Sunday 15 December 2013

China may tighten screws on North Korea after purge

A handcuffed Jang awaited his fate. © Kyodo
BEIJING -- China finds itself having to rethink its relations with North Korea now that a familiar link between the two countries is dead.
     North Korea's summary execution of Jang Song Thaek, reported Friday by state media, could provide an impetus for stricter Chinese economic sanctions on its unpredictable neighbor.
     Before being purged this week, Jang served as vice chairman of North Korea's National Defense Commission. He also spearheaded bilateral economic development on the border with China.
     China's official reaction to Jang's death was muted. Calling the execution an "internal affair," Foreign Ministry spokesman Hong Lei said he hoped North Korea will "maintain political stability and realize economic development," and that its people "lead a happy life."
     Pressed for details about the case, Hong repeated that he had no knowledge of the situation.
     The foreign ministry said that a North Korean protocol officer had traveled to China on Thursday. But Chinese government sources dismissed rumors that the trip was connected to a possible state visit by North Korean leader Kim Jong Un.
     Officials in Beijing are bristling over what they see as a dig at China in the verdict handed down to Jang by the special tribunal that sentenced him to death.
     The verdict describes a sale of land in the Rason economic and trade zone to a foreign country as "an act of treachery." China and Russia have backed this project, located in northeastern North Korea near borders with both countries. But Chinese support for the zone, and another in the northwest, now looks likely to be put on hold, at least for the time being.
     Meanwhile, a number of executives at North Korean companies reportedly linked to Jang are returning home from China.
     Some in China had already been questioning North Korea's will for economic reform. Last month, China Merchants Group, a state-owned enterprise, told The Nikkei that it was backing out of investment plans in North Korean special zones. The conglomerate may have gotten wind of Jang's impending downfall.
     "If there is no hope for North Korea to reform and open up, China has no need to support the Kim regime," says a person familiar with bilateral relations.
     With winter looming, China may even cut exports of gasoline to the North, this person added.

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