{"id":64404,"date":"2025-08-08T00:40:40","date_gmt":"2025-08-07T15:40:40","guid":{"rendered":"https:\/\/www.dailynk.com\/english\/?p=64404"},"modified":"2025-08-13T07:11:40","modified_gmt":"2025-08-12T22:11:40","slug":"restaurants-it-how-china-restricting-north-korean-business-independence","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/restaurants-it-how-china-restricting-north-korean-business-independence\/","title":{"rendered":"From restaurants to IT: How China is restricting North Korean business independence"},"content":{"rendered":"<div data-test-render-count=\"272\">\n<div class=\"group relative -tracking-[0.015em] pb-8\" data-is-streaming=\"false\">\n<div class=\"font-claude-message relative leading-[1.65rem] [&amp;_pre&gt;div]:bg-bg-000\/50 [&amp;_pre&gt;div]:border-0.5 [&amp;_pre&gt;div]:border-border-400 [&amp;_.ignore-pre-bg&gt;div]:bg-transparent [&amp;&gt;div&gt;div&gt;:is(p,blockquote,h1,h2,h3,h4,h5,h6)]:pl-2 [&amp;&gt;div&gt;div&gt;:is(p,blockquote,ul,ol,h1,h2,h3,h4,h5,h6)]:pr-8\">\n<div>\n<div class=\"grid-cols-1 grid gap-2.5 [&amp;_&gt;_*]:min-w-0\">\n<p class=\"whitespace-normal break-words\">While relations between North Korea and China seem to be improving, things aren&#8217;t quite back to normal. The Chinese government is now restricting North Korean businesses and organizations from entering or expanding in the Chinese market.<\/p>\n<p class=\"whitespace-normal break-words\">A source in China told Daily NK recently that it&#8217;s become unusual for North Korean enterprises, organizations, or individuals to operate businesses independently in China.<\/p>\n<p class=\"whitespace-normal break-words\">Before COVID-19, North Korean businesses in China typically ran their own operations. Now, the source explained, the only ones still operating are joint ventures with Chinese companies or business partners.<\/p>\n<p class=\"whitespace-normal break-words\">North Korean restaurants offer a clear example of this shift. Previously, these restaurants operated independently\u2014North Korean organizations would rent buildings in China and keep all the profits. You won&#8217;t find restaurants like that anymore.<\/p>\n<p class=\"whitespace-normal break-words\">The change comes down to Chinese local governments no longer permitting North Korean businesses or individuals to operate independently.<\/p>\n<p class=\"whitespace-normal break-words\">Now, if a North Korean enterprise wants to open a restaurant in China, they need a business permit for a joint venture with a Chinese investor or guarantor. Having a Chinese partner provide guarantees for the business makes it much easier to convince local governments to issue permits.<\/p>\n<p class=\"whitespace-normal break-words\">&#8220;There isn&#8217;t a single North Korean restaurant in Liaoning province currently operating independently,&#8221; the source said.<\/p>\n<p class=\"whitespace-normal break-words\">Even Songwondo, the most famous North Korean restaurant in Dandong, Liaoning province, now survives through a joint venture with a Chinese investor\u2014despite previously operating on its own.<\/p>\n<p class=\"whitespace-normal break-words\">Most North Korean restaurants in Liaoning province closed during the pandemic due to financial difficulties. Only a small number remain open, all through joint ventures with Chinese investors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-test-render-count=\"1\">\n<div class=\"group relative -tracking-[0.015em] pb-3\" data-is-streaming=\"false\">\n<div class=\"font-claude-message relative leading-[1.65rem] [&amp;_pre&gt;div]:bg-bg-000\/50 [&amp;_pre&gt;div]:border-0.5 [&amp;_pre&gt;div]:border-border-400 [&amp;_.ignore-pre-bg&gt;div]:bg-transparent [&amp;&gt;div&gt;div&gt;:is(p,blockquote,h1,h2,h3,h4,h5,h6)]:pl-2 [&amp;&gt;div&gt;div&gt;:is(p,blockquote,ul,ol,h1,h2,h3,h4,h5,h6)]:pr-8\">\n<div class=\"grid-cols-1 grid gap-2.5 [&amp;_&gt;_*]:min-w-0\">\n<h4 class=\"text-xl font-bold text-text-100 mt-1 -mb-0.5\"><em>Beyond restaurants: Broader impact on N. Korean business<\/em><\/h4>\n<p class=\"whitespace-normal break-words\">Under these arrangements, Chinese partners naturally take a larger share of profits, putting North Korean businesses at a disadvantage. The result is that North Korean operations in China are far less profitable than before.<\/p>\n<p class=\"whitespace-normal break-words\">The restaurant industry isn&#8217;t alone in facing these challenges. North Korean IT companies, tourism agencies, and trading companies are also struggling to maintain independent operations in China.<\/p>\n<p class=\"whitespace-normal break-words\">Many workers at North Korean IT companies in Shenyang and Dandong returned home in the first half of the year after the Chinese government refused to renew their residency visas.<\/p>\n<p class=\"whitespace-normal break-words\">Companies under Paeksol Trading Corporation (linked to North Korea&#8217;s Reconnaissance General Bureau) and Solbongsan Trading Company (connected to North Korea&#8217;s Ministry of State Security) have also sent many workers back home, according to the source.<\/p>\n<p class=\"whitespace-normal break-words\">The Chinese government&#8217;s reasoning behind these measures remains unclear.<\/p>\n<p class=\"whitespace-normal break-words\">Chinese businesspeople involved in joint ventures with North Korea believe Beijing is restricting North Korea&#8217;s independent economic activities to prevent potential sanctions violations.<\/p>\n<p class=\"whitespace-normal break-words\">&#8220;China keeps trying to control North Korea,&#8221; said one Chinese businessperson with years of experience in North Korean joint ventures. &#8220;It seems like they&#8217;re showing that North Korea can&#8217;t make foreign currency without China&#8217;s permission or help.&#8221;<\/p>\n<p><a href=\"https:\/\/www.dailynk.com\/20250804-6\/\">Read in Korean<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>While relations between North Korea and China seem to be improving, things aren&#8217;t quite back to normal. The Chinese government is now restricting North Korean businesses and organizations from entering or expanding in the Chinese market. A source in China told Daily NK recently that it&#8217;s become unusual for North Korean enterprises, organizations, or individuals [&hellip;]<\/p>\n","protected":false},"author":128,"featured_media":57648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wikipediapreview_detectlinks":true,"footnotes":""},"categories":[67,1539],"tags":[162,181,222,740,744,759,779,830,863],"class_list":["post-64404","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","category-north-koreans-in-china","tag-ministry-of-state-security","tag-sanctions","tag-border","tag-liaoning-province","tag-restaurants","tag-china","tag-dandong","tag-shenyang","tag-tourism"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>From restaurants to IT: How China is restricting North Korean business independence - North Korea News \u2014 Daily NK | Latest DPRK Updates 2026<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dailynk.com\/english\/restaurants-it-how-china-restricting-north-korean-business-independence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"From restaurants to IT: How China is restricting North Korean business independence\" \/>\n<meta property=\"og:description\" content=\"While relations between North Korea and China seem to be improving, things aren&#8217;t quite back to normal. 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