JUDY WOODRUFF: As the nuclear showdown with
North Korea has eased, there is economic optimism
growing in the North's most important ally,
China, and especially on its border with North
Korea.
Investors have started speculating in the
property market, and local businesses are
hoping for a windfall.
Special correspondent Katrina Yu reports from
the Chinese port city of Dandong on the Yalu
River, separating China and North Korea.
KATRINA YU: North Korea, as seen from boats
setting sail from China's border city of Dandong.
This week, thousands have taken these half-hour
tours, offering curious tourists a glimpse
of life in one of the world's most secretive
and closed countries.
From all across China, visitors are flocking
to this port city, to historic hot spots,
like the remains of a bridge built during
the Korean War used by Chinese soldiers to
join forces with their North Korean comrades
to fight South Korea and the Americans.
Last year was marked by weapons tests and
fears of conflict, but here in Dandong today,
they no longer view North Korea as a war zone,
but as a travel opportunity.
WOMAN (through translator): I would like to
see how different it is, what the people are
like, and try the food.
Especially looking forward to the food.
WOMAN (through translator): The relationship
is progressing positively I think, very friendly.
Friendship forever.
KATRINA YU: It's a cue being taken from the
very top.
President Xi Jinping hosted North Korean leader
Kim Jong-un, for the third time in three months.
Chinese state media are touting strengthening
ties, Kim's new focus on the economy and his
willingness to learn from Beijing's brand
of socialism, with Chinese characteristics.
GENG SHUANG, Chinese Foreign Ministry Spokesperson
(through translator): China supports North
Korea's economic development and improvement
in people's livelihood.
And we support North Korea in taking a road
that suits the country's situation.
KATRINA YU: And that road ahead is paved with
gold, at least according to property investors.
Dandong real estate prices have doubled in
recent months.
The main selling point?
These are North-facing properties, North Korea-facing,
that is, and a front-row seat to its possible
economic opening.
Providing entertainment and seafood, the real
estate developers here are really trying to
create a sort of Dandong Riviera, but the
highlight is just over there, a view of North
Korea.
New developments are booming all over Dandong,
one of the most popular, Singapore City, named
for the city-state where Trump and Kim held
their summit.
First built in 2008, it's proving a fortunate
coincidence.
Apartment sales quadrupled in the lead up
to the historic meeting.
MAN (through translator): Buildings four,
five, six, eight and 10 sold out.
KATRINA YU: Sold mostly to wealthy speculators
from China's south, betting on the North soon
opening up.
Sales agent Luan Gui Hong says it's bad news
for locals, suddenly squeezed out of the property
market.
LUAN GUI HONG, Sales Agent (through translator):
Politics definitely has an impact.
And people are watching developments.
I was speaking on the phone with one property
owner who told me, Trump and Kim have signed
an agreement.
I can't sell for so cheap.
KATRINA YU: Mr. Trump's meeting with Kim has
helped boost prices, but here it's Beijing's
relationship with Pyongyang which really counts.
Ties reached a low point late last year, after
China enforced United Nations sanctions against
North Korea for continuing its weapons testing.
Dandong's Friendship Bridge, the main thoroughfare
for those trading in seafood, textiles and
other goods, is today mostly quiet.
Restrictions also hit hard on Dandong's Korea
Street, a shopping area popular with North
Korean traders.
But after months of slow sales, business has
improved in recent weeks.
While sanctions remain in place, analysts
say they're being implemented less stringently.
Michael Kovrig, senior adviser for Northeast
Asia for International Crisis Group, explains:
MICHAEL KOVRIG, International Crisis Group:
As long as North Korea is not disturbing the
peace, that's good enough, and China is willing
to see denuclearization as a long-term goal.
The actual rigor with which China is inspecting
customs at the border, to what extent are
police actually cracking down on smuggling,
to what extent is there enforcement of those
sanctions, I think it's pretty clear that
that has relaxed quite a bit.
KATRINA YU: When we visit Helen Zhou's beauty
and health store, she's serving a woman from
Pyongyang.
Only the most privileged from the DPRK can
afford to shop here.
HELEN ZHOU, China (through translator): More
North Koreans are coming back, many more than
we had last year.
KATRINA YU: Makeup and vitamins are top sellers,
luxury goods for North Koreans.
Should North Korea open up its economy, the
opportunities for local business owners would
be endless, she says.
HELEN ZHOU (through translator): They don't
know anything about modern society.
They would need us to go there and educate
them about new products.
KATRINA YU: But the optimism isn't shared
by all.
Many shopkeepers refused to speak to the "NewsHour."
One local was all too happy to explain why,
saying many are exhausted by the drama playing
out on the world stage.
MAN (through translator): These leaders in
America and North Korea, they change their
minds so frequently.
They're unreliable.
We all like peace.
Right?
We all like peace.
That's the end aim.
KATRINA YU: Despite the positivity over property
and from the press, those in Dandong understand
that banking on North Korea is a gamble.
But if the sanctions are lifted and the closed
country does open up, it will be seen and
felt first here by the new Yalu River Bridge.
The $330 million project stands half-completed,
abandoned following funding disagreements
with the North.
There are rumors that construction on the
bridge will soon restart and eventually connect
Dandong not only with Pyongyang, but South
Korea's capital, Seoul.
It's a hope the city has invested in.
The roads are built, shop spaces ready.
All that's left to do is watch and wait.
For the "PBS NewsHour," I'm Katrina Yu in
Dandong, China.
