According to China's Xinhua news agency, North Korea today started producing its first home-grown bicycles.
Until now the country had relied on imports from China and Japan. North Koreans buy 7 million bicycles a year.
The new factory will have an annual production of up to 300 000.
Chinese investors own a 51 percent stake in the $650,000 Pyongyang factory, with North Korea holding the rest.
North Korea promised in late September to scrap its nuclear programmes in return for aid, security guarantees and increased diplomatic recognition. A day later the deal looked to be off as North Korea asked for civilian nuclear reactors to be excluded from the deal.