China to invest in North Korea $ 2 billion

Chinese state-owned Shangdi Guanqun Investment agreed to invest two billion dollars in the free economic zone in the North Korean city of Rason According to South Korean media representatives Shangdi Guanqun Investment signed a memorandum of understanding with North Korea's Investment and Development Group December 20, 2010. The main purpose of the parties, according to the document, is the transformation of BMS Rason the largest industrial area of ??Northeast Asia over the next ten years. According to the representative Shangdi Guanqun Investment, primarily in the territory of FEZ in Rason is supposed to build a plant for processing of coal, railway, highway and port. It is assumed that the first phase of the Chinese company will invest in EPZs than $ 300 million, reports Lenta.ru. Rason City in 1991 received the status of special economic zone. In January 2011 the North Korean authorities issued an order awarding Rason status of "special city" where most of the restrictions on doing business will be charged. Shangdi Guanqun Investment was founded in 1995 by the Chinese authorities. The company specializes in processing crude oil, minerals, and international financial services. North Korea's Investment and Development Group is responsible for developing the country's EPZs. In addition to Rason, North Korea, there are three more special economic zones: in Kaesong, Sinychzhu and the area of ??Mount Kumgang.