North Korea and China launched a border trade zone on Thursday, as they kicked off their annual trade fair in the Chinese border city of Dandong.
The Guomenwan trade zone in Dandong, where more than 70 percent of bilateral trade between the two nations is conducted, is the latest sign that North Korea and China are trying to boost economic cooperation, despite the North’s defiant pursuit of nuclear weapons.
The launch of the trade zone fell on the first day of a four-day North Korea-China trade fair in Dandong, with Pyongyang reportedly sending a 400-strong delegation to the exhibition.
Dandong Mayor Shi Jian told a launching ceremony that the establishment of the trade zone is “significantly meaningful” for the development of friendly relations between North Korea and China.
Shi said the trade zone would help Dandong become a centerpiece of bilateral trade between North Korea and China, as well as logistics trade in Northeast Asia.
Dandong officials said the trade zone will house as many as 50 North Korean business entities by April next year. The North Korean business entities will mostly sell farm and fishery goods, they said.
According to Chinese state media, Chinese people living within 20 kilometers of the border can buy North Korean goods without paying import tax if they spend less than 8,000 yuan ($1,250) per day.
North Korea has been under sanctions by the United Nations due to its pursuit of nuclear weapons and ballistic missiles.
China is North Korea’s economic benefactor and diplomatic backer, but their political ties remain strained, particularly after the North’s third nuclear test in early 2013.
A top Chinese official visited North Korea last week and held talks with North Korean leader Kim Jong-un, with both sides expressing willingness to improve bilateral ties.
Liu Yunshan, the Chinese Communist Party’s fifth-ranked official, was the highest-ranked official to visit North Korea since Kim took power in late 2011. (Yonhap)
