With the import of raw materials from China proceeding relatively smoothly, various products are being produced in North Korea and smuggled to China. However, it has been reported that the products are not being sold in China, and thus not even making a profit.
According to Daily NK’s local Chinese North Korea source on the 17th, many of the North Korean products that have been smuggled from North Korea to China recently include products that were exhibited at the Pyongyang Consumer Goods Exhibition held at the end of last month.
It is said that the silver bankruptcy bags from the Pyongseong Bankruptcy Bag Factory, the nano-silver and nicotine-removing toothpaste made with cutting-edge technology by the Malgeun Achim Pharmaceutical Factory, and the Daesong basketball, soccer, and volleyball balls from the Pyongyang Sports Equipment Factory, which were exhibited at the actual exhibition, are being smuggled to China by North Korean traders.
It has also been reported that North Korean food and agricultural and marine products, the export of which is prohibited by UN Security Council Resolutions 2397 and 2375, are being smuggled to China.
These include corn noodles from Pyongyang Corn Processing Factory, ssamjang, doenjang, and gochujang from Taedonggang Food Factory, cassia seed tea, raw mugwort tea, barley tea, and magnolia berry tea from Gaeseong Koryo Ginseng Processing Factory, as well as pine nuts (pine nuts with their shells removed) from Okryu Export Production Center, and pine mushroom wine, honey, and mushrooms from Rason Revival Food Production Center.
In addition, cosmetics produced at the Sinuiju Cosmetics Factory and many tobacco products made at the Yalu River Tobacco Factory are also being smuggled to China.
However, it is said that these North Korean products that are smuggled out are being completely ignored by Chinese consumers. Before COVID-19, there were Chinese consumers who bought North Korean products out of curiosity, but the quality is poor and the prices are high, so there are almost no people who want to buy them. Chinese traders who received the products from North Korea are also trying their best to sell them, but the source said that there is virtually no demand.
“Perhaps because the cost of smuggling has increased, bags produced in North Korea are sometimes more expensive than those produced in China,” the source said. “In fact, a Silver Bank bag costs 498 yuan (about 100,000 won), which is much more expensive than the price of bags that can usually be purchased at Chinese shopping malls (70-80 yuan).”
There is talk that North Korean food products such as ssamjang and gochujang are being sold at higher prices in China compared to prices in China, with prices in China being 28 to 48 yuan (about 5,000 to 9,000 won), which is twice the price of Chinese food products.
In this situation, North Korean trade agencies are said to be unable to even recover the cost of production. Furthermore, food with an expiration date loses its value over time, making it more difficult to sell, so there is a high possibility of suffering losses.
“The hardships faced by North Korean traders who have to sell their goods in China are enormous,” the source said. “They are even bearing the losses themselves because they have to send foreign currency to Pyongyang.”
Source: www.dailynk.com
