North Korea abruptly recalls trade representatives from China, replaces some with new officials

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View of Dandong from North Korean bank of the Yalu River, with the Yalu River Broken Bridge and the China-Korea Friendship Bridge. At the south end of the Yalu River Broken Bridge, a former railway bridge that once connected China and North Korea until part of the bridge was destroyed, a viewing platform has been constructed. The parallel Sino-Korean Friendship Bridge, to the right, still connects the two countries. Photo taken in 2007. (Wikimedia Commons)

North Korea has abruptly recalled trade representatives from China and replaced some with new officials in an apparent bid to boost foreign currency earnings ahead of the Ninth Party Congress.

Multiple Daily NK sources said trade representatives stationed in Dandong, Shenyang and Donggang in China’s Liaoning province were suddenly summoned to Pyongyang between Oct. 16 and 20.

North Korean trade representatives typically stay abroad for about three years, handling foreign currency acquisition and establishing operational bases. They then return home to undergo a period of “revolutionization” before being reassigned to other regions.

However, trade representatives who had been in China for less than two years were summoned home ahead of schedule.

Many not returning

Usually when representatives are called back, they report on business performance and national plan fulfillment, undergo political reviews, reconfirm Central Committee instructions and then return to their posts. But many of those summoned this time have not returned and contact has been cut off, one source said.

In some regions, personnel were completely replaced and new trade representatives were dispatched.

While those who completed three years might sense the atmosphere, representatives with considerable time remaining were also suddenly called back, and in some cases personnel were replaced entirely, another source said. Chinese businesspeople who had been working with the existing representatives are also troubled by this situation.

A Chinese businessperson who had been doing business with North Korea said that while representative replacements are common given the regime’s system, it feels disruptive every time it happens. When someone with whom trust has been built is suddenly called back and replaced, business returns to square one and must start from scratch, the source said.

Pressure ahead of congress

Analysis suggests North Korea’s move aims to boost business performance ahead of the Ninth Party Congress. The regime is calling back trade representatives with poor performance to hold them accountable while pressuring others to improve results.

Daily NK reported in late August that North Korea conducted inspections to assess the activities, plan fulfillment and financial status of trade representatives stationed in China. The current personnel moves appear related to this pressure to extract foreign currency through the trade sector ahead of the party congress.

Those called back this time were people who just did exactly what the party told them to do, the source said. They should have given bribes and done lobbying, but they didn’t, so their performance was poor and they ultimately suffered in evaluations.

Currently, forecasts suggest authorities’ performance inspections of North Korean trade representatives will intensify further.

A tense atmosphere pervades remaining trade representatives, who fear they could be called back at any time and that it could be their final summons, the source said. Pressure is intensifying to produce results without committing corruption, even as officials lament that keeping their positions is difficult just doing what’s ordered.

This has added another uncertainty to overall North Korea-China trade, the source added. The more frequent the inspections and replacements, the more Chinese businesspeople will feel limited in doing business with North Korea, which only worsens the trade environment between the two countries.

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