The Chinese Foreign Ministry has denied reports that China decided to invest three billion U.S. dollars in developing a free trade zone in Rason, a city in northeastern North Korea.

The Global Times, a Chinese daily, on Friday reported that the Chinese foreign ministry said that the reports are not true in its answers to written questions.

The ministry added that the two nations have agreed on how to develop the special zone, but did not elaborate any further on the matter.

South Korea’s Yonhap News Agency reported on Wednesday that China agreed to invest three billion dollars in the zone in return for securing the right to use three ports of the region for 50 years.