China is building a new Dandong-Dalian logistics link to expand trade with North Korea. Liaoning province wants to connect the two border cities by land and sea. But some say the plan looks bigger than current trade volumes justify, a source in China told Daily NK.
Officials in Liaoning province have recently been discussing the plan. It would combine land and sea routes to move goods between Dandong and Dalian. The talks are part of a broader push to expand economic cooperation with North Korea, the source said.
The discussions gained momentum after a meeting in mid June. The Standing Committee of the Dalian Municipal People’s Congress, the city’s local legislature, held the meeting. There, the committee formally adopted a policy to pursue substantive cooperation with North Korea across multiple sectors.
Local observers link the move to a June summit between North Korean and Chinese leaders. At that summit, the two sides agreed to expand economic exchange and cooperation. Some see the Dandong-Dalian logistics plan as a concrete follow-up project at the local government level in the border region.
Still, many on the ground question why the plan goes so far. Current trade volumes are small, they say, and there is little need to link land and sea routes at all. Some have openly asked why China would activate Dalian’s international port now.
“International train service still hasn’t recovered to pre-pandemic levels,” the source said. “There aren’t nearly as many trucks crossing the border as before. The main goods going into North Korea are construction materials, along with some equipment and heavy machinery. What comes out is mostly goods processed on commission, or a limited supply of raw materials.”
The source added that trade in raw materials such as tungsten is growing. Even so, current volumes are small enough to be handled through the Dandong land route alone. “It is hard to see why they would need to fully activate Dalian’s international port right now,” the source said, describing that as the general sentiment on the ground.
Dandong-Dalian logistics plan still limited by sanctions
Trade between China and North Korea remains limited under international sanctions. It is largely confined to construction materials, some industrial equipment and raw materials for processing on commission work, in which North Korean labor assembles or processes goods for a fee. North Korea’s traditional major exports, including minerals and seafood, remain under sanctions. A return to large-scale trade looks unlikely for now.
Because of this, some observers on the ground see the Dandong-Dalian talks as more than a simple logistics upgrade. They view it as a long-term strategy. China appears to be preparing for a future expansion of economic cooperation with North Korea, they say.
“China is likely thinking not just about today’s freight volume, but about how much it could grow,” the source said. “It looks like they are envisioning Dandong as a hub for land customs and border trade. Dalian would serve as a hub for international shipping. Together, they would tie all of Liaoning province into a single economic axis for cooperation with North Korea.”
The source added that it remains unclear which specific North Korea-China cooperation projects would justify building out the network right now. “There is speculation that this could be preparatory work, anticipating future changes in the sanctions environment,” the source said. “It will be worth watching how any actual cooperation between the two countries takes shape.”
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July 7, 2026 at 10:36PM
by DailyNK(North Korean Media)