The order for Chinese lenders to stop doing business with Pyongyang “is a logical next step in the sanctions, and a very important one,” he continued.
“Chinese commercial banks had been a big route for facilitation of trade to North Korea so the fact that the PBOC has put out a taboo, that’s a very big deal,” Ross said, referring to China’s central bank, or the People’s Bank of China.
Speaking to CNBC’s “Squawk Box,” Ross called the PBOC move “a gigantic step.”
“Assuming that it’s followed through and other parts of the sanctions are followed through, that’s a very good sign, very, very important pressure.”
Before joining President Donald Trump’s administration in January, 79-year-old Ross made a fortune investing in distressed assets, which earned him the nickname “king of bankruptcy.”