Chaos on the Korean Peninsula would have a direct and far-reaching impact on the security environment of China. China push for the principle of “no war, no chaos and no nuclear weapons” on the Peninsula will become even stronger amid uncertainties posed by the election of Donald Trump and the planned tests by the DPRK.

The Yellow Sea is an important fisheries resource for China and the two Koreas. However, several violent incidents this season have increased tensions between China and South Korea. With the media and public placing greater scrutiny of the Chinese trawlers, the Korean government has resolved to show stronger resolve against illegal fishing in their waters. For their part, Chinese civilian fishing vessels have become increasingly assertive in response to South Korea’s newfound resolve.

China is not the only Asian country looking to the ancient Silk Road as a path to greater economic and political influence. Both Japan and South Korea have their own, albeit more modest, versions of Xi Jinping’s Belt and Road Initiative. While Seoul and Beijing have expressed public interest in collaborating along the Silk Road, Tokyo remains silent. Will the BRI be a driver for greater integration in Northeast Asia, or will these three nations prefer to follow their own paths eastward?

The confrontation regarding plans for the THAAD system might lead to unbearable consequences if the situation gets worse. The only reasonable course for Washington and Seoul is to abandon the deployment.

China’s ties with the two US allies continue to evolve, as Beijing develops new consensus with Seoul but finds accommodation with Tokyo more challenging. Domestic politics in the US and Japan may cast a shadow on future progress in China’s bilateral relations with both South Korea and Japan.

In early July, South Korea decided to allow the United States to deploy the Terminal High-Altitude Area Defense (THAAD) system. At the heart of this issue is the difference in how China and the United States view the role of South Korea and decisions related to the security and stability of the peninsula.

Following months of assessment by a Joint Working Group, the U.S. Defense Department announced in July that the U.S. Forces Korea Command will station a Terminal High-Altitude Area Defense (THAAD) battery in South Korea “as a defensive measure to ensure the security of the nation and its people, and to protect alliance military forces from North Korea's weapons of mass destruction and ballistic missile threats.”

Seoul should fully understand the consequences of THAAD in the ROK, reverse the deployment decision and cooperate with countries concerned in an effort to force the DPRK to abandon its nuclear project and mitigate the tense situation in the Korean Peninsula. THAAD will only produce two winners: the U.S. and the DPRK.

Chinese Foreign Minister Wang Yi has criticized South Korea's move to deploy an advanced U.S. anti-missile defense system to counter threats from North Korea, saying it harmed the foundation of their mutual trust, news reports said on Monday.

The missile-defense deployment will worsen the bifurcation in East Asia, where regional arrangements for economic growth are shaped with China at its core while regional security architecture is set up with the US-centered military alliances as its foundation. Should this contradictory situation evolve, neither regional economic growth nor security could be sustained.