China, DPRK cooperative economic zones start to court investment

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CHANGCHUN, Sept. 7 (Xinhua) -- Two economic zones operated by China and the Democratic People's Republic of Korea (DPRK) have started to seek investment, according to an investment briefing conference held on Friday in Changchun, capital of northeast China's Jilin province.

The Rason Economic and Trade Zone and Hwanggumphyong and Wihwa Islands Economic Zone in the DPRK are now in an essential stage of development, according to remarks made at the conference.

The conference was held at the ongoing eighth Northeast Asia Investment and Trade Expo, which opened Thursday in Changchun.

"It is a common aspiration of China and the DPRK to boost the development of the cooperative economic zones. Both countries are looking forward to investment from ambitious enterprises," said Song Yaoming, deputy director of the Asian Affairs Department of the Ministry of Commerce.

Top leaders from China and the DPRK agreed to jointly develop the zones in May 2010.

China and the DPRK are now in negotiations regarding tax relief and visa-free systems in the economic zones. Trade fairs have been launched among eight DPRK enterprises and dozens of Chinese companies following the conference.

The two sides will continue to follow the principle of "government-guided, enterprise-based, market-oriented and mutually beneficial" cooperation in developing the economic zones, said Zhang Anshun, Communist Party of China (CPC) chief of the Yanbian Korean autonomous prefecture in Jilin.

Investment in the zones will have significant implications for economic development in both countries, as well as regional prosperity, Zhang added.

The Rason Economic and Trade Zone is in the city of Rason in the northeast DPRK, adjacent to Yanbian prefecture in Jilin.

The Hwanggumphyong and Wihwa Islands Economic Zone is near the estuary of the Yalu River, a border river that runs between the two countries.

China, DPRK cooperative economic zones start to court investment - Xinhua | English.news.cn


Outside investors are needed and welcomed to help one of the most impoverish people on earth. Plenty of opportunities for companies of all sizes.

 

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North Korea holds trillions of dollars in mineral resources.

The South Korean government believes that North Korea may have as much as $6 trillion USD in rare earth elements. Beyond the metals, North Korea is known to be a rich source of many minerals including gold, zinc, magnesite, and others. North Korea is dependent on these minerals to support its economy; in previous years as much as 58% of North Korea’s exports were from the mineral sector. The North is particularly interested in selling these minerals as they have limited domestic utility. North Korea needs to carefully balance the amount of anthracite coal it exports for foreign currency with the amount it needs to keep its factories functioning, but it is not dependent on gold for any domestic development goal.

Although these resources represent significant potential export wealth, North Korea’s mineral sector is underdeveloped, and what is produced is sold at a discount. It is estimated that, on average, North Korean mines operate at less than 30% of their capacity. Many mines need to be rehabilitated and lack a reliable power supply. Much of the equipment dates back to the cold war, and is no longer made, let alone used, outside of the North. Other mines were damaged during the environmental collapse of the 1990, and have not yet been reclaimed. North Korea lacks the resources to redevelop these mines domestically; it is dependent on foreign investment to increase mineral production.

full story: North Korea