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SUMMARY

Impact Analysis of China's Three Northeast Provinces' Development on the Industry & Infrastructure of the China- Border Region.

Kim, Won-Bae, Lee, Sung-Su, Cho, Myung-Chul, Hong, Ihk Pyo Jung, Seung-Ho and Park, Hyun Jung

It is expected that China's three northeast provinces' economic development will have a huge impact on North Korea, in particular, border region facing China. By taking a closer examination on China's three northeast provinces' development strategy, development plans in concrete terms and their development effects, the study aims at analyzing the development possibility and economic impact on the industry and infrastructure of the China-North Korea border region related to China's three northeast provinces. Based on the above analysis, this study proposes pertinent policy directions for the Korean government so that the industrial development of the China-North Korea border region would have a positive impact on the integrated south-north Korean economy. This study also recommends that South Korea should try to turn the current bilateral cooperation between China and North Korea in the China-North Korea border region into a three-way cooperation among South Korea, North Korea and China. Chapter Ⅰdescribes the purpose, scope and the methodology of the study. China-North Korea border region is defined in two ways: a broad sense and a narrow sense. Chinese borderland is broadly set to include three northeast province (Liaoning, , and Heilongjiang province) and

SUMMARY 197 it is narrowly set to cover just major border towns neighboring North Korea (Dandong, Jian, Changbai, Tumen, Hunchun). North korean borderland is also broadly defined to include provinces neighboring China (Pyunganbukdo, Jagangdo, Yanggangdo, Hamkyungbukdo) and it narrowly defined to include major border towns neighboring China (, Manpo, Ganggye, , Najin, Sunbong, Chungjin). For the convenience of analysis, north korean borderland is divided into three parts: the western part covering Pyunganbukdo; the central part including Jagangdo and Yanggangdo; and the eastern part representing Hamkyungbukdo. Chapter Ⅱ examines the current conditions and characteristics of economic exchanges between North-Korea and China. The borderland's economic exchanges are analyzed by taking a look at the principal form of the border trade as well as cross-border investment. Based on the major characteristics of border trade and China's investment in the border region, this chapter draws implications of the North-Korea's and China's economic exchanges. The background and strategies of northeast China's development plan promoted by China's central government are presented in detail in Chapter III. Potential impacts on the entire the North Korean economy by the Chinese development strategies of the frontier districts are also contemplated. In chapter Ⅳ, economic cooperation between North Korea and China is discussed at two levels: one at the China's central government and the other at the local government level, both of which have general and specific plans for economic cooperation between the two countries. More specifically, the current trend in industrial cooperation and future prospects are discussed to gauge China's influence on North Korea's borderland's industry and infrastructure. In chapter Ⅴ, the impacts of China's three northest provinces' development on the three aspects (industrial structure, infrastructure and spatial structure) are examined on each border regions, i.e., the western

198 part(Pyunganbukdo), the central part(Yanggangdo, Jagangdo) and the eastern part(Hamkyungbukdo). The assessment of the impact on the spatial structure is carried out for the major cities of the border region including Sinuiju, which is the core of the light industry and trading with China, Manpo and Hyesan, which are centers of the defense industry and forestry respectively, and and Na-Son, which are centers of the heavy industry and distribution. Based on the impact Analysis of China's three northeast provinces' development on the industry & infrastructure of the China-North Korea border regions, Chapter Ⅵ suggests policy directions and strategies that South Korea government needs to pursue for the benefit of the Korean peninsula. China-North Korea border region's industrial development is deemed to be significant. Inter-Korean cooperation is necessary to turn the impact of northeast China's development for the benefit of both the North Korean economy and the eventual unified economy in the Korean peninsula. South Korea will be sidelined if it does not construct channels to make influence on the development of China-North Korea border regions in a short period of time either by inter-Korean cooperation or three-way cooperation including China. This is because North Korea's dire economic conditions will push the China-North Korea border region to be developed for the benefit of China. Therefore, it is critical to shift the current development trend of the border region into a mode to secure economic benefits for North Korea and the Korean peninsula. Multilateral cooperation is an effective avenue to turn the current bilateral exchanges between China and North Korea. South Korea needs to lead the process of northeast Asian countries' cooperation (South Korea, North Korea, China and Russia) on the industry and infrastructure development of the China-North Korea border region.

￭ Key words _ DPRK-China economic relations, border region development, development of China's three northeast provinces, infrastructure and industrial development

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