SEOUL, Oct. 1 (Yonhap) -- North Korea's economic dependence on its strongest ally China is growing as its economy slips further into deeper isolation from the international community for its nuclear ambition, a report said Friday.

   According to the report compiled by the Samsung Economic Research Institute, bilateral trade with China accounted for 52.6 percent of the North's cross-border trade last year.

   "North Korea's so-called self-reliant economy is collapsing, and China is emerging as the communist state's key supplier of economic goods," the report said.

   The report said China's investment in North Korea surged to US$41 million in 2008 from a meager $1.1 million in 2003. China is also planning to spend $2.37 billion on construction of a transportation network that links the two countries, it said.

   But the report said it is hard to characterize the countries' economic ties as "subordinate," as the North is also involved in trade with South Korea and other countries.

   North Korea has stayed away from the six-nation talks on its nuclear programs for nearly two years and conducted a nuclear test and a series of missile launches.

   In late March, the North sank a South Korean warship in waters near their western sea border, killing 46 sailors aboard, which led to a series of financial sanctions by the U.S.

   Pyongyang has denied any involvement in the sinking, although a multinational probe determined its culpability.

   sam@yna.co.kr
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