"China can do this on its own", Haley said in a speech at the United Nations, "or we can take the oil situation into our own hands".
China has already ordered the closure of North Korean businesses in the country and told Chinese companies they can not hire new workers from the North or renew contracts.
China has claimed it reduced shipments of refined petroleum beginning in September but continues to send crude oil into North Korea.
Geng also said that North Korea, "fully understands the importance of initiatives aimed at de-escalating the conflict, which were proposed by China and Russian Federation".
"He wants our support for their efforts to pursue a hardline position vis a vis North Korea, and he has it".More news: Twitter Reacts As David De Gea & Manchester United Frustrate Arsenal In Thriller
"And I think that they should have a clear understanding", says Gaffney, "that the cost the Chinese will face will rise inexorably, and quite acutely, if they don't take that step".
"Now we're extremely restricted by the types of trade we can do with North Korea".
China and Russian Federation objected to that idea in the latest United Nations sanctions resolution.
Haley's remarks came during a U.N. Security Council meeting that took place just a day after North Korea carried out its third and most powerful ballistic missile launch yet.
Trump's tweets further inflamed tensions reignited this week after North Korea said it had successfully tested a new intercontinental ballistic missile in a "breakthrough" that put the USA mainland within range of its nuclear weapons whose warheads could withstand re-entry to the Earth's atmosphere.More news: Israeli Attacks Reported Near Damascus, Israeli Media Removes Story
For its part, China's Foreign Ministry said Thursday that it was still focused on denuclearization and getting all sides back to the negotiating table.
Mr Trump has vowed to prevent North Korea from having that capability - using military force if necessary. "We said we appreciated the stance and were working with Pyongyang". "Even if it doesn't change North Korean behavior, it does not cause them or compel them to abandon their nuclear missile programs".
Peking University's Jia Qingguo said that in addition to tightening sanctions, China and the United States will need to find ways to cooperate in a wide range of areas.
Staff at the reception desk at the Chilbosan, who confirmed the hotel was North Korean-owned, said they had no plans to close because of the sanctions.More news: Nine dead, 37 injured in Taliban attack on Peshawar agriculture college