Seoul (CNN) North Korea is withdrawing from a joint liaison office near the demilitarized zone (DMZ) with South Korea, a key symbol of the rapprochement and ongoing peace process between the two countries.

The move comes after the US slapped two Chinese firms with sanctions for doing business with Pyongyang , the first action taken by Washington against North Korea since the second summit between North Korean leader Kim Jong Un and US President Donald Trump in Hanoi ended early with no agreement.

South Korea's Unification Ministry announced the move Friday, saying the decision had been taken by the North on "instructions from the superior authority."

In its communication with the South, Pyongyang said it would not mind Seoul's representatives "remaining in the office," which is based in Kaesong, a part of North Korea near the de facto border between the two countries.

The office was established after Kim and South Korean President Moon Jae-in met at the DMZ for an historic summit last year, which was followed by a meeting between Kim and US President Donald Trump in Singapore.

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