Article China’s ‘Two Koreas’ Policy: Achievements and Contradictions David Hundt Abstract China has long maintained a keen interest in events on the Korean peninsula, which Beijing considers to fall within the Sinic sphere of interest. The PRC has maintained a decades-long alliance with North Korea, and also achieved a rapprochement with South Korea, with whom China enjoys a burgeoning economic relationship. The PRC’s pursuit of a ‘two Koreas’ policy has tested Beijing’s diplomatic mettle during the past decade. In and of itself, the maintenance of strong ties to both Koreas represents a significant achievement. By reviewing recent developments in Chinese diplo- macy towards the peninsula, this article highlights both the achievements and contradictions inher- ent in Beijing’s two-Korea policy. North Korea has risked China’s wrath by pursuing a nuclear deterrent, and by refusing to enact market reforms. In the case of the South, the government of Lee Myung-bak has strengthened its alliance with the United States and also sought to compen- sate for its growing economic interdependence with China by seeking free trade agreements with other states, including the US. The sinking of the Cheonan in March 2010 presents an opportunity to reflect on China’s efforts to balance its ties with both Koreas. Keywords interdependence, Sino-Korean relations, Six Party Talks, two-Korea policy Introduction Among the great powers of North-East Asia, the People’s Republic of China (PRC, China) has the most comprehensive policy towards the rival Korean regimes. 1 As part of its ‘two-Korea policy’, 2 the PRC has presented itself as a model for the isolated and impoverished Democratic People’s Republic of Korea (DPRK, North Korea), while Corresponding author: David Hundt, Lecturer, Faculty of Arts & Education, School of International and Political Studies, Deakin University, Melbourne Campus, Burwood, Victoria 3125, Australia Email: david.hundt@deakin.edu.au 1 I am grateful to the editors and two anonymous reviewers for their thoughtful comments and feedback on an earlier draft of this article. 2 Scott Snyder, China’s Rise and the Two Koreas: Politics, Economics, Security (Boulder, CO: Lynne Rienner, 2009). Political Science 62(2) 132–145 ª The Author(s) 2010 Reprints and permissions: sagepub.co.uk/journalsPermissions.nav DOI: 10.1177/0032318710384049 pnz.sagepub.com at DEAKIN UNIV LIBRARY on July 6, 2015 pnz.sagepub.com Downloaded from