China and signals of economic reform from North Korea

Economic progress that has the potential to benefit the North Korean people is a welcome change in the country.

Recently, North Korea has begun to reform its economy under the leadership of leader Kim Jong-un after a long period of focusing resources on military development. These new developments in North Korea are believed by analysts to be due to support from China. Recently, the International Business Times has made some notable analyses and comments as follows:

North Korea and China have begun a joint agreement to strengthen economic ties, according to a statement from the Chinese government. The agreement was signed in Beijing by Chinese Commerce Minister Chen Deming and North Korean diplomat Jang Song-Thaek, uncle of leader Kim Jong-un.

Young leader Kim Jong-un (Photo IBT)

According to the Chinese Ministry of Commerce, China and North Korea, with the efforts of the governments and enterprises of the two countries, have achieved impressive results in the development of the "two economic zones" and have entered an important stage of development. The "two economic zones" mentioned are Rason, a port city at the northernmost point of the Korean Peninsula, and Hwanggumpyong Island located on the Yalu River between China and North Korea. China will support and help North Korea develop infrastructure to restore a number of industries including agriculture, manufacturing and tourism in these two economic zones.

Economic progress that has the potential to benefit the North Korean people is a welcome change in the country.

According to a United Nations report, more than 6 million people in North Korea are in need of international food aid. The United States was a major food donor to North Korea in the past, but that has not been the case since 2009. Since then, North Korea has turned to the world's second-largest economy, China, for aid. This is nothing new, but the relationship has only strengthened in recent years.

Accordingly, trade relations between North Korea and China increased sharply in 2011 to 5.63 billion USD, up 62.5% compared to 3.46 billion USD in 2010. Meanwhile, trade with South Korea, North Korea's second largest trading partner, decreased about 10% to 1.71 billion USD in 2011.

The decline in trade and aid from the United States and South Korea is partly to blame for North Korea’s growing appeal to China for support. North Korea is also said to have begun reforming its policies and governance. In another surprise development, North Korea is expected to hold talks with Japan at a summit later this month.

According to analysts, although economic cooperation with China can help North Korea make certain changes, this connection does not guarantee long-term sustainability./.

According to VOV - DT