How did Hong Kong become North Korea’s No 2 trading partner?
Hong Kong is part of Beijing’s broader agenda for its trade relations with North Korea, suggest experts
In 2012, Hong Kong became North Korea’s No 2 trading partner with two-way trade reaching US$111 million (HK$861 million), rising 457 per cent from the year before, according to data from a South Korean trade organisation.
Last year alone, the Stalinist country exported US$58 million (HK$450m) worth of goods to Hong Kong and imported items worth nearly US$53 million (HK$411m) from the city, according to a recent report by South Korea’s government-run Korea Trade-Investment Promotion Agency.
The upward trend in two-way trade might be explained as a one-time jump, but experts suggest that Hong Kong may be part of the mainland China’s broader agenda for its relations with North Korea.
“Hong Kong is a tool for Sino-Korean relations because it can play certain functions in pushing forward the relationship between Beijing and North Korea,” explained Steve Chung, a professor of international relations at the Chinese University of Hong Kong.
The rise in trade between North Korea and Hong Kong in recent years coincides with the establishment of a joint industrial zone to be operated by Beijing and Pyongyang.
In June 2011, China and North Korea announced that they agreed to establish the so-called Two Islands Economic Zone on Hwanggumpyong and Wihwa Islands near the Chinese border city of Dandong.
When the agreement was announced, Hong Kong was North Korea’s No 13 trading partner. A year later, in 2012, it had jumped to No 2.