China-North Korea trade zone fails to get off the ground

[webfact]

China-North Korea trade zone fails to get off the ground



DANDONG: -- It is supposed to be a key economic gateway to reclusive North Korea.

But two months after its opening, business activity in a trade zone of the Chinese border city of Dandong is flat.

Shops lie empty and customers are in seriously short supply.

Why? The duty-free zone manager is vague.

“Nothing has been decided yet. The space could be rented out…” the manager told reporters.

Dandong is a stopover for North Korean traders and officials travelling between North Korea and northeast China.

It is also a magnet for foreign reporters seeking information on one of the most isolated countries in the world.

This slow start to the new development there is not altogether a surprise.

Previous attempts to set up free trade zones, part of Chinese efforts to coax North Korea into economic reforms, have mostly foundered due to lack of investor interest and fears over doing business with a country under UN sanctions.

China though continues to improve infrastructure on its side of the border.

The opening of a new bridge however is said to have been delayed over North Korea’s failure to build connecting roads.

North Korea’s isolated and small economy has few links with the outside world apart from China, which has been a key partner for decades.

But ties have been strained by North Korea’s banned nuclear programme, which has triggered the
UN sanctions on the North.

As relations between China and North Korea have become strained in recent years, China has grown closer to South Korea, Asia’s fourth-largest economy and the North’s main rival.


-- (c) Copyright Euronews 2015-12-31

[trogers]

What does North Korea produce that China doesn't?

[Usernames]

What does North Korea produce that China doesn't?

Starvation.

[trogers]

What does North Korea produce that China doesn't?

Starvation.

And this is why the trade zone fails to get off the ground. To succeed, rename it Beggars Town...

[Briggsy]

The article is misleading. This is the official trade zone but there are many unofficial trade zones in North Korea near the Chinese border which are thriving. There is a level of tolerance for these unofficial trade zones from the NK authorities.

[Scott]

An off-topic post has been removed. This topic is about the China-NK trade zone.

[GOLDBUGGY]

Who is supposed to sell to who here? A North Korean doesn't have anything to sell besides the shirt off his back, and he may not even have this. So he certainly doesn't have money to spend to buy anything either.

What could China buy from them? North Korea doesn't even have enough rice or food to feed themselves. Under investment has caused shortages of manufactured goods. They don't even have spare parts for tractors there. China could sell them this but who's got money there? Afghanistan is a richer country per person than North Korea is.

Nope! I can't see this working the way it is set up now. The only thing I can think of the North Korea has a lot to sell is Cheap Labor, which I am sure China has enough of its own. Maybe a Girly Bar and small Gambling House might do well there for the few rich that come there. But to slide this under the noses of strict communist rule would be difficult to do and illegal. You pretty well need a General as a Silent Partner and hope he doesn't piss the wrong guy off or want to much money.