North Korea is increasing exports to China, but many items are not selling that well, making it hard for trade companies to secure profits.
A source in China, speaking anonymously, told Daily NK recently that many North Korean products currently being smuggled into China were showcased at a consumer product fair in Pyongyang in late June.
Products being smuggled by North Korean trading officials include popular Unpasan handbags from the Pyongsong Unpasan Bag Factory, nicotine stain-removing nanosilver toothpaste from the Clear Morning Pharmaceutical Company, and sports equipment from the Pyongyang Athletic Equipment Factory.
Despite sanctions imposed by U.N. Security Council Resolutions 2397 and 2375, North Korean foodstuffs and agro-fishery products are also being exported to China. These include corn noodles, fermented bean pastes, various teas, shelled pine nuts, pine mushrooms, and related products from several North Korean factories.
Additionally, cosmetics from the Sinuiju Cosmetics Factory and tobacco products from the Amnok River Cigarette Factory are among the items being smuggled.
North Korean goods face cold shoulder from Chinese buyers
However, these North Korean products are failing to impress Chinese consumers. While some Chinese buyers purchased North Korean goods out of curiosity before the pandemic, demand has significantly decreased due to high prices and declining quality.
The source noted that North Korean products often cost more than their Chinese counterparts. For instance, an Unpasan bag is priced at around RMB 498 (approximately USD 77), considerably higher than similar Chinese-made bags selling for RMB 70-80 in local shopping malls.
Even North Korean food products like fermented bean pastes and red pepper paste are priced at RMB 28-48 (about USD 4-7), roughly double the price of comparable Chinese-made foods.