China, North Korea trade recovering after Covid-induced border closures, but exports still ‘spell trouble’

North Korea’s trade with China totalled US$318 million in 2021, down by 41 per cent from the previous year and by 90 per cent from levels before the coronavirus

Last year’s total was the lowest since Kim Jong-un assumed leadership in December 2011 after the reclusive state closed its border to prevent the spread of the coronavirus

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Trade with China totalled US$318 million in 2021, down by 41 per cent from the previous year and by 90 per cent from levels before the pandemic, according to China Customs data. Photo: Shutterstock

Published: 12:00pm, 10 Apr 2022Updated: 9:21am, 11 Apr 2022

North Korea is steadily restoring trade with China after bilateral commerce dived in 2020 and 2021 as the reclusive state closed its border to prevent the spread of the coronavirus.

Trade with China totalled US$318 million in 2021, down by 41 per cent from the previous year and by 90 per cent from levels before the pandemic, according to China Customs data.

Last year’s total was the lowest with its northwestern neighbour since Kim Jong-un assumed leadership in December 2011.

But after mainly relying on shipping routes over the two years, railway transport resumed in January, with US$60.9 million worth of trade crossing the border in February.

We should not read too optimistically into these upticks until we start to see a gradual and consistent increase in the trade figures over time

Soo Kim

“Trade is still 80 per cent less than what it was before North Korea decided to close its borders in 2020,” said Soo Kim, a former US Central Intelligence Agency analyst specialising in North Korea, who now works for the US think tank, RAND Corporation.

“So we should not read too optimistically into these upticks until we start to see a gradual and consistent increase in the trade figures over time.”