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Chinese Cos duped by North Korean textile manufacturers used as a production base

Related Keywords: big-ticket items, black market, Chinese companies, North Korean manufacturers, produce export bound apparel, supply raw material, toll processors

The North Korean manufacturers are known as toll processors and use specialized equipment to produce export bound apparel for the Chinese companies, which supply the raw material. These contracted manufacturers have been found selling some of their finished products at bargain prices in the tightly-controlled country's black market, according to sources inside and outside North Korea.

Apparel such as coats are sold by the manufacturers without the knowledge of the Chinese companies and made from raw material skimmed off from the companies.

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