Hyesan border trade halted again as North Korean traders count the cost

State-led smuggling operations along the Hyesan border in Ryanggang province have been suspended again, just weeks after resuming, triggering growing frustration among smugglers and the broader North Korean public alike.

A Daily NK source in Ryanggang province said on Thursday that when state smuggling resumed on March 18, it was welcomed by traders and the North Korean people in the area. The abrupt halt has since given way to widespread disappointment. “The traders and people are very unhappy and disillusioned,” the source said.

State smuggling refers to cross-border trade organized and carried out under the direction of North Korean state institutions, rather than through private channels. While ordinary North Korean people cannot participate directly, goods moved through these operations often filter into local jangmadang (informal markets), and the associated logistics work generates income across border communities.

When news of the resumption spread, anticipation ran high in the Hyesan border area. But the sudden halt left some traders unable to bring in goods they had already purchased in China. Even during the brief resumption, the Yalu River’s freeze-thaw cycle made vehicle access difficult, limiting actual cargo transfers to roughly two occasions.

Traders voice frustration over financial losses

The delays in transporting goods and recovering capital have inflicted real financial damage. Many traders involved in state smuggling operate on borrowed money, paying interest on loans to keep their businesses running. A prolonged suspension means losses go beyond missed profits and begin compounding through mounting interest payments.

Traders have reacted with open frustration. “There’s no way to make any money like this,” one was quoted as saying. “If my capital stays tied up this long, all I’ll do is pay interest.” Others were more blunt: “They open it, close it — this isn’t a game” and “I’m speechless.”

Complicating matters further, a rumor has spread that tightened enforcement on the Chinese side prompted the suspension, with some saying smuggling could resume toward the end of next month. The uncertainty has deepened confusion among traders.

The suspension has also disappointed North Korean people who had hoped state smuggling activity would boost the local jangmadang economy. “When state smuggling stops, import prices go up and jangmadang earnings shrink again,” the source said. “With prices already rising, people’s lives will get even harder if import goods become more expensive on top of that.”

Frustration with China is also surfacing among ordinary North Korean people, with some openly blaming Beijing for the tightened enforcement. On the Chinese side, traders who profit from cross-border dealings have voiced their own complaints. A China-based source told Daily NK that smugglers there say days lost to North Korean crackdowns far outnumber days lost to Chinese enforcement. “Even when customs are open, it doesn’t mean anything for us,” one trader was quoted as saying. “It’s not easy to make money.”

Trump visit to China fuels speculation

In China, speculation has emerged that the suspension is linked to U.S. President Donald Trump’s planned visit to Beijing. “People don’t know the exact cause, but the rumor going around is that Trump’s China visit is why smuggling stopped,” the China-based source said.

The White House announced on March 25 that Trump’s visit to China, previously delayed due to the Iran conflict, has been scheduled for May 14 and 15. Against that backdrop, the rumor that smuggling could resume “toward the end of next month” appears to reflect speculation that a decision will follow the Trump-Xi summit.

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