`China rejects N Korea`s law on economic zone`

Last Updated: Wednesday, January 11, 2012 - 16:19

China has rejected North Korea`s
law on developing two islands near their border over the lack
of business-friendly elements, a South Korean media report said,
citing a source familiar with the issue.

North Korea announced the law on developing
Hwanggumphyong and Wihwa islands last month as part of its
attempt to turn them into an economic zone to boost ties with
China and develop external economic relations.

China subsequently told North Korea that it considers the
law to be not business-friendly, citing problems regarding
taxes, accounting, remittance of profits and stability of
investments, the Yonhap News Agency report said.

The two neighbours are in talks on the issue, so North
Korea might soon revise the law to incorporate
business-friendly elements, the source said.

The two border islands situated at the estuary of the
Yalu River have long been tapped as a joint economic
development zone between the two traditional allies.

PTI



First Published: Wednesday, January 11, 2012 - 16:08

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