North Korea Sees Sharp Increase in Imports of Chinese Food and Medical Supplies Due to COVID-19

[Asia Economy Reporter Hwang Yoon-joo] As North Korea closed its borders to prevent the spread of the novel coronavirus disease (COVID-19), trade with China sharply declined in the first half of the year, while the import share of food ingredients and medical supplies significantly increased.

According to the "North Korea-China Trade Trends and Implications in the First Half of 2020" released by the Korea International Trade Association on the 20th, the trade volume between North Korea and China in the first half of this year was $412 million, down 67% compared to the same period last year. During the same period, North Korea's exports to China decreased by 72.3% to $29 million, and imports decreased by 66.5% to $383 million.

In March and April, as North Korea closed its borders due to COVID-19, the year-on-year monthly change rates of North Korea-China trade recorded -91.3% and -90%, respectively, showing a sharp decline. Subsequently, as border trade partially resumed, the decline narrowed to -76.9% in May and -57.1% in June.

Although North Korea's imports from China significantly decreased, imports of food ingredients and medical supplies slightly decreased or even increased, resulting in a substantial rise in the import share of these items. The import share of cooking oil was 16.5%, 2.9 times that of last year; flour was 9.1%, 3.3 times; sugar was 5.2%, 2.8 times; and medical supplies were 3.9%, 2.5 times higher.

The report stated, "Since the strengthening of sanctions against North Korea in 2017, the share of food ingredients and medical supplies in North Korea's imports from China has been steadily increasing," and analyzed that "the significant increase in the import share of food ingredients and medical supplies this year is because, as North Korea's exports sharply declined and foreign currency became scarce due to COVID-19, essential goods such as food ingredients and medical supplies are being prioritized for import."

North Korea's major exports to China included watches, electric energy, ferrosilicon, wigs, and tungsten. Among the top 10 export items, except for electric energy (-4.7%), artificial graphite (-1.7%), ingots (-36%), and potassium sulfate (-17%), all exports decreased by about 70-80%.

An official from the Trade Association said, "Although North Korea-China trade has partially recovered since May, if COVID-19 continues into the second half of the year, North Korea is expected to suffer significant damage not only in trade with China but also with other countries."

This content was produced with the assistance of AI translation services.