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China Calls For Calm Amid Latest North Korean Threat

China has appealed for calm on the Korean peninsula, hours after North Korea said it had scrapped all peace pacts with the South and threatened pre-emptive nuclear strikes.

China, the North's only major ally, said all sides should continue to talk and avoid "further escalation".

Pyongyang has reacted angrily to another round of sanctions imposed by the UN over its recent nuclear test.

The sanctions restrict luxury goods imports and banking activities.

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