China looks set to relax months of pressure on major South Korean businesses after agreeing Tuesday to improve relations with the government in Seoul.
China looks set to relax months of pressure on major South Korean businesses after agreeing Tuesday to improve relations with the government in Seoul.
The news of the thawing ties gave a lift to big South Korean companies that sell into China.
The two countries fell out a year ago over South Korea’s decision to deploy a U. S. missile defense system on its territory. That led to a widespread boycott of South Korean businesses in China, such as automaker Hyundai ( HYMTF) and conglomerate Lotte. The Chinese government also prodded travel agents to stop selling tours to South Korea, which is a popular destination for Chinese tourists.
China is highly sensitive about any buildup of Western military forces in the region and worries that the U. S. missile system — known as THAAD — could be used to spy on it. South Korea and the U. S. say it’s needed to defend against North Korean nuclear threats .
China is South Korea’s biggest trading partner, and investors are hoping Beijing’s decision to move on from the THAAD dispute will boost business ties between the two countries.
