A news of $10 billion fund to be started by North Korean investment group and Chinese development bank to fund infrastructure projects in North Korea was denied by the Chinese authorities. Nevertheless, this clearly shows interest in potential economic peace dividends arising out of the inter-Korea summit and the movement towards peaceful settlement in Korea. China is currently number one trading partner of North Korea and will likely to pursue more trade with the DPRK. American and Japanese businesses, hindered by political restraints on North Korea policy at home, will lose out to South Korean, Chinese and European ventures.
Photo: A bridge links China to North Korea over the Amnok (Yalu) River.
Related link: The China-North Korea Relationship