China has temporarily eased customs rules for equipment and materials bound for North Korea’s civilian economy. The move, which could reshape China-North Korea trade going forward, comes as Beijing and Pyongyang mark 65 years since signing their 1961 friendship treaty.
Some items had previously struggled to clear customs formally because of international sanctions on North Korea. Those goods may now be entering the country through official Chinese channels.
A source in China who works with North Korean trade contacts told Daily NK on Wednesday that word has spread through Chinese trading circles about a new understanding between the two governments. If North Korea applies within a set window for items needed to improve people’s living standards and build up its economy, China will let them through customs formally, the source said.
The expanded list of approved trade items followed Chinese President Xi Jinping’s visit to Pyongyang in June. It also followed a series of high-level exchanges tied to the 65th anniversary of the Treaty of Friendship, Cooperation, and Mutual Assistance, the mutual defense pact Beijing and Pyongyang signed in 1961.
China-North Korea trade quietly expands
Some in trade circles are saying it is thanks to Xi Jinping’s visit, the source said, as most equipment and materials requested by North Korean state and trade agencies in July have been able to move through customs as long as they have no direct military use.
Trading companies in the border city of Dandong, in China’s Liaoning province, and other crossing points have been busy securing the equipment and materials North Korea has requested. They are also preparing the necessary paperwork, the source said. Word that the customs window would open temporarily has pushed companies to confirm which items qualify. Many are racing to lock down suppliers before the opportunity closes.
North Korea has prioritized requests tied to its regional development policy, a program launched in 2021 to build new housing and modernize factories across the provinces. The source said North Korean authorities appear to be gathering these requests at the national level. State and trade agencies are then submitting them collectively.
The push has come alongside a broader thaw in economic cooperation since Xi’s visit. Border areas in Liaoning province have seen talks over streamlining customs procedures and building two-way distribution networks. Investment cooperation is also under discussion. North Korea, meanwhile, has hosted Chinese business representatives and investment delegations as it courts joint ventures and outside capital.
It remains unclear how far the special clearance arrangement will ultimately extend. Trade sources in China said it applies only to items submitted for approval this month. Which goods qualify, how much volume will be allowed, and when shipments will actually clear customs are all still unconfirmed.
The scope of the arrangement could grow, narrow or change entirely. Much will depend on how relations between the two countries, and the broader geopolitical picture, develop.
“What matters is that the door to customs trade has opened wide,” the source said. “Even though it’s currently limited to livelihood and economic items, quite a few people think the scope could eventually expand to other sectors.”
The move could be more than a one-off gesture tied to the treaty anniversary. It may test whether deeper China-North Korea cooperation can last over the longer term.
“Right now, this is a special application and approval process,” the source said. “But once the volume moving through official customs channels grows, and legal trade expands, it won’t be easy to shut the door again. Whether this turns out to be a one-time event or the start of closer China-North Korea ties is something we’ll have to watch.”
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July 24, 2026 at 12:29AM
by DailyNK(North Korean Media)