In the United States Secretary of State Rex Tilleson's recent visit to East Asia, he was reportedly mentioned that there should be a new approach to deal with the escalating situation of the Korean Peninsula. It is generally thought that in the future the United States might take military action. China is anxious about the situation on the Korean Peninsula, a geopolitical game that takes place at the door of China. If the DPRK nuclear issue escalates, the situation of the Korean Peninsula will deteriorate significantly; other than North Korea, China and South Korea will feel the impact, and the Chinese economy will be hit hard. In the recent years, China's economy is facing downward pressure; the devaluation of renminbi exchange rate, capital outflows, reduced foreign investment have greatly weakened the market confidence in the Chinese economy. If the situation of the Korean Peninsula continues to worsen, its negative impact on the Chinese economy cannot be overlooked.