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Certainly the largest north korean trading partner and economic partner is china. so that does give china leverage. then china is extremely reluctant to do it. they fear any increase in pressure on north korea will either lead to an explosion in north korea lashing out against the south or against the u.s. or an implosion in regime instability or perhaps even regime collapse. so it's always been extremely difficult to get china to implement required sanctions. but the u.s. can do a number of things on its own, using our own laws. we can defend our financial system against those entities, inclu...

Urging the president to go forward, to get really a global cooperation in this regard so as to put pressure on that country to really make sure that north korea doesn't move any further along that -- that red line? >> reporter: well, what china has been trying to telegraph all along is they're just as fed up with the north korea situation as anyone else. they're tired of having the nuclear problem on their doorstep, complicating their relations with the u.s. and the rest of the world, but they feel there's really only so much they can do. they can tighten sanctions, they can hold back oil ship...

Regime collapse. they are worried about a refugee fallout if the regime collapses. what will they do with all the people coming across the borders and the problems? much like we have been skiing. in syria, what's happening there with refugees. people displaced, this tumultuous activity. there is a tremendous amount of fallout. it happens in these bordering countries, physically and financially. economically. that type of thing. i think sanctions are hugely important, part of the overall scheme to put pressure on north korea. the united states or the world shouldn't stand by and allow this for ...

Quite afraid of any kind of regime collapse. they are worried about a refugee fallout if the regime collapses. what will they do with all the people coming across the borders and the problems? much like we have been skiing. in syria, what's happening there with refugees. people displaced, this tumultuous activity. there is a tremendous amount of fallout. it happens in these bordering countries, physically and financially. economically. that type of thing. i think sanctions are hugely important, part of the overall scheme to put pressure on north korea. the united states or the world shouldn't ...

North korea had another ballistic test last week. u.s. warships sailing within striking distance of north korea. escalating tensions. at my hope is the chinese, after they met with the president, they sent troops to the border. they are importing american coal. through their own communist newspaper, they actually said if you test another missile, there will be dire consequences. but we haven't seen them yet. >> we have had a problem with our negotiations with china for a very long time. we haven't been able to articulate the fact that china is not threatened in the same way that we are by nort...