Economic Relations
China’s relationship with North Korea has long been bolstered by the close economic ties between them. China is the North’s largest trading partner and provides an estimated 90 percent of North Korea’s foreign trade. As part of the trade agreements between them, China provides food, fuel, and other much needed resources to the North. In return, North Korea exports coal, iron ore, and other minerals to China. China’s economic ties to North Korea can be seen in the form of direct investments, tourism, joint ventures, and the sale of technology to the North.
In recent years, China has provided more economic support to North Korea despite the ever-increasing international sanctions imposed on them. In 2020, while the coronavirus pandemic was in full swing, China spent more than $5 billion to support the North’s economy. According to a report by the Bank of Korea, China’s share of North Korea’s imports increased from 89.1 percent to 91.6 percent in the same year.
Political Support
China has not just supported North Korea financially, but also politically. China and North Korea have had longstanding ties, and Beijing has long been a staunch ally of Pyongyang. Beijing has worked to protect North Korea from international sanctions and has spoke out in favor of the Kim regime on numerous occasions.
The Chinese government has repeatedly sought to maintain cordial relations with North Korea, even during times of total international isolation. For example, in 2019, when the UN Security Council issued a resolution calling for stronger sanctions on North Korea, China opposed the resolution and called for more dialogue between Pyongyang and the international community. In addition, China has provided political support to North Korea by vetoing the US-led attempts to impose sanctions on the country.
Military Aid
In addition to economic and political support, China has also provided North Korea with military assistance. For decades, China has been helping the North by supplying them with weapons and equipment. According to a report by the Stockholm International Peace Research Institute, Chinese military exports to North Korea accounted for 5.3 percent of the total between 2010 and 2020.
Not only is China providing military aid to North Korea, but also training its military personnel. According to reports, Chinese military personnel have been involved in providing training and advice to North Korean military personnel for decades.
Responding to Sanctions
China has also tried to soften the impact of international sanctions on North Korea. In response to the United Nations Security Council’s sanctions against North Korea, China has called for a dialogue between Pyongyang and the international community. In addition, Beijing has repeatedly called for a peaceful resolution to the North Korean nuclear issue.
At the same time, China has adopted a strategy of circumventing international sanctions on North Korea by providing it with alternate trading partners. For instance, in 2019, Chinese companies helped North Korea bypass international sanctions by establishing multiple joint ventures with companies in other countries.
Radiation Concerns
Despite its support for North Korea, China has remained adamant in its opposition to the country’s nuclear program. Beijing has publicly condemned North Korea’s attempts to acquire nuclear weapons and has warned against the potential risks of radiation from North Korea’s nuclear tests. For example, in 2018, after North Korea conducted its sixth nuclear test, China took the lead in issuing a statement condemning the tests and calling for an end to them.
Humanitarian Aid
Although China is sometimes criticized for its economic and political support of North Korea, it also provides much needed humanitarian aid to the people of North Korea. According to reports, Chinese charities have provided aid to North Korean refugees and have established several education initiatives to help educate the North Korean population.
In addition, China has maintained a steady stream of communications with the North Korean government. Chinese diplomats have consistently sought to bridge the gap between the North Korean government and the international community and have served as intermediaries in negotiations with Pyongyang.
Cultural Exchange
In recent years, China has also sought to promote cultural exchange between the two countries. Beijing has sponsored several events in both countries to promote cultural exchange. For example, in 2020, Beijing funded an art exhibition that featured works from both North and South Korean artists.
At the same time, China also provides North Korean students with scholarships to study abroad. According to reports, there are currently more than 1,300 North Korean students attending universities in China. These students are expected to return home after finishing their studies and bring their expertise to the North Korean business community.
Remittances and Investment
China has also supported the North Korean economy through remittances, largely from ethnic Koreans living in China. According to reports, more than 100,000 ethnic Koreans in China are sending remittances to North Korea every year.
In addition, Chinese businesses and investors have been increasing their presence in North Korea. As the country begins to open up, more and more Chinese investors are beginning to explore opportunities in the North. Some Chinese companies have already established joint ventures in the country and are looking to expand their investments in the coming years.
Environmental Assistance
In recent years, China has expanded its assistance to North Korea by providing aid in the form of environmental protection. China has established several joint ventures with North Korea to develop green technologies, such as clean energy, solar power, and water conservation.
China has also provided North Korea with assistance in dealing with its water and air pollution issues. According to reports, Chinese companies are helping North Korea reduce its emissions and increase its water quality.
In addition, China has provided technological assistance in the form of advanced agricultural equipment and software to boost the North Korean agricultural industry. Chinese companies have begun to work with North Korean farmers to introduce modern farming methods and technologies.
Technology Outreach
China has also provided assistance to North Korea in the form of technology transfer. In recent years, China has been working to introduce North Korea to advanced technologies, such as artificial intelligence, 5G technology, and the Internet of Things.
In addition, Chinese companies are working to help North Korea build the infrastructure necessary for the development of AI-based systems. Chinese companies have already developed AI-based systems in North Korea and are working to train North Korean citizens in the use of these technologies.
China is also providing assistance to North Korea in the development of its own digital currency. Chinese experts are helping North Korea develop and launch its own digital currency, which is expected to be launched in 2021.
