If this U.N. resolution fails to deter the Kim government, Newsham said, the United States would be justified to pursue secondary sanctions against Chinese banks and entities that do business with North Korea.
South Korea's national security office predicted that the new sanctions, in conjunction with existing bans on coal, mineral and seafood exports, would cut North Korea's annual export revenue by over 90 per cent. Experts estimated that this can translate to export earnings of up to US$1.3 billion (S$1.75 billion).
Concern is rising in China the United States may be launching an arms race in the region, following a statement from Sen.
Haley said the objective of the increasing sanctions is to convince the Kim government to end its threatening nuclear missile development program in exchange for sanctions relief, economic aid and security guarantees. The ban on textiles has not been a problem.
"It's important to change North Korea's policy through pressure that is stronger than they've ever seen", said Abe. The new resolution provides that on the expiry of the contracts of employment of the expatriates.
A Center for Advanced Defense report released in June asserts that North Korea's vast overseas financial and procurement networks are "ripe for disruption", concluding these networks are "centralized, limited, and vulnerable". The reclusive nation also warned the U.S. would suffer the "greatest pain" for engineering harsh sanctions against Pyongyang.