Trade between North Korea and China has picked up since North Korean leader Kim Jong Un visited Beijing. North Korean trading companies are importing foodstuffs, mechanical equipment, building supplies and other items from China while exporting minerals, agricultural products and industrial goods to their giant neighbor.
According to a Daily NK source in China recently, North Korean trading companies have recently imported large quantities of mechanical equipment, building supplies, textiles, electronics and foodstuffs from China. They’ve brought in significant amounts of machinery needed to produce industrial goods like shoes, bags and clothing, as well as fabric for manufacturing garments.
North Korea’s imports include military-use fabrics for making uniforms, the source said. “A lot of camouflage fabric used by the military is going to North Korea,” he said. “It’s waterproof and fairly durable high-end material, mostly used to make specialized military uniforms.”
North Korean trading companies are also importing fruits like apples, tangerines, pears and bananas from China. In the past, expensive imported fruits were primarily distributed in Pyongyang, but now they appear on market stalls in major cities nationwide.
Many North Koreans are struggling to afford meals, yet demand for imported foodstuffs has grown among the wealthier classes—highlighting the deepening wealth gap inside North Korea.
Mineral exports conducted through smuggling
Meanwhile, North Korean authorities are exporting various minerals to China, the source said, including coal, iron ore, molybdenum, zinc, copper and gold. Trading companies that export minerals are mostly large entities under powerful agencies such as the party’s Central Committee or the military.
These trading companies are opening branch offices in Dandong, Shenyang and other Chinese cities and have begun expanding their operations through regular contact with Chinese traders. With North Korean authorities actively demanding that companies earn more foreign currency through mineral exports, trading companies have been busy shipping out mined materials, the source said.
However, because North Korean mineral exports are subject to international sanctions, such transactions are conducted through state-led smuggling rather than official trade, with transportation involving transshipments in international waters.
North Korean trading companies also export pine nuts, pine mushrooms, dried clams, pollack, shrimp, sea cucumbers, squid and other agricultural and fishery products to China. Small and medium-sized trading companies include processed ginseng products, cigarettes, soap and shampoo among their major exports.
As trade between North Korea and China picks up, overland trade along the Dandong-Sinuiju route is growing. With inspections easing somewhat at Dandong customs, building supplies, textiles and some electronics are entering the North Korean city of Sinuiju through Dandong.
As recently as the first half of this year, almost no raw materials, including textiles, entered North Korea through Dandong. All items subject to international sanctions entered through Rason or Hyesan via the Chinese cities of Hunchun or Changbai in Jilin Province.
Recently, however, more types of products are entering North Korea through Dandong customs, with North Korean trade officials there actively engaged in trading activities.
“The increase in cargo shipments between Dandong and Sinuiju shows the growing trade between North Korea and China,” the source said. “The problem is no longer Chinese customs. Instead, North Korean customs and Ministry of State Security restrictions are a bigger obstacle to bilateral trade.”
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: dailynk.com
