China to shut down North Korea-re­lated en­ter­prises: MOFCOM

Global Times - - Top News - By Ma Jingjing

China will close joint ven­tures (JVs) or co­op­er­a­tive and for­eign en­ti­ties es­tab­lished by North Korean or­ga­ni­za­tions or in­di­vid­u­als in China within 120 days of the adop­tion of Res­o­lu­tion 2375 of the UN Se­cu­rity Coun­cil, ac­cord­ing to a state­ment on the web­site of the Min­istry of Com­merce (MOFCOM) Thurs­day.

Over­seas Chi­nese JVs and co­op­er­a­tive en­ti­ties with North Korean en­ti­ties and in­di­vid­u­als will also be closed in line with the res­o­lu­tion but non-profit projects ap­proved by the UN Se­cu­rity Coun­cil will be ex­empt.

North Korean com­pa­nies’ in­come from op­er­at­ing in China con­sti­tutes a con­sid­er­able part of Py­ongyang’s for­eign cur­rency, which means clos­ing these en­ti­ties will greatly re­duce its for­eign ex­change, Lü Chao, an ex­pert on Korean stud­ies at the Liaon­ing Academy of So­cial Sciences, told the Global Times.

He noted that it is un­likely to af­fect the Chi­nese econ­omy much, given that North Korean in­vest­ment is only a small por­tion of China’s res­tau­rant sec­tor. On the other hand, Chi­nese en­ter­prises have in­vested in North Korea’s bi­cy­cle and au­to­mo­bile in­dus­tries.

“North Korea’s largest in­vest­ment in China is the Chil­bosan Ho­tel in Shenyang, Liaon­ing Prov­ince, and the ma­jor share­holder has al­ready be­come a Chi­nese com­pany,” he said.

MOFCOM an­nounced on Septem­ber 23 bans on ex­ports of gas con­den­sate and liq­ue­fied nat­u­ral gas to North Korea. It also said it will ban the ex­port of re­fined petroleum prod­ucts from Oc­to­ber 1.

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