According to Reuters, China's trading companies are increasingly using cross-border use of the Korean plant labor costs low cost of production clothing, the North Korean production of clothing was labeled "Made in China" label, exported to the rest of the world. In the world many countries and organizations to take measures to sanctions against North Korea's cusp, the news caused by the media attention.

Humanitarian considerations, textile and garment industry is not in the scope of sanctions

Although the United Nations sanctions against the DPRK unprecedented unprecedented, but every door, there will be another door for the DPRK to open. The United Nations has imposed economic sanctions against North Korea on North Korea's missiles and nuclear programs, but the sanctions list does not include prohibiting North Korea from exporting textiles.

Why is the textile and clothing not included in the list of United Nations sanctions against North Korea? "Because the United Nations does not want the life of the people at the bottom of the DPRK to be affected too much, the food and textile industry involved in people's livelihood is not within the scope of sanctions," said Xia Ming, a professor of political science at New York City University, New York. "

According to the Korea Trade and Investment Promotion Agency (KOTRA) data show that in 2016, the textile industry is North Korea after coal and other minerals, the second largest export, totaling 752 million US dollars. In 2016, North Korea's total exports increased by 4.6% to $ 2.82 billion. China's General Administration of Customs spokesman Huang Songping said that China's exports to North Korea in the first half of this year, nearly three percent, reaching 1.67 billion US dollars. This is largely driven by fabric materials and other labor-intensive products that are not on the UN embargo list.

Unapproved subcontracting, producing clothing in violation of international trade rules

Some analysts believe that the garment industry is not included in the list of joint sanctions against North Korea, China and North Korea to become an opportunity to cooperate, but the Chinese manufacturers of Korean clothing to wear Chinese-made brand in violation of international trade rules. Professor Xia Ming believes that Chinese manufacturers to North Korea processing clothing, although there is no violation of the United Nations sanctions, but there are brand issues, but the North Korean processing of clothing directly marked with Chinese-made labels, in violation of the relevant international business regulations.

Reuters reported that Chinese suppliers will be the production of clothing needed fabrics and other raw materials cross-border transport to the Korean factory for processing. Dandong's Chinese traders and agents said that this is a very common practice. Australian sportswear brand RipCurl last year had a public apology, because some signs that "Made in China" ski equipment is actually produced in the Korean garment factory, is the supplier subcontract to the "unauthorized subcontractor."

The labor force is cheaper, and North Korea produces 75% of the cost of clothing

In recent years, due to rising labor costs in mainland China, businesses have found that North Korea labor is cheaper, can replace China's migrant workers. China's border cities Dandong traders said that due to the lower cost of cross-border labor, China's textile enterprises are increasingly using the Korean factory to produce for them.

According to Reuters, a Chinese trader who has lived in Pyongyang has said that the cost of producing clothing in North Korea can save up to 75%. The average monthly salary of Korean workers is $ 160, the lowest $ 75. While Chinese workers earn an average monthly salary of $ 450-750. Some of these factories in North Korea are located in New York, near the Dandong border in China, while others are located outside Pyongyang. Chinese traders and businessmen say that good clothing is usually shipped directly from North Korea to the Chinese port and then shipped to the rest of the world.

North Korean workers are more efficient and pay two-thirds of wages to the country

According to the Netherlands GPI consulting firm data show that North Korea has about 15 large garment export enterprises, each in the country operating several factories, there are dozens of medium-sized enterprises. GPI Consulting helps foreign companies do business in North Korea. In North Korea, all the factories are state-owned. According to traders and agents, these factories are very hot business.

"We have been trying to move some of the garment production to North Korea, but now these factories have all been booked," said a Korean business woman working in Dalian. Dalian is also a port city, from Dandong has two hours by car. "North Korean workers can produce 30 percent more clothes per day than Chinese workers," the Korean merchant said. "In North Korea, factory workers can not go to the toilet casually, they think it will reduce the speed of the entire assembly line." "They do not work for those who only work for the Chinese factory workers. Korean workers have a different attitude - they believe they Is working for their own country and working for their leaders. "

The factory owner said that North Korean workers earn about 2,000 yuan (about $ 300) in China, about half of the average wage of Chinese workers. He said North Korean workers could leave about a third of their wages and the rest to the North Korean government. The factory is usually shifts from 7:30 am to 10:00 pm.