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Closer talks can resolve THAAD issue

China Daily | Updated: 2018-04-21 09:05
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Economic loss has limited impact

Jin Meihua [Photo/China Daily]

The sales of ROK products in China reportedly declined after Seoul agreed to install the THAAD system. In 2017, Hyundai Group's second quarter sales in China fell by 64 percent, and that of Lotte Group by 95 percent.

Still, the ROK media might have exaggerated the overall loss suffered by the ROK economy.

According to the ROK Ministry of Commerce, last year ROK-China trade increased by 10.9 percent to $280.26 billion. There was a sharp drop in the export of many ROK products to China, but the general trend was one of ascent-a few companies might have suffered big losses, though. For example, a Korea International Trade Association report said export of ROK-made cosmetics to China grew by about 50 percent in 2014 and 2015, but in 2016, thanks to the impact of the THAAD issue, the growth rate dropped to about 42 percent.

On the one hand, the China-ROK trade structure is highly complementary, which is conducive to stable economic development. On the other hand, the US is not only a security ally of the ROK, but also one of its most important trade partners. Therefore, Seoul may attach greater importance to its ties with Washington, which means it is very difficult for the ROK to annul the THAAD agreement.

But even if it may not be possible for Seoul to stop THAAD's deployment, Beijing should continue making efforts to denuclearize the Korean Peninsula and to improve bilateral relations, in order to eventually resolve the THAAD issue.

Jin Meihua, a researcher at Northeast Asia Studies Institute, Jilin Academy of Social Sciences

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