The draft resolution includes a full ban on exports of oil to North Korea, a full ban on textile imports from North Korea, a ban on North Korean labourers generating earnings overseas, and the asset freeze, which will also target members of the ruling worker's party, the diplomat said, calling it a "hard-hitting, ambitious resolution", CNN reported.
The sanctions follow a series of North Korean missile tests in recent months, culminating in an intercontinental ballistic missile that appeared to bring much of the U.S. mainland into range.
Britain's United Nations ambassador, Matthew Rycroft, said "maximum possible pressure" should be placed on North Korea and offered support for the USA proposals.
The UN Security Council called for a special meeting in light of the sixth missile test of North Korea on Monday to discuss the possible ways to stop the hostile country from its test. If it proves it can live in peace, the world will live in peace with it.
The Trump administration has repeatedly voiced frustration over China's lack of cooperation with the United States in putting the squeeze on North Korea.
The draft, seen by Reuters on Sunday, no longer proposes blacklisting North Korean leader Kim Jong-Un.More news: Officials' Tough Talk On North Korea Doesn't Necessarily Mean War
In order to pass, a resolution needs nine of the 15 Security Council members to vote in favour and no vetoes by any of the five permanent members - the US, Britain, France, Russia and China.
It also called Ms Haley "a political prostitute" and dismissed her comments that North Korea "was begging for a war" while accusing the United States of being the "chieftain of aggression and war and wrecker of peace".
Japan also said last Monday that it had not detected any atmospheric radiation in monitoring posts across the country. "They keep those transponders off and then they turn them back on as they round the South Korean peninsula, and they head into a Russian port", Assistant Treasury Secretary Marshall Billingslea told the House Foreign Affairs Committee, pointing to a chart of satellite images and maps he said illustrate specific examples.
The U.N. Security Council has tried for more than a decade to use sanctions to rein in the country's ambition for a nuclear weapon that could reach America.
Liu said relevant parties should resume negotiations "sooner rather than later".
"The United States is fully entitled to defend its own territory, to defend its bases and look after its people".
Washington so far has mostly held off on new sanctions against Chinese banks and other companies doing business with North Korea.
"We all know these steps only work if all nations implement them completely and aggressively", said Haley, adding the resolution "would not have happened without the strong relationship between President Trump and President Xi, and we greatly appreciate both teams".