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2017.06.28
| Won | Pyongyang | Sinuiju | Hyesan |
|---|---|---|---|
| Exchange Rate | 8,070 | 8,050 | 8,095 |
| Rice Price | 5,800 | 6,000 | 5,900 |
New analysis confirms that China has a history of exporting food grains to its ally North Korea at above international prices.
The news was revealed on the 6th by KOTRA (Korea Trade-Investment Promotion Agency) and the Peterson Institute for International Economics, a Washington DC-based think tank. The conclusion is based on analysis of the unit cost of rice exported from China to North Korea between January 2002 and the start of this year.
In particular, in 2004, 2007, 2010, and 2011, China was found to have exported rice to North Korea at a price that exceeded the price of Thai “A1” standard, the global yardstick for the measurement of rice quality. Most of the time, the export price to North Korea hovered at the price point between “A1” and “B2” rice.
It is unlikely that the rice exported to North Korea is at or near that global standard, the Peterson Institute analysis noted. This raises the likelihood that China is using North Korea’s lack of international trade partners to its own economic advantage. Probable instigating factors in encouraging China to overcharge its neighbor include a lack of competition, which was caused by reduced inter-Korean trade volumes since 2008.
The trend is even clearer in the cases of wheat and corn, according to the analysis. It notes that, with the exception of 2008, exports to North Korea from China have always been completed at higher prices than the international average.
The news was revealed on the 6th by KOTRA (Korea Trade-Investment Promotion Agency) and the Peterson Institute for International Economics, a Washington DC-based think tank. The conclusion is based on analysis of the unit cost of rice exported from China to North Korea between January 2002 and the start of this year.
In particular, in 2004, 2007, 2010, and 2011, China was found to have exported rice to North Korea at a price that exceeded the price of Thai “A1” standard, the global yardstick for the measurement of rice quality. Most of the time, the export price to North Korea hovered at the price point between “A1” and “B2” rice.
It is unlikely that the rice exported to North Korea is at or near that global standard, the Peterson Institute analysis noted. This raises the likelihood that China is using North Korea’s lack of international trade partners to its own economic advantage. Probable instigating factors in encouraging China to overcharge its neighbor include a lack of competition, which was caused by reduced inter-Korean trade volumes since 2008.
The trend is even clearer in the cases of wheat and corn, according to the analysis. It notes that, with the exception of 2008, exports to North Korea from China have always been completed at higher prices than the international average.
