Unnerved by North Korea's military threat, the U.S. and China are likely to clash as they search for a solution in how to deal with Pyongyang's nuclear program, according to Danske Bank's chief analyst.
Tensions have been stoked in the aftermath of North Korea's most recent simultaneous launch of four rockets on Monday. North Korea has been banned from testing nuclear missile-related technology by the United Nations and has repeatedly faced international condemnation for multiple breaches of sanctions.
The U.S. has moved to accelerate its deployment of its so-called THAAD (Terminal High Altitude Area Defense) missile system in South Korea in response to several missile tests by the North Korean regime.
"With China's softer stance of going to the negotiation table and (U.S. President Donald) Trump's rising impatience, North Korea is another area of conflict that bears close watching," Allan von Mehren, chief analyst at Danske Bank, said in a note.