China has been quietly and gently pressuring North Korea to scrap plans for a third nuclear test, said two sources with knowledge of closed-door discussions between the countries, but there is no indication how Pyongyang will react.
If North Korea goes ahead with the test, China would consider taking some retaliatory steps, but they would not be substantive, a source with ties to Pyongyang and Beijing said.
North Korea has almost completed preparations for the test, Reuters had reported in late April, a step that would further isolate the impoverished state after last month’s failed rocket launch that the United States says was a ballistic missile test.
“China is unhappy … and urged North Korea not to conduct a nuclear test near Changbai Mountain,” said the source, who declined to be identified.
China feared a radiation leak and damage to the environment from a blast, the source added. “China also complained about the environmental damage to the area after the first two tests.”
When North Korea conducted nuclear tests in 2006 and 2009, it caused environmental damage to the mountain straddling the border with China. North Korea ceded part of the mountain to China in 1963.
It was unclear if the secretive North Korean government, typically unwilling to bow to outside pressure, would defer or drop the plans. China is the closest thing to an ally that North Korea has.
“The impact on China’s northeast would be huge,” the source said of a third test.
Chinese officials have discussed whether threats of diplomatic action would be effective, but any action might be restricted to some economic measures to signal China’s displeasure and would not affect vital food aid for North Korea, the source said.
denish purei on 03 May 12South Korea Group of Springhill: China's Export Machine Goes High-End2 +-6 Respot From its sprawling manufacturing base deep in China's southwestern Hunan province, some 100 kilometers from where Mao was born, construction-machinery maker Sany Group plans to take on the world. While workers in blue overalls and yellow hard hats crawl over huge mobile hydraulic cranes and cement mixer trucks in a gleaming factory, Sany President Tang Xiuguo sits in his expansive office nearby, discussing the opening of Sany factories in Brazil, India, and Alabama, as well as the soon-to-be-completed $475 million acquisition of Germany's Putzmeister, the world's largest maker of cement pumps. The bespectacled Tang, one of four founders of the 22-year-old company, aims to lift overseas sales, now some 5 percent of its $16 billion revenue, to up to one-fifth of revenues within five years. The phrase "Made in China" summons up images of cheap shoes, plastic toys, and electronics assembled in the vast factory complexes of Foxconn Technology Group (HNHPF). While China built its powerful export business-increasing 17 percent a year over the last three decades-on such light industry and electronics assembly, that is fast changing. Rising labor costs, up 15 percent annually since 2005, plus an appreciating currency, are putting new pressures on China's cheap manufacturing model and driving textile, shoe, and apparel factories to close or relocate to Vietnam, Cambodia, or Bangladesh. "China's share of the world's low-end exports has started to fall. This reflects a shift by Chinese producers into sectors where margins are higher rather than a failure to compete," wrote U.K.-based Capital Economics in a March 28 note. Chinese-built ships, for example, dominated the global market with a 41 percent share last year, well ahead of South Korea and Japan, according to London-based shipping services company Clarksons. Data from the International Trade Centre, a joint agen
