The U.S. government has hailed the Bank of China’s decision to sever business with North Korea's main foreign exchange bank.

U.S. State Department Acting Deputy Spokesperson Patrick Ventrell told reporters Wednesday that Washington welcomes steps by the international community, including China, to fully carry out sanctions against the North.

Ventrell added that the U.S. agrees with China on the goal to denuclearize North Korea and it is “working closely with China to ensure that North Korea understands that they need to choose the path of denuclearization, or instead face increased isolation.”

Earlier on Tuesday, the Bank of China said it notified the Foreign Trade Bank of North Korea that its accounts have been closed. The Chinese bank also halted all fund transfers related to the North Korean accounts.