Archive for the ‘China’ Category

Yanji-Rason tour project launched

Monday, August 4th, 2014

According to Xinhua:

The Chinese border city of Yanji in northeastern Jilin Province has opened a direct bus tour service to the neighboring Democratic People’s Republic of Korea (DPRK), tourism authorities said Monday.

A total of 48 Chinese tourists and two Chinese guides ended their two-day tour to the city of Rason on Sunday completing the first batch of bus tours in Yanji, said Wang Yanbo, deputy chief of Yanji tourism bureau.

The group visited Rajin Port, greenhouses housing Kimilsungia and Kimjongilia, both flower species named after the late DPRK leaders Kim Il Sung and Kim Jong Il, the Korean Ethnic Cultural Park and the beachside of Pipa Island, said Lian Qinghua, general manager of Yanbian Northeast Asia Passenger Transport Group Co,. Ltd travel agency, operator of the tour.

The journey to the DPRK takes around four hours and will operate from Tuesday to Saturday, Lian said.P Compared with other travel methods to Rason, the nonstop trip avoids transfer processing at the China-DPRK border, he said.

Travel figures show about 10,000 Chinese tourists visit the DPRK annually.

Yonhap report here.

Read the full story here:
Chinese border city opens bus tour to DPRK
Xinhua
2014-8-4

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DPRK -china trade dips slightly in H1 2014

Monday, August 4th, 2014

According to the Korea Herald (Yonhap):

North Korea’s trade with its economic lifeline China fell 2.1 percent on year to US$2.89 billion in the first six months of this year, data compiled by South Korea’s government trade agency showed Monday, in another sign that strained political ties between the two nations have affected their economic relations.

During the six-month period, North Korea’s exports to China declined 3.9 percent to $1.31 billion and imports slipped 0.6 percent to $1.58 billion, according to the data provided by the Beijing unit of South’s Korea Trade and Investment Promotion Agency (KOTRA).

There were no shipments of crude oil from China to North Korea from January to June, the data showed.

“Despite the six-month absence of oil shipments, the scale of North Korea’s decline in imports is minimal,” the source said on condition of anonymity.

Meanwhile, North Korea’s exports of rare earth to China jumped 153.7 percent on year during the January-June period, the data showed, without providing the value of the exports.

Read the full story here:
N. Korea’s trade with China falls 2.1 pct in H1
Korea Herald (Yonhap)
2014-08-04

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Food imports from China fall in 2014

Wednesday, July 30th, 2014

According to Yonhap:

North Korea’s grain imports from China tumbled more than 50 percent on-year in the first half of this year, data showed Wednesday, amid speculation that relations between the communist allies are not like before.

North Korea imported 58,387 tons of cereal crops from China in the January-June period, down 53 percent from 124,228 tons recorded a year earlier, according to the data by the Korea International Trade Association (KITA).

By type, flour topped the list with 40,142 tons, or 68.8 percent, followed by rice and corn with 13,831 tons and 3,420 tons, respectively, added the Seoul-based agency.

Analysts say the remarkable decrease may be attributable to reportedly strained ties between the two sides in recent months.

“Of late, North Korea has appeared to move to reduce its economic dependence on China and diversify its foreign economic partners,” said Lim Eul-chul, professor at the Institute for Far Eastern Studies at Kyungnam University.

Kwon Tae-jin, researcher at private think tank GS&J, said it might have been more affected by Pyongyang’s increased crop yield.

“North Korea’s stockpile of crops seems to have grown due to a good harvest last year.

Meanwhile, China’s fertilizer exports to North Korea also plunged 21.3 percent to 109,531 tons during the January-June period this year from a year earlier, said KITA.

Read the full story here:
N. Korea’s grain imports from China halve in H1
Yonhap
2014-7-30

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Chinese Koreans and cross border trade

Tuesday, July 29th, 2014

According to the Daily NK:

The Hwagyo, North Korea’s community of overseas Chinese, are seeing their value rise in response to demand for assistance transporting cross-border freight for local traders hamstrung by their proscribed freedom of movement, according to a source inside North Korea. The local traders refer to the process as “renting a passport”.

The source in North Pyongan Province reported to Daily NK on July 28th, “Pyongyang Hwagyo are catering to the tastes of middle-class consumers in the city’s markets by taking orders from individuals or by bringing in goods on the behalf of traders.

“The measles outbreak prevented Pyongyang hwagyo in Pyongyang from taking the cross-border train, but recently that ban was lifted so they can come and go from Dandong again.” The measles travel ban was put in place during June in Yongcheon and Sinuiju, but was withdrawn on July 15th.

Hwagyo are treated as citizens in North Korea, carrying the same identification cards as all other residents; however, they are also able to hold Chinese passports, which allows for greater mobility and autonomy than other North Koreans. That is the reason for the high demand; North Korean traders and wholesalers employ them to ensure that their supplies arrive from China.

“Although there are a lot of hwagyo from Sinuiju and elsewhere in Dandong, Pyongyang hwagyo are the ones who get hired the most because the train ends in Pyongyang; This makes it easier to get the goods into circulation, and the procedures there are not as stringent,” the source reported. “This has caused their value to rise.”

“The hwagyo either use their own money to get products to sell in Pyongyang markets directly, or they use money from traders and take 5% of the total upon delivery,” she said. “They take commission for transferring goods from the cross-border trains to merchants in Pyongyang markets.”

“Merchants used to collaborate with train operators coming in from Dandong to bring goods into Sinuiju. However, more are seeking out the hwagyo instead, because it’s cheaper,” the source said.

There is a stipulated limit of 300kg of cargo per person on the train between Dandong and Pyongyang. Excess luggage is possible, but only up to 50kg, and this is charged at 1.50 RMB per kg, according to the source. The ticket for the 5hr 30min ride is 300 RMB, and this must also be factored into the overall freight transit cost.

The train departs at 10:00 daily. Once it arrives in Pyongyang at around 15:30, passengers and freight are subjected to customs procedures, followed by immigration inspections. “Not a single person can leave the train until everyone goes through immigration and officers check their passports and travel visas,” the source recalled.

“Because the staff in Sinuiji Customs House are tough about inspections and are sure to take at least one thing, it’s safer and cheaper to transport goods via the cross-border train,” the source said, concluding, “How funny it is that this place prevents North Korean citizens from moving around freely and ends up making hwagyo richer.”

Read the full story here:
Hwagyo Step in to Dominate Border Trade
Daily NK
Seol Song Ah
2014-07-29

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DPRK increases exports of rare earths to China

Sunday, July 27th, 2014

According to the Korea Times:

North Korea has increased its rare earth exports to China amid worries within the international community that its mineral exports could weaken the effect of sanctions imposed on the reclusive state.

The cash-strapped communist country exported goods to the value of $550,000 and $1.33 million in May and June, respectively, according to the Korea International Trade Association (KITA).

Last January, the North exported elements worth nearly $25,000 to China for the first time and continued them this year. The country has an estimated 20 million tons of rare earth elements.

The North’s resources exploitation have stirred speculation that the impoverished state may further diversify mineral exports to China, where it has previously mostly exported anthracitic and iron ore.

The KITA report identified the changing trend in North Korea’s earnings from mineral exports.

In the first half of this year, earnings from anthracitic and iron ore exports decreased 23 percent and 5 percent, respectively.

These earning deficits were compensated for by exports of rare earth elements. There has been a sharp increase in global demand over the last recent decade because several high-tech devices, including smartphones, and other high technology devices use them in core components. Rare earth elements are a group of 17 elements on the periodic table referred to by the US Department of Energy as “technology metals” because of their use and application.

The communist country relies heavily on mineral exports as a major source of hard currency after international sanctions were imposed on the Pyongyang regime for its continuing missile launches and testing of nuclear weapons.

Natural resources account for 73 percent of North Korea’s bilateral trade with China in 2012. The North exports 11 million tons of anthracitic to China annually.

Yonhap coverage:

North Korea exported rare-earth elements worth $1.87 million to China from May to June, resuming outbound shipments of the crucial industrial minerals to its key ally and economic benefactor in 15 months, data showed Sunday.

North Korea shipped rare-earth minerals worth $550,000 and $1.32 million to China in May and June, respectively, which amounted to a total of 62,662 kilograms, according to the Korea International Trade Association based in Seoul.

The communist regime first exported rare-earth metals worth $24,700 to China in January 2013 and had stopped selling them until recently.

Separately, Pyongyang has sold carbonate-containing rare-earth compounds to China since 2011, but the size of outbound shipments is small, with the total amount is estimated at about $170,000 over a period of three and a half years.

The impoverished nation is known to have large reserves of rare-earth minerals, which are crucial ingredients used in many tech products as well as the military and medical sectors.

The latest move comes as the North has stepped up developing rare-earth deposits to support its moribund economy.

Last year, the North’s state-owned Korea Natural Resources Trading Corporation signed a 25-year deal with British Islands-based private equity firm SRE Minerals Limited to mine deposits in Jongju, northwest of the capital, Pyongyang.

Experts said the recent surge in North Korea’s rare-earth shipments may be part of its attempts to diversify sources of mineral exports, which account about half of its total exports.

The North’s export of anthracite coal fell 23 percent in the first half of this year to $571.2 million from a year ago, while ironstone declined 5 percent to $120 million in the cited period, according to trade data.

“The rare-earth minerals sold to China were valued at $30 per kilogram, and they were considered to be processed iron concentrates or oxidized substances,” said Choi Kyung-soo, chief of the Seoul-based North Korea Resource Institute. “It could be seen as an attempt to diversify items of mineral resource exports, but it remains to be seen whether the North will start exporting large volumes of rare-earth minerals.”

Read the full stories here:
Rare earth elements boost NK income
Korea Times
Kang Hyun-kyung
2014-7-27

N. Korea exports US$1.8 mln worth of rare earth to China in May-June
Yonhap
2014-7-27

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DPRK announces more economic development zones

Wednesday, July 23rd, 2014

According to KCNA:

Economic Development Zones to Be Set up in Provinces of DPRK

Pyongyang, July 23, 2014 17:50 KST (KCNA) — It was decided in the DPRK to establish economic development zones in some areas of Pyongyang, South Hwanghae Province, Nampho City, South and North Phyongan provinces.

Unjong cutting-edge technological development zone will be set up in some areas of Wisong-dong, Kwahak 1-dong and Kwahak 2-dong, Paesan-dong and Ulmil-dong in Unjong District, Pyongyang.

Kangryong international green model zone will be set up in some areas of Kangryong township in Kangryong County, South Hwanghae Province.

Jindo export processing zone will appear in some areas of Jindo-dong and Hwado-ri, Waudo District, Nampho City.

Chongnam industrial development zone will be set up in some areas of Ryongbuk-ri, Chongnam District, South Phyongan Province. Sukchon agricultural development zone will appear in some areas of Unjong-ri, Sukchon County and Chongsu tourist development zone in some areas of Chongsong Workers’ District and Pangsan-ri, Sakju County, North Phyongan Province.

The sovereignty of the DPRK would be exercised in the economic development zones in provinces.

The relevant decree of the Presidium of the Supreme People’s Assembly was promulgated on Wednesday.

By my count, this brings the total number of special economic zones and economic development zones to 25. Little visible progress has been made on the zones announced in 2013, though things seem to be happening in Pyongyang. Also, South Phyongan Province now has Economic Development Zones. It had been omitted from previous lists.

Yonhap also reports:

Jin Qiangyi, a professor of Korean studies at Yanbian University, told the state-run China Daily that the move by North Korea is apparently aimed at breathing new life into its moribund economy.

“Many Chinese companies still feel daunted by doing business in the country because there is no clear policy to guarantee investors’ interests,” the newspaper quoted Jin as saying.

However, another Chinese expert, Li Tianguo, a researcher at the National Institute of International Strategy at the Chinese Academy of Social Sciences, was less pessimistic.

Li told the newspaper that the new zones will “have great attraction to Chinese enterprise and bring good opportunities, in particular for businesses with border trade and processing production.”

China’s direct investment into North Korea jumped to US$109.46 million in 2012 from $5.86 million in 2009, the newspaper reported, citing what it called a “2012 Statistical Bulletin of China’s Outward Foreign Direct Investment.”

I have all of the economic Development Zones mapped out on Google Earth.

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China donates US$1m in food assistance

Tuesday, July 8th, 2014

According to Yonhap:

China donated US$1 million to the World Food Programme (WFP), the United Nations’ food assistance body, to help feed malnourished North Korean children and pregnant women, a U.S. report said Tuesday.

The donation will be used to provide food to around 1.8 million North Korean babies, children and expecting mothers, according to the report by the Washington-based Voice of America.

China has previously donated the same amount of money for WFP’s North Korean assistance program last December.

Since the beginning of 2014, WFP has collected $49 million in donations for North Korean food assistance from countries such as Switzerland, Australia and Canada.

The amount accounts for only 35 percent of what WFP needs to accomplish their food aid programs for North Korea in the first half of this year.

Read the full story here:
China donates US$1 mln to help feed N. Korean children
Yonhap
2014-7-8

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Quanhe-Wonjong Bridge: Renovated and to be replaced (UPDATED)

Saturday, June 28th, 2014

 Pictured Above (Google Earth): The Hunchun Bridge linking the DPRK and China

UPDATE 4 (2014-6-28): According to Xinhua, the bridge is to be replaced:

China and the Democratic People’s Republic of Korea (DPRK)agreed on Friday to jointly build, manage, and maintain a new border bridge between thetwo neighbors.

An agreement was signed by Chinese Ambassador to the DPRK Liu Hongcai and DPRKVice Foreign Minister Pak Myong Guk, the official KCNA news agency reported.

The Quanhe-Wonjong bridge over the Tumen River, which was built in the 1930s, hasbeen in a shabby condition.

UPDATE 3 (2011-9-7): A reader send in a photo of the road:

Rajin-China-Road-2011-9-7

Click image to see lager version and source.

UPDATE 2 (2010-6-23): Hunchon Bridge opens.  According to Kyodo (via Breitbart):

China has repaired a bridge in Hunchun at the Chinese and North Korean border, giving it a safer access to North Korea for use of Rajin port to ship coal to Shanghai, according to Jilin Province officials.

China paid 3.6 million yuan ($528,526) to repair the bridge over the Tumen River, a project jointly pursued with North Korea, the officials said Tuesday.

Work was completed June 14.

The bridge serves as a gateway to Pier No. 1 at Rajin port, which a Chinese company has obtained the right to use for 10 years.

In April, the Chinese government approved a plan to transport coal and other items produced in Jilin to Shanghai via Rajin in northeastern North Korea.

China and North Korea have been in talks about financing of a plan to build a 50-kilometer road leading to the port, the officials said.

UPDATE 1 (2010-6-6): DPRK border bridge to reopen this month, highway to border opens in October
By Michael Rank

A bridge on the Chinese-North Korean border that will take traffic to the North Korean port of Rajin is due to reopen at the end of this month, while a highway from the Jilin provincial capital of Changchun to the border city of Hunchun 珲春 will open in October, according to Chinese reports here and here.

As NKEW reported in April, the 70-year-old bridge over the Tumen river near Hunchun  is being rebuilt as part of a reported $44 million plan to modernise the road from the border to Rajin. Built during the Japanese occupation in 1938, the bridge is 535 metres long and 6.6 metres wide, and joins the Chinese border post of Quanhe 圈河 with the North Korean town of Wonjeong 원정.

The highway will open on October 1, China’s national day, and will cut the journey time from Changchun to Hunchun from eight hours to five, the report said. But it indicated that the 60-km road from the border to Rajin, said to be mostly unpaved and prone to frequent accidents during rain, would not be ready by then.

A Chinese company, Chuangli Group, based in Dalian in Liaoning province,  was reported in March to have signed a 10-year deal to lease a pier at Rajin (also known as Rasŏn or Rajin-Sŏnbong), giving China access to the Sea of Japan for the first time since the 19th century when the Qing imperial government signed treaties under duress from Japan and Russia.

ORIGINAL POST (2010-4-13): Bridge on China-North Korea border being renovated
By Michael Rank

A 70-year-old bridge on the Chinese-North Korean border is being renovated to improve transport to and from the North Korean port of Rajin 라진 (Rason [Raseon]/Rajin-Sonbong) which a Chinese company has taken over on a 10-year-lease, a Chinese website reports.

The bridge over the Tumen river near the city of Hunchun 珲春 in Jilin province will be reopened at the end of June after almost five months of work. Built during the Japanese occupation in 1938, the bridge is 535 metres long and 6.6 metres wide, and joins the Chinese border post of Quanhe 圈河 with the North Korean town of Wonjeong 원정. The report gave no details of costs but said it was being renovated under a deal between the cities of Hunchun and Rason 라선. It said the bridge would help to boost trade in both Hunchun and Rajin and in the region generally.

The refurbishment of the bridge is part of a reported $44 million plan to modernise the road from the border to Rajin.

Ahn Byung-min, an expert on North Korean infrastructure at the Korea Transport Institute, was quoted by the Korea Herald as saying a senior Chinese local government official had told him that the governor of Jilin had signed an agreement to invest 300 million yuan in expanding and paving the road to Rajin.

A Dalian-based company named Chuang Li agreed in 2008 to revamp the road in exchange for leasing a pier at Rajin. “Chuang Li isn’t a company big enough to afford the road construction, so the Jilin government took on the direct investment instead,” Ahn said.

Additional Information:
1. The existing 60-km road is mostly unpaved and prone to frequent accidents during rain.

2. The coordinates of the new bridge are  42°34’4.45″N, 130°31’24.16″E. You can see it on Google Maps here. Thank you for the tip, Mr. Cha.

3. There are a couple of more bridges in the area: here (which looks like it has been unused for some time) and here.

4. Photos of the construction opening ceremony are here.

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Chinese investment in the DPRK

Friday, June 13th, 2014

Stephan Haggard posted some interesting information on Chinese investment in the DPRK. See his posts here and here.

In this graph, Dr. Haggard breaks down the Chinese investment data by year and industry:

registered-investments-in-China-by-industry

It is worth noting that the graph only sums the number of registered projects, not the value of the investments. Based on satellite imagery and trade data, I think we can make a strong case that the mining sector would be the area receiving the largest infusion of Chinese investment inflows.

Dr. Haggard also shows that most Chinese investment flows into the DPRK originate from the provinces along its border:

china-investment-in-dprk-by-province

In a second post, Dr. Haggard offers a graph of cumulative direct investment from China:

 China-FDI-in-NK-stock-and-flow

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Eberstadt on DPRK Trade

Wednesday, June 4th, 2014

UPDATE 1 (2014-6-12): Witness to Transformation has an update here.

ORIGINAL POST (2014-6-4): Nicholas Eberstadt has written an interesting article on trends in the DPRK’s trade patterns from 2002-2013.

Here is just one graph:

Eberstadt-graph-DPRK-trade-2014-6-4

Read the full article here.

Dr. Eberstadt draws some counter-intuitive conclusions that cannot be observed directly from the published data. You can read all about the published data on the DPRK’s 2013 trade statistics here.

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