Chinese Premier Li Keqiang and US President Barack Obama have agreed to increase the level of cooperation between both countries in law enforcement issues as well as in the United Nations (UN) Security Council. The move comes in the wake of North Korea's fifth nuclear test.

UN diplomats said that the two countries are contemplating a possible UN sanctions resolution against North Korea. Pyongyang conducted its fifth nuclear test earlier this month.

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China has not officially indicated whether it will support tougher measures against North Korea. Obama and Li met during the annual United Nations General Assembly session in New York.

According to Reuters, China is one of the very few allies of North Korea. Beijing is also North Korea's biggest trading partner.

While China has agreed to impose sanctions on North Korea, Beijing has made it clear that such steps are not a permanent solution. China has instead called for the resumption of talks with the North Korean government.

Market Watch reported that the US and China are investigating Hongxiang Industrial Development Co. The firm is suspected of supporting the North Korean government's nuclear weapons program. Earlier this year, the US Congress passed legislation requiring Washington to take action against Chinese firms carrying out business with North Korea.

Police in Liaoning province announced that they are investing the company for "serious economic crimes." However, no other details have been provided. 

TagsLi Keqiang, Barack Obama, North Korea, Hongxiang Industrial Development Co.