China halts oil products' exports to North Korea

[Stephen + 67]

Last week, the UN Security Council unanimously voted in favor of the resolution to introduce new sanctions against North Korea for its continuing ballistic missile tests. China exported no oil, gasoline, jet fuel and diesel to North Korea in November and imported no iron ore, coal or lead from the country, Reuters reported citing data released by the General Administration of Customs

 

[JohnAtronis + 78]

Completely cutting off the oil supply for North Korea would be a drastic step and wouldn’t destabilize the regime. They could cut its non-military use of oil substantially to ensure that the military felt no near-term effects. Also, oil supply is not a significant constraint on North Korea's nuclear and missile programs. 

[Joanna + 68]

How about this scenario. If an oil embargo does bring about regime instability or even regime collapse, are we ready to deal with the consequences?

[JohnAtronis + 78]

As the consequences of an oil cut-off are felt, the regime will become increasingly desperate. Faced with its collapse, NK regime would completely withdraw from negotiating table. South Korea, Japan, Guam, and even the US homeland could be in danger.

Are the US administration and UN confident that they could win this game of chicken without initiating a nuclear war?

 

 

 

 

[Meanwhile + 49]

yes but North Korea also sources some of its oil from Russia. NK is still not cornered

[Joanna + 68]

Russia backed the resolution so that it could extract a higher price from NK on backchannel trades in software and missile tech.   Good way to do business.  

[JohnAtronis + 78]

Interesting parallels with Japan/United States in the 1940's. Bellow is the summary of historical events. My point is: If there are similarities and the last time the events led to world war -- what can we do differently this time to get our way without a world war? 

 

https://mises.org/library/us-japanese-relations-wwii

 

 

[Joanna + 68]

7 minutes ago, Meanwhile said:

yes but North Korea also sources some of its oil from Russia. NK is still not cornered

Every round of sanctions also required Russian and Chinese approval. I find it interesting that the North Korans keep avoiding naming them when criticizing UN sanctions.

[Joanna + 68]

19 minutes ago, Joanna said:

How about this scenario. If an oil embargo does bring about regime instability or even regime collapse, are we ready to deal with the consequences?

Both the US and NK haircut-model presidents need to tone down the macho.

[Kate Turlington + 44]

1 hour ago, JohnAtronis said:

Interesting parallels with Japan/United States in the 1940's. Bellow is the summary of historical events. My point is: If there are similarities and the last time the events led to world war -- what can we do differently this time to get our way without a world war? 

 

https://mises.org/library/us-japanese-relations-wwii

 

 

Great point! Unfortunately, we never learn from history and even that is historically proven

[Seleskya + 50]

Will have to watch this closely to see how it plays out, but for now I'm sure Russian traders will step in to fill the gap. It's not the first time, actually, that China has stopped oil flows to NK. They did it once in 2003. And since June, they haven't been selling gasoline or diesel to NK because they figured they wouldn't be getting paid for it. 

[Pavel + 384]

China denies any U.N. sanction-breaking oil sales by Chines ships to North Korea.

http://mobile.reuters.com/article/amp/idUSKBN1EM0TK?__twitter_impression=true

 

[Petar + 76]

The sanctions are an act of war against the Korean people. I hope China breaks them. If the West had its way, the North Korea would starved into submission and forced to bow at the alter of liberalism. 

[Pavel + 384]

 Russia did same as China. But as I can see that doesn't seem to upset public and official politics. 

[Vlad Kovalenko + 115]

And now Trump is very angry and disappointed and has to tweet again "There will never be a friendly solution to the North Korea problem if China continues allowing oil to flow into the country"!