China and North Korea: Strengthening Ties

**Leanna Byrne** (0:01)
When it comes to economic ties, China wants to be North Korea's number one. It's World Business Express from the BBC World Service. I'm Leanna Byrne. Why did Indonesia make a surprise hike to its interest rates, and a UK watchdog could hold up the Paramount Warner deal even more?
There are military honors, acrobatic performances, and even a symbolic tree planting as Chinese President Xi Jinping wrapped up a two-day visit to North Korea. The trip might have been heavy on symbolism, but it was light on the concrete details. Still, it sends a message that Beijing wants to strengthen ties with its secretive neighbor, especially since Pyongyang has been getting closer to Moscow. Seoul correspondent Jay Kwan has been following the visit and spoke to us from the streets of Seoul.

**Jay Kwan** (0:58)
North Korea's import, 90% of it comes from China. I mean, China is really key to North Korea's continued prosperity, growth, etc. But in recent years, I think the calculation had shifted because for years for North Korea, China was really the only and main lifeline. But when Russia invaded Ukraine and when North Korea entered the war on the side of Russia, that all changed.
North Korea has a new friend in Moscow. They have a defense pact now.
And they have sent some 11,000 to 15,000 troops there. And in return, Russia has been sending them fuel, sending them money, as well as weapons. So North Korea has been getting these things. So China has no longer been North Korea's only friend. And this is what concerned China. China always liked to keep North Korea on a close leash. And a North Korea that is very confident, testing weapons, and really creating a lot of noise, is simply not what China wants to see. Because it could kind of encourage an arms race in the region. And for China, it would be a disaster for them to see, you know, South Korea, Japan, and United States bringing more weapons to its backyard.

**Leanna Byrne** (2:13)
Does China get something economically valuable in return for that relationship?

**Jay Kwan** (2:18)
I mean, if you look at the economic size between China and North Korea, I think if you look at direct trade, probably not a lot. But China, of course, it really helps them to have a stable relationship. It helps them to have a very kind of stable relationship with South Korea, its large trading partner, Japan, and the United States. So in an indirect way, China does benefit from having North Korea that is quite docile and very cooperative.

**Leanna Byrne** (2:47)
And China transformed itself through market reforms and opening up to foreign investment. Why has North Korea never followed that path? And do you think Xi Jinping is trying to persuade Kim Jong Un to adopt more Chinese style economic policies?

**Jay Kwan** (3:00)
Well, that would be what South Korea and the United States actually would ask of Xi Jinping. You know, when South Korea's president, Yi Jiaming, met with Xi Jinping, he was asking Xi Jinping to play a role in mediating, you know, asking North Korea to open up to Washington and Seoul. But we haven't really seen China play that role this time around. For North Korea, even though it has poverty in the countryside, although Pyongyang has been getting slightly better in terms of the economy, it is not very strong in terms of the economy.
But what it is really efficient in is keeping its power. If you look at North Korea, no other country has been as successful in the modern age in passing the power twice now. And then now we're talking about Kim Jong Un passing his power again to his children. So what North Korea managed to create is a system where the Kim family will be ruling North Korea for many, many, many years and they have been successful so far. So North Korea's priority simply has not been in opening up the country and making the country rich.
Those are goals, but it's not the number one goal. Their number one goal has been keeping the Kims in power.

**Leanna Byrne** (4:14)
Now, of course, international sanctions also remain in place. How much are they actually constraining North Korea's economy? And has China's enforcement of sanctions weakened in recent years?

**Jay Kwan** (4:24)
It has been weakening because China and Russia both haven't been very good at keeping them, at enforcing them. Now, UN and the Western countries has been accusing these countries of circumventing the sanctions.
Now, things have changed since 2017 when North Korea has just tested its nuclear weapons and it has been testing its long-range missiles. This is when Russia and China have sided with United States to put a lot of pain on North Korea by joining the sanctions. But since then, the calculation for these countries have changed. Russia is now a close ally of North Korea. They need things from North Korea in terms of troops and weapons. So they're certainly not enforcing sanctions as much as the Western countries would like to see. And China, of course, is trying to befriend North Korea. So the incentive isn't there to really crack down on any sanctions activity.