent North Korea from developing nuclear weapons," said Lu Chao, director of the Border Study Institute of the Liaoning Academy of Social Sciences, a government think tank.

"Although It is rare for China to announce the punishment of its own companies, it shows the firm determination to implement relevant UN resolutions," said Lu.
The Wall Street Journal reported this week US officials suspect Hongxiang and its chairwoman, Ma Xiaohong, of helping Pyongyang evade UN-imposed restrictions on trade.
Ma founded Hongxiang in 2000 and the company has expanded into trade, hotels and tourism.

Washington has pressed Beijing to lean harder on Pyongyang, but Chinese leaders have resisted for fear of destabilizing Kim's government and setting off a flood of refugees or a political collapse that might lead to US and South Korean troops being stationed in the North near China's border.
Phone calls to Hongxiang's headquarters in Dandong were not answered today. People who answered the phone at Dandong police headquarters said they had no information about the investigation. The Liaoning provincial police headquarters didn't respond to questions sent by fax.