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>> The US unveil their top new round of North Korea sanctions this week aimed at companies doing business with Pyongyang. But so far, the US has avoided targeting the huge China based banks that give Kim Jong-un's regime access to global markets, and critics say, feed its nuclear ambitions.
David Brugsman is on the story.>> This is something that they've held off doing in a substantial way so far, because it's something which is described as really a blunt instrument>> It's very effective but carries with it the risk of destabilizing the world economy.>> Imposing the so-called secondary sanctions on China could include barring targeted Chinese bank from using the US dollar or moving funds through American banks.
Those moves would not sit well with China, the largest US trading partner in terms of goods, and a place where many American companies have huge interests. Reuters has learned that while some in the Trump administration want to go after Chinese banks, they're locked in a battle with a more moderate business friendly faction led by treasury secretary Steve Mnuchin and economic advisor Gary Cohn.
>> I think the concern is especially amongst them all liberal, pro-trade officials in the Trump administration, is that this sort of drastic action against Chinese banks could result in retaliation by Beijing. I think the hope in the administration at the moment is that mainly the threats of these sort of drastic steps will encourage China to take tougher action on its own.
>> But there's some precedent for the tactic, similar sanctions on Iran that crippled its oil industry and sank its economy, are credited by many for leading to the Iran nuclear deal>> They proved to be extremely effective. The question is whether they would be quite as effective in the case of North Korea, given that North Korea is less integrated in the worlds financial system than Iran is and was.
>> The US Congress is due to consider a legislation requiring US measures against any banks that deal with North Korea. The measure based on the same sanctions that were leveled against Iran.