If China was considering this type of thing, it would be a split of NK territory between itself and South Korea. China would be holding secret talks with South Korea about militarily assisting them to reunite with the North, in return for China getting some of North Korea's territory. After the initial show of strength, China would offer top NK leaders and military officers lifelong residence in that annexed territory, with immunity from deportation. The U.S. right now is probably trying to stop such secret talks from starting, probably by impressing on the SK govt just how much their standard of living would be impacted by reuniting with the North. Of course, China would be using this as leverage in the secret negotiations to gain as much NK territory as possible.
