The sight of Xi Jinping shaking hands with Kim Jong Un in Pyongyang this week was a carefully stage-managed show of solidarity. But for British families watching their budgets stretch tighter, this blooming friendship carries a quiet threat that goes far beyond diplomatic pleasantries. Analysts warn that China’s deepening ties with North Korea hand Beijing more leverage over global supply chains – and that could mean higher prices for goods from electronics to steel, hitting the pockets of ordinary Britons.
Sarah Jenkins, Economy & Labour Reporter: I spent Wednesday morning in Leeds, talking to factory workers and shopkeepers who have no time for flags and handshakes. They want to know if their wages will keep pace with the cost of living. The answer, I’m afraid, is complicated. China is North Korea’s economic lifeline, accounting for over 90% of its trade. In return, Beijing gains a buffer state and a bargaining chip with the West. When the US or Europe apply sanctions, China can ease or tighten the pressure. That ability to turn the economic screw does not end at the Korean Peninsula. It flows into the price of rare earth minerals, microchips, even the steel used in British cars.
Take steel: the UK relies on imports for around 70% of its needs. If Chinese exports are redirected to prop up a faltering North Korean economy, or if Beijing uses its influence to restrict supply from the region, British manufacturers will pay more. Those costs are passed on to consumers. The average household could see another £50 on their annual shopping bill. For a family already choosing between heating and eating, that is not a small thing.
Then there is the labour angle. Stronger Chinese ties with a rogue state embolden a system that undercuts workers’ rights. North Korean labour – effectively forced labour – is used in Chinese factories, depressing wages across the board. British unions have long campaigned against this. They see the Xi-Kim embrace as a green light for a race to the bottom. “Our members in manufacturing are already undercut by cheap imports,” said one union rep in Sheffield. “Now we have the leaders of the two largest exporters shaking hands. It sends a message that wages don’t matter. That ordinary people don’t matter.”
The government’s response has been muted, with statements about “monitoring the situation”. But for the millions who work in sectors sensitive to global commodity prices – from construction to retail – the situation is already here. The price of bread, the price of a new fridge, the price of a train ticket: all are influenced by the global balance of power.
Xi Jinping’s visit is not a tragedy for North Korea’s people, who may see modest benefits. But for the British worker, it is a reminder that what happens in Pyongyang does not stay in Pyongyang. It lands on the kitchen table, and it makes the cost of living crisis just a little bit harder to bear.
