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Thursday, September 12, 2024

North Korea’s cigarette and alcohol imports from China plunge amid speculation of strained relations

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This year, North Korea’s import of cigarettes and alcohol from China has significantly decreased, raising speculation about potential strains in the relationship between the two countries.

According to Voice of America (VOA) on August 22, from January to July of this year, North Korea imported $1.35 million worth of cigarettes and tobacco-related products from China. According to data from China’s General Administration of Customs, this figure is only about 3.6% of $37.13 million worth of tobacco-related goods imported during the same period last year.

Last month, VOA reported that trade between North Korea and China had decreased by about 20% year-on-year. However, in the first seven months of this year, North Korea’s import of tobacco products fell by a staggering 96%, far exceeding the overall decline in trade volume.

 

Illegally smuggled Chinese tobacco products and liquors confiscated by the South Korean government (Photo is for illustrative purposes only) [YONHAP]

In terms of weight, North Korea imported 266.2 tons of tobacco products from China last year, but this year, only 19.62 tons were imported.

North Korea’s cigarette imports from China had steadily increased, nearly doubling from $4.74 million in 2016 to $8.27 million in 2017. In 2019, the import value reached a record high of $35.74 million, although it temporarily dipped due to the COVID-19 pandemic.

By 2022, the import amount had rebounded, exceeding $10 million. If the current trend continues, this year’s cigarette imports could hit their lowest level in recent years.

North Korea’s imports of alcoholic beverages from China have also seen a sharp decline. This year, North Korea imported $3.285 million worth of beer, spirits, vodka, and baijiu from China, which is slightly less than half of last year’s import value of $6.862 million.

 

Kim Jong-un smokes a cigarette while directing senior officials at a fertilizer factory in South Pyongan Province in 2020. [YONHAP]

The import of luxury alcohol by North Korea has repeatedly sparked controversy for violating UN Security Council resolutions. The UN Security Council’s Resolution 1718, adopted in 2006, banned the import of luxury goods to North Korea, and Resolutions 2270 and 2321, adopted in 2016, reaffirmed the prohibition on luxury goods transactions with North Korea.

The U.S., South Korea, Japan, and the European Union have all included high-end alcoholic beverages such as whiskey and wine in their lists of luxury goods banned under sanctions against North Korea.

However, China, which has not compiled its own list of luxury goods, does not consider alcohol to be prohibited under these sanctions, according to VOA.

The exact reason for the decline in cigarette and alcohol trade between the two countries is unclear. However, some experts have speculated that the decrease in trade volume could indicate potential issues in the relationship between North Korea and China.

BY YOUNGNAM KIM [kim.youngnam@koreadaily.com]