New Report Shows North Korean Dependency on Chinese Economy
kpride, July 21, 2015, 9:12 a.m.
North Korea's high dependency on China will take a toll on the isolated country should the Chinese economy fall apart, according to a report released Monday by the Korea Institute for International Economic Policy.
The report said North Korea's exports to China accounted for 72 percent of its outbound shipments from 2009 to 2013. Its imports from the world's second-largest economy accounted for more than 76 percent during that same period, most of them daily necessities like oil, corn and flour.
North Korea's trade with China had grown steeply mostly due to the surge in demand for raw materials. In 2013 alone, its exports to China rose more than 17 percent compared to a year earlier. But the volume sharply declined with China's economic slowdown last year, dropping by 2.4 percent from a year earlier, mainly due to a fall in Chinese demand for products like iron ore and hard coal.
Experts say that recent volatility in China's stock markets and slower growth could mean economic hardship as well as political instability for Pyongyang unless it finds other partners fast.