8231. The Influence of the COVID-19 Pandemic on the DPRK-China Economic Ties and their Impact on the Korean Peninsula
- Author:
- Eun-lee Joung
- Publication Date:
- 10-2022
- Content Type:
- Commentary and Analysis
- Institution:
- East Asia Institute (EAI)
- Abstract:
- In normal economies, currencies weaken in times of difficulty, but something counter-intuitive happens in North Korea. Eun-lee Joung, a research fellow at Korea Institute for National Unification claims that the value of the North Korean won appreciated, and the market prices were remarkably stable although North Korea’s economy suffered its biggest contraction during the pandemic situation. Dr. Joung states that the partial lockdown of the border between North Korea and China, and North Korea’s various changes to deal with the sanctions including the substitution of imported goods with domestic goods may have contributed to the outcome. Meanwhile, she mentions that intensifying U.S.-China strategic competition and the possibility of a prolonged conflict between Russia and Ukraine could increase North Korea’s economic reliance on China and Russia which will impede the re-establishing relations between the two Koreas. However, as the cooperation between North Korea and China in tourism has increased up before the COVID-19 outbreak, Dr. Joung highlights that Pyongyang’s tourism industry is likely to expand, which is expected to stimulate non-governmental exchange and induce North Korea toward openness.
- Topic:
- Economy, Currency, COVID-19, and Unification
- Political Geography:
- China, Asia, South Korea, and North Korea