On Friday June 29th, the United States unveiled new measures against Chinese targets that are alleged to facilitate illicit financial flows into North Korea. The unprecedented move marks a turning point in Washington’s North Korea policy and one that could precipitate further tensions with Beijing.

Of greatest significance was the U.S. Treasury Department’s announcement that it had identified China’s Bank of Dandong as a financial institution of primary money laundering concern, alleging that it enabled the transaction of millions of dollars contributing to North Korea’s WMD programs.

With diverging strategic