China to invest in N.Korea's SEZ

Cai Jian, deputy director of the Center for Korean Studies at Fudan University, said, "I think the major aim of Pyongyang recently has been to establish a SEZ to enlarge its foreign exchange reserve by seeking foreign investment when faced with constant economic sanctions from other countries. It cannot be seen as a signal for further reforms and opening-up in North Korea."

"It's unlikely that China will invest such a big amount of money in the SEZ since it's hard to attract enterprises to the area, considering the current strained tensions on the peninsula," Cai added.

The Chosun Ilbo also reported Thursday that cross-border business between North Korea and China has picked up recently with the upcoming construction of a new bridge connecting Sinuiju in North Korea to China's Dandong across the Yalu River.

Lü Chao, director of the Korean Research Center at China's Liaoning Academy of Social Sciences, said that North Korea, which made little progress economically this year due to natural disasters and regional tensions, will likely give more focus to its economic development next year to achieve its goal in 2012 of "opening the gate to a great, powerful and prosperous nation."

The goal, put forth by the ruling Workers' Party of Korea in 2007, aims to achieve a big leap forward in economic construction in 2012, which marks the centennial birth anniversary of former leader Kim Il-sung.