TWO STEPS FORWARD… China Eyes Tighter Sanctions on N. Korea, but Limits Remain.

Analysts in China say the government is already doing all it can to keep the North in check. China cut coal imports from North Korea earlier this year and has been tightening financial flows to the North.

Lu Chao, a North Korea scholar at the Liaoning Academy of Social Sciences in northeast China says all Chinese banks have stopped banking with their North Korean counterparts.

“China has imposed the harshest sanctions ever against North Korea, the effect of which may take some time to kick in, but they will be effective,” Lu says.

Over the past week, the price of gasoline has surged in North Korea and some suspect Beijing is behind the price hike.

It is not clear what caused the spike. Some analysts say North Korea could be stockpiling gas for fear that imports could soon be banned. Others say that when tensions rise, the military gets priority.

North Korea’s military always has priority.