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You mean that you think nuclear escalation unlikely or that, even in case of a nuclear conflict, that it would stay local? On the whole situation I'm using the outside view, since I've no specific knowledge about this side of the globe. But I would gladly read what you have to say.
North Korea can destroy South Korea with nukes or other weapons. It doesn't have the capability to do more global damage.
China itself has no interest in WWIII. North Korea isn't important to them. China has more trade with South Korea than with North Korea. China doesn't want Western troops on the territory of North Korea but I don't think a Trump administration would want to occupy North Korea anyway. If there are Chinese troops in North Korea I don't think there would be any objection from the US.
China might want to have something in exchange but the kind of things that China wants like sovereignty over islands, are negotiable for Trump.