China-North Korea Trade Surges as Beijing Rebuilds Ties

China-North Korea trade rose nearly 30% in the first half of 2025 as Beijing and Pyongyang resumed economic exchanges.

July 19, 2025Clash Report

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Trade and economic exchanges between China and North Korea are accelerating, as the two neighbors move to rebuild ties following years of pandemic disruption and diplomatic tension.

According to Chinese government data, bilateral trade surged nearly 30% year-on-year between January and June 2025. Chinese exports to North Korea climbed 33% to $1.05 billion, while imports rose 20% to $210 million.

China’s exports included a sharp increase in interior building materials such as wallpaper and plastic furniture, reflecting North Korea’s post-flood reconstruction efforts and the recent completion of a beach resort capable of hosting 20,000 people.

A Chinese trade official noted, “Exports of interior building supplies were brisk.” The resumption of cross-border trade appears tied to Pyongyang’s requests to support its construction activities.

In addition to trade, tourism links are being restored. South Korea’s Yonhap News Agency reported that North Korea’s National Tourism Administration published a schedule for passenger trains between Pyongyang and Beijing — the first since service was suspended during the COVID-19 pandemic.

Relations between the two countries had cooled in recent years, particularly after North Korea deepened military ties with Russia and accelerated its nuclear program. China, wary of Western sanctions, had tightened monitoring of cross-border trade in 2023. However, since the beginning of 2024, trade volumes have rebounded, showing six consecutive months of growth.

China’s increased acceptance of North Korean workers — officially designated for “technology exchange” — also signals warming relations. About 2,000 workers have been sent to China’s Jilin province this year, with 400 more to Dandong, a key trade hub. Despite UN Security Council resolutions barring such labor, Chinese sources say these workers are employed in garment factories and other industries.

Diplomatic sources suggest China is motivated by a desire to retain influence over Pyongyang as the U.S. and South Korea show signs of renewed openness to dialogue. Beijing’s efforts come amid recent remarks by South Korean President Lee Jae-myung, who pledged to pursue peace through dialogue, and by U.S. officials noting President Trump’s continued willingness to correspond with Kim Jong Un.

Chinese Foreign Ministry spokesperson Lin Jian insisted Thursday that China remains compliant with UN resolutions and its international obligations.

China-North Korea Trade Surges as Beijing Rebuilds Ties