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Our only agenda is to publish the truth so you can be an informed participant in democracy. We need your help. More Info ### I would like to contribute One Time Monthly Yearly Join Now ![](\\" ![](\\" Rex Tillerson stated on April 28, 2017 in comments to the UN Security Council: \"China account(s) for 90 percent of North Korean trade.\" ![\\"true\\"](\\" true/3d4df195c595a07e3fd69b5e4aab3e3c.jpg.\\") ![\\"true\\"](\\" true.jpg\\") * National * China * Foreign Policy * Trade * Rex Tillerson ![\\"John](\\" By John Kruzel May 1, 2017 # Does China account for 90% of North Korean trade, as Rex Tillerson said? The Trump administration has cited China\'s trade relationship with North Korea as a key lever to deter the regime from producing a nuclear missile capable of striking the U.S. \"We must all do our share,\" Secretary of State Rex Tillerson told the U.N. Security Council April 28. \"But China, accounting for 90 percent of North Korean trade, China alone has economic leverage over Pyongyang that is unique, and its role is therefore particularly important.\" Tillerson’s remarks, which included a call for fresh economic sanctions, came at a time of heightened tensions between the United States and North Korea. As a U.S. Navy strike group steamed toward the Korean Peninsula -- where 28,500 American troops stationed in South Korea are on alert following the latest provocations from Pyongyang -- President Donald Trump on April 27 warned of a possible \"major conflict\" if diplomatic efforts fail. We’ve previously looked at Trump’s claim about the degree of control Beijing wields over Pyongyang. With Tillerson citing Chinese-North Korean trade relations as a vital diplomatic pressure point, we decided to explore how much China accounts for North Korea’s overall trade with the outside world. Finding accurate data for the secretive regime is a bit tricky since no North Korean equivalent of Trade.gov with troves of trade data exists, as Pyongyang treats this information as a state secret. But so-called \"mirror statistics,\" an accounting of data reconstructed from other countries’ reports, offer a workaround, albeit a flawed one, since the statistics don’t capture some transactions. The available data tell a story of growing dependence on Chinese trade over roughly the past two decades as economic sanctions levied by the UN and individual countries, as well as other factors, have seen North Korea’s trade with other partners fall drastically. In 2000, China, South Korea and Japan each accounted for about a fifth of the regime\'s overall trade, with the rest of the world making up the remaining roughly two-fifths. Since then, China’s slice of the pie has more than quadrupled, according to Stephan Haggard, professor of Korea-Pacific Studies at the University of California-San Diego. \"As sanctions have reduced South Korean and Japanese trade basically to nothing, trade has naturally become focused more on China,\" Haggard said. \"The rest of the world has not picked up the slack.\" Marcus Noland of the Peterson Institute for International Economics agreed that China’s current position as an outsize trade partner of North Korea is largely a function of Pyongyang’s strained relations with its neighbor to the south -- but he noted this could change if political winds shift. #### Featured Fact-check ![](\\" ![](\\" Donald Trump stated on August 15, 2024 in a news conference California law lets you “rob a store as long as it’s not more than $950” and “not get charged.” Kamala Harris “did that.” ![\\"true\\"](\\" false/33efdb6633e5e2fdc2d4e2f63383a1e0.jpg.\\") ![\\"false\\"](\\" false.jpg\\") By Jeff Cercone • August 19, 2024 \"The reason that the percentage is so high is that South Korea, which was North Korea’s second largest trade partner, imposed sanctions and trade between the two countries is virtually nil,\" Noland said. \"If South Korea were to resume trade relations (as it might in the next administration) China’s share of North Korean trade would fall, but China would still be the country’s principal trade partner.\" Bilateral disputes led to Tokyo imposing sanctions that went even further than UN restrictions, said Haggard, who noted that the commercial risk associated with North Korea and its poor record on honoring property rights have also dissuaded potential trade partners. As South Korean and Japanese trade with Pyongyang fell, China’s economy boomed, fueling increased trade with North Korea -- a relationship unfettered by bilateral sanctions, as Beijing has traditionally viewed the regime as an ally. China has also been accused of being less compliant with UN sanctions than other countries. As a result of these factors, the consensus among experts we spoke to is that China now accounts for roughly 90 percent of North Korean trade. ![](\\" JiBIrgrQQrQDY2XGvAP0GZwo3f7Dr3jqCCR93fK89UQdMXIakDsPwjzJyJSkvm0wIQicWAX4fogNDYYHyRmJwRN8oiFfVsxTEy3\\"/) Source: Stephan Haggard, professor of Korea-Pacific Studies at the University of California-San Diego. UNSCR refers to United Nations Security Council Resolutions. \"Yes, China accounts for more than 90 percent of North Korea’s recorded trade,\" Noland said. \"They are the primary supplier of oil and the marginal supplier of grain. If China wanted to, it could bring North Korea to its knees.\" \"It has the economic leverage, but has been unwilling to use it, perhaps because it fears destabilizing the regime,\" he added. Our ruling Tillerson said, \"China account(s) for 90 percent of North Korean trade.\" China’s role as an outsize trade partner of North Korea is a relatively new development. Since 2000, trade with the rest of the world has dropped off, as Chinese trade has risen. While the ratio is subject to change based on political factors, China now accounts for around 90 percent of North Korean trade. We rate Tillerson’s statement True. Share the Facts 2017-05-01 21:23:44 UTC Politifact ![\\"Politifact\\"](\\" logo-big.jpg\\"/) 1 1 7 ![\\"Politifact](\\" facts/rating_images/politifact/tom-true.png\\") Politifact Rating: True \"China account(s) for 90 percent of North Korean trade.\" Rex Tillerson Secretary of State ![](\\" in comments to the UN Security Council Friday, April 28, 2017 2017-04-28 Read More info #### Read About Our Process The Principles of the Truth-O-Meter ### Our Sources PolitiFact, \"Donald Trump exaggerates when he says China has \'total control\' over North Korea,\" Jan. 21, 2016 Reuters, \"Trump says \'major, major\' conflict with North Korea possible, but seeks diplomacy,\" April 28, 2017 Washington Post, \"Tillerson calls for ‘painful’ measures to punish North Korea,\" April 28, 2017 Washington Post, \"North Korea fires another ballistic missile, the 75th of Kim Jong Un’s tenure,\" April 28, 2017 The Hill, \"Navy strike group arrives in Sea of Japan,\" April 29, 2017 ABC News, \"What you need to know about the missile defense system US is setting up in S. Korea,\" April 26, 2017 Email interview with Stephan Haggard, professor of Korea-Pacific Studies at the University of California-San Diego, April 28, 2017 Email interview with Marcus Noland of the Peterson Institute for International Economics, April 28, 2017 Email interview with Joseph de Thomas, professor of international affairs at Penn State University, April 28, 2017 Email interview with Robert Ross, China scholar at Boston College and Harvard University, April 28 ## Browse the Truth-O-Meter ### More by John Kruzel ![](\\" ![](\\" Donald Trump stated on July 25, 2019 in a phone call: \"A lot of people are talking about\" the removal of a \"very fair prosecutor\" in Ukraine. ![\\"false\\"](\\" ![\\"false\\"](\\" By John Kruzel • September 26, 2019 ![](\\" ![](\\" Bloggers stated on September 6, 2019 in a Facebook post: Says several well-known charities such as Goodwill and American Red Cross overpay their CEOs and spend a small percentage on helping people. ![\\"barely-true\\"](\\" th.jpg\\") ![\\"barely-true\\"](\\" barely-true.jpg\\") By Jon Greenberg • September 17, 2019 ![](\\" ![](\\" Donald Trump stated on September 12, 2019 in a speech: The United States is \"very energy independent.\" ![\\"half-true\\"](\\" th.jpg\\") ![\\"half-true\\"](\\" true.jpg\\") By John Kruzel • September 13, 2019 ![](\\" ![](\\" Sheldon Whitehouse stated on September 6, 2019 in an op-ed: \"One unnamed donor gave $17 million to the Leo-affiliated Judicial Crisis Network to block the nomination of Judge Merrick Garland and to support Gorsuch; then a donor — perhaps the same one — gave another $17 million to prop up Kavanaugh.\" ![\\"true\\"](\\" ![\\"true\\"](\\" By John Kruzel • September 11, 2019 ![](\\" ![](\\" Andrew Yang stated on September 4, 2019 in a town hall: The Green New Deal \"would do away with commercial air travel.\" ![\\"false\\"](\\" ![\\"false\\"](\\" By John Kruzel • September 6, 2019 ![](\\" ![](\\" John Delaney stated on August 27, 2019 in an interview: The Amazon rainforest fires are \"directly related to trade\" tensions between the United States and China. ![\\"false\\"](\\" ![\\"false\\"](\\" By John Kruzel • September 6, 2019 ![](\\" ![](\\" Bernie Sanders stated on August 26, 2019 in an Instagram post: \"Last year, South Carolina spent $21,756 per prison inmate and $11,552 per student.\" ![\\"mostly-true\\"](\\" th.jpg\\") ![\\"mostly-true\\"](\\" mostly-true.jpg\\") By John Kruzel • August 27, 2019 ![](\\" ![](\\" Ken Cuccinelli stated on August 22, 2019 in a panel discussion: A federal pilot program to DNA test illegal immigrants showed \"something like 30% (of test subjects) are fake families.\" ![\\"half-true\\"](\\" th.jpg\\") ![\\"half-true\\"](\\" true.jpg\\") By John Kruzel • August 26, 2019 ![](\\" ![](\\" Donald Trump stated on August 19, 2019 in a tweet: \"Wow, Report Just Out! 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China accounts for 90 percent of North Korean trade