North Korean leader Kim Jong-Il has yet again stirred up the waters in the Sea of Japan this week, firing not just one or two missiles into the morning sky on Wednesday, but seven by the time the day was done.

In a move that has been widely denounced by the international community, the irony that the missiles were shot into the sky at roughly the same time as the US space shuttle Discovery has not been lost on anyone.

While six of the missiles were scuds and rodongs, one was said to be a Taepodong 2 type, which has a range of up to 3500 km, said to be able to reach the United States. However, the missile failed after approximately 40 seconds of flight, landing in the Sea of Japan.

The incident has seen Japan propose a resolution to the United Nations Security Council, effectively banning North Korea from developing or testing its missiles, as well as imposing instant sanctions against Pyogyang. The only ship allowed to travel between the two countries, a ferry called the Mangyongbong-92, has been stranded offshore since it was ordered to halt its progress towards a Japanese port yesterday morning. At the time of writing, all 193 passengers are still board, the unwitting, floating pawns in a diplomatic game that looks like having no clear solution.

North Korea is heavily dependent upon trade with Japan, amounting to approximately US$200 million dollars annually, not to mention the large amount of money sent home by expatriats to their families. According to Deborah Cameron, Japan Correspondent for Australia’s Sydney Morning Herald, Japan’s Chief Cabinet Secretary, Shinzo Abe has advocated taking economic measures against North Korea, even though the North Koreans have warned this will be tantamount to a declaration of war. "We will consider every type of sanction possible," said Abe.

As history has shown with economic sanctions, they rarely have any effect on those in power. The recipients of the funds coming through from family members who reside in Japan will be the most effected by such a move, and to an already impoversished population in North Korea, the loss of trade could prove devastating.

The South Koreans are calling for calm, suggesting that any inflammatory action against the so-called ‘rogue state’ will not help to solve the already deepening divide. South Korea might be a different state, but it is still intrinsically linked to North Korea, as was demonstrated by the sharp dive on their stock exchange on Wednesday morning when news of the launches hit.

On Thursday morning the South Korean government convened a meeting to discuss the missile launch, releasing a statement which said that they expressed ‘profound regrets” over the incident.

“Despite our repeated warnings, North Korea proceeded with this launch, which is an unwise act to have a negative impact,” they said. “It would not only deepen North Korea's international isolation by bolstering the stance of the hard-liners against the North in the international community but also impede the peace and stability of Northeast Asia by providing grounds for a [build-up] of armaments in the region as well as adversely affecting the attitude of the South Koreans toward the North in terms of inter-Korea relations.”

The six-party talks between the US, Japan, China, Russia, South Korea and North Korea over its nuclear arms program have been stalled since November last year, when the isolated nation boycotted the talks that were hoping to replace their nuclear arsenal for aid. The missile incident has led to an almost unanimous call for North Korea to get back to the negotiating table, with the US and Australia both urging China to speak with Kim Jong-Il. It is largely believed that China had an intrinsic role in getting North Korea to agree to the talks in the first place.

"China believes that the six party talks are the best way to resolve the issue," said Chinese Foreign Ministry spokeswoman Jiang Yu said, according to the Bloomberg News outlet, at a regular press briefing in Beijing on Thursday. "Diplomacy is the best solution to resolve this."

But some believe that Beijing will not tolerate such provocative behaviour from North Korea for too long. China's Vice Premier Hui Liangyu is reportedly set to visit North Korea next week. As North Korea’s largest ally, there is a lot riding on what will be the highest-level talks since May between the two countries, and many are hoping that China can convince North Korea that diplomacy will have to prevail.