It is reported that North Korea’s Pyongyang milling mill signed a joint venture contract with a Chinese private contractor last month and is currently building a new joint-venture workplace on the site of a separate plant.
It is interpreted that the joint venture is being actively used as a way to attract foreign capital and technology amid financial and foreign currency difficulties due to the aftermath of the novel coronavirus infection (COVID-19).
A Pyongyang source told Daily NK on the 29th, “The Pyongyang rice mill signed a joint venture contract with a Chinese last month and gave up the site, and is planning to bring in the process by the end of September and early October to complete preparations for operation.” One company of the city assault corps is working together to build one joint-venture workplace building,” he said.
According to a source, the Pyongyang Rice Mill signed a joint venture contract with a Chinese individual in the middle of last month to supply top-quality rice that has been polished through the first, second, and third refining processes to the so-called ‘No.
Under a contract that a Chinese contractor will supply equipment and materials and the factory will provide land and labor, a new joint venture is currently being built on one side of the factory, with the goal of completing the construction by the fall of this year, when it is time to thresh and pound the rice. It is known that about 100 to 150 assault fighters were mobilized.
A source said, “If you look at the contents of this joint venture contract, it is said that the Chinese will take profits for the next three years under the cabinet guarantee. The Cabinet is responsible for the cost of producing this, and it is given in money (yuan),” he said.
And three years later, the source added that the contract includes that all process equipment imported by Chinese contractors will be converted to North Korean ownership.
In particular, North Korea is said to have offered to give 80% of ownership of the process equipment even after three years if it invests in the establishment of a research institute that produces trace elements in the Pyongyang rice mill in the course of a contract with a Chinese contractor.
However, the source explained that the Chinese contractor said that he would decide whether or not to invest in the establishment of a research institute after seeing whether the North would properly guarantee profits and comply with the contract for the next three years.
A source said, “The Pyongyang rice mill is saying that if good results are obtained as a joint venture, they will be able to generalize this other demonstration case and introduce foreign facilities to other rice mills.” We are cracking down on our employees not to disclose this fact to outsiders.”
However, the fact that the Pyongyang Rice Mill had signed a joint venture contract with a Chinese company quickly spread through rumors throughout Pyongyang. However, most Pyongyang citizens who heard the news snorted and said, “The Chinese have been hit again.”
In fact, Pyongyang citizens cite the case of the joint venture between the Daedonggang Television Receiver Factory and the Pyongyang Soju Factory as an example, saying, “In the meantime, in such a way that goods made at the joint venture are not allowed to be shipped from customs, Ogransu (constructing bad things with words or actions that are different from the outside or the inside) They did not guarantee profits properly by using a method to deceive others), but will you give them money that is not in kind?” he said, showing a cynical reaction.
Moreover, the citizens said, “Didn’t there be a case where an Egyptian (Egyptian) company that signed a telecommunication agreement first received it in US dollars, then set it at the national exchange rate and gave it national money (North Korean money), so it went bankrupt?” They say they give you (RMB), but I don’t know whether they will use the national exchange rate, the market exchange rate, or the Chinese individual business owner’s request.”
Source: DailyNK by www.dailynk.com.
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