North Korean trade agencies recently ordered traders in China to cut off communciation with poor performing Chinese business partners, Daily NK has learned.
“Trading companies issued orders for traders to end their business with Chinese traders who cannot find the items asked for at suitable prices, and to find new partners,” a Daily NK source said on Friday, speaking on condition of anonymity for security reasons.
The order appears largely aimed at helping traders improve their businesses, but also comes in response to China’s recently amended counterespionage law.
The amended counterespionage law went into effect in July, widening the scope of what Chinese authorities consider espionage and intensifying punishments. Anyone suspected of collecting or providing intelligence on China’s national security or national interests can be subject to punishment.
North Korean traders sometimes obtain information on China’s domestic situation through Chinese traders, reporting what they learn to their superiors. Chinese traders are well aware of this, so North Korean traders appear to be severing ties over fears they could find themselves in trouble under the counterespionage law.
Above all, North Korean traders have felt the need to change their business partners to protect themselves, the source said.
Because North Korean traders have sometimes used Chinese traders to obtain information about South Korea, other countries, or about trade in goods to make money on the side, they fear they could get in trouble with the North Korean authorities if what they were doing came to light.
North Korean traders work in small groups of under 10, but they face constant Ministry of State Security surveillance and reviews, so there is always the potential for their activities to become an issue with the North Korean authorities.
Some traders have enjoyed better business results since changing their Chinese partners, the source said.
“The North Korean traders are seeing several positive effects from changing their partners. Business is better, and for people who were suspected of being a problem by the North Korean authorities, it’s been an opportunity to protect themselves.”
However, many North Korean traders continue to trade with their existing, reliable Chinese partners who find the items they ask for at reasonable prices.
According to China’s customs authority, trade between North Korea and China amounted to USD 216.53 million in September, a 13.3% on-month increase. It was also the highest figure since North Korea closed its border due to COVID-19.
Translated by David Black. Edited by Robert Lauler.
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