Why China will effectively annex North Korea

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I’ve been saying this for months. Think through the logic. China doesn’t want to lose the strategic buffer North Korea provides.. Beijing doesn’t want US friendly forces on its border. How to make a bad situation work for China? Bite the bullet and annex North Korea. Kim Jong Un has been brazenly telling the world to shove its diplomacy thinking the decades old practice of threats will keep on working. He’s wrong.

China must realize that the West is against Trump taking action for no other reason than he’s Trump. It is a strange world where many of America’s long term allies are backing the other side. Trump is merely filling the geopolitical  vacuum left by his predecessor. Trump is absolutely right to consider taking an increasingly dangerous threat off the table and China knows it is no longer dealing with a political powderpuff.

Still China wins in many ways by turning North Korea into its own administration. First, it isn’t Trump. Second, China will not be condemned for removing the threat and installing its own puppet. Third, China keeps the strategic geographical buffer and fourth China gets to show itself a proper force to be reckoned with in the Asia Pacific region by taking a credible threat off the table.

While no credit will be given to Trump for forcing China’s hand, be sure that an effective annexation by China will be a major win for him. Sure North Korea most likely retains the name and the sovereignty but China’s military becomes a form of blue helmets administering PyongYang’s every move. Kim Jong Un is on borrowed time. Sometimes long used strategy outstays it’s welcome.

How will financial markets react? While they may sell off initially expect them to rally hard if China pulls off regime change with precision. Surely Kim will soon get the ‘horse’s head in the bed’ scenario handed to him anytime soon from Beijing. It is the only viable solution which actually works remarkably well for China.

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