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"My assumption was that with respect to nukes we would interdict or at least make an attempt."

We can certainly make attempts, but when a nutjob has nukes and needs money, and other nutjobs want nukes and have money, they'll eventually succeed. The only solution is to take care of both nutjobs once and for all. We're working on the latter while letting the former do as he pleases. That's downright dangerous.

"I also assumed whereas her allies, eg China, might be perfectly supportive of 'normal' arms sales they might be less favorable toward the proliferation of nukes."

Absolutely, but China also knows that North Korea is a junkyard dog. Despite the fact that China currently provides the largest amount of aid to North Korea, they've also lined up a large number of troops and armor on the North Korean border to pressure North Korea on issues such as nuclear proliferation. They've done this under the guise of immigration controls, but I'm pretty sure that tanks aren't necessary for that. What we have is a North Korea that has nuclear weapons, is desperate for money, has tons of potential buyers for these nuclear weapons, and is developing the missiles to carry these nuclear weapons to the United States. If we don't stop them soon, we may never be able to stop them.