North Korea, First Trade Deficit with Yanbian in a Decade

[imText1]In the first half of the year, North Korean trade deficit surpassed eleven million dollars (11,430,000 USD) in its trade with Yanbian Korean Autonomous Prefecture.

The government of Yanbian Korean Autonomous Prefecture reported through Yanbian People’s Broadcasting that although import from North Korea increased by 4.2% (54,000,000 USD) compared to first half of last year, yet export increased by 33.2% (66,000,000 USD).

The total amount of trade between North Korea and Yanbian local government in China is 120,000,000 USD, a growth by 18.3% compared to first half of last year.

The trading companies that import natural resources of Baekdu Mountain and productions from subcontracted factories are concentrated in Yanbian Korean Autonomous Prefecture, thus Yanbian is considered as one of the major cities trading with North Korea. It is the first time North Korea had a deficit in its trade with Yanbian Korean Autonomous Prefecture since 1994.

While North Korea’s exporting goods to Yanbian mainly consist of natural resources such as iron ore, recycled metal, (86.1% of the export), its importing goods mainly consist of manufactured goods such as chemical fertilizer, coal tar, electronics, textile, vinyl, and cigarettes, and non-manufactured goods such as rice and coal.

One of the staff members of an international distribution company located in Yenji says, “Currently North Korea is selling all sort of natural resources to China and buys mid-low price manufacture goods. In fact, North Korea’s underground resources and marine products are of higher quality but since North Korea does not have the ability to process them industrially, they are sold at a cheap price.”

It was reported that Lungjing, the city with the least economic growth in the Yanbian Korean Autonomous Prefecture exported $3,700,000 worth of electronics to North Korea in the first half of this year.

It is predicted that North Korea’s trade deficit will increase in the future for it exports underground resources, forestry resources and marine products while it imports rice, chemical fertilizers, machinery, and materials for light industry.

Last year, North Korea’s trade deficit reached $200 million dollars in its trade with China, from $580million dollars of export and $790 million dollars of import.

SHARE
Avatar
Questions or comments about this article? Contact us at dailynkenglish@uni-media.net.