By Kim Young-gyo
HONG KONG, Dec. 11 (Yonhap) -- More Chinese firms should make use of business opportunities in North Korea, a Chinese state-run think tank said Tuesday, stressing that economic ties between the two countries have upside potential.

   The Chinese Academy of International Trade and Economic Cooperation, a research and advisory arm affiliated to the Chinese Ministry of Commerce, said Chinese investors' capability and willingness to take risks can contribute to China-North Korea economic cooperation.

   "The more we accumulate business competence and experience in North Korea, the broader a business network between China and North Korea can be," Mei Xinyu, a researcher at the academy, said.

   "It will help improve the investment environment and further open up the North Korean market."

   The academy cited North Korea's domestic consumer market as the key area that the Chinese investors can explore.

   Chinese enterprises can take advantage of a logistics hub established in the northeastern region, which is near North Korea.

   "China has been among the world's port equipment and management leaders, with its port handling efficiency reaching the highest level in the world. It can create favorable conditions for Chinese enterprises to advance into the North Korean market," the Chinese researcher said.

   The think tank also said North Korea's mining and processing trade are the major industries that can garner Chinese investors' interest.

   "North Korea is rich in mineral resources and can become complementary to China's own industry," Mei said.

   "North Korean processing trade also has a huge potential for development. For Chinese industry, the use of hard-working, disciplined Korean labor can offset the pressure of rising domestic costs of traditional labor-intensive manufacturing to a considerable extent."

   The North has deepened its ties with China in an effort to help revive its moribund economy alongside stricter international sanctions following its nuclear and rocket tests.

   In 2011, Pyongyang's trade with Beijing was estimated to account for about 89 percent of its total.

   North Korea, in partnership with China, has been ramping up efforts to develop special economic zones in Rason, the North's northern tip, and on Hwanggumphyong and Wihwa islands bordering China.

   Meanwhile, North Korea recently announced a plan to launch a long-range rocket this month, a move that will likely further isolate the secretive regime from the international community.

   ygkim@yna.co.kr
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