North Korea Adjusts Its Export Focus To China: From Coal To Clothing

According to CNBC, while China is trying to cut carbon emissions, the DPRK is also adjusting its export structure to ensure that the decline in China's coal demand will not dampen the country's economy.

According to the Korean issue

In the first half of this year, the DPRK's total price of coal pported to China dropped by 23%.

For North Korea, that means a loss of 340 million a year.

However, although the amount of coal exported to North Korea has shrunk, trade relations between the DPRK and China are still stable in general, by increasing the volume of textile exports to China.

At present, North Korea exports clothing and accessories to China, Korea and third country markets.

Between January and August this year, China's total coal imports and imports from the world declined.

"In the first half of this year, North Korea's textile exports to China increased significantly," said Kevin Stadler, a Washington analyst at the Pedersen Institute for international economics.

For many years, North Korea has been exporting.

China is North Korea's largest trading partner, followed by South Korea and Russia.

"North Korea: witness pformation" blog estimated that in 2013, the total trade volume of North Korea amounted to 8 billion 600 million US dollars, of which 77.4% came from China, accounting for about 6 billion 700 million US dollars.

North Korea's coal accounts for nearly half of its exports to China, and North Korea's anthracite is more popular.

Compared with traditional bituminous coal, anthracite is more hard and cleaner, and high-quality anthracite from North Korea can be pported to Shandong, China's largest coal province.

This year, North Korea's total exports of anthracite to China are basically stable.

IHS China energy expert Alex Whis said that North Korea accounted for 5% of China's total coal imports this year.

Overall, China's coal demand will grow for at least ten years, with most of the demand coming from inland areas.

However, China is changing its environmental policy, especially in coastal and affluent areas.

For the DPRK, textiles are expected to compensate for the shortfall in the reduction of coal exports.

China has been exporting zippers, wool and cotton (12620, -230.00, -1.79%) to the DPRK.

And then imported products from North Korea.

In North Korea, for example, local wages are only half the level of China.

According to the "North Korea: witness pformation" blog data, from January 2013 to June 2013, North Korea's clothing and accessories exports to China increased by 43%, amounting to 326 million US dollars.

With the upgrading of Chinese manufacturers, DPRK also hopes to take another step on the ladder of industrial chain.

Kevin Stadler said: "if North Korea further expand the textile trade, it is not surprising."