BEIJING: China will suspend all imports of coal from North Korea for the rest of the year, Beijing said Saturday, depriving Pyongyang of a crucial source of foreign exchange following its latest missile test.
“(China) will temporarily stop its imports of coal from North Korea for the rest of this year (including coal for which customs applications have been made but not yet processed),” the commerce ministry said in a statement posted on its website.
South Korea’s Yonhap news agency reported last week that a shipment of North Korean coal worth around $1 million was rejected at Wenzhou port on China’s eastern coast.
The decision came less than a week after North Korea’s latest missile test, as tensions escalate over the reclusive state’s defiance of UN resolutions.
North Korea’s leader Kim Jong-un has been trying to strengthen his grip on power in the face of growing international pressure over his country’s nuclear and missile programs.
The communiqué from Beijing came as investigators in Malaysia probe the shock assassination of Kim’s half-brother on Monday.
The UN Security Council sharply castigated Pyongyang on Monday for the missile test a day earlier, describing it as a “grave violation” of UN resolutions and threatening “further significant measures.”
On Wednesday Pyongyang defended the missile launch and slammed the UN Security Council condemnation.
The rocket launch was the first since US President Donald Trump came to power and was seen as a challenge to the new American leader, who has vowed a strong response to the provocation.
Trump has repeatedly called out China for doing too little to help stop North Korea’s nuclear program.
US Secretary of State Rex Tillerson on Friday used his first meeting with Chinese counterpart Wang Yi to urge Beijing “to use all available tools to moderate North Korea’s destabilizing behavior.”
Pyongyang is barred under UN resolutions from carrying out ballistic missile launches or nuclear tests.
North Korea blasted off a series of missiles and conducted two nuclear tests in 2016 in its quest to develop a weapons system capable of hitting the US mainland.
The latest rocket — said by Pyongyang to be able to carry a nuclear warhead — flew east for about 500 kilometers (310 miles) before falling into the Sea of Japan (East Sea), South Korea’s defense ministry said.
The Security Council has imposed 6 sets of sanctions since Pyongyang first tested an atomic device in 2006.
Beijing traditionally ensured that UN Security Council resolutions on sanctions against Pyongyang included humanitarian exemptions, and had continued to purchase huge amounts of North Korean coal — $101 million worth in October alone.
But the latest resolution, passed in December, had no such clause and Beijing suspended purchases of coal from the North — for three weeks to Dec. 31.
China suspends coal imports from N. Korea
China suspends coal imports from N. Korea
Global brands shut Middle East stores as conflict causes chaos
- Luxury brands and retailers close stores in Middle East
- Conflict threatens the region that has been luxury’s fastest growing
- Mass-market retailers monitor situation, adjust operations in region
PARIS: In Dubai and other major Middle Eastern shopping hubs, many stores are closed or operating with a skeleton staff as the escalating conflict in the region causes chaos for businesses and travel.
The US-Israeli air war against Iran expanded on Monday with no end in sight, with Tehran firing missiles and drones at Gulf states as it retaliates for a weekend of bombing that killed Iran’s supreme leader and reportedly killed scores of Iranian civilians, including a strike on a girls’ primary school.
Chalhoub Group, which runs 900 stores for brands from Versace and Jimmy Choo to Sephora across the region, said its stores in Bahrain were closed, while other markets, including the UAE, Saudi Arabia, and Jordan remained open though staff attendance was “voluntary.”
“We operate with a lean team formed of members who volunteered and feel comfortable to come to the store,” Chalhoub’s Vice President of Communications Lynn al Khatib told Reuters, adding that the company’s leadership team personally visited Dubai Mall and Mall of the Emirates on Monday morning to check in with workers.
E-commerce giant Amazon closed its fulfillment center operations in Abu Dhabi, suspended deliveries across the region and instructed its employees in Saudi Arabia and Jordan to remain indoors, Business Insider reported on Monday, citing an internal memo.
Gucci-owner Kering said its stores were temporarily closed in the UAE, Kuwait, Bahrain and Qatar and it has suspended travel to the Middle East.
Luxury growth engine under threat
Shares in luxury groups LVMH, Hermes, and Cartier-owner Richemont were down 4 percent to 5.7 percent on Monday afternoon as investors digested the knock-on impacts of the conflict.
The Middle East still accounts for a small share of global spending on luxury — between 5 percent and 10 percent, according to RBC analyst Piral Dadhania. But the region was “luxury’s brightest performer” last year, according to consultancy Bain, while sales of expensive handbags have stalled in the rest of the world.
Now, shuttered airports have put an abrupt stop to tourism flows into the region and missile strikes — including one that damaged Dubai’s five-star Fairmont Palm hotel — are likely to dissuade travelers, particularly if the conflict drags on.
“If you assume that it’s a $5 billion to $6 billion (travel retail) market and let’s say it’s going to be shut down for a month, we are talking about hundreds of millions of dollars that are definitely at risk,” said Victor Dijon, senior partner at consultancy Kearney.
If Middle Eastern shoppers cannot travel to Paris or Milan, that could also hurt luxury sales in Europe, he added.
Luxury brands have been investing in lavish new stores and exclusive events across the region. Cartier unveiled a “high-jewelry” exhibition in Dubai’s Keturah Park just days before the conflict started.
Cartier and Richemont did not reply to requests for comment.
Luxury conglomerate LVMH has also bet big on the region. Last month, its flagship brand Louis Vuitton staged an exhibition at the Jumeirah Marsa Al Arab hotel, and beauty retailer Sephora launched its first Saudi beauty brand.
LVMH does not report specific figures for the region, but in January Chief Financial Officer Cecile Cabanis said the Middle East has been “displaying significant growth.” LVMH did not reply to a request for comment on how its business may be impacted by the conflict.
The Middle East has also attracted new investment from mass-market players. Budget fashion retailer Primark said in January that it plans to open three stores in Dubai in March, April and May, followed by stores in Bahrain and Qatar by the end of the year.
“Primark is set to open its first store in Dubai at the end of March but clearly this is a fast-moving situation which we are monitoring closely,” a spokesperson for Primark-owner Associated British Foods said.
Apple stores in Dubai will remain closed until Thursday morning, the company’s website showed, while Swedish fast-fashion retailer H&M said its stores in Bahrain and Israel are closed.
Consumer goods group Reckitt has told all employees in the Middle East to work from home, temporarily closed its Bahrain manufacturing site and suspended all business travel to the region until further notice.
