North Koreans who anticipated a surge in contract manufacturing work following the relaxation of COVID-19 border controls are facing disappointment as opportunities continue to dwindle.<\/p>\n
“People expected more contract work when the border reopened, but the opposite has happened,” a source in North Pyongan province told Daily NK recently. “Chinese businesses are increasingly reluctant to work with North Korean companies due to the various uncertainties involved in contract execution.”<\/p>\n
The decline stems partly from North Korean businesses’ track record of missing delivery deadlines and failing to honor contract terms. However, a more fundamental shift is also occurring: Chinese companies are rapidly automating processes that were once done manually.<\/p>\n
“We’re losing contracts for embroidery and beadwork as machines take over these tasks. Even wig-making and false eyelash production are now automated, dramatically reducing the need for manual finishing work,” the source explained.<\/p>\n
Contract manufacturing \u2013 where Chinese companies provide raw materials to North Korean businesses for manual processing into finished products \u2013 has been a vital source of foreign currency for North Korea. State-authorized trading organizations have traditionally operated manufacturing sites of various sizes throughout the country.<\/p>\n
For many North Koreans without stable income sources, these worksites provided crucial employment opportunities. The current work shortage is directly impacting their ability to make ends meet.<\/p>\n
A resident of Sinuiju’s Minsa neighborhood told the source: “Contract work used to provide steady income. I used to be selective about jobs, hoping for better rates. Now I’d take any work I can get, but I can’t remember the last time I had an opportunity.”<\/p>\n
While the pay rate of around 0.20 USD per hour might seem minimal, it represents significant income for many North Koreans.<\/p>\n
“Contract manufacturing was the one reliable way to earn money, which is why people are feeling its loss so deeply,” the source said.<\/p>\n
Despite these challenges, North Korean authorities continue pressuring Chinese companies to increase their manufacturing rates. “Officials complain that we’re paid too little for processing raw materials into finished products, but they’re failing to recognize how rapidly the industry is evolving,” the source noted.<\/p>\n