China Plans New Duty-Free Zone Along N.Korean Border

China is thumbing its nose at international sanctions against North Korea with plans for a new free economic zone along their shared border.

The Chinese city of Hunchun in Jilin Province said on its website that it wants to build the free zone on a 2.6 sq.km island on the Duman River in Kyongwon in North Korea's North Hamgyong Province.

The island is connected to Hunchun and and Kyongwon by a bridge and the zone will offer duty-free benefits worth 8,000 yuan per person a day.

According to Hunchun, North Korea proposed setting up the free zone in June 2016. The money will come from a Hong Kong company rather than the Chinese government, but China will refurbish a port in Hunchun and upgrade the bridge.

This is China's second free zone with North Korea. The first was set up in Dandong, Liaoning Province in October 2015, but North Korean businesses have been barred from investing in it under international sanctions.