China will not be on North Korea's side in a war. The cold war is over, and the ties between the two countries has always been very unstable. During the Korean war, China was bombed, and it was known that among others MacArthur wanted to take the war to Beijing. The most effective solution for China was to help North Korea out. Otherwise, China would sit with American military bases right next to the border.
What North Korea is doing right now, is trying to make sure that there will be no war, and no sanctions. Basically to continue as before.
Bush Jr. made a huge mistake by announcing that North Korea was part of the Axis of Evil. Of course this would result in Pyongyang-paranoia. They were being told they were next. Telling the world this served no purpose; it should have been kept quiet, and negotiations shold have been initiated.
The largest problem is that North Korea's reactions are incredibly difficult to predict. The secrecy around decisions made is very effective.
US' largest problem is that if North Korea is attacked, relations with South Korea will be damaged forever. Most people in both Korea's wants to see a unified Korea in the future, and consider both countries to consist of one people; Koreans. Some of the words that have been used by Bush Jr. lately could be seen as racist against Koreans (calling N.Korea evil, calling Kim Jong-Il a "midget"), and Anti-US sentiment is very strong in South Korea right now.
In my eyes, this situation has been handled in a very inane way by the Bush administration.
As for Kim Jong-Il's war-drums; don't underestimate him. He's not getting ready to attack, he's whipping up a frenzy in his own country to make the resistance heavier if the US goes in. North Korea has been doing this for ages.
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The above was written by a true prophet. Trust me.
"What doesn't kill you, makes you bitter and paranoid". - SB2000
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