North Korean trade with China as reported in Chinese customs statistics: 1995-2009 energy and minerals trends and implications

• Nathaniel Aden
• The Korean Journal of Defense Analysis

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20 June 2011China is North Korea’s largest international trading partner. Since 2000, fuels and minerals have become a larger portion of North Korean exports and a smaller portion of imports. North Korea remains a net importer of Chinese crude oil and oil products; however, it became a net exporter of electricity and coal to China in 2003. Aside from coal, imports and exports of metallic minerals and mining equipment are growing segments of China-North Korea trade. Whereas North Korean electricity and iron ore exports are sold at sub-market “friendship prices” Chinese coal and oil products have been sold to North Korea at premium prices. Chinese Customs data suggest that Beijing is taking a pragmatic, market-oriented approach to trade with its reclusive neighbor, while the increasingly asymmetrical energy embodiment of bilateral trade may reflect deterioration of North Korea’s non-military industries.