The trade volume and economic cooperation between China and the DPRK are on the rise. The trade environment for Chinese investment in North Korea has also changed.
Currently in the DPRK， there are about 200 Chinese companies in operation and more than 70 percent of these companies are concentrated around the cities of Rajin and Sonbong. China has pursued economic cooperation with the DPRK based on the four principles of state-ownership， corporate-centeredness， market-management， and mutual benefit. In the past， China persuaded North Korea with various joint venture projects arguing that， “You have nothing to lose from these projects. Although it’s based on market principles， ultimately it’s beneficial for both parties.” North Korea on the other hand maintained the stance， “You (China) invest and we will manage，” holding on to management rights of these companies. However， for this very reason Chinese companies were reluctant to directly invest in North Korea. Even after contracts were signed， large -scale investment did not transpire due to poor ma