{"id":4780,"date":"2020-12-12T17:42:05","date_gmt":"2020-12-12T08:42:05","guid":{"rendered":"http:\/\/www.01.asiapress.org\/rimjin-gang\/?p=4780"},"modified":"2022-05-16T18:01:09","modified_gmt":"2022-05-16T09:01:09","slug":"strict","status":"publish","type":"post","link":"https:\/\/www.02.asiapress.org\/rimjin-gang\/2020\/12\/society-economy\/strict\/","title":{"rendered":"\uff1cN. Korea\uff1e Strict Coronavirus Prevention Measures Result in 99% Year-on-year Drop in Trade for October"},"content":{"rendered":"
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Kim Jong-un led strict trade restrictions in the name of coronavirus prevention<\/p><\/div>\n

North Korea's trade with China in October decreased by 99% compared to the previous year. The nightmare of economic collapse is becoming a reality for the Kim Jong-un regime which has prioritized the prevention of coronavirus. (ISHIMARU Jiro<\/em>)<\/p>\n

Undeniably shocking figures<\/p>\n

On November 23, the Chinese customs authorities released its statistics for trade conducted with North Korea during the month of October. China accounts for more than 90% of North Korea\u2019s overall trade.<\/p>\n

According to the report, the total volume of trade between China and North Korea in October totalled only US$1.659 million (1.836 billion South Korean won, 174 million yen). North Korea's imports were only US$253,000 (280 million South Korean won, 26.5 million yen). Both of these figures are down 99% compared to last year.<\/p>\n

Exports fell 91.7% year-on-year to US$1.46 million, but the top export listed at US$1,13,293. What does it mean for electricity exported to North Korea, a country suffering from severe power shortages?<\/p>\n

Along the Yalu River, which is the border between North Korea and China, there are hydroelectric power plants such as Taiping Wan Dam and Supung Dam, jointly operated by North Korea and China. China\u2019s access to the electricity generated at these dams was reflected in trade statistics, but it is difficult to regard it as actual trade. North Korea's third-largest import was also a power source.<\/p>\n

Excluding the \u201cexport\u201d of electricity, exports to China in October amounted to only about $270,000 (about 299 million South Korean won, 28.1 million yen).
\nNextPage: \u25c6 The worst foreign currency... <\/strong><\/p>\n

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Trade statistics between North Korea and China published by Chinese customs authorities. The accumulated amount of imports and exports from January to October was down 76.2% compared to the previous year. For January and February, only the total amounts were announced. Graph produced by ASIAPRESS.<\/p><\/div>\n

\u25c6 The worst foreign currency shortage in the Kim Jong-un era<\/h2>\n

The Kim Jong-un regime blocked the border at the end of January and tightly restricted the entry of people and goods in order to guard against the introduction of coronavirus, leading to a sharp decline in trade with China since March.<\/p>\n

Some analysts say that the reason for the sharp decline in trade with China since August is that the North Korean authorities have more severely restricted the import of goods to prevent coronavirus, but another theory is that imports have been in short supply due to a shortage of foreign currency.<\/p>\n

Along with sluggish exports, tourism has also been cut off. Profits from dispatched workers abroad also appear to be stagnating due to the sluggish production, construction, and service industries in China and Russia due to coronavirus. Non-trade foreign currency imports will also continue to decline.<\/p>\n

After economic sanctions increased at the UN Security Council in 2017, exports to China in 2018 fell 86% compared to the previous year. In 2019, while focusing on the export of non-sanctioned items, it recovered to some extent, but the total exports from January to October this year have decreased by 74% compared to the same period last year. It is a drop from figures that have been heavily depressed due to economic sanctions, and it is about a 95% drop compared to 2016.<\/p>\n

\u25c6 Have daily necessities been cut off?<\/h2>\n

Below are the top imports and exports items for October announced by the Chinese customs authorities. It is unclear exactly what each item is but it is distressing that daily necessities, which had been at the top of the list before August, have disappeared from the list of import items. (The unit used in the list is US dollars.)
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\n\u25cf Top exports to China<\/strong>
\nElectricity: $1,133,293
\nGlue, plates, and other semi-finished products with graphite and other carbon-based ingredients: $272,175
\nPersonal E-Commerce Goods: $358
\nLow-cost, cursory customs check goods: $340
\nCleansing products, retail packaging: $37
\nOther electric household appliances: $28
\nOther beauty products, cosmetics, and skin care products: $11<\/p>\n

\u25cf Imports from China<\/strong>
\nPolyester short fiber adhesive fiber, short fiber, mixed yarn: $203,776
\nPolyethylene: $39,000
\nPower: $9,523
\nOther polyurethane-treated fabrics: $600<\/p>\n

In addition, there are shipments between North Korea and China that do not appear in statistics. Since June, large amounts of food and coronavirus quarantine equipment have reportedly been provided from China. The Asahi Shimbun reported that 500,000 to 600,000 tons of food and 550,000 tons of fertilizer, while the South Korean Joongang Ilbo reported that 800,000 tons of food were delivered unofficially.<\/p>\n

\u203bOn December 3, the trade item names reported by China were modified.<\/p>\n

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