China moves ahead with N. Korea trade zone despite nuclear test

HONG KONG (REUTERS) - China appears to be pressing ahead with plans to invest in a North Korean free trade zone in a sign that its recent nuclear test has not soured its economic ties with its only major ally.

While Beijing has not made clear whether the test would disrupt its investment plans for the Rason economic zone, an official at the zone's joint management office said that all previously announced Chinese projects for the zone remain on track, including a power line from China to ease acute electricity shortages there.

"All the people of the management office are still here working as usual... If there is any major impact (from the nuclear test), do you think we would still be here?" he said by phone from Rason, which lies near where North Korea, China and Russia converge.

"All works are proceeding as planned."