Contract manufacturing for false eyelashes, wigs and costume beards rebounds as Chinese companies abandon Southeast Asian alternatives due to high shipping costs and poor quality, with North Korean consulate vans transporting finished goods to avoid customs inspections.
A source in China told Daily NK on Tuesday that contract manufacturing between the two countries, which had dropped off in the first half of the year, has been rebounding since last month. This area of trade has picked up so much that companies are bringing in upwards of 500,000 yuan ($69,000) a month.
North Korean trading companies are currently sourcing the materials needed to produce false eyelashes, wigs and costume beards from China and then sending back the finished goods.
The two countries’ trade in contract manufacturing (assembling goods in North Korea for export by Chinese companies) reportedly ran into a snag in late 2024 when North Korean trading companies demanded higher rates from their Chinese business partners.
In August, Daily NK reported that North Korea had seen a sharp reduction in piecework jobs as Chinese companies moved orders to Southeast Asia because of dissatisfaction with North Korean companies’ demands for higher pay, failure to fulfill contracts and poor work conditions.
But for various reasons—including the high cost of shipping goods to and from Southeast Asia and the poor quality of the false eyelashes and wigs produced there—Chinese companies apparently ended up holding another round of negotiations with North Korean trading companies.
Consulate vans avoid customs inspections while transporting assembled goods
It was the Chinese that reportedly wanted to resume contract manufacturing with North Korea. In recent negotiations on processing fees, trading companies from the two countries agreed to raise rates, and trade in contract manufacturing is now returning to previous levels.
The source said that piecework rates have generally gone up by 7–10%, though the exact amount of the increase is uncertain.
In connection with this, vehicles from North Korean consulates in China are reportedly being used to transport goods assembled in the North.
Consulate vans with room for 10–12 are apparently moving goods from Sinuiju, North Pyongan province, to Dandong, in China’s Liaoning province.
Since the assembled goods—largely consisting of false eyelashes, costume beards and wigs—are not bulky, large quantities can be transported in a single van. There is another advantage: consulate vans are apt to be waved through by the Dandong customs authorities whereas a truck or train would face a rigorous inspection.
North Korean consulates are apparently collecting considerable fees from trading companies for renting out official vehicles for transporting goods. That also indicates the North Korean government is directly involved in piecework trading arrangements with China.
“On weekdays, vehicles from the consulate make multiple trips between Dandong and Sinuiju a day to transport assembled goods. These trading activities are fairly stable thanks to consular involvement,” the source said.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: dailynk.com
