North Korean trading companies abruptly declaring trade with China, what’s going on?

A truck crossing from Sinuiju, North Korea (North Pyongan) to Dandong, Liaoning Province, China, via the Chojung-Uui Bridge (Yamnok Steel Bridge) in 2019. /Photo = Daily NK

The North Korean authorities are said to have launched extensive censorship to crack down on unauthorized trade practices. Because of this, it is said that there have been many cases of North Korean trading companies ordering goods from Chinese counterparts (traders) and then canceling them.

According to a Daily NK China-North Korea source on the 4th, a trading company in North Korea suddenly requested a Chinese counterpart to stop trading. The Chinese side, who ordered construction materials, paper, and daily necessities such as soap, and finished preparing for shipment, said it was absurd.

The source claimed that the North Korean company unilaterally notified the cancellation of the transaction without explaining the reason for the suspension of the transaction.

The amount ordered by this trading company from the Chinese counterpart is about 1800 tons, and the transaction price is also known to be quite high. The cargo is said to be currently stored in a warehouse in Longkou City, Shandong Province.

A source said, “Unfortunately, there are no food materials with a fixed expiration date among the ordered items, so the cargo can be stored for a certain period of time.”

This trading company is said to be a large-scale company that is well-known in North Korea.

Another source from North Korea also reported that North Korea received an order in April and had already shipped cargo, but the North is not unloading it.

The source said, “The shipbuilding trading company did not receive the order, so the cargo ship is currently moored in Nampo Port.

As a result of the coverage, it is known that the North Korean authorities started censoring illegal trade activities jointly with the Ministry of National Security and the Social Safety and Quarantine Command since last month.

On the 3rd of last month, the authorities issued a pochi stating that even if they were issued a new wak (export and import permit), they could not participate in trade without the party’s permission, and if they ignored it, it would be considered smuggling and punished. (▶Shortcut to related articles: North Korea’s foreign currency exchange rate, the biggest drop after currency reform… The impact of lower expectations for trade resumption)

Since then, the authorities have formed an inspection team, and it is said that they are currently investigating the recent transaction situation and detailed items of each trading institution.

Therefore, it seems that the trading companies that tried to bring in the unauthorized items together with the permitted items are hastily notifying the Chinese counterparts of the termination of the transaction or receiving the cargo.

A Chinese source with North Korea said, “The Korean people say that even if there is a wark, they can trade without the words of him (Chairman Kim Jong-un). .

In this regard, Chairman Kim pointed out the negligence of executives at the 2nd Expansion of the Politburo of the 8th Central Committee of the Workers’ Party of Korea held on the 29th and emphasized “continuous strengthening of the national emergency quarantine system”. It reads as ‘build a thicker quarantine barrier’.

In addition, as the North Korean authorities are currently installing concrete barriers and high-voltage cables in the border area under the pretext of quarantine, it seems that it will take more time for trade transactions to normalize.


Source: DailyNK by www.dailynk.com.

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