North Korea’s Trade Troubles Could Point to a Need for Cash
- 7 years ago
North Korea’s Trade Troubles Could Point to a Need for Cash
Steve Hanke said that My best guess is that North Korea is receiving trade credits
from those providing it with goods and services — that is to say, China,
North Korea bought $2 worth of goods from China in July for each $1 of sales to China,
as China has essentially halted purchases of North Korean coal since mid-February.
To avoid that, Chinese banks could simply lend extra money on easy terms to state-owned Chinese
enterprises, which in turn could keep selling goods to North Korea without demanding payment.
China has gone along with United Nations sanctions by importing less from North Korea, but
that has not had the intended effect of cutting North Korea’s ability to buy goods.
Elizabeth Rosenberg said that What the legislators do not know, and it’s a little scary, is what these restrictions would mean for China,
Huang Songping said that As neighbors, China and North Korea maintain normal trade,
Steve Hanke said that My best guess is that North Korea is receiving trade credits
from those providing it with goods and services — that is to say, China,
North Korea bought $2 worth of goods from China in July for each $1 of sales to China,
as China has essentially halted purchases of North Korean coal since mid-February.
To avoid that, Chinese banks could simply lend extra money on easy terms to state-owned Chinese
enterprises, which in turn could keep selling goods to North Korea without demanding payment.
China has gone along with United Nations sanctions by importing less from North Korea, but
that has not had the intended effect of cutting North Korea’s ability to buy goods.
Elizabeth Rosenberg said that What the legislators do not know, and it’s a little scary, is what these restrictions would mean for China,
Huang Songping said that As neighbors, China and North Korea maintain normal trade,