Wednesday 26 October 2011
North Korea Embraces Business Deals With China And Russia To Stave Off Economic Collapse
SEOUL — In September, under the flags of North Korea and China, North Korean workers began digging at Haesan, a hilly town near the Chinese border, kicking off one of several joint mining ventures. On Oct. 13, a Russian train chugged across the border to celebrate the restoration of a dilapidated Soviet-era rail link between the Russian city of Khasan and the North Korean town of Rajin.
At Haesan, China acquires copper, one of the many abundant mineral reserves lying next door waiting to be exploited. At Rajin, Russia wins access to an ice-free port to export Siberian coal and take in Asian goods it wants to transport to Europe. From both projects, the North Korean leader, Kim Jong-il, counts cash.
These and other similar deals North Korea is striking with its two Cold War-era allies, especially China, are creating a predicament for the South Korean government.
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