North Korea is a small nation, which, under the wise leadership of the Great Leader resists the effects of the imperialist enemy. Something similar to say when they announce the death of the poor automotive industry north Korean, composed exclusively by the small manufacturer, Pyeonghwa Motors. And the reason for this death is nothing other than a new round of sanctions against North Korea, imposed by the united States after the tests nuclear of the past month of January by the regime of Kim Jong-un.
These tests brought the world to the both of the nuclear capabilities of North Korea and a recent placing in orbit of a satellite has been seen as a test evening of a ballistic missile. Economic sanctions will isolate themselves even more to a country already very poor, with rationing of food and clear needs of commodities. It is believed that the greater part of the fuel that matter the country you are destined for the armed forces and military testing. In the streets of the country, just circulate a million cars, according to Business Insider.
And the number seems really high: we’re tired of seeing videos of the deserted streets of North Korea. The sanctions imposed by the US attack against the supply lines of North Korea, especially its partners in china. Many chinese companies have businesses in joint-venture with companies in north, and are those which provide up to 90% of the components used by Pyeonghwa Motors. It’s no secret: the company assembles kits CKD of chinese origin with minimal local manufacturing.
the united States cut those ties by means of the threat: if these chinese companies have economic ties with the U.S., they operate with banks in the u.s., or intend to sell their products in the U.S. and discovers its relationship with North Korea, their “american dream” could disappear. You could even get to the seizure of its accounts in the U.S. or its stock. That is to say, act as a deterrent to any company that wants to do international trade with North Korea. A death sentence for your poor car industry, which was not bad projections.
According to ANE, the demand for commercial vehicles would be increased to 10,000 units per year and were coming to North Korea vehicles interesting, as a chinese version of the Volkswagen Crafter or FIAT Folded.