China is probable eyeing this area for a hostile takeover and Kim knows it. The westest European areas would probable celebrate it.
If he does not relent, and come back to the table, or if another test is threatened, China will likely take him down without firing a shot.
I doubt they would stay long. Just enough time to replace the government and rearrange the deck chairs, and they would do this with American support, or at least without our standing in their way.
I think this would be the most likely outcome if he continues down this path, and I think he will. I also think this is the best course of action.