China's Exports to North Korea See First Year-on-Year Decline in August 2025

August 2025 Marks Notable Shift in Trade

Beijing, China – China's exports to North Korea experienced their first year-on-year decline in August 2025, signaling a potential shift in the long-standing trade relationship between the two countries. According to customs data released on Saturday, September 20, outbound shipments from China to North Korea totaled US$147.6 million last month. This figure represents a 0.05 percent decrease compared to the same period a year earlier. On a month-on-month basis, exports saw a more significant drop of 13.4 percent.

Details of the Decline and Key Exports

The reported decline, while modest in percentage for the year-on-year comparison, marks a significant development given China's role as North Korea's primary economic partner. Key Chinese exports to the isolated nation in August included:

• Processed hair and wool for wig-making
• Soybean oil
• Petroleum bitumen

These goods highlight the continued, albeit fluctuating, flow of essential and consumer items from China to North Korea.

Broader Trade Context and Sanctions

China has historically served as North Korea's chief ally and economic lifeline, accounting for approximately 98 percent of Pyongyang's official trade as of 2024. This relationship persists despite the imposition of international sanctions over North Korea's nuclear weapons program, which have significantly curtailed North Korea's legitimate export earnings in previous years. Trade between the two nations was severely impacted by the COVID-19 pandemic, leading to dramatic declines in 2020 and 2021. However, trade volumes saw a significant rebound in 2023, reaching approximately 82 percent of pre-pandemic levels. The decline observed in August 2025 follows a period where, for instance, in June 2025, China's exports to North Korea had actually increased by 25.3 percent year-on-year, indicating dynamic and sometimes contradictory trade patterns.

Diplomatic Backdrop and Future Dynamics

The release of this trade data comes just weeks after North Korean leader Kim Jong Un visited Beijing, where he reportedly appeared alongside Chinese President Xi Jinping and Russian President Vladimir Putin at a major military parade. During their meeting, President Xi Jinping reportedly affirmed China's unwavering commitment to developing ties with North Korea, stating that it 'will not change no matter how the international situation evolves'. Despite this diplomatic solidarity, North Korea has also been actively seeking to diversify its partnerships, including strengthening ties with Russia, in an effort to reduce its overwhelming economic dependency on China. Furthermore, there have been reports of a conflict between North Korea's policy of exporting processed goods and China's continued preference for raw materials, which could influence future trade compositions.