NORTH KOREA
Beijing's interests: Stability, bilateral trade, and a buffer between China and South Korea
The relationship: Chinese support for North Korea dates back to the 1950s, when Beijing loaned military aid and fighters to Kim Il Sung's communist government during the Korean War. China quickly became North Korea's primary benefactor and trading partner, a relationship that has continued under the rule of Kim Jong Il. Ninety percent of North Korea's energy imports, 80 percent of its consumer goods, and 45 percent of its food now come from China.
The relationship isn't all one-sided. An increasing number of Chinese firms are investing in North Korea to take advantage of its rock-bottom labor costs and large coal and mineral deposits. Bilateral trade between the two countries reached $2.79 billion in 2008, up more than 40 percent from the year before. More importantly for Beijing, North Korea provides a friendly buffer zone between China's northeast and capitalist, democratic South Korea -- as well as the 37,500 U.S. troops based there.
China has frequently used its position on the U.N. Security Council to block harsher sanctions against Kim's regime. Since North Korea began its pursuit of nuclear weapons, Beijing has seemed more exasperated with Kim's belligerence and at times, has even supported international sanctions. Although the support is not as unconditional as it once was, China remains North Korea's most important ally, as evidenced by the reclusive Kim Jong Il's recent trip to Beijing, where he met with President Hu Jintao and Premier Wen Jiabao and reportedly suggested once again that he might be willing to return to the negotiating table.
Most embarrassing moment: China was instrumental in cajoling North Korea into participating in the 2003-2005 six-party talks aimed at denuclearizing the Korean Peninsula, which culminated in a 2005 agreement by North Korea to dismantle its nuclear program in exchange for foreign aid. So when Pyongyang tore up the agreement and tested a nuclear weapon in October 2006, it was widely perceived as a "slap in the face" to a Chinese government that had repeatedly stuck its neck out for its troublesome southeastern neighbor. One week after the tests, China agreed for the first time to support U.N. sanctions on North Korea, and the political relationship between the two countries has been strained ever since. Fearing the chaos and potential refugee crisis that might result if the Kim regime were to fall, however, China is still wary about applying too much pressure, and trade between the countries continues to increase.
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