Japanese media have reported that joint development by China and North Korea on Hwanggumpyong and Wihwa islands has stopped.

Asahi Shimbun cited a North Korean military source in a report, saying development had come to a halt after North Korea informed Beijing it would place a military base on Hwanggumpyong Island. Beijing protested, and put a stop to the development progress in June.

The source said Pyongyang refused to withdraw its soldiers as the North’s military planned to reap profits from the new development site.

The report said Chinese investors had been initially hesitant in investing on the joint project on concerns stemming from North Korean policies, whereas Pyongyang had wanted infrastructure on the islands, including roads and sewage systems, to be built with Chinese resources.