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Korean Businesses Deal With China’s Retaliation Over THAAD

By February 13, 2017 at 7:06 am
South Korean Economy (Photo : Chung Sung-Jun/Getty Images)

More Korean companies and businesses are dealing with China's retaliation over the U.S Terminal High Altitude Area Defense battery or the THAAD.

A study conducted by the Korea Federation of Small and Medium Business showed that more and more businesses are experiencing this effect because of the deployment of a U.S anti-missile defense system. Particularly, there are 300 small and medium-sized enterprises that are suffering after Beijing implemented its protectionist measures.

To illustrate, as reported by Korea Times, the Ministry of Food and Drug Safety has just reported that China just banned import of Korean cosmetics and groceries. As also indicated by the study, the most typical kind of retaliatory method was the harsher sanitary regulations.

Among the 78 firms affected by this, 50 confirmed that the retaliatory measures include management troubles. They have observed too that the amount of exports to China went down to 44 percent in a year.

Even if this THAAD brought great effect on the economy, some of the Korea's small and medium-sized enterprises are thinking of alternative markets to China. Some will also enhance the competitiveness of their goods and products just to satisfy the standards raised by China.

However, these companies and businesses requested the Korean government to fix the issue with China in order to solve the problem on this new trade barrier. But a recent study also noted that the government should divert their attention instead on new markets as reported by The Diplomat.

Lately, an official said that more Korean businesses are now dealing with stronger protectionism of Beijing and they are firmly believe that THAAD is the reason behind this issue. The government should offer help by extending its support to these firms to be able to build alternative markets to China.

Apart from the cosmetic industry, market watchers gave a warning that the regulatory measures will also be imposed on steel, chemical, and the integrated circuits this year. if this is the case, it will surely bring significant effect to larger businesses in those mentioned industries.

The Korean government's action and solution is timely so as to prevent the worsening of conditions of businesses because of China's retaliation over THAAD.

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