Archive for the ‘China’ Category

China seeking to boost Chinese tourist numbers

Monday, April 14th, 2014

According to Yonhap:

China has launched the second train service to North Korea, state media reported Monday, a move expected to boost travel between the two nations.

The Sunday opening of regular rail services from China’s northeastern city of Jian to the North Korean capital of Pyongyang makes Jian the second city offering such service after another Chinese border city of Dandong, Xinhua news agency reported.

North Korea is one of the world’s most secretive and isolated nations, but Pyongyang has stepped up efforts to attract foreign tourists since last year by offering more international and domestic flights.

In Jian, Chinese tourists can apply for a one-day round trip, which is available once every four days, to North Korea for US$480 per person, the report said.

Zang Wanghong, director of the Jian Tourist Board, said the tour agency will begin selling the tour package to the North’s western port city of Manpo before May 1, according to the report.

Read the full story here:
China starts 2nd rail travel service to N. Korea
Yonhap
2014-4-14

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China’s plans for Quanhe Customs House

Monday, April 7th, 2014

Quanhe Customs House will be the border facility for managing Chinese traffic into Rason (and further down the coast). Within the administration building on the site is a poster advertising the plans to expand the customs house to manage more traffic.

Quanhe-customs-2

The billboard offers a conceptual image of the new facility, a map of the new location, and some informative copy (in Chinese).

Here is a Google Earth image of the proposed construction site in relation to the existing border compound:

New-Quanhe-customs

Here is a translation of the Chinese on the sign text:

Introduction of Construction Project of Quanhe (Guanghe) Port

1. The Proposed Location
The proposed site is located in Quanhe Village, Jingxin-Zhen of Hunchun City, north side of Quanhe Road. The project covers an area of 180,000 square meters (map below).

2. Construction Project
The total investment of Quanhe Port Project is 299,331,500 RMB, and the total construction area is 16992m2. including Passenger Security Channel (5445m2), Cargo Inspection Channel (2000m2), House For Frontier Inspection (1680m2), Cargo Storehouse (2000m2), Inspection And Quarantine Site (2400m2), Dormitory Restaurant (2567m2), Garage And Boiler Room (900 m2).

Passenger Security Channel: Including each 6 channels for entry and exit, and another 4 vehicle channels for touring bus. Designed annual passenger capacity is 2 million.

Cargo Inspection Channel: Including each 4 channels for entry and exit of cargo and another 1 channel for passenger. The designed annual cargo capacity is 1.65 million tons.

3. Remaining
The existing inspection building will be used as channels for border trade and tourism after the new facilities getting into operation.

Thanks to Berhhard Seliger for the info!

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Sinuiju-Kaesong high-speed rail project (UPDATED)

Monday, April 7th, 2014

Sinuiju-Kaesong-high-speed-rail

Pictured Above (KBS):  A map of the planned high-speed rail project

UPDATE 2 (2014-4-7): KBS has a report (in Korean) on the project. See the report here. Seoul Village has translated some of the details.

Construction would last 6 years, with two waves that have not been fully detailed yet:
1st stretches: 80 km
From the North: Sinujiu Station – Tongrim Station (Sinujiu-Dongnim, 40 km)
From the South: Kaesong – Yonan (Gaesong-Yeonan, 40 km)
2nd stretches: 296 km

From the North: Tongrim – Chongju – Sinanju – Pyongyang (Dongnim-Jeongju-Sinanju-Pyongyang, 147 km)
From the South: Yonan – Haeju – Sariwon – Pyongyang (Yeonan-Haeju-Sariwon-Pyongyang, 149 km)

UPDATE 1 (2014-4-7): Korail may be involved in the high-speed rail project. According to the Hankyoreh:

News of a recent agreement between North Korea and China to build an international high-speed railroad and highway between Sinuiju (a city on the Chinese border) and Kaesong is raising questions about the fate of a scheduled North Korea visit on Apr. 24 by Korail CEO Choi Yeon-hye.

If Korail does participate in the project, it would bring South Korea one step closer to the Asian continent via the North Korea-China high-speed rail project, which comes on the heels on North Korea‘s Rajin-Hasan development project with Russia.

South Korean businesspeople in China who are closely involved in the high-speed rail project said on Apr. 6 that a contract for the railway/highway construction was signed in Beijing on Feb. 24 by North Korea’s State Economic Development Commission, chaired by Kim Ki-sok, and a Chinese consortium headed by the Shangdi Guanqun investment company. The line would be 376 km in length and connect Sinuiju with Chongju, Sukchon, Pyongyang, Haeju, and Kaesong, with the five-year construction beginning in 2018 with a budget of US$21 billion, or around 22 trillion won. The method would be a Build-Operate-Transfer (BOT) arrangement, with an international North Korean-Chinese consortium providing the investment and delivering the line to North Korea once the costs are recouped. A survey team for the Chinese consortium is reportedly scheduled to visit North Korea in late April.

The chances of South Korea participating are higher in the wake of President Park Geun-hye’s speech in Dresden on Mar. 31. There, she declared that an “organic linkage between South Korean capital and technology and North Korean resources and labor could contribute to building a future economic community on the Korean Peninsula.”

She also said she planned to “achieve shared development for the Korean Peninsula and Northeast Asia both through collaborations with North Korea and Russia, as with the current Rajin-Hasan distribution project, and collaborations with North Korea and China focusing on Sinuiju.”

Further increasing the possibility of South Korean participation are guidelines handed down in January by North Korean leader Kim Jong-un, who said North Korea should work with China and South Korea on an international line through a privately funded BOT arrangement.

Meanwhile, Korail is awaiting Ministry of Unification approval on a request to allow CEO Choi Yeon-hye to travel to North Korea to attend a general directors’ conference for the Organisation for Co-Operation between Railways (OSJD), which is scheduled to take place on Apr. 24.

“Our basic position is to approve visits to North Korea in cases of international events,” said an official from the ministry on condition of anonymity, adding that a final decision would be made “after discussions with the other agencies.”

But Korail remains cautious about the possibility of future cooperation, whatever the outcome for Choi’s visit ends up being. Speaking on condition of anonymity, a source there said, “We’re preparing data on things like a plan to expand cargo transport for different continental rail zones, which is one of the topics on the agenda at the OSJD meeting.”

“We’ve never officially examined the North Korea-China high-speed rail project, and it doesn’t look like it would be economically feasible anyway unless a section is opened between Seoul and Kaesong,” the source added. “Anyway, the government has not decided on participating, and that‘s not a matter that KORAIL can weigh in on by itself.”

ORIGINAL POST (2013-12-20): High Speed Rail and Road Connecting Kaesong-Pyongyang-Sinuiju to be Built
Institute for Far Eastern Studies (IFES)
2013-12-20

On December 8, 2013, North Korea reached an agreement with a consortium of international companies to construct highways and high-speed railroad connecting Kaesong, Pyongyang, and Sinuiju.

The agreement between North Korean authorities and a consortium representing the Chinese companies was signed in both Chinese and Korean by Kim Chol Jin, Vice-Chairman of State Economic Commission of North Korea and representatives from state-owned enterprises of China’s Commerce Department.

The construction period was designated as five years and businesses will operate the rail for 30 years and return the operation rights to North Korean government in the form of a BOT (build-operate-transfer) project, worth a total of 15 trillion KRW. The high-speed rail will be a double-track system with a speed of more than 200km per hour, and the construction of four-lane highway will be built adjacent to the railway. Fence will also be built to prevent unauthorized access to the railway.

The construction zone will cover the areas of Kaesong, Haeju, Sariwon, Pyongyang, Sinanju, Jongju and Sinuiju, approximately 400 km in total length and from Sinuiju will connect to Chinese cities via railway while from Jongju will connect with the Rajin-Sonbong SEZ (special economic zone) to the Russian Khasan railway to be linked with the Eurasian railway.

The consortium working group is planning to visit North Korea to confirm the specific construction plans. It was tentatively decided that the formal contract be signed in Pyongyang based on the proposal submitted by the consortium.

The subject of agreement is a multinational consortium of international investment group, which also includes a South Korean company, which is known as a company involved in North Korean mineral resources development. Once the project is in progress, there are plans of bringing other South Korean companies into the project.

In exchange, businesses will obtain the development rights of extracting gold from Hyesan City (Ryanggang Province) and iron ore in Musan (North Hamgyong Province). North Korean officials are claiming that this project was the legacy of Kim Jong Il and welcomed the participation of South Korean companies.

In March 2011, former North Korean leader Kim Jong Il is reported to have instructed that inter-Korean exchange programs be continued. Upon the completion of the railways and highways, the Presidium of the Supreme People’s Assembly will proclaim international road operations to ensure its stable operation.

The operation rights will be given to the consortium for 30 years while the ownership rights will be shared by the North Korean government and the consortium.

China is also building new railway lines up towards the North Korean border.

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DPRK – China trade: What is happening?

Friday, April 4th, 2014

Previous reports indicated that the execution of Jang Song-thaek has to date had little effect on DPRK-China trade. According to the Institute for Far Eastern Studies (2014-3-12):

Trade between North Korea and China in January has increased roughly 16 percent against the previous year. After the December 2013 purge of Jang Song Thaek it was predicted that trade between the two countries would decrease; however, there is no visible sign of this yet.

According to the Korean Foreign Trade Association’s* data, trade between North Korea and China in February increased from 471 million USD to 546 million USD, up 15.9 percent compared to the previous year.

February also showed an increase in anthracite exports, North Korea’s main export to China, rising 21.3 percent to 102 million USD. Iron ore exports also showed a slight increase of 35 million USD compared to last year.

Chinese exports to North Korea, including leading export commodities such as cellular phones and other wireless radio/communication devices, increased 28 percent compared to January of last year, totaling 14.5 million USD. In February, goods exported through China to North Korea increased by 10.2 million USD, a 38.6 percent increase compared to January of last year.

The trade gains in this report are annual for the most part…comparing 2013 data with 2014 data. This reveals little about the change in trade volume from month to month.

Now a story in Yonhap offers January and February 2014 data, and journalists have reached the opposite conclusion. Jang’s execution has played a role in DPRK-China trade. According to the article:

“In January and February this year, North Korea significantly stepped up checks on its coal exports to China,” a source in Beijing said on the condition of anonymity.

“Such reinforced checks appear to be related to the execution of Jang Song-thaek,” the source said.

According to the latest data by the Korea International Trade Association* in Seoul, North Korea’s exports of coal to China in February fell 26 percent from a month ago to 920,000 tons. The North’s exports of iron ore to China also fell 23 percent in February from a month earlier to 197,000 tons.

The North’s total trade with China in February plunged 46 percent from a month earlier to US$255 million, the data showed.

In Dandong, the Chinese border city with North Korea where about 80 percent of bilateral trade is conducted, the flow of goods in and out of North Korea appears to be affected by the execution of Jang.

“In previous years, the North Korean authorities had usually set their annual targets for exports and imports, and given quotas to trading firms,” said another source in Dandong who is doing businesses with North Korea. “But, no quota has been given yet this year.

“Obviously, the mood is different than previous years,” the source said.

No progress has been made on special economic zones, including Hwanggumphyong and Wihwa, set up by the North on the border with China, according to the source.

“Under the current circumstances, Chinese investors will not invest in the North’s special economic zones,” the source said.

Does this mean anything?  Well, we don’t know enough about these numbers, or the cause for such dramatic change in trade patterns, so we will need to continue to watch the data.  Even before the February numbers came out, Scott Snyder reminded us that DPRK-China trade has taken a dip between January and February for each of the last three years!

Snyder-DPRK-China-Trade-2011-2013

Then there are the caveats: 1. This only counts legitimate trade (no illicit, secret, or military trade) 2. No aid 3. No official or unofficial transfers 4. No capital flows.

*Presumably the Korean Foreign Trade Association and the Korea International Trade Association are the same thing.

Read the full Yonhap story here:
N. Korea’s trade with China shaken after Jang’s execution
Yonhap
2014-4-4

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Sino-DPRK trade booms in January 2014

Wednesday, March 12th, 2014

Institute for Far Eastern Studies (IFES)
2014-3-12

North Korea has been actively working to procure large quantities of fertilizer since the beginning of 2014 in an effort to increase production in the agricultural sector. According to statistics provided by the Korea Rural Economic Institute, North Korea imported 35,113 tons of Chinese fertilizer in January 2014.

In January and February of recent past years, North Korea imported small, insignificant amounts of Chinese fertilizer — for example, a mere two tons in January 2013. This year’s sudden increase comes as an unexpected surprise. January imports of Chinese fertilizer doubled that of imports procured in December 2013, increasing by 17,416 tons. This comes in spite of the fact that total imports of Chinese fertilizer decreased 18 percent from 252,789 tons in 2012 to 207,334 tons in 2013.

In the past, the North Korean pattern has been to import Chinese fertilizer from March and peak during the April-to-July farming season. Import figures show that North Korea has begun to procure its fertilizer earlier than usual, beginning in January and February. This vigorous importing of fertilizer could be directly connected to North Korea’s efforts to increase agricultural production to solve the nation’s chronic food shortages.

In his 2014 New Year’s speech, North Korean leader Kim Jong Un pledged to rebuild the country’s moribund economy, emphasizing the agricultural sector in this endeavor. In his letter to last month’s national conference of subworkteam leaders, he also emphasized the need to boost agricultural production in order to attain self-sufficiency.

Subsequently, it is expected that North Korea will actively scale up imports of Chinese fertilizer again this year in correlation with Chinese export tariff cuts.

Trade between North Korea and China in January has increased roughly 16 percent against the previous year. After the December 2013 purge of Jang Song Thaek it was predicted that trade between the two countries would decrease; however, there is no visible sign of this yet.

According to the Korean Foreign Trade Association’s data, trade between North Korea and China in February increased from 471 million USD to 546 million USD, up 15.9 percent compared to the previous year.

February also showed an increase in anthracite exports, North Korea’s main export to China, rising 21.3 percent to 102 million USD. Iron ore exports also showed a slight increase of 35 million USD compared to last year.

Chinese exports to North Korea, including leading export commodities such as cellular phones and other wireless radio/communication devices, increased 28 percent compared to January of last year, totaling 14.5 million USD. In February, goods exported through China to North Korea increased by 10.2 million USD, a 38.6 percent increase compared to January of last year.

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Hong Kong firm signs onto Sinuiju Economic Development Zone

Wednesday, March 12th, 2014

Sinuiju-SEZ-2014-2

Pictured Above (Google Earth): The approximate borders of the Sinuiju Special Economic Zone.

According to Yonhap:

North Korea has joined hands with a Hong Kong-based company to develop the country’s northwestern border city of Sinuiju into a special economic zone, a North Korean official said.

Sinuiju, which borders China’s Dandong city, has drawn much attention from foreign investors for its geographical advantage as North Korea’s western gateway to China, Ri Chol-sok, the vice chairman of North Korea’s economic development committee, said in an interview in the March issue of Kumsugangsan magazine, a North Korean government mouthpiece.

“Now a joint development company has been established for the development of (Sinuiju) and is striving to win back lost opportunities,” said the North Korean official.

Hong Kong-based conglomerate Great China International Investment Groups Ltd. reportedly signed the deal with North Korea.

North Korea is also making efforts to lure foreign investment to other special economic zones, including one in the Rason area in the northern tip of the country, according to Ri.

The foreign company already has deep ties with the North, having joined the country’s project launched in January to renovate the eastern part of the capital Pyongyang.

The Institute for Far Eastern Studies (IFES) reported the following:

It has been reported that North Korea has established relations with a Hong Kong-based company with the goals of developing Sinuiju, a city bordering China in the northwest region of North Pyongan Province, into a special economic zone (SEZ). Vice Chairman of North Korea’s Committee for Economic Development Ri Chol Sok emphasized the nation’s efforts to attract foreign investors to the Sinuiju economic zone in an interview in the March issue of Kumsugangsan, a North Korean government magazine.

Vice Chairman Ri specifically mentioned that, in the past, Sinuiju garnered praise and attention from foreign investors due to its geographically advantageous location along the western border. Ri also announced the establishment of the Sinuiju-Great China joint venture development company, which plans to draw further interest and investment from abroad.

It is reported that the Sinuiju-Great China joint venture development company was created alongside a Hong Kong-based finance conglomerate known as Great China International Investment Groups, Ltd. (“Great China Groups”). Great China Groups has recently shown great interest in investing in North Korea and recently began the construction of East Pyongyang Commercial Street this past January.

Recent reports from other foreign media outlets have shown that Great China Groups had intentions to invest in the development of the Sinuiju region for some time, but Vice Chairman Ri’s announcement marks the first time that North Korean state media has officially recognized their joint development plans.

Meanwhile, the North Korean foreign publicity website Naenara announced that development of an additional economic development zone (EDZ) in North Pyongan Province along the Amnok (Yalu) River began on January 27 of this year. The Amnok (Yalu) River economic development zone will extend 6.6 square kilometers, with construction taking place in Ryongun-ri and continuing up to the Guri and Ojok Islands, where the North Korean border meets the city of Dandong and the Hu Mountain in China’s Liaoning Province.

North Korea plans to draw in tourists visiting China’s Hu Mountain to Ojok Island, where an “international services station” will offer food, entertainment, and tourist attractions. There are also plans to develop a modern agricultural sciences research complex on Guri Island that will specialize in flower and vegetable production.

North Korea specifically pushed for this location for the development of the Amnok (Yalu) River economic development zone — which will operate autonomously in Pyongan — due to its border location with China. In addition to its desirable geographical location, convenient transportation between the two nations will likely attract more attention from Chinese foreign investors, giving the Amnok (Yalu) River EDZ a higher chance of success compared to other economic development zones.

Investments reaching upwards of 240 million USD (approx. 260.3 billion KRW) make the Amnok River EDZ the largest in scale among the 13 total development areas.  In terms of actual size, however, the largest economic development zone in North Korea is the Shinpyong tourist development zone (8.1km2), located in North Hwanghae province.

Apart from the EDZs in the North Pyongan region of Sinuiju, the central government has announced their plans to push forward with two other special economic zones. The Hwanggeumpyong and Wihwa Islands SEZ was announced in June 2010, and in November of last year, plans were revealed to develop an additional special economic zone in the Sinuiju region.

All the economic development zones are listed here. Some people say there are 13 of them. Some people say 14 because they consider the Sinuiju Special Economic Zone an economic development zone. I am in the 14 camp. There have also been at least three other zones proposed that did not make the final list. 

The Sinuiju Special Economic Zone was announced on 2013-11-21 (the same day as the other 13 EDZs were announced–though in a different article).

Besides the Sinuiju Special Economic Zone, the only other EDZ to have reportedly made any progress is the  North Hamgyong Provincial Onsong Island Tourist Development Zone.

Read the full story here:
N. Korean, Hong Kong firms to develop border city of Sinuiju
Yonhap
2014-3-12

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January 2014 DPRK oil imports from China

Monday, March 10th, 2014

Zero!

According to Yonhap:

North Korea did not import any crude oil from China in January, marking the first absence of monthly deliveries from China in five months, a Seoul government report showed Monday.

It was not immediately clear whether the January absence of crude shipments to North Korea from China was linked to Beijing’s growing frustration with Pyongyang over its nuclear program, but it followed the execution of the once-powerful uncle of North Korean leader Kim Jong-un last December.

Last year, monthly shipments of crude oil from China to North Korea were absent in the months of February, June and July. However, annual shipments of crude oil to North Korea from China rose 11.2 percent on-year to 578,000 tons in 2013.

Read the full story here:
No crude import from China to N. Korea in Jan.: report
Yonhap
2014-3-10

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DPRK as e-waste conduit

Thursday, March 6th, 2014

According to Bloomberg:

How did North Korea become the conduit by which thousands of tons of old junk moved from the developed world into China’s bustling e-waste recycling industry?

As with any smuggling story, the tale starts with a prohibition. In this case, Chinese laws and regulations prohibit e-waste — most commonly understood as old, non-working electronics like laptops, monitors and mobile phones — from being imported into the country. The reasons are several, including a government interest in keeping used foreign goods from competing against new ones, and environmental concerns about how some of those goods are recycled. Nevertheless, China’s national-level environmental and customs authorities have long struggled to maintain those prohibitions against local ports and authorities — especially in south China — who view e-waste recycling as a good source of jobs, tax revenue, and used components to drive local industry. Of the several conduits through which e-waste has traditionally been smuggled, the most common and long-standing was over the Hong Kong-China border.

That all changed in February 2013 when — for reasons that are still unclear — Beijing announced “Green Fence,” a high-level crackdown on the import of prohibited waste and recycling exports, including old electronics. Nonetheless, here and there, imported old electronics still turned up in Chinese recycling facilities (I personally saw them).

The likely means, as described in state media after the North Korea bust, was convoluted. A Hong Kong “gang” allegedly received containers of used electronics from abroad. They arranged for them to be placed them on smaller ships bound for a “country in Northeast Asia.” The culprit’s identity is clear from the awkward phrasing. Criticism of North Korea in the Chinese press is exceedingly rare and -– needless to say — connecting the country to an e-waste smuggling ring qualifies as criticism. Were the country Japan, or even South Korea, it would have been named.

In fact, North Korea has long been rumored to be an e-waste recycling center. Since January 2008 a Chinese company based in Liaoning Province along the border has advertised for scrap to feed its e-waste recycling operations in North Korea itself. The facilities are located, according to the ad, in the port of Nanpo, and “take advantage of North Korea’s environmental policies and inexpensive labor resources.” There, the ad promises, prohibited e-waste can be dismantled and transformed into a product acceptable for export to China.

The smuggling ring was allegedly doing something similar, although its “transformed” e-waste clearly did not meet environmental standards. In North Korea the bulky e-waste was dismantled (steel cases would be removed from old desktop PCs, for example), segregated into marketable components like computer chips for re-use, and then sent to Dandong, a Chinese city and port on the Yalu River, directly across from North Korea. From there, the goods were trucked south, to recycling and re-use centers in Guangdong Province, a straight-line distance of roughly 1,800 miles.

Read the full story here:
Did North Korea Recycle Your Laptop?
Bloomberg
Adam Minter
2014-3-6

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DPRK fertilizer imports (2013 – Jan 2014)

Tuesday, March 4th, 2014

According to Yonhap:

North Korea’s fertilizer imports from China skyrocketed in January from a year earlier, data showed Tuesday, pointing to Pyongyang’s efforts to increase agricultural output.

The North brought in 35,113 tons of Chinese fertilizer in January, a huge increase from 2 tons from a year earlier, according to the data by the Korea Rural Economic Institute (KREI).

Such an amount is unprecedented for January, as the impoverished communist country used to buy a limited amount of fertilizer in winter, according to KREI experts.

The January figure is also two times bigger than the 17,416 tons for December, according to the data.

“Different from its previous pattern of buying fertilizer in spring, North Korea seems to be taking a very proactive move to secure fertilizer a long time ahead of its usual schedule. This means that the North is putting a priority on improving its farm output,” said KREI researcher Kwon Tae-jin.

It is in line with its leader Kim Jong-un’s policy goal of boosting food production, experts said.

In his New Year’s message, the young leader said all efforts “should go for agriculture … in order to build a strong economy and to improve the people’s livelihoods.”

Last year, Pyongyang bought a total of 207,334 tons of fertilizers from China, down by 18 percent from the previous year.

“This year, the trend is expected to be reversed given the January data and the fact that China has lowered duties,” Kwon added.

Read the full story here:
N. Korea’s fertilizer imports from China soar in Jan.
Yonhap
2014-3-4

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Prospects for North Korea’s anthracite exports to China

Monday, March 3rd, 2014

Institute for Far Eastern Studies (IFES)
2014-3-3

For North Korea, anthracite exports are a major means of foreign currency earnings and the country’s top export item to China. Exports are expected to continue to rise this year.

China’s year-on-year import of anthracite from North Korea increased 39.7 percent (16.49 million tons) from the previous year, accounting for 41.5 percent of the total amount of anthracite import for China (39.66 million tons). North Korea has now surpassed Vietnam as the top exporter of anthracite to China.

Other than natural resources, North Korea has virtually no other major export commodities to offer. The recent standstill in inter-Korean economic cooperation and toughened international sanctions has made it difficult for North Korea to earn foreign currency. Thus, North Korea has pushed for a steady increase in its hard coal exports to China. North Korean anthracite is considered to be of relatively high quality, maintaining a higher unit price (10 USD/ton) than Vietnamese anthracite.

Currently, China’s steel industry is the largest consumer of the North Korean anthracite, with the main consumers being local steel companies in Liaoning, Hebei, and Shandong Provinces, as they are geographically closer to North Korea and have easy access to shipping ports.

The market for North Korean anthracite is expected to expand. Since last year, the Chinese government began to implement wide-ranging air-pollution management measures. As a result, Chinese authorities designated the Hebei Province and the surrounding areas of Beijing and Tianjin municipalities as key areas to improve and control air pollution. With the help of allocated subsidies from the central government, local governments began to distribute hard coal briquettes to homes in farming villages. China’s major anthracite producing areas are in remote mountainous regions. So the demand for North Korean anthracite briquettes is anticipated to increase.

Late last year, the former head of the (North) Korean Workers’ Party Jang Song Thaek was accused, charged and executed for, among other “anti-state activities,” selling the country’s “precious [natural] resources” (presumably to China) at very cheap prices. But his execution does not appear to have made a significant impact on the anthracite trade between the DPRK and China. With China’s growing demand for North Korean anthracite, the export volume is expected to rise.

However, some argue that despite the growing demand North Korea’s coal production capacity is limited and will experience difficulties. Currently, North Korea has already suppressed significantly its domestic demand in order to meet the export volume. North Korea’s mining facilities are said to be old and badly in need of repairs, but large investments from Chinese companies that could be put toward this endeavor are reported to have dried up.

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