China’s imports from North Korea sink as coal ban bites, data shows

BEIJING, May 23, (RTRS): China’s imports of North Korean goods in April fell below $100 million to the lowest in nearly three years, data showed on Tuesday, after China stopped buying coal from the isolated country and as calls mount for further economic sanctions.

Neighbouring China is North Korea’s biggest trade partner and the source of much of its badly needed foreign currency.

The world’s second-largest economy bought goods worth $99.3 million in April from North Korea, the lowest monthly tally since at least June 2014, according to Chinese customs data. Previous data was not available.

That compares with $114.6 million in March and $167.7 million a year earlier.

US President Donald Trump has been urging China to put more pressure on North Korea to step back from its nuclear and missile programmes, and lavished praise on President Xi Jinping last month for efforts to do so.

Tuesday’s data indicates that China’s halt of North Korean coal imports on Feb 26 is having an impact and curbing Pyongyang’s ability to raise

hard currency through exports.

Cho Bong-hyun, who heads research on North Korea’s economy at IBK Bank in Seoul, said China’s imports to North Korea were likely to continue to decline due to Pyongyang’s repeated missile tests and the suspension of coal shipments to China. “This won’t be disastrous for North Korea, but it will obviously hurt North Korea because it tends to export goods to China worth around $3 billion per year,” he said.

The value of imports has fallen

month-on-month since December, the data showed.

China’s exports to North Korea eased to $288.2 million in April, down 12 percent from March. Exports for the first four months of the year were up 32 percent at $1 billion.

China is North Korea’s chief ally but has become increasingly frustrated by Pyongyang’s provocative behaviour.

North Korea fired a ballistic missile into waters off its east coast on Sunday, the second test in a week in defiance

of United Nations Security Council resolutions.

In a statement posted on Tuesday, Chinese Foreign Minister Wang Yi urged North Korea not to violate UN resolutions on its nuclear and missile programmes.

Washington has weighed tougher economic sanctions on Pyongyang, including an oil embargo, a global ban on its airline, intercepting cargo ships and punishing Chinese banks that do business with Pyongyang.