China's Economic Engagement in North Korea

Since 2005, central Chinese leaders have successfully encouraged local governments and commercial actors to expand their economic interactions with North Korea. However, the resulting expansion in commercial actors and economic interactions has intensified a principal-agent dilemma for Chinese leaders, exacerbating diplomatic tensions, eroding border security, and undermining popular support for Beijing's engagement strategy. In comparison with China's other neighbours, North Korea presents both a difficult case for stimulating economic engagement and a relatively easy case for enforcement. These dynamics are even more likely to emerge across China's 13 other land neighbours.