This article attempts to explain China's response to North Korea's nuclear brinkmanship since the latter's fourth nuclear test in January 2016. The case of this article is so-called 'the Wang Yi initiative' which was suggested by Chinese Foreign Minister Wang Yi in February 2016. In his initiative, Wang Yi proposed that countries concerned continue to work on parallel tracks for denclearization and peace treaty in the Korean peninsula. This article argues that the Wang Yi initiative is a China's strategic consideration to address its dilemma between the United States and North Korea. For its stable economic development, China has to deal with the North Korean nuclear issue lest it should undermine the relations with the United States. By contrast, China also has to keep a stable relations with North Korea in order to hedge a possible U.S. policy of containment against China. With the Wang Yi initiative, which is the reconfirmation of September 19 Joint Statement, China attempts to fundamentally resolve its strategic dilemma between the United States and North Korea.