I don't know about in case the U.S. decided to enter the fray - most new sources have pointed out that Stalin was afraid of confronting the U.S.
Mao, however, was not afraid to confront them if it boosted China's prestige. Hence, he was not afraid to enter the fray when needed. Stalin was still weak from World War II and after the U.S. showed that it wouldn't fall to his pressure in the Berlin blockade crisis, he wasn't willing to get involved militarily.
He defenitely sent advisers and equipment but he was largely trying to expand his borders without directly confronting the U.S. military.
Oh and it would defenitely be so in that China's intervention is what ultimately saved North Korea from being completely taken - not the Soviet Union. We had nearly reached the Yalu River and had taken all the major cities of N. Korea before the Chinese intervened that winter. N. Korea was in no shape to face the U.S. military and when the U.S. intervened, they were toast.
Anyways I'd recommend a few books but I can only think up one that sticks out in my mind right now and that's "We Now Know" by John Lewis Gaddis a professor at Yale. The book uses sources released after the Cold War so it is fairly recent and will provide a better look in than most sources before the end of the Cold War.
When I get back home I can provide excerpts.
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