Chinese firms rush to N. Korea to discuss economic cooperation

BEIJING, June 22 (Yonhap) -- Chinese companies are rushing to North Korea to explore opportunities for economic cooperation and investment amid growing signs of China loosening sanctions on the North in exchange for its repeated denuclearization pledges, sources said Friday.

About 200 Chinese firms participated in the Pyongyang Spring International Trade Fair held in the North's capital from May 23-25 to discuss cooperation with North Korean public enterprises in fields such as agriculture, electronics, machinery, construction, food, daily necessities and drainage, said the sources.

The Pyongyang trade fair, one of the largest international events in the North, drew 260 corporate participants from 15 countries this year, with Chinese firms accounting for 70 percent of them.

The rush of Chinese enterprises into North Korea came after the North's leader, Kim Jong-un, met twice with Chinese President Xi Jinping in Beijing and Dalian in recent months. The two leaders, who met a third time in Beijing this week, have reportedly discussed ways to rebuild the North's economy in addition to its denuclearization.

"Soon after Kim and Xi met in Dalian, Chinese companies flocked to Pyongyang's trade fair in an apparent indication of Beijing's moves to ease sanctions on the North. There is talk that discussions on economic cooperation are already under way between Chinese and North Korean companies," said a source.

The source noted the large-scale Chinese participation in the Pyongyang trade fair was also linked to a ranking North Korean delegation's 11-day tour of China's major economic hubs in May. The North Korean delegates visited sites of China's economic development and reportedly discussed cooperation with officials in Shanghai and Shaanxi Province, Xi's birthplace.

On top of these moves, North Korea's flag carrier Air Koryo is reportedly moving to open a new aviation route linking Pyongyang to Xian, the capital of Shaanxi Province, in July this year to attract more Chinese tourists to the North.

China's Foreign Ministry said in a recent briefing that Xi and Kim discussed measures to support the North's efforts for economic development and improving people's livelihoods.
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