Chinese trade with North Korea drops by over 50 per cent despite thaw in relations

China’s trade with North Korea shrank 52.9 per cent to US$2.2 billion in the period from January to November compared with the previous year, Reuters reported on Sunday.

Citing Chinese customs data, the report said imports from North Korea fell by 88.6 per cent to US$191.75 million in the period, while exports to North Korea dropped 33 per cent to US$2.01 billion.

The data showed that trade flows between the two communist neighbours had continued to slide after a 10.5 per cent drop in 2017 despite the easing of tensions on the Korean peninsula and a thaw in relations between Beijing and Pyongyang.

In November alone, China’s total trade with North Korea was valued at US$247.75 million. This was up slightly from US$245.34 million the previous month – but that marked a deep contraction from US$388 million in November 2017.

China’s exports to North Korea in November were US$227.7 million, a figure that showed little change from October’s US$227.45 million in October.

Beijing is the country’s sole major ally and by 2016 it accounted for 90 per cent of North Korean trade after other countries gradually cut off ties.