By using many newly available documents and memoirs, this article analyzes a little known but important episode in Sino-Northern Korean relations. By the time the United Nations troops crossed the 38th parallel, the North Korean leader had repeatedly refused direct military assistance from the PRC government. The development of the war demanded unifying the commanding authority of the Sino-Northern Korean army. However, Kim Il-Sung hoped to reserve the commanding authority of the Korean People's army to himself. It was only after the intervention by the Soviet Unionthat North Korea finally delegated military command. When the Sino-North Korean troops occupied Seoul, Peng Dehuai asked for a rest and reorganization of the troops for two or three months. However, the North-Korean leader insisted on moving southward. This caused a serious dispute that was solved only after Stalin supported the Chinese position. As the war dragged on, the conflicts between China and North Korea over the railroad administration system also began to intensify. The Chinese authorities proposed to put the railroad under military control and to give military supplies priority. But the North Korean authorities believed that the management of railroad belonged to the state and should be administrated by North Korea, which was inclined to emphasize the transportation of economic and construction goods over military supplies. Again, Stalin solved the dispute: the headquarters of the Sino-North Korean union troops implemented the military control of railroad. In the second half of 1952 the armistice negotiations of Panmunjom came to a deadlock. North Korea intended to accept the armistice conditions proposed by America. Due to political considerations, Beijing and Moscow insisted on a harder position. Again, Kim Il-Sung had to accept the position of China and Soviet Union. The conflicts between Chinese and North Korean leaders and their final resolutions thus reflected an inner structural imbalance within the relations of socialist countries—i.e., the conflict between the concepts of national sovereignty and socialist leadership, which ultimately determined the inherent instability within the socialist allies.