Trade data suggests China has all but halted exports of critical supplies such as petroleum to North Korea.
This economic pressure may explain an apparent change of policy from North Korean leader Kim Jong-un, who used his first official foreign visit to meet Chinese leader Xi Jinping in Beijing last month.
“Over the past five months, China’s exports of refined petroleum have collapsed,” said Alex Wolf, senior emerging markets economist at Aberdeen Standard Investments, who drew attention to the trade data in a research note.
North Korean imports of steel and cars from China have also dropped sharply, a signal the smaller economy is under considerable strain.
“While China’s role over the past few months has often been overlooked or little understood, it appears a strategy could be emerging: China wants to play a central role in 'resolving' this crisis, but wants to do it on its own terms,” said Wolf.
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