September 29, 2017 09:46
The Chinese government on Thursday ordered North Korean joint ventures in China and North Korea to shut down within 120 days.
The order is part of Beijing's efforts to implement the UN Security Council resolution against the North in the wake of its latest nuclear test. It will mostly affect restaurants and hotels.
The Chinese Ministry of Commerce ordered the closure of all North Korean-Chinese joint ventures, partnerships and North Korean-invested businesses within four months counting from Sept. 12, when the UNSC resolution was passed.
Chinese businesses established overseas in cooperation with North Koreans are also subject to the decision. The deadline is Jan. 9.
North Korean businesses established to build public infrastructure for nonprofit or noncommercial purposes will be spared if they have been given the green light by the UN sanctions committee. Wholly owned North Korean businesses in China are also exempt.
It is not clear how many North Korean joint ventures or partnerships operate, but most of an estimated 100 North Korean restaurants in China are partnerships.
According to the Chinese ministry, 629 North Korean direct investments in China in 2015 amounted to US$116 million.
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