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At close · Fri, Aug 14, 2026
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HomeGlobal MarketsTrade & TariffsChina could face less downside if US eases North Korea…

China could face less downside if US eases North Korea security steps

Trump ordered the Ulchi Freedom Shield drills to end six days early, with South Korea also canceling counter-attack exercises and cutting field training.

China may have limited downside if US talks with North Korea lead Washington to reduce security commitments, analysts cited by the South China Morning Post say. The outlet frames the likely impact against the backdrop of President Donald Trump’s stated preference for engagement with North Korean leader Kim Jong-un, including his view that Pyongyang has been “unthreatening and respectful.”

After Trump ordered the Pentagon to “substantially reduce” the annual Ulchi Freedom Shield exercise with South Korea, the South Korean defense ministry said the joint drills would end on Friday, six days earlier than initially planned. South Korea also announced it would cancel counter-attack exercises and scale back field training.

The SCMP Economy report also notes that Trump has said he wants to meet Kim later this year, and it recalls that Trump met Kim twice during his first term. The decision to shrink military exercises comes as analysts suggest the US could “water down” security commitments if negotiations progress.

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