China criticizes possible US penalties against banks

China has criticised Washington's efforts to enforce US law abroad following a news report three Chinese banks might be penalised over dealings with North Korea. The banks named by The Washington Post as facing a possible loss of access to the US financial system denied Tuesday they were under investigation.

A foreign ministry spokesman, Geng Shuang, said, "we consistently oppose the so-called long-armed jurisdiction of the United States on Chinese companies." Geng gave no confirmation of the Post's report. The Post said the court didn't identify the banks but details of the case fit the identities of Bank of Communications, China Merchants Bank and Shanghai Pudong Development Bank.

The banks issued statements saying they weren't under investigation and comply with UN sanctions imposed over North Korea's nuclear development.