China planning an economic zone near North Korea border

SEOUL, July 20 (UPI) -- China is planning an economic cooperation zone between the border city of Dandong and Tonghua, another city facing North Korea.

The project is being launched less than two months after Chinese President Xi Jinping met with North Korean envoy Ri Su Yong, who previously served as Pyongyang's foreign minister.

During the meeting Xi had said China "highly values" friendly cooperation with North Korea.

While the new economic zone does not involve North Korea directly, the project known as the "Tongdan Economic Belt" is being inaugurated in an area of China that has been actively engaged in trade with North Korea.

The two Chinese cities signed an agreement, according to local Chinese media on Wednesday.

Joint development that could serve as a "new economic growth axis" is part of the plan, Yonhap reported.

Infrastructure to be built includes high-speed rail, a highway and an airport, according to the report. Provincial authorities in Jilin and Liaoning have agreed to the project.

Other facilities to be built include a comprehensive logistics park, a railway container and truck depots. Factories and "technology complexes" are also part of the proposal.

Liaoning and Jilin provinces are to strengthen cooperation in the production of medicine, organic foods, machinery and auto parts.

Thousands of North Korean state workers are in China, many of them working in factories to raise funds for the Kim Jong Un regime.