North Korea has renewed efforts to attract Chinese investment to jump-start its moribund economy. Jang Song-thaek, the powerful uncle and guardian of the North’s young leader, Kim Jong-un, is visiting Beijing cap in hand. He is expected to meet Chinese President Hu Jintao and other leaders today before returning to Pyongyang.

One main purpose of Jang’s visit is to press China to invest in the North’s two special economic zones ― Raseon City on the North’s northeastern tip, and Hwanggeumpyeong and Wihwa islands on the western border with China.

In 2010, China agreed with the North’s late leader, Kim Jong-il, to jointly develop the two areas but has since invested little in them.

Jang’s delegation had a meeting with their Chinese counterparts, headed by Commerce Minister Chen Deming. Statements issued by Chinese officials after the meeting indicated Beijing was more positive about investing in its impoverished ally than before.

Notably, Chen Jian, China’s vice commerce minister, said in an article published in the People’s Daily that Beijing would lend support to big Chinese companies that were willing to invest in the needy neighbor.

Previously, China rebuffed Kim Jong-il’s demand that it push big state-run enterprises into investing in the North.

The two countries said they agreed to launch a new management committee for each of the two industrial zones to facilitate Chinese investment. This measure appears to be aimed at addressing two key problems that have deterred progress.

One problem concerns the absence of institutional arrangements in the North to protect foreign investors. Chinese investors are rightly worried about the possibility of their investments being invalidated by the North’s abrupt policy changes.

One way to address this problem is to give China more say in setting policies on the special zones. Hence Chinese officials on the new management committees are expected to be granted decision-making authority equal to that of their North Korean counterparts.

The other problem is the lack of infrastructure in the special areas. North Korea has to rely on China for infrastructure construction. But China has been reluctant to invest in infrastructure because it could not dictate how to develop and operate the zones.

This problem can also be addressed by allowing China to wield more power in deciding matters regarding the zones. Following the Monday meeting, China said it would supply electricity to Raseon City, an indication that China would be allowed to exercise greater control over the investments it make.

Thus, China’s investment in North Korea is expected to increase down the road. Yet to expedite Chinese investment, the North still needs to improve its investment environment.

The need for Pyongyang to enhance the investment climate was well illustrated by the nightmare that Xiyang Group, a mining company based in Liaoning province, recently experienced in the North.

According to reports, the Chinese group invested $38 million into an iron mining joint venture with a North Korean partner. Production began in April 2011 but the North Korean side unilaterally annulled the agreement last February on the grounds that Xiyang failed to meet its demands.

The Chinese investor said the demands all violated the terms of the contract and, as such, were clearly intended to terminate the joint venture. Early March, Xiyang officials were put on a bus by North Korean security officials and deported to China.

Horror stories like this will certainly make potential Chinese investors think twice about investing in the North. Yet it did not stop the Beijing government from signaling strong support for the North.

China’s support will undoubtedly help the young North Korean leader inject vigor into the North’s decaying economy. Since April, Kim Jong-un has taken a series of measures to get the economy rolling again.

Kim has reportedly abolished rationing, allowed state-run manufacturing companies to set product prices on their own, and is experimenting agricultural reform that allows farmers to keep 30 percent of their output.

All these efforts are geared toward improving the livelihood of the North Korean people, a goal Kim declared in April.

Kim’s reform efforts are well intended. Yet the problem is that he cannot attain his objective with investment from China alone. He needs to open up the economy to other countries that are willing to help it come in from the cold. For this, he should first give up nuclear weapons programs. We urge China to shove him in that direction.