There are signs that North Korea intends to resume overland trade with China. But rather than reopening the entire border for trade, North Korea appears to be preparing to resume trade on a limited basis, through the customs office in Sinuiju.
A source in Yanggang Province told Daily NK on Oct. 7 that trade management bureaus in Yanggang Province and provinces around the country received instructions in mid-September from the Ministry of External Economic Relations to carefully prepare to resume trade with China.
Accordingly, the trade bureau in Yanggang Province reportedly instructed all trade units connected with Chinese trade companies to prepare items for export.
“On Oct. 1, the provincial trade bureau instructed trade companies and other related agencies at the municipal and provincial level to manage export goods that have been in storage since the pandemic and to acquire more goods going forward because trade may resume at the end of this month,” the source said.
As a result, trade companies and related enterprises in Hyesan, Samjiyon, Kimhyongjik County and other places in Yanggang Province have been scrambling to acquire goods for export. If trade resumes at the end of October, these companies barely have enough goods on hand for a couple of days of exports, the source said.
Since the failure to acquire enough goods for exports could lead to castigation and punishment from the central government, trade authorities are frantically working to acquire goods in such counties as Samsu, Kapsan, Pungso and Kimhyonggwon, the source explained.
The primary exports in Yanggang Province are lumber, herbs and minerals. The main minerals exported from the province are tungsten, zinc and copper, of which there are considerable underground deposits.
Enterprises that specialize in mining ore — including the Hyesan Youth Mine, the Daebong Mine, the Huchang Mine and the Unhung Mine — have reportedly begun assessing and repairing their equipment to prepare for the reopening of trade. Since trade has been disrupted for more than two and a half years during the pandemic, these mines’ production systems are basically nonoperational at the moment, the source said.
“Even if trade does resume at the end of this month, I’m told that the Hyesan customs office isn’t open. Export goods produced in Yanggang Province are likely to be exported through the Sinuiju customs office,” the source said.
Some in China expect that Chinese veterans of trade with North Korea will be allowed back into the North if the two countries resume trade.
That was the opinion offered by one such Chinese businessperson who spoke with the Daily NK over the phone.
“I’m checking on the Chinese government’s position on trade with North Korea through several channels, and I’m also monitoring the situation over there through regular phone calls with North Korean trade officials in the border region. My understanding is that North Korea means to resume trade one way or another,” the businessperson said.
“Following the Chinese Congress [the 20th National Congress of the Chinese Communist Party], I understand that China will officially allow traders to enter North Korea. As long as there isn’t an outbreak of COVID-19 in North Korea, I think it will be possible not only for trade to be resumed but also for traders to enter North Korea starting at the end of this month,” the businessperson added.
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