Discussions in Beijing about North Korea are always frustrating. It's not so much due to the sharp divergence in U.S. and Chinese thinking about how to deal with Pyongyang; the two sides differ on many issues. No, the real problem, from our perspective, is the illogic of the Chinese position. Indeed, it would be hard to create a policy toward North Korea that does more damage to Chinese national interests than Beijing's current approach toward Pyongyang.
The standard explanation for Chinese policy goes like this: While denuclearization is desired, stability comes first. There is little chance that North Korea can be persuaded to give up its weapons, as its arsenal is seen as a form of legitimacy and a deterrent to regime change. Moreover, Beijing has limited influence in Pyongyang and North Korea's real aim is a relationship with the United States, hopefully one that sidelines Seoul as well. This logic produces a policy of minimal pressure on Pyongyang, calls for good behavior by "all parties," demands that the U.S. soften its position and be more accommodative, and the fending off of demands for Beijing to do more.
Recent discussions in Beijing made plain the ways that this policy undermines Chinese interests. China enables Pyongyang's misbehavior. When dealing with North Korea, China walks softly and has discarded the stick. Whether motivated by ties once as close as "lips and teeth," the desire to maintain whatever leverage China has in Pyongyang, or the fear that pressure might destabilize the North or prompt it to act out, Beijing refuses to crack down on North Korean misdeeds. Instead, it offers diplomatic cover and minimizes any punishment that might be agreed upon by the international community.