Twists and turns in current South Korea-China relations, all seemingly leading to 'worse'
by the day.
To get a deeper understanding of their bilateral relations and the ongoing THAAD row, we have
our foreign affairs ministry correspondent Connie Kim in the studio.
Connie how significant is the current heightened tensions between the two countries?
South Korea and China's relations reached their peak when President Park Geun-hye attended
a war victory ceremony in China in 2015.
But this came to a downhill after Seoul and Washington decided to deploy the U.S.-missile
defense system THAAD to the Korean peninsula after North Korea's fourth nuclear test in
January of last year.
China has been objecting the deployment of such system under the reasoning that the THAAD
powerful radar could interfere with Chinese regional interest and national security.
Soon after the South Korean conglomerate Lotte Group approved a land swap with Seoul's defense
ministry last week, enabling the base where the THAAD battery will be stationed,…
China's unofficial retaliatory measures started rattling South Korea first on Lotte group,
then to the travel industry and now seemingly to other industries as well.
While there have been various reports that China has made the orders verbally, Beijing
for now is officially denying that the government is involved.
I was able to get a hold of a professor at the China Institute of International Studies
where he echoed the government's stance and said such responses are a quick response from
the Chinese public.
"This is really hard to say there is strong sentiment against ROK.
This is actually a response to the deployment of the THAAD in the ROK.// I think the Chinese
people are very clever to understand the significance or meaning of the statement by the government.
Generally speaking I don't think the Chinese government gave any announcement to take sanction
against the ROK but the people voluntarily gave the response to the decision made by
the ROK government."
While Seoul stands firm on its stance to deploy THAAD, Beijing keeps voicing a strong opposition
regarding the deployment adn the South Korean government.
What are the prospects for the future bilateral relations?
China has escalated its level of warning to South Korea on Monday as Seoul and Washington
began installing parts of THAAD.
Beijing's foreign minstry said that it solemnly objects Seoul and Washington's THAAD deployment
and will resolutely take necessary actions in order to safeguard its security interests....
and added any consequences to follow the necessary actions should be bore by the two allies.
As to the latest in the South Korean government's response to China's apparent sanctions, Seoul's
foreign ministry in a regular press briefing said the government will support companies
that have been affected by China's measures and it is considering raising the issue on
the international stage and respond legally,... if necessary, to violations of the WTO and
Seoul-Beijing Free Trade Agreement.
Most importantly, Seoul reiterated its stance that the primary reason for the THAAD deployment
is the North's missile threats.
"Seoul and Washington's decision came as North Korea's nuclear and missile threat exists,
getting larger and imminent.
There is no other purpose in this decision as it came in line with the Seoul-Washington
alliance and according to priority.
While standing consistent, there are voices that Seoul and Washington must use diverse
channels to explain the necessity of the THAAD deployment and calm Beijing's anger.
"I think that the U.S. and South Korea could engage with China to explain how THAAD actually
works, and then to allow for some transparency so China can be assured that THAAD would not
be detrimental to China."
In fact, U.S. Secretary of State Rex Tillerson and some senior officials are reportedly planning
on a trip to South Korea and China this month to act as a mediator in the heightened THAAD
row.
So how serious is China's retaliatory actions?
China's sanctions have affected Lotte Group, first of all.
But the anti-South Korean sentiment doesn't look like it will stop there.
Korean food and cosmetics could be the next products caught in the cross-fire.
Beijing also moved to hit Seoul with a second ban on charter flights -- which could seriously
curb the country's tourism revenue.
For a closer look let's turn to our Oh Jung-hee's report
This is a Korean dumpling that's become popular in China, with sales of almost 130-million
U.S. dollars last year.
Now, there's growing speculation that food products like this could be the next target
for China's retaliatory actions against Seoul's deployment of the THAAD missile defense system.
But experts say China won't be imposing tariffs; instead, it will impose stricter sanitation
tests and stronger quarantine controls on food and cosmetics.
That's because those items are more easily replaceable than things like smartphones or
car components, whose absence would do greater harm to the Chinese economy.
"China's sanctions are likely to target goods that will have little impact on the Chinese
economy.
For example, consumer goods like food or cosmetics and services."
Korea's cosmetics companies will also have to be prepared.
The Korea Trade-Investment Promotion Agency, or KOTRA, has reported... starting this month,
Chinese companies that import cosmetics from other countries... must register themselves
with quality control authorities... and report on specific product information.
The Chinese authorities say the system is being implemented to strengthen safety controls
and facilitate quick recalls of bad products.
But there are concerns in Korea that it's an unofficial sanction on Korean cosmetics.
In another sign of Beijing's discontent, Chinese authorities have once again banned Korean
airlines from running charter flights from China to Korea.
Only flights by Korean airlines were banned.
This is the second such ban -- after Asiana Airlines, Jeju Air and Jin Air were banned
from operating charter flights in January.
An estimated 70-thousand Chinese tourists were scheduled to fly to Korea on charter
flights this year,... but it's not yet known whether the flights will be allowed.
The measure is expected to significantly curtail the number of Chinese tourists to Korea, in
combination with China's recent ban on sales of all Korea tour packages.
"The Chinese government's retaliatory actions against the THAAD deployment appear to be
zeroing in on specific industries -- from food and cosmetics... to entertainment, travel
and tourism -- that will have a huge economic impact on Korea.
Oh Jung-hee, Arirang News."
Are there ways to minimize losses coming from China's apparent retaliation measures?
Daniel this is not the first time China imposed sanctions against other nations over their
soverign decision.
There was the case when Beijing banned exports of rare earth materials to Japan and sales
of Japanese autos were down to half in China,…all following Tokyo's announcement to nationalize
the Senkaku islands in the East China Sea.
Then there is the Taiwan case where Beijing limited travel to China after Taiwan's new
president Tsai Ing-wen didn't sign off on the 1992 Consensus acknowledging the 'One
China policy'.
Let's take a look at how they, in turn, responded.
Japan re-located production facilities in China to Thailand and Indonesia, sued China
at the WTO and diversified imports of rare Earth materials from India and Vietnam.
Sales of Japanese automobiles started recovering a year after,... with the number of Chinese
travelers to Japan peaking at six-point three seven million in 2016.
In the case of Taiwan, it expanded its visa-free entry policy to other nationalities, securing
even more travelers from Vietnam and the Philippines.
While Chinese tourists decreased, Taiwan welcomed the largest number of international tourists
in 2016 at 10-point-seven million.
"I think the Chinese government will think of tougher sanctions vis-a-vis South Korea
as time goes by.
When it actually deploy THAAD can expect much wider sanctions.// We have to think of an
alternative market, Southeast Asian countries and also India.
So Japan has done it, Taiwanese have done it, we can do it, we will take some time.
We need to have a good portfolio in economy and trade."
Experts are expecting the sanctions to prolong for at least a year,...so they suggest Seoul
must look for other East Asian markets to target the service and commodity industries,..
sectors that have been hit hard by China's sanctions.
And there are some analysts who say China won't be able to restrict imports of South
Korean intermediary and capital goods that take up to 90-percent of Seoul's exports to
Beijing.
Seoul's stronghold IT, semi-conductor and chemical industries have not been affected
yet,.. but experts caution that the country must diversify portfolios and seek for other
markets to offset potential damage caused by Beijing's measures.
Alright Connie Kim, thanks for taking time to be here with us today.
Let us hope there will be a clear realization of how unconstructive the current path is
very soon.
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