China’s Economic Activities in the North Korean Mineral Resource Sector

Abstract

This chapter discusses economic activities in the sector of mineral resources (i.e. coal, rare earth, and iron ore) and includes direct investment and the foundation of joint ventures. Local state-owned companies and small and medium enterprises aim to prevent environmental pollution, develop local industry, and reduce economic costs. These sub-state and non-state actors are seen as the major actors in Chinese economic activities in North Korea, whereas Beijing remains directly involved in a few economic activities in North Korea relevant to central state-owned companies. But apart from sustaining oil and coke supplies to North Korea for many years, Beijing rarely became directly involved in these activities and only provided institutional support and diplomatic aid for the achievement of economic cooperation programmes relevant to central state-owned companies and strategic resources, such as rare earth.