Competing Chinese and Russian Commercial Interests in North Korea

[soryang]

Depicted in recent News Special Report graphic is a joint economic project of Russia, North Korea, and South Korea, planned to resume as a part of the three belt strategy that the South Korean and North Korean economic representatives are working on right now in North Korea. The trading routes are depicted in the graphic for dry bulk shipping. Russian resources can be moved by rail from the port of Hasan in Russia to Rason (Najin), North Korea, and then shipped to South Korean industrial cities as shown. The resumption of the project is dependent on the removal of sanctions. Moon emphasized in a presentation in Singapore that all economic development opportunities in North Korea are dependent on denuclearization. Rason is a special economic zone which the Russians and Chinese have invested in. Discussion of plans for renewed operations may reflect the new emphasis in economic development in North Korean media.

Coincidentally, there is a timely commentary posted at 38North.org, titled Putin, Trump and North Korea: The Road to Washington Leads Through Asia, by KENNETH B. DEKLEVA M.D, which addresses contemporary Russian interests in Korea:

"These include Russian political, economic, regional and long-term strategic interests, as well as its desire to play a constructive role (dovetailing with America’s interest) in the Korean peace and denuclearization processes. In the long-term, Russia’s emerging role has the potential to weaken America’s political and economic interests in Northeast Asia, while highlighting Russia’s presence as a counterweight to China’s influence."

https://www.38north.org/2018/07/kdekleva071218/


A July 13 ten minute segment from South Korean broadcasters ( VJ 특공대 ) portrayed current economic activity in Dandong, China, just across from Sinuiju, North Korea, the eastern belt crossing point for North Korean Chinese commerce. There is increasing tourist traffic in Dandong, as Chinese interest in North Korea increases, and as the Chinese government eases the restrictions on pedestrian and tourist traffic across the Dandong bridge for North Koreans. Commercial traffic on the old Friendship bridge appeared sparse. Trains from Pyongyang to Dandong run once a day, and are reportedly full. South Koreans can travel to Dandong via cruise ship from Inchon. South Korean tourism in China is on the rise after the tension over the US THAAD ABM deployment in South Korea was eased by President Xi. There is speculation in Dandong real estate prices with the prospect of greater commerce when sanctions on North Korea are relieved. Prices for new apartments are running about 900 to 1000 dollars a square meter. Construction of apartment buildings is very active. Retail sales of North Korean folk medicine, alcohol, cigarettes, cosmetics and traditional women's garments are possible again as North Koreans take the goods across the border in suitcases and backpacks. One upscale North Korean neng myun (cold noodle) restaurant with traditional entertainment in the Chinese border city is doing a brisk business again. The rise in real estate prices is attributed to both the thaw in North South Korean relations, and Kim's summit with President Xi. The "new" Dandong Sinuiju bridge built at a cost of hundreds of millions of dollars by China, apparently still remains dormant as the North Korean approaches are not constructed. The contrast between the vibrant development in Dandong and the undeveloped North Korean side of the Yalu is striking.