Buying powder Pyongyang

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Buying powder Pyongyang

Visitors to North Korea say they are seeing more locally made products — from carrot-flavored toothpaste and charcoal face masks to motorcycles and solar panels — in the isolated country's shops and supermarkets, replacing mostly Chinese imports. As the Trump administration considers tougher economic sanctions to push North Korea toward dismantling its weapons programs, the country is pursuing the development of both its military and economy. A Reuters team in the capital, Pyongyang, last month was allowed to go to a grocery store, accompanied by government minders, where shelves were filled with locally made drinks, biscuits, and other basic food items. There is no available data to show how much is produced domestically. Export data from countries like China and Malaysia, which sell consumer goods to North Korea, may not be an accurate reflection. China's commerce ministry declined to comment when asked whether China's exports to North Korea were decreasing because of an increase in locally made products. China has been rocked by several food-safety scandals in recent years, including contaminated rice and milk powder. They want to feed their babies the best possible food,' said Michael Spavor of Paektu Exchange, which brings delegations of investors, tourists, and academics to North Korea. For example, while domestically made instant coffee is increasingly common, the sugar used in it would likely come from China or another country that produces sugar and pass into North Korea via China, says Andray Abrahamian of Choson Exchange, a Singapore-based group that trains North Koreans in business skills. Visitors say locally made consumer goods are becoming increasingly sophisticated and QR or matrix barcodes can be found on a wide range of products, like makeup and soft drinks. Market vendors are also becoming more competitive, offering food samples to shoppers — something they didn't do five years ago. The North Korean companies were not available for comment and do not publish revenue or profit statements. It was not possible to identify any joint-venture partners. Because of their reliance on China, these 'Made in North Korea' companies would likely suffer if stiffer economic sanctions were imposed on the country. Diplomats said this week that Washington was negotiating with China about a stronger UN Security Council response to North Korea's missile launches, such as new sanctions. US Markets Loading Close icon Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification. Home Newsletters. Share icon An curved arrow pointing right. Share Facebook Icon The letter F. Facebook Email icon An envelope. It indicates the ability to send an email. Email Twitter icon A stylized bird with an open mouth, tweeting. It symobilizes a website link url. Copy Link lighning bolt icon An icon in the shape of a lightning bolt. Impact Link. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. The majority of consumer products in North Korea still come from China. But under leader Kim Jong Un, there has been an attempt to sell more domestic goods to avoid any outflow of currency and reinforce the national ideology of 'juche,' or self-reliance, visiting businesspeople say. North Korea is one of the most insular countries, and visits by foreigners are highly regulated. Other visitors have seen locally made canned goods, coffee, liquor, toothpaste, cosmetics, soap, bicycles, and other goods for sale in the city. They did not want to be identified. Kim Chul-ung, a year-old physical education teacher visiting the store, said, 'I can taste real fruit in the drinks that are made in North Korea, compared to drinks from other countries. Traders and retail experts said the North Korean market was attractive thanks to a growing class of 'donju,' or 'masters of money,' who generate wealth in a gray market economy that is being increasingly recognized and controlled by the state. Nevertheless, North Korea is still heavily reliant on trade with China, and most raw materials to make consumer products still come from or through China. Visitors say that with the impetus from the top, large North Korean companies like military-controlled Air Koryo, the operator of the national airline, and the Naegohyang conglomerate have diversified into manufacturing consumer goods including cigarettes and sports clothing. Air Koryo's range of products now includes cigarettes, fizzy drinks, taxis, and petrol stations. Naegohyang, or 'My Homeland,' began as a Pyongyang-based tobacco factory but has expanded in recent years to produce playing cards, electronic goods, and sports clothing. The company even sponsors a women's football team of the same name. Read next. Thanks for signing up! Go to newsletter preferences. Access your favorite topics in a personalized feed while you're on the go. Email address. Sign up.

Here's what it's like inside a North Korean grocery store

Buying powder Pyongyang

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Buying powder Pyongyang