[MUSIC] Now another area in the region where China has been quite engaged is on the Korean Peninsula. Now China faces a serious strategic problem because, while it wants stability on the Korean peninsula because it's so close to China, and so opposes therefore opposes the nuclear program of the North Koreans. The North collapse would put 30,000 US troops currently situated in South Korea on China's border, because with North Korea collapsing, the South could just move up right to the border with China. So rather than support very strict sanctions, China brokers the Six Party Talks on the nuclear crisis, involving Russia, China, US, North Korea, Japan, and South Korea. This is a kind of constructivist approach. We thought at one point this would even become a permanent organization, but these talks have failed to stop North Korea building a bomb. Now China worries that a North Korea nuclear capacity increases the probability of Japan building their own bomb, so it's not good for China. And after the fourth nuclear test in January of 2016, the United States started pressing Xi Jinping to intensify sanctions on the DPRK, but China, even though it's very angry, really hesitates to do so. Now usually what we see is left-wing South Korean leaders bandwagoning with rising China and trying to open up to the North. While the pro-West South Korean presidents work closely with the US. What we have today, because in part of China's influence, the current president, Park, herself a conservative, went to attend the Chinese military parade, celebrating the 70th anniversary of the end World War II, and was the only US ally to do that. But, unfortunately, has received less support, less pressure on the North Koreans than she would really like. Now again, the South Korean relationship with China is complicated because the economic ties are actually quite close. Since 1990, these ties have intensified. Especially trade and investment, while North Korea remains an economic burden for China. China has tried to push the North Koreans to adopt Chinese style economic reforms, but there has been absolutely no success. The South Koreans, on the other hand, have told me in meetings that I've had that they're very worried about what we call the hollowing out of Korean economy, where many factories move from Korea and move on to the Chinese mainland, particularly in Shandong and Kinjin and those areas. And so the jobs are being lost in South Korea. Now here again, just to give you a real visual of this difference between Chinese trade with the North and the South, right? Here's South Korea, here's North Korea, 2010, right? And you can see here, $200 billion dollars In trade. And here you've got $3.5 billion in trade. Huge difference, right? And if we move all the way along to 2014, here we can see again that in terms of Chinese imports of Korean goods, $190 billion. More than they import from Japan. And, they only import 2.9 billion dollars worth of goods from the North Koreans. So, whereas the South Korean economy, and the relationship with the South Korean economy, really drives China's economy, as well. The North Koreans are basically a burden.