BEIJING, May 10 - China on Tuesday ruled out applying economic or political sanctions to pressure North Korea to abandon its nuclear weapons program, appearing to undercut a crucial element of the Bush administration's evolving North Korea strategy. The announcement comes just as American intelligence agencies are trying to determine whether North Korea is preparing for a nuclear test.
Echoing President Bush's public comments, the Chinese said in a briefing on Tuesday that they still hoped that talks with North Korea would succeed in disarming the country, even though it has boycotted those talks for 11 months.
Liu Jianchao, China's Foreign Ministry spokesman, said Tuesday that China rejected suggestions that it should reduce oil or food shipments to North Korea, calling them part of its normal trade with its neighbor that should be separate from the nuclear problem. "The normal trade flow should not be linked up with the nuclear issue," he said. "We oppose trying to address the problem through strong-arm tactics."
Beijing's apparent unwillingness to go along with Mr. Bush's backup plan to squeeze North Korea takes away the crucial pressure point that Mr. Bush's aides have been counting on. It also suggests that the strategy of threatening to go to the United Nations Security Council - which Secretary of State Condoleezza Rice has begun to discuss - could fail.
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more:
http://www.nytimes.com/2005/05/11/international/asia/11korea.html