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China, N. Korea political, business ties grow: report
by Staff Writers
Beijing (AFP) May 10, 2013


US sanctions Taiwan company for N. Korea dealings
Washington (AFP) May 6, 2013 - The US Treasury on Friday set sanctions on a Taiwan company and its chief executive for their ties to an effort to supply arms-related equipment to North Korea.

The Treasury named Trans Multi Mechanics Co. of Taichung, Taiwan, and CEO Tony Chang Wen-Fu for sanctions under laws aimed at freezing the assets of those designated "proliferators of weapons of mass destruction" and their supporters.

The action came days after US prosecutors unveiled charges against two other Taiwanese men, Alex Tsai Hsien-tai and his son, Tsai Yueh-hsun, for attempting to smuggle machinery that can be used to make rocket parts out of the United States to North Korea.

The Treasury said Chang and his firm had significant roles in that effort.

Chang, 48, "has been actively involved in the procurement of dual-use machinery for North Korea," the Treasury said in a statement.

"Alex Tsai has used Trans Multi Mechanics Co. Ltd. to procure and ship hundreds of thousands of dollars' worth of equipment to North Korea and to negotiate contracts on behalf of North Korean parties."

Alex Tsai was recently arrested in Estonia and his son in the United States, after being on the radar of US and Taiwanese officials for several years for allegedly shipping restricted materials to North Korea. The senior Tsai is facing a US extradition request.

The sanctions ban Americans and US institutions from doing any business with Chang or his company, and freeze their US assets as well.

"It is essential that we continue to make it as difficult as possible for North Korea to facilitate its nuclear and ballistic missile programs by exposing key cogs in North Korea's procurement network," said David Cohen, treasury under secretary for terrorism and financial intelligence, in the statement.

North Korean visits to China have multiplied over recent years, a Chinese newspaper reported, underscoring growing political and business links between the isolated nuclear-armed state and its sole major ally.

There were a total of 180,600 visits by North Koreans to China in 2012, nearly twice as many as the 103,900 only three years previously, the investigative Southern Weekly said in its latest edition, citing official data.

"Ordinary people in North Korea are not free to go abroad (as they wish). Therefore, a rapidly growing number of people going abroad usually has certain political significance," the newspaper said.

In 2010 the then North Korean leader Kim Jong-Il came to China twice, suggesting closer political links, according to the report.

Tensions on the Korean peninsula have soared in recent months, with the North carrying out its third atomic test in February, the UN expanding sanctions and Pyongyang's young leader Kim Jong-Un threatening nuclear war against the US and the South.

One state-owned Chinese bank has said it decided to shut a North Korean bank's account, but Beijing has long come under pressure to intervene with its neighbour, which it supplies with vital aid, trade and energy.

The two have longstanding links, and North Korean visits to China for "meetings and commerce" purposes almost tripled from 2009 to 2012, going from 19,400 to 55,200, the Southern Weekly reported.

Journeys in the "labourer" category went up by more than 50 percent, going from just over 50,000 to nearly 80,000, it said, adding the figures were obtained from China's tourism authorities.

North Korean labourers, sent by Pyongyang to earn its much-needed foreign exchange, are travelling beyond the border town of Dandong to more Chinese cities including Shenyang and Dalian in the northeast as well as Beijing, it said.

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