A Chinese state company plans to inject about $2 billion into a project
to build up a North Korean free trade zone into a regional export base, a
report in
South Korea
said
Friday.
China
's
Shangdi Guanqun Investment, which signed a memorandum of understanding with
Pyongyang
's
Investment and Development Group Dec. 20, would provide the capital, the
JoongAng Ilbo newspaper said.
The two sides hope the zone in Rason near the North's border with
China
and
Russia
would
be the biggest industrial zone to be built in northeastern
Asia
in a
decade, the daily said, citing documents related to the deal.
Recent reports have suggested that
China
is
considering offering the North more economic aid if it agrees to return to
six-nation nuclear disarmament talks chaired by
Beijing
.
Pyongyang
issued a decree in January to
upgrade the status of Rason, formerly Rajin-Sonbong, which became a special
economic zone in 1991 but never fulfilled its proposed role as a transportion
hub.
The deal was described as a strategic joint project based on trust between top
Chinese and North Korean officials, the daily said.
North Korean leader Kim Jong Il visited facilities in and around the ports of
Dalian
and
Tianjin
during his trip to
China
last
year, and met Chinese President Hu Jintao.
The project also calls for the construction of coal-fired power plants, roads,
piers and an oil refinery in Rason, the daily said.
It quoted an unnamed Shangdi Guanqun Investment official as saying, "We
have a deep interest in
North Korea
's
ample natural resources."
Shangdi Guanqun Investment is a state company specializing in oil processing,
natural resources and financial services. Its North Korean partner is in charge
of developing free trade zones.
The isolated communist country has been cautious in opening its doors to the
outside world. But it has strived to revitalize Rason through cooperation with
China
and
Russia
.
China
,
Pyongyang
's
sole major ally, has actively explored investment opportunities in
North
Korea
and secured the rights to
much-needed natural resources such as iron ore and coal.
d possi�Hpl����,�sk, including territorial
rows over islands disputed by
Moscow
and
Tokyo
, the
report said.