Less than two months into 2016, there is a sudden spike in tension on the political affairs in Korean Peninsula.

Following the sanctions imposed by the United States, Japan and South Korea on North Korea of which China has cooperated to certain extent, have put North Korea under tremendous pressure.

ANBOUND's scholars point out that, the situation in Korean Peninsula as a whole is not at war and it is still at the phase of diplomatic and political gambling but there is a possibility that the situation might worsen rapidly.

In the event that the United States and the South Korea take this opportunity to equip South Korea with the Terminal High Altitude Area Defense (THAAD) missile defense system, China will be the real loser for the North Korea problems.