Resumption of Illicit Trade across the North Korea-China Border 

– Full Reopening in April?

After four years, illicit trade between North Korea and China, halted by the COVID-19 pandemic, has reportedly resumed. News of possible border openings since March and the restart of high-level exchanges in April have heightened expectations for a complete border reopening.

A Dandong source reports that “from last month, foreign currency-earning companies affiliated with North Korean agencies like the State Security Department have initiated illicit trade.” “Under border guard protection, this trade occurs along the Yalu River and nearby areas,” they added.

North Korea closed its borders in January 2020 due to COVID-19, but in January 2022 they began to ease restrictions, resuming freight trains between Dandong and Sinuiju, and trucking between Nanping-Musan and Hunchun-Wonjong-ri. Additionally, some Chinese diplomats and workers returned home last August, but full border reopening, including complete land trade and personnel exchanges, remains pending.

A source reported that trade didn't pick up as hoped following a partial border reopening in July last year, blaming rigid North Korean trading regulations. They explained that North Korea typically outlines its trade plans each August, finalizes them by year's end, and secures approvals in January. However, the pandemic disrupted this cycle, preventing the setting up of trade plans and acquisition of permits for the following year, thus freezing trade activities.

It's reported that North Korea's early resumption of illicit trade was to circumvent international sanctions. A source noted, "The traded items, including minerals such as titanium and heavy machinery like tractors and trucks, are all under UN and other global sanctions."

Another border source mentioned, "From April 10, the Ministry of External Economic Relations has urged its trading firms to prepare for normalized trade with China

North Korean Leader Kim Jong-un with Zhao Leji, chairman of China's NPC, who visited on April 13 / Rodong Sinmun

As speculation about a full reopening of the North Korea-China border circulates, there is also hope that private smuggling could restart. "With rumors of smuggling resuming in April, smugglers are actively looking for partners in China," an anonymous source from Hyesan City in Ryanggang Province shared. "Expectations are high that the borders will truly open this time," they added, highlighting that items like seafood and medicinal herbs are already being smuggled in some areas.

Diplomatic insiders anticipate that the North Korea-China border might fully reopen this year to mark the 75th anniversary of their relations. Recently, Choe Son-hui of North Korea and Sun Weidong of China declared 2023 as "Year of Friendship" and agreed to enhance strategic ties.

On April 13, Zhao Leji, a high-ranking official from China’s Communist Party, discussed with North Korean leader Kim Jong-un possible ways to expand and strengthen their cooperation during his visit.

There is also speculation that the New Yalu River Bridge, completed in 2014 but yet to open, might finally welcome traffic this year. With potential plans for a summit between Kim Jong-un and Chinese President Xi Jinping, and all preparations for exchange in place, just a nod from the top could lead to a comprehensive border reopening.

During the lockdown, North Korea massively increased its border security, adding checkpoints and barbed wire twentyfold, intensifying surveillance and control. This escalation has led to heightened criticism of the worsening human rights situation in North Korea post-lockdown.