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CRS INSIGHT


China's February 2017 Suspension of North Korean

Coal Imports

April 25, 2017 (IN10659)




Related Authors


    Susan V Lawrence

    Mark E, Manyin

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Susan V. Lawrence, Specialist in Asian Affairs (slawrencea( 1crc , 7-2577)
Mark E. Manyin, Specialist in Asian Affairs (mmanvinacr  go, 7-7653)
Keigh E. Hammond, Research Librarian (khammond(crs b opy 7-2393)

On February 18, 2017, China's Ministry of Commerce and its General Administration of Customs jointly announcd a
suspension of China's imports of coal from North Korea, also known as the Democratic People's Republic of Korea
(DPRK), for the remainder of 2017. The suspension appeared to signal China's intention to keep its 2017 imports of
North Korean coal in line with United Nations restrictions imposed in November 2016 in response to Pyongyang's
continued development of its nuclear and missile programs. China's announcement came at a time when the Trump
Administration was calling on China to do more to rein in North Korea. The suspension of coal imports is unlikely to
have a significant financial impact on Pyongyang, however, due to China's large imports of North Korean coal in the
months preceding Beijing's suspension.

Coal's Importance to North Korea

Coal is believed to be North Korea's top export item. From 2010 to 2015, according to estimates by the Seoul-based
Korea Trad-Instmen Promin Agenc (KOTRA), coal shipments accounted for an average of a third of North
Korea's total export revenues. According to import statistics available through Global Trade Atlas, North Korea's coal
exports generated more than $1 billion in revenue for Pyongyang each year in this period. More than 97% of the exports
went to China.

U.N. Sanctions Targeting North Korea's Coal Exports

After North Korea conducted its fourth nuclear test in January 2016, the U.N. Security Council on March 2, 2016,
passed      Reolution 2270 (UNSCR 2270), which required U.N. member states to cease importing North Korean
coal. China successfully pushed for an exception for coal transactions that were deemed to be exclusively for

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