Something to keep an eye on, North Korea and China are quickly developing a free trade zone on the Yalu river that separates the two countries. I don’t have any specific details, but it seems likely that it will be close to the Friendship Bridge (and Broken Bridge) connecting the Chinese city of Dandong to Sinuiju in North Korea. From AFP:
North Korea and China will start work on developing a river island on their border this month, a report said Tuesday, amid an international drive to coax Pyongyang back to nuclear disarmament talks.
The two countries plan to hold a groundbreaking ceremony on May 28 for development of the island on the Yalu River, the South’s Yonhap news agency said.
Pyongyang has reportedly worked out a special law to set up a free trade zone on the island, which is separated by a narrow waterway from the Chinese city of Dandong.
The North’s state media disclosed a deal last year to build a new cross-border bridge on the Yalu River as part of a major economic package announced by Beijing.
The two sides have agreed to turn the island into a base for logistics, tourism and manufacturing that would be linked to China’s industrial complex to be built in Dandong, Yonhap said.
Of course, this sort of free economic zone has been experimented by North Korea in the past, but ultimately their demanding conditions and a typically poor return on investment from foreign interests has met with mediocre results. Existing free trade city Rason was an experiment with Russia and China (the countries sharing a border with Rason in the northeast) that was mostly a failure, businesses and deals exist but are not profiting either side. Development is allegedly picking up in that city as well, but this new island will be something to keep an eye on (keep updating, GeoEye!)
Source: AFP
