When President Trump visits Beijing on his Asian trip now in progress, China is expected to roll out the red carpet. But Chinese leaders are spooked. President Trump is the first American president to sanction a Chinese bank for helping North Korea evade U.S. and United Nations economic sanctions.
Chinese President Xi Jinping will no doubt flatter his American guest, hoping that President Trump prefers the image of a successful summit to a confrontation over sanctions. But President Trump should not fall for it.

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With North Korea on the brink of being able to strike the U.S. with a nuclear missile, President Trump must increase pressure on Pyongyang and its enablers, especially Beijing.
China has responded well to U.S. pressure so far. For example, it issued a banking directive prohibiting financial transactions with North Koreans and another directive prohibiting North Korean businesses in China and joint ventures. But this is not enough.
China accounts for an estimated 90 percent of North Korean trade, giving it significant economic leverage. And according to the U.N., China imported $182 million of North Korean coal in August and September this year, despite its February pledge to stop the practice.
If Beijing cannot implement its own coal restriction, we should not trust that it will act against its own citizens who help North Korea evade economic sanctions. President Trump should tell Xi as much.
While the two leaders should project a cordial relationship in public, President Trump should warn Xi in private that Washington will move forward with robust sanctions targeting Chinese companies and banks that facilitate North Korea’s evasion of sanctions.
Chinese entities that strengthen North Korea’s economy by getting around sanctions undermine the American policy of financially isolating North Korea. That isolation is key to gaining leverage as a means to prevent a military conflict.
Xi knows what’s coming. The Trump administration has already sanctioned Chinese and Russian facilitators of North Korea’s sanctions evasion, and in September sanctioned 26 overseas representatives of North Korean banks.
These actions are a clear warning shot to Beijing that Washington is widely expected to target additional Chinese nationals and banks that play a key role in these illegal schemes.
The Trump administration should take a page from the Iran sanctions playbook and issuefines against Chinese banks for failing to identify North Korean transactions – similar to the $12 billion in fines issued from 2012 to 2015 against European banks for Iran sanctions violations.