NK firms to serve as trade reps in Shanghai: China

The Shanghai City government is considering plans to establish special organizations inside North Korean companies active in Shanghai and allow them to serve as trade representatives for the North, the same function served by Chokwang Trading Company in Macao, government sources said Thursday.

¡°North Korea and Shanghai City have been engaged in consultations over the plans since the middle of last year. It is not an issue newly raised to coincide with North Korean leader Kim Jong-Il¡¯s visit to China,¡± a source said. Negotiations have taken place mostly between North Korean companies and Shanghai City, he added.

According to the sources, the organizations, if established, would mainly conduct market surveys related to North Korean businesses in China, foreign investments in China and trade.

¡°Just as before Kim¡¯s China visit, the talks will be carried out by the parties involved,¡± one of the sources said. He added that as there are only a few North Korean companies active in Shanghai and the number of North Korean residents in the city remains in the dozens, chances are slim that the issue of establishing trade representatives was discussed in detail at the recent meeting of Chinese Prime Minister Zhu Rongji and Kim Jong-Il.

¡°It can be analyzed as a sign that North Korea is becoming increasingly interested openness, reform and the collection of economy-related information,¡± the source said.

Choi Young-Hoon tao4@donga.com