The Changing Structure of Economic Cooperation between China and North Korea
Choi, Jangho; Im, So Jeong | June 2016
Abstract
The Chinese economy has been slowing down since 2007. Since the deceleration of the hyper-infrastructure building process, China’s import of raw materials worldwide has also decreased, which has led to falling raw material prices. China’s GDP growth peaked in 2007 and began to drop ever since, save a brief increase in 2010. In 2014 its GDP growth rate was 7.3 percent, still a considerable number, but obviously not as significant as its previous two-digit, rapid growth period. Such a decrease in China’s GDP growth rate has been reflected in the fall of global coal and iron ore prices (figure 1). Compounding this trend is the global financial crisis, during which global demand for iron and steel dramatically declined, causing a drop in exports of China’s iron and steel companies. This in turn has led to lower demand for overall raw materials in China, in particular iron ore, which was previously needed by growing iron and steel manufacturers. China’s economic slowdown has been both a result of and a reason for the stagnant world economy as a whole, but it especially has big ramifications for North Korea, which is highly dependent on China as its trading partner, with over 90 percent of imports and exports being traded with China in recent years. For example, North Korea’s exports to China decreased in 2014 compared to the previous year, and the items that contributed to this fall were iron ore and anthracite, traditionally the two main export items from North Korea to China. Such a trend has continued on to early 2016, and this trend has not been limited only to North Korea. For example, Vietnams’ anthracite export to China in April 2016 has seen a 30 percent decrease from that of April 2015. Australia’s iron ore export to China in April 2016 has seen a 14 percent decrease from that of April 2015.
Citation
Choi, Jangho; Im, So Jeong. 2016. The Changing Structure of Economic Cooperation between China and North Korea. © Korea Institute for International Economic Policy. http://hdl.handle.net/11540/9174.ISSN
2233-9140
Keywords
Risk Financing
Regional Development Finance
Public Finance
Infrastructure Financing
Financing of Infrastructure
Financial Security
Financial Intermediation
Finance And Trade
Enterprise Financing
Trade Regulation
Trade Finance
Regional Trade Agreements
General Agreement On Tariffs And Trade
Foreign and Domestic Financing
Cybersecurity
Taxation
Business Financing
Investment Requirements
Capital Needs
Tax Incentives
Project Risks
Tariff agreements
Customs conventions
Import policy
Export policy
International Monetary Relations
Local Finance
Banks
Capital Market
financial statistics
Foreign trade
Digital
Investments
Finance
Market
Markets
Use tax
Tax administration and procedure
Taxing power
Effect of taxation
Business enterprises
Foreign trade and employment
Mentoring in business
Trade routes
Bills of exchange
Swaps
International banks and banking
Capital movements
Central banks and banking
Bills of exchange
Swaps
Banks and banking
Stock exchanges
Market
Exchange
Balance of trade
Cyber Security
Show allCollapse