North Korea's northeastern Rason Special Economic Zone, a key trading hub with China, has reportedly expanded entry permits for Chinese businesspeople since late November 2025. While trade volumes have grown since 2024 as the COVID-19 pandemic subsided, entry permits for Chinese businesspeople had remained strictly limited until recently. This report comes from our reporting partner in North Hamgyong Province. (ISHIMARU Jiro / KANG Ji-won)
◆Rason's COVID-era decline left residents struggling
Rason Special City in North Hamgyong Province is located in the lower Tumen River region, bordering China's Hunchun City in Jilin Province and Russia's Khasan. It was designated a special economic zone in 1991 to promote trilateral trade. The zone is isolated from surrounding North Korean areas by barbed wire fencing, with entry and exit strictly controlled.
Reporting Partner "A" from North Hamgyong Province visited Rason City several times between summer and year-end 2024, and was shocked by its deteriorated state. Most of the Chinese-invested factories—producing cigarettes, processed seafood, clothing, furniture, and more—had shut down completely, and he witnessed firsthand the extreme poverty of Rason residents. While he saw tourists and business visitors from Russia, Chinese nationals were extremely scarce.
"There were cases where disputes arose because North Korean partners operated jointly-invested factories and used raw materials at will while Chinese businesspeople couldn't enter," A recalled.
◆Briefings held to actively attract Chinese companies, but...
A year later, Reporting Partner A heard updates from a trading company employee who frequently travels to Rason.
"To revitalize trade with China, Rason decided in late November to expand acceptance of Chinese businesspeople. Even after COVID subsided, only cargo vehicles had been entering from China, but now they've opened entry for Chinese nationals twice weekly. Anyone with an invitation letter can enter.
The authorities have started holding briefings and arranging investment consultations aimed at expanding trade and investment with Chinese companies. The briefings are held at Namsan Hotel [in central Rason] to attract business partners and recruit joint venture investors."
