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North Korea launches rare attack on Chinese firm

Last Updated: Thursday, September 6, 2012 - 14:16

London: North Korea has made a blistering and extremely rare attack on a Chinese mining company that has accused it of being a ‘nightmare’ to do business with.

Chinese firm Xiyang was working on an iron ore venture, but said it stopped after facing unreasonable demands.

Xiyang said it invested over USD 37 million on the project, but shelved it after North Korea asked for significant changes to the contract.

The company also said that North Korea violated its own investment laws, the BBC reports.

“They just don`t have the conditions for foreigners to invest. They say they welcome investment but they don`t have the legal or social foundations," Wu Xisheng, the firm’s vice-general manager, said.

According to the BBC, a North Korean spokesman issued a statement carried by the state-run media, saying that Xiyang ‘is chiefly to blame from the legal point of view’.

“It [Xiyang] has carried out only 50 percent of its investment obligations though almost four years have passed since the contract took effect,” the report quoted the spokesman, as saying.

According to analysts, it is unusual for the North to criticise anything involving China, its sole major ally.

The report pointed out that the row emerged amid signs that North Korea could be trying to revive its economy.


First Published: Thursday, September 6, 2012 - 14:16
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