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Beijing said on Monday that it is keeping watch on Pyongyang and hopes there won't be a “major change" in the latter's policies, as the sudden execution of the country's powerful No 2 in command has brought fear of instability to the region.

Pyongyang assured its neighbor on Monday that its economic policies will not change despite the dramatic case of Jang Song-thaek, who has been labeled by foreign media as the top official driving the direction of the economy.

Observers said that ties between China and the Democratic People's Republic of Korea are unlikely to be affected by a single incident, but Beijing certainly has to watch for the aftermath of Pyongyang's personnel changes.

Jang, the uncle of DPRK top leader Kim Jong-un, used to be the top official entrusted by Pyongyang for high-level visits and economic cooperation with China. He used to lead delegations to China for negotiations on projects, including the joint development of Hwanggumpyong Island - a special economic zone near the Chinese city of Dandong in Liaoning province.

"Pyongyang's situation has witnessed some changes, and China is watching its domestic and foreign policies," Foreign Minister Wang Yi told the media on Monday after a policy forum in Beijing. "We hope and believe there won't be major changes," Wang said.

Pyongyang, in an unusual sign of openness, indicated on Monday that the recent incident would not hurt its economic policy.

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