It seems that the Chinese proposal represents a good compromise that may provide a solid and acceptable method to advance and resolve the nuclear and peace issues on the Korean peninsula. Both North Korea and the US should make and need to make some compromises and it is in their respective interests as well as that of the region and the world as a whole.
A peace agreement may need also to bring into the picture of Russia at least and possibly Japan, given North Korea’s reliance on Russia and its opportunistic gaming in using China and Russia. The North may be more willing to have Russia on its side for a peace agreement with the US, one would think.
And arguably, Russia would make a peace agreement more effective because it can provide much more weight in preventing the US into unilateral military actions, or a threat of such actions. China does not have and will not be able to provide such a deterrence.