How China keeps North Korea's economy alive

Published 7 June 2026 · india

Xi Jinping is about to visit North Korea for the first time since 2019. Pyongyang relies on China for 95% of its legitimate trade; hacking

Xi Jinping is about to visit North Korea for the first time since 2019. Pyongyang relies on China for 95% of its legitimate trade; hacking, arms deals and remittances also help it stay afloat. North Korea runs one of the most bizarre economies on the planet. Despite being one of only a handful of nations with nuclear weapons, its 2024 gross domestic product (GDP) was a paltry $26.6 billion (€22.9 billion). This is about 70 times smaller than South Korea's $1.86 trillion economy and about a fifth of the annual revenue of the world's top-traded company, Nvidia. Thanks to a centrally planned economy that prioritizes domestic production, North Korea is nowhere near as reliant on trade as your average free-market economy, partly due to international sanctions, introduced by the United Nations in 2017 over its nuclear weapons and ballistic missiles program. The North's total imports and exports account for just a small fraction of GDP, versus the South, where international trade makes up around 80% of the economy, according to the World Bank. North Korea continues to test missiles in defiance of sanctions and UN resolutions Image: AFP PHOTO/KCNA VIA KNS How important is China in North Korea's economy? You could say that China plays almost an exclusive role in North Korea's minimal reliance on trade. According to the Washington-based think tank the Committee on North Korea, Pyongyang depends on China for up to 95% of total trade and 85% of its exports.

Almost all imports also come from China. In 2024, North Korea's legitimate imports totaled just $2.33 billion — tiny by global standards. With no domestic oil production, these deliveries from China include petroleum and other fuels and are essential in keeping the economy functioning, along with food, textiles, machinery, electronics and vehicles. This gives Beijing enormous economic clout over North Korean leader Kim Jong Un. A recent report suggested that US President Donald Trump is now trying to leverage that muscle to bring Pyongyang back to the negotiating table over its contentious nuclear weapons program. Chinese President Xi Jinping is scheduled to visit Pyongyang on June 8 and 9, according to state media in both countries. It will be Xi's first visit to North Korea since 2019. What lessons is North Korea learning from the Iran war? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video What is North Korea allowed to export to the rest of the world? Legitimate exports from what the US labels a rogue state are even less impressive. According to the Korea Trade-Investment Promotion Agency, North Korea's exports barely reached $360 million in 2024. Those foreign sales are strikingly modest, with fake hair and wigs the country's only best seller, making up about 40% of exports, primarily to China, which then reexports them to the rest of the world. North Korea turned to wigs for vital foreign income after sanctions blocked its traditional big exports like coal and minerals, while fake hair was not explicitly banned.