Tensions in the already volatile Korean Peninsula seem to have increased drastically in recent hours, causing U.S. stocks to lose much of their recent gains in midday Monday trading.
It is being reported that China has deployed approximately 150,000 troops to the North Korean border.
Markets right now: ‘It’s either banks rolling over or 150,000 Chinese troops amassing on the North Korean border.’ pic.twitter.com/Zvv4Q19weU
— Tracy Alloway (@tracyalloway) April 10, 2017
From NASDAQ:
The benchmark averages have surrendered earlier gains on news that China has deployed 150,000 troops to the North Korean border, and the U.S. is considering further sanctions against Russia. The reports caused the S&P 500 to falter at trendline resistance at 2,370 and the Dow Jones Industrial Average to fall back to support at the 50-day moving average.
Just yesterday, a U.S. aircraft carrier and several other warships in the Pacific were rerouted towards the Korean Peninsula days after North Korea fired another test missile.
It is well-known that China is one of the few allies North Korea has on the global stage, and one wonders if the reports of 150,000 Chinese troops being deployed are in anticipation of an impending humanitarian crisis.
On the other hand, the Guardian reports that Chinese President Xi agrees that action is needed to de-escalate the situation with Kim Jong-un:
“President Xi clearly understands, and I think agrees, that the situation has intensified and has reached a certain level of threat that action has to be taken,” Tillerson said.
Tillerson described a “shared view and no disagreement as to how dangerous the situation has become”.
Could the Chinese be sending a warning to North Korea to settle down?
In recent years, North Korea has been increasingly belligerent, repeatedly testing short and long range missiles, and testing nuclear weapons. North Korea has been in economic ruin for decades, and hundreds of thousands of its citizens live in extreme poverty, with little to any quality of life.
If reports of China amassing 150,000 troops along the North Korean border are in fact accurate, what do you think this says about the future of the region? Is North Korea on the verge of collapse? Share your thoughts below!