A Chinese firm has signed a letter of intent to invest US$2 billion in a North Korean industrial zone, the Wall Street Journal reported yesterday, despite pleas by Washington for Beijing to apply more pressure on its ally.
The letter of intent involves China’s Shangdi Guanqun Investment Co (商地冠群投資) and North Korea’s Investment and Development Group, the paper said.
The US has pressed China to do more to bring North Korea to heel after it sparked alarm by shelling a South Korean island last year and disclosed advances in uranium enrichment, which potentially gives it a new path to make nuclear weapons.
Washington has urged Beijing to enforce sanctions against Pyongyang, imposed on the reclusive state after it conducted nuclear and missile tests in past years.
However, China has sought to shore up relations and increased aid to its poor neighbor, which it sees as a strategic buffer against the US and its allies.
The reported deal comes as Chinese President Hu Jintao (胡錦濤) visits Washington in a bid to forge closer security and economic ties with the US.
DOUBTFUL INVESTMENT
The Journal reported that US officials said the administration was aware of the possible Chinese investment, but noted that previous projects hadn’t gone anywhere.
The paper quoted an assistant to the managing director of Shangdi Guanqun, who identified himself only by his surname, Han, as saying his company’s planned investment was focused on the Rason special economic zone, situated near North Korea’s border with Russia.
INFRASTRUCTURE
Han said the plan is to develop infrastructure, including docks, a power plant and roads over the next two to three years, followed by various industrial projects, including an oil refinery, over five to 10 years, the Journal reported.
He said the company was waiting for a response from the North Korean government before applying for approval from China’s Ministry of Commerce.
The agreement was signed with little fanfare in Pyongyang on Dec. 20, the paper reported.
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