Key facts
- Dandong's economy grew 0.3% in the first half of the year, compared to China's national growth of 4.7%.
- Investment in Dandong fell by a third, and new home sales decreased by 28% in the first half of the year.
- Factory jobs in Dandong pay approximately 3,000 yuan ($420) per month.
- The Guomenwan trade zone in Dandong, launched in 2015 with a reported investment of 1 billion yuan ($140 million), has mostly empty storefronts.
- China's exports to North Korea reached a six-year high of $2.3 billion last year, a 25% annual increase.
Dandong, a Chinese border town, is experiencing a muted economic outlook despite the impending opening of a new bridge to North Korea, which has been delayed for over a decade. While the bridge's completion signifies a potential improvement in bilateral ties, residents and business owners are skeptical about its economic benefits, citing restrictions on regular citizen travel and North Korea's unfinished infrastructure.
The New Yalu River Bridge, finished in 2014, was intended to boost trade, but North Korea's nuclear tests and subsequent UN sanctions stalled its opening. Following a thaw in relations and a visit by Chinese President Xi Jinping, work resumed, with both countries restoring train and flight services. However, no official opening date for the bridge has been set.
Dandong's economy, which once thrived as a primary trade gateway to North Korea, has struggled. The town's economy grew by only 0.3% in the first half of the year, significantly lagging behind China's national growth of 4.7%. Investment has fallen by a third, and new home sales are down 28%, according to city data. Many apartments in the Dandong New Zone, near the new bridge, remain vacant, and local factory jobs offer low wages of around 3,000 yuan ($420) per month.
A trade zone called Guomenwan, launched in 2015 with a reported investment of 1 billion yuan ($140 million), also suffers from low business activity and empty storefronts. Its manager noted that UN Security Council resolutions have banned the import of North Korean seafood and farm products, which previously formed a significant part of its business.
Despite the economic stagnation, tourists continue to visit Dandong to view the old bridge, though North Korea has not reopened to Chinese tourists since sealing its borders in 2020. Some residents expressed a desire for more business with South Korea, viewing North Korea as having 'cut itself off from the world'.