FREE now and never miss the top politics stories again. SUBSCRIBE Invalid email Sign up fornow and never miss the top politics stories again. We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

Sanctions from the United Nations prevent China from participating in such trade deals. The intervention follows satellite footage captured earlier this week which appeared to show the two countries exchanging oil. A South Korean Foreign Office Minister said the event took place in October. The vessel, Lighthouse Winmore, was transferring refined petroleum products to a North Korean ship in international waters.

GETTY South Korea has intercepted a Chinese chip heading to North Korea

The US proposed blacklisting the ship for ignoring international sanctions placed on North Korea at the UN Security Council. Heavy trading restrictions were placed on North Korea earlier this year in response to their testing of ballistic missiles. When satellite footage emerged earlier this week allegedly showing China exchanging oil with a North Korean vessel, Beijing denied the account.

Trump's North Korea strategy to trigger FAMINE? Sat, December 9, 2017 US sanctions may do little to curb North Korea's nuclear missile program, experts warn Play slideshow AFP/Getty Images 1 of 9 The North Korean leader inspects the newly-built Samjiyon potato farina production factory

However, US President Donald Trump was quick to take to Twitter to blast: “Caught RED HANDED - very disappointed that China is allowing oil to go into North Korea. “There will never be a friendly solution to the North Korea problem if this continues to happen!” The Trump administration has led a drive to step up global sanctions on North Korea in response to Pyongyang's efforts to develop nuclear-tipped missiles capable of hitting the United States. Kim Jong-un’s rogue regime has tested a number of ballistic missiles in recent months and has claimed to now have the ability to strike US mainland with a nuclear bomb.

It is feared that North Korea could have up to 60 nuclear weapons which they may launch against the South, Japan or the US if a full war broke out. Washington says the full cooperation of China, North Korea's neighbour and main trading partner, is vital to the success of this effort, while warning that all options are on the table, including military ones, in dealing with North Korea. The UN Security Council last week unanimously imposed new sanctions on North Korea for a recent intercontinental ballistic missile (ICBM) test, seeking to further limit its access to refined petroleum products and crude oil. The UN resolution seeks to ban nearly 90 percent of refined petroleum exports to North Korea by capping them at 500,000 barrels a year.

GETTY US Ambassador Nikki Haley recommended more sanctions at the United Nations

US TREASURY Satellite footage appearing to show North Korea have been buying oil from China