New Chinese investment in the Yalu bridge

Benjamin Katzeff Silberstein†

In 2010, North Korean and Chinese authorities decided to build a new bridge across the Yalu River, which is currently estimated to carry 70 percent of all trade between the countries. I recently spoke with a diplomat who was previously based in North Korea, who told me that the current bridge is rather decrepit, and particularly so on the North Korean half. The new bridge was partially built due to an expectation that trade would increase between the two countries, an expectation that seems to have been true for the past few years, including 2016 when North Korea was supposedly under harsh sanctions by the international community.

North Korea, however, has not yet constructed roads to cities on its side of the bridge, making it largely useless. Now, a Chinese businessman has decided to invest in the project — unclear if this is for any expectations of financial gain. Daily NK reports:

Anticipation for the opening of the new Amrok (Yalu) River Bridge connecting Dandong (Liaoning Province, China) with Sinuiju (North Pyongan Province, North Korea) has risen after a Chinese businessman decided to invest money in the projectís infrastructure.
The construction of the new Yalu River Bridge was initiated in December 2010 with the expectation that it will bring an expansion of the trade volume between China and North Korea. The bridge was completed in 2014 after overcoming significant issues. However, the construction of roads on the North Korean side slowed to a halt, delaying further progress.
Recently, a Chinese businessman has announced his decision to invest in North Korea’s road construction efforts, which have remained the biggest obstacle to the opening of the bridge.
A source familiar with North Korean affairs in China told Daily NK on July 24 that according to North Korean traders in Sinuiju, a Chinese businessman has committed 300 million RMB (about US$44.7 million) to the road construction project.
The construction of the new bridge was first proposed due to safety concerns regarding the existing Sino-Korean Friendship Bridge, which although derelict, has been responsible for more than 70% of bilateral trade. The bridge was repaired twice last year alone, highlighting its significant structural issues.
Aware of the situation, China sponsored the construction of a two-way (four-lane) road in the area, paying for the entire construction expenses totaling 2.2 billion RMB (approx US$327 million).
However, the source noted that North Korea suspended the construction of roads between the bridge and North Korean cities, demanding further investment from China.
“North Korea has been continuously demanding investment from Chinese businessmen, threatening them with a suspension of trade unless they invest. It seems that these efforts have produced results,” he said.
But actual construction has yet to start. When asked about this, the source said it is presumably due to the tense bilateral relations between China and North Korea, as well as international sanctions and overall political climate.
Full article:

Chinese investment breathes new life into new Yalu River Bridge
Daily NK
2017-08-02

Share

Comments are closed.


An affiliate of 38 North