Zsari
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It's mixed news for China too. Sunshine Policy will dissipate any leverage China has over N. Korea, because then Kim will no longer be so isolated as he will have an alternative source of hard currency, petroleum, critical commodities, luxury goods, etc. In that case, it would be meaningless for US to ask China to apply more pressure.
Not necessarily. That'll depend on whether S.Korea's reproach with N.Korea is with the blessing of the US or not. If US is able to sit down with N.Korea and negotiate a peace deal, then that will not work in China's favor, but with today's political climate that's next to impossible to achieve. If however S.Korea dealing with N.Korea is without US consent, not necessarily over US objection, then its great news for China. For one, in the long run, there will be frictions between S.Korea and the US that will pull it slowly away from the US. For another, Kim still saw US as the biggest threat to his regime survival, and a lot of the items you mentioned are in the US hand, not S.Korea's, as such it is unlikely for the north to move its reliance away from China to a significant degree. Afterall, if US decides to put on pressure, it'll then need to first rein in S.Korea which even if successful will still strain the relation between the two, and N.Korea will be back in the same corner.