China signals strong support for decaying North Korea economy

Discussion in 'Indo Pacific & East Asia' started by Ray, Aug 14, 2012.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    China is building a stronger relationship with North Korea basically to boost its own flagging economy through investments.

    By entering into the mining sector, China will be able to extract the ores required for its own industry. Other investment to include light industry will allow China to have cheaper products for Chinese export products that are becoming expensive as the Chinese labour is no longer ready to work for crumbs as offering.

    By closer relationship with China, it will allow China the leverage to pressure South Korea and Japan, both of which are not taking China's activities in the SCS and elsewhere favourably.

    Thus, it is a win win for China.
     
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  3. drkrn

    drkrn Senior Member Senior Member

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    china needs to send some sigmals to pakistan tooo
     
  4. sob

    sob Moderator Moderator

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    sir, as you have correctly pointed out for China it is a win win situation. On one hand it gets access of raw materials and also a new low cost manufacturing base for their export industry.

    Already Vietnam and Cambodia have attracted a few industries from China with their cheaper labour cost.

    With this China also secured their border by propping up the regime. It ensures that they will not have to face a refugee crisis in case there is a collapse of the regime.
     

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