Traders and businesses in the border city of Dandong told Reuters, Chinese textile firms are increasingly using North Korean factories to take advantage of cheaper labor across the border.
They said the clothes made in North Korea are labeled "Made in China." They are exported across the world.
Using North Korea to produce cheap clothes for sale around the globe shows that for every door that is closed by ever-tightening U.N. sanctions another one may open. The UN sanctions were introduced to punish North Korea for its missile and nuclear programs\. They do not include any bans on textile exports.
"We take orders from all over the world," said one Korean-Chinese businessman in Dandong, the Chinese border city where the majority of North Korea trade passes through. Like many people Reuters interviewed for this story, he spoke on condition of anonymity because of the sensitivity of the issue.