North Korean trade is facing mounting challenges as processed goods fail to attract strong demand in China. Despite government orders to boost exports, Chinese buyers still prefer raw materials such as pine nuts, herbs, soybeans, and ginseng. Moreover, even with improved packaging and branding, processed goods like ginseng liquor, cosmetics, and cigarettes remain slow sellers.
The North Korean cabinet directed companies to shift toward processed goods. Consequently, trading firms in Sinuiju and other regions began producing items like teas, alcohol, and cosmetics. However, performance has weakened because North Korean trade lacks competitiveness compared to established foreign brands. Furthermore, Chinese consumers continue to associate these products with low quality despite cosmetic improvements.
For instance, in Dandong, souvenir shops display North Korean goods but see limited sales. Shoppers hesitate, believing quality problems outweigh improved packaging. As a result, many Chinese traders pressure Pyongyang to lift restrictions and resume raw material exports. Nevertheless, the regime insists on processed exports only, creating tension between policy and market demand.
Meanwhile, companies still must meet strict foreign currency quotas. Therefore, they rely heavily on packaging upgrades to attract Chinese buyers. Officials even introduced competition between trading firms, raising the stakes further. Moreover, traders risk financial losses if processed exports fail to sell, since they are held accountable for unsold shipments.
Quality concerns also harm credibility. One firm reportedly lost Chinese trust by shipping lower-grade goods than its sample promised. This deepened doubts about North Korean trade reliability. Instead of improving substance, many firms keep prioritizing visual upgrades over real quality enhancements. Consequently, trust in the market remains low.
Industry insiders argued that companies performed better when they could export both raw materials and processed goods. With the current policy, however, many firms suffer financial setbacks. They warn that government orders ignore real market conditions. To restore momentum, they argue that genuine investment in quality and flexibility must guide future strategies.
In conclusion, North Korean trade remains under strain in the Chinese market. Government pressure to push processed goods conflicts with consumer demand for raw materials. Moreover, without substantial quality improvements, packaging upgrades alone cannot secure long-term success.
