Trade with China
Following the collapse of the Soviet Union in 1990, China emerged
as North Korea’s main communist ally, and hence China has now become North
Korea’s biggest ally, biggest trading partner and main source of energy and
food. China’s continual aid and support to the regime has allowed the sustenance
of the governmental situation in the country. However, the relationship between
the two countries is currently unsteady and strained, with North Korea’s latest
missile test leaving China impatient, with China previously providing North
Korea 80%of its consumer goods and 45% of its food, and this is evident with
North Korea’s citizens mainly using Chinese products. The Chinese-North Korean
alliance stems from the Korean War, as China was North Korea’s only ally during
the war.
China directly targets it’s aid towards North Korea, with North
Korea providing a buffer region between China and South Korea, and hence a
sense of stability in the region. China and North Korea’s relationship is
predicated around trade and China sending back defectors to North Korea,
however human rights groups have condemned this, as the conditions for escaped
defectors are essentially torture.
China attempts to take a role in the region similar to that of
USA in the Middle East, however China has increased trade and ties with South
Korea following the North Korean nuclear missile tests. This has allowed
leverage for China to negotiate with North Korea, along with the economic
dependence that North Korea has on China, however if China were to cut the ties,
then China would have insight into North Korea’s plans. If this were to occur,
North Korea would collapse and this would be detrimental to China’s plans for
the region. Furthermore, the relations with North Korea aren’t entirely
economic, as many citizens view China as a source of economic prosperity, with
the prospect of defecting to China higher, with food, goods, jobs and freedoms
as opposed to North Korea. In some areas of North Korea, there is little state
security capacity leading to increased freedom of movement and decision making
capacity.
Defection remains a controversial topic between the two
countries, as North Korea would like all their defectors returned back to their
shores, however China wishes to appease the human rights groups that strongly
oppose this behaviour. Hence, defectors currently remain in China, seeking
passage to South Korea or they work in China where they are granted several
more freedoms than they would have in North Korea. China, being North Korea’s
biggest trading partner as well as the largest and most continuous source of
aid within the country is also the avenue through which most defectors travel
through in order to leave the country. From northeast China, the defectors then
flee to a third country in the hopes of gaining a better life. In order to not
worsen the already tense relations, China refuses to grant North Korean
defectors refugee status and considers them as illegal economic migrants.
as North Korea’s main communist ally, and hence China has now become North
Korea’s biggest ally, biggest trading partner and main source of energy and
food. China’s continual aid and support to the regime has allowed the sustenance
of the governmental situation in the country. However, the relationship between
the two countries is currently unsteady and strained, with North Korea’s latest
missile test leaving China impatient, with China previously providing North
Korea 80%of its consumer goods and 45% of its food, and this is evident with
North Korea’s citizens mainly using Chinese products. The Chinese-North Korean
alliance stems from the Korean War, as China was North Korea’s only ally during
the war.
China directly targets it’s aid towards North Korea, with North
Korea providing a buffer region between China and South Korea, and hence a
sense of stability in the region. China and North Korea’s relationship is
predicated around trade and China sending back defectors to North Korea,
however human rights groups have condemned this, as the conditions for escaped
defectors are essentially torture.
China attempts to take a role in the region similar to that of
USA in the Middle East, however China has increased trade and ties with South
Korea following the North Korean nuclear missile tests. This has allowed
leverage for China to negotiate with North Korea, along with the economic
dependence that North Korea has on China, however if China were to cut the ties,
then China would have insight into North Korea’s plans. If this were to occur,
North Korea would collapse and this would be detrimental to China’s plans for
the region. Furthermore, the relations with North Korea aren’t entirely
economic, as many citizens view China as a source of economic prosperity, with
the prospect of defecting to China higher, with food, goods, jobs and freedoms
as opposed to North Korea. In some areas of North Korea, there is little state
security capacity leading to increased freedom of movement and decision making
capacity.
Defection remains a controversial topic between the two
countries, as North Korea would like all their defectors returned back to their
shores, however China wishes to appease the human rights groups that strongly
oppose this behaviour. Hence, defectors currently remain in China, seeking
passage to South Korea or they work in China where they are granted several
more freedoms than they would have in North Korea. China, being North Korea’s
biggest trading partner as well as the largest and most continuous source of
aid within the country is also the avenue through which most defectors travel
through in order to leave the country. From northeast China, the defectors then
flee to a third country in the hopes of gaining a better life. In order to not
worsen the already tense relations, China refuses to grant North Korean
defectors refugee status and considers them as illegal economic migrants.
Figure 2.2: North Korea's trade between countries
Source: http://blogs.cfr.org/asia/2012/06/15/north-koreas-growing-trade-dependency-on-china-mixed-strategic-implications/
From the figure, we can see that North Korea maintains little
trade alliances with other countries, instead they rely heavily on China and
South Korea to trade with their country. North Korea produces little output,
with China providing the bulk of goods to fuel the country. From Figure 3, we
can see that in the 1990’s there was a rising trend of trade with China, but up
until 2007, both South Korea and China had relatively even levels of trade with North Korea. Post 2008, the trade blossomed, however the separation in levels of trade occurred in 2002, with 2008 highlighting the increased trade, with North
Korea leaning on China to support its economy. South Korea most likely only
trades with North Korea in order to denuclearise the state, and hence provides
aid and goods to North Korea in relation to the Six Party Talks.
Source: http://blogs.cfr.org/asia/2012/06/15/north-koreas-growing-trade-dependency-on-china-mixed-strategic-implications/
From the figure, we can see that North Korea maintains little
trade alliances with other countries, instead they rely heavily on China and
South Korea to trade with their country. North Korea produces little output,
with China providing the bulk of goods to fuel the country. From Figure 3, we
can see that in the 1990’s there was a rising trend of trade with China, but up
until 2007, both South Korea and China had relatively even levels of trade with North Korea. Post 2008, the trade blossomed, however the separation in levels of trade occurred in 2002, with 2008 highlighting the increased trade, with North
Korea leaning on China to support its economy. South Korea most likely only
trades with North Korea in order to denuclearise the state, and hence provides
aid and goods to North Korea in relation to the Six Party Talks.
Figure 2.3: North Korea's grain production
source: http://www.fas.usda.gov/pecad/highlights/2005/11/korea_21nov05/index.3.jpg
From the diagram,
it is clear from the 1990's post the USSR collapse, North Korea experienced
highs in the production of grain. However towards the 2000's there was a drop
off in grain production, which coincides with the famine of the time period and
this helps in understanding the reason behind the tensions, as there was no
proposed help from South Korea without negotiations. However, China emerged as the biggest ally and giver of aid during this period of time, and this is why
they've remained steady allies. From the 2000's onwards, North Korea didn’t
produce as much grain and crops as they did in the early 90's and this might
mean that North Korea still has a food shortage and is relying heavily on the
aid given by other countries. As this graph only goes up until 2005, from 2005
onwards North Korea may be relying heavier on aid rather than producing their own grains. This shows that North Korea relies heavier on aid with China rather than self sustainment and hence, North Korea's production and outputs are negligible.
source: http://www.fas.usda.gov/pecad/highlights/2005/11/korea_21nov05/index.3.jpg
From the diagram,
it is clear from the 1990's post the USSR collapse, North Korea experienced
highs in the production of grain. However towards the 2000's there was a drop
off in grain production, which coincides with the famine of the time period and
this helps in understanding the reason behind the tensions, as there was no
proposed help from South Korea without negotiations. However, China emerged as the biggest ally and giver of aid during this period of time, and this is why
they've remained steady allies. From the 2000's onwards, North Korea didn’t
produce as much grain and crops as they did in the early 90's and this might
mean that North Korea still has a food shortage and is relying heavily on the
aid given by other countries. As this graph only goes up until 2005, from 2005
onwards North Korea may be relying heavier on aid rather than producing their own grains. This shows that North Korea relies heavier on aid with China rather than self sustainment and hence, North Korea's production and outputs are negligible.