North Korea’s Dependence on China is Absolute

Posted by on Dec 24, 2014 in Blog | 0 comments

North Korea depends on China for virtually everything and yet master clown and ingrate Kim Jung Un can thumb his nose at China without consequence.  His latest snub is not inviting China to his father’s memorial which in feudal fashion is held three years after his death.  Perhaps that’s a good thing.

This article most likely understates the extent of North Korea’s dependence.  Last month, visiting the border city of Dandong that sits across the Yalu River from North Korea, on the only bridge open to traffic, in the morning one could see a continuous one-way flow of fully-packed trucks into the country with NONE coming in the opposite direction.

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North Korea’s economy is almost completely dependent on China.  As North Korea has become increasingly cut off from the rest of the world, China has become its biggest trading partner.

Food and energy: China provides North Korea with most of its food and energy supplies, and accounts for 60% of the reclusive nation’s total trade.

Air and land routes: Considered a rogue state by the West, North Korea is able to use air and land routes through China with minimal interference or inspection.

Cheap labor: For its part, China seems to be interested in its neighbor’s natural resources and cheap labor.

Mining and commodities companies: There are about 200 Chinese companies in operation in North Korea, most of which are involved in mining and the production of commodities.

Because North Korea cannot finance its trade through borrowing, it has a $1.25 billion deficit with China, according to the Council of Foreign Relations. Beijing is also the largest foreign direct investor, according to the Korea Economic Institute of America.

– CNNMoney