{"id":64485,"date":"2025-08-20T12:00:54","date_gmt":"2025-08-20T03:00:54","guid":{"rendered":"https:\/\/www.dailynk.com\/english\/?p=64485"},"modified":"2025-08-19T12:03:41","modified_gmt":"2025-08-19T03:03:41","slug":"north-koreas-processed-goods-push-meets-cold-chinese-market-reality","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/north-koreas-processed-goods-push-meets-cold-chinese-market-reality\/","title":{"rendered":"North Korea&#8217;s processed goods push meets cold Chinese market reality"},"content":{"rendered":"<div class=\"flex-1 flex flex-col gap-3 px-4 max-w-3xl mx-auto w-full pt-1\">\n<div data-test-render-count=\"1\">\n<div>\n<div class=\"group relative -tracking-[0.015em] pb-3\" data-is-streaming=\"false\">\n<div class=\"font-claude-response 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\">As North Korea seeks to develop its economy by exporting more processed goods, Chinese buyers still prefer raw materials, putting North Korean traders in a pickle.<\/p>\n<p class=\"whitespace-normal break-words\">&#8220;Trading companies that work with China in Sinuiju such as Sinhung Trading Corporation and Daehung Trading Company are focusing on exporting processed goods such as ginseng-infused alcohol, ginseng tea, cigarettes, soap and cosmetics because they are not allowed to export raw materials. They&#8217;ve taken various steps to improve sales, such as making the packaging sharper, but the Chinese still want raw materials,&#8221; a source in North Pyongan province told Daily NK recently.<\/p>\n<p class=\"whitespace-normal break-words\">According to the source, North Korean trading companies have been overseeing the domestic production of export goods in accordance with orders given by the cabinet last September.<\/p>\n<p class=\"whitespace-normal break-words\">But most trading companies have been struggling with this new approach to exports because North Korean processed goods are not competitive in the Chinese market, the source said.<\/p>\n<p class=\"whitespace-normal break-words\">Nevertheless, trading companies have foreign currency earning quotas to meet, so they are updating package design to boost demand in the Chinese market and, in some cases, working with Chinese design firms to make products look more sophisticated.<\/p>\n<p class=\"whitespace-normal break-words\">But North Korean products continue to meet a chilly reception in the Chinese market.<\/p>\n<h4 class=\"text-xl font-bold text-text-100 mt-1 -mb-0.5\"><em>Quality concerns persist despite better packaging<\/em><\/h4>\n<p class=\"whitespace-normal break-words\">For example, North Korean products are displayed, but rarely purchased, at souvenir shops in Dandong, a city in China&#8217;s Liaoning province.<\/p>\n<p class=\"whitespace-normal break-words\">Chinese consumers are reportedly reluctant to buy North Korean products, assuming they are still of low quality despite their smarter packaging.<\/p>\n<p class=\"whitespace-normal break-words\">Given the state of the market, Chinese traders want North Korean trading companies to export pine nuts, soybeans, herbs and ginseng as they used to do, which conflicts with the North Korean regime&#8217;s policy of exporting processed goods.<\/p>\n<p class=\"whitespace-normal break-words\">&#8220;As the policy of suppressing raw material exports and expanding processed good exports remains in place, the cabinet ordered traders to earn more foreign currency on Aug. 5, placing an even greater burden on them. Chinese traders recognize that North Korea is trying to improve its processed goods, but they would still rather receive raw materials, which puts North Korean traders in a real bind,&#8221; the source said.<\/p>\n<p class=\"whitespace-normal break-words\">North Korean officials introduced a competitive arrangement between trading companies last month as it pushes them to earn more foreign currency ahead of the Ninth Party Congress.<\/p>\n<p class=\"whitespace-normal break-words\">In response, trading companies are exploring various ways to maximize their earnings. In most cases, they are reportedly placing greater emphasis on improving the appearance of processed goods rather than improving their actual quality.<\/p>\n<p class=\"whitespace-normal break-words\">One North Korean trading company lost the trust of Chinese traders after presenting them with an exemplary sample and then shipping the same low-grade quality as before.<\/p>\n<p class=\"whitespace-normal break-words\">If the processed goods that are exported to China don&#8217;t sell, North Korean trading companies and their managers are ultimately on the hook for the loss.<\/p>\n<p class=\"whitespace-normal break-words\">&#8220;Trading companies performed fairly well when they were exporting both raw materials and processed goods, but their performance has taken a hit since the government ordered them to only export processed goods,&#8221; the source said.<\/p>\n<p class=\"whitespace-normal break-words\">&#8220;Trade is the only way to breathe life into both the national and regional economy. But these companies can&#8217;t succeed when the government keeps issuing orders without paying attention to opinions on the ground.&#8221;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"absolute bottom-0 right-2 pointer-events-none\">\n<div class=\"rounded-lg transition min-w-max pointer-events-auto translate-x-2 translate-y-full pt-2\">\n<div class=\"text-text-300 flex items-stretch justify-between\">\n<div>\n<div class=\"relative flex\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div>\n<div class=\"ml-1 mt-0.5 flex items-center transition-transform duration-300 ease-out\">\n<div class=\"text-text-500 px-2 mt-6 flex-1 text-right text-[0.65rem] leading-[0.85rem] tracking-tighter sm:text-[0.75rem]\"><a href=\"https:\/\/www.dailynk.com\/20250814-4\/\">Read in Korean<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As North Korea seeks to develop its economy by exporting more processed goods, Chinese buyers still prefer raw materials, putting North Korean traders in a pickle. &#8220;Trading companies that work with China in Sinuiju such as Sinhung Trading Corporation and Daehung Trading Company are focusing on exporting processed goods such as ginseng-infused alcohol, ginseng tea, [&hellip;]<\/p>\n","protected":false},"author":132,"featured_media":57648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wikipediapreview_detectlinks":true,"footnotes":""},"categories":[67,645,2084],"tags":[695,696,714,740,759,779,930,1235],"class_list":["post-64485","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","category-economy","category-china-north-korea-relations","tag-sinuiju","tag-north-pyongan-province","tag-economy","tag-liaoning-province","tag-china","tag-dandong","tag-foreign-currency","tag-pine-nuts"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.1) - 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