South Korea complains to WTO over China

Protesters confront with policemen during a rally at the entrance to the golf course where the Terminal High Altitude Area Defense (THAAD) system will be deployed in Seongju, South Korea, March 15, 2017. About 200 local residents attended the rally on Wednesday to protest against the deployment of THAAD system. Xinhua/Liu Yun

Protesters confront with policemen during a rally at the entrance to the golf course where the Terminal High Altitude Area Defense (THAAD) system will be deployed in Seongju, South Korea, March 15, 2017. About 200 local residents attended the rally on Wednesday to protest against the deployment of THAAD system. Xinhua/Liu Yun

Published Mar 22, 2017

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Seoul - South Korea has complained to

the World Trade Organization about Chinese retaliation against

South Korean companies over the deployment of a US anti-missile defence system in the South, the trade minister

said on Monday.

South Korea and the United States say the sole purpose of

the Terminal High Altitude Area Defense (THAAD) system is to

guard against missile launches from North Korea, but China says

that its powerful radar could penetrate into its territory.

"We have notified the WTO that China may be in violation of

some trade agreements," Trade Minister Joo Hyung-hwan told

parliament in response to questions about China's reaction.

It would be up to South Korea to follow up on its complaint

to the WTO for any action to take place, analysts say, either by

continuing to raise its concerns and spelling out what China is

doing wrong, or by launching a trade dispute. The first step

would be to formally "request consultations" with China.

When asked what would happen next, Joo said the ministry

would strengthen communications with Beijing and take action if

needed. He did not give further details.

China is South Korea's largest trading partner and the

dispute over THAAD has resulted in a sharp decline in Chinese

tourists in the South's shopping districts.

Chinese authorities have also closed nearly two dozen retail

stores of South Korea's Lotte Group amid the diplomatic

standoff.

Beijing has never explicitly linked the restrictions to the

THAAD deployment, but the South Korean government has offered

cheap loans and extended deadlines on existing debt to help

businesses that have been affected and has pushed to diversify

trade markets.

Joo said the issue was raised with the WTO's Council for

Trade in Services on Friday.

Read also:  South Korea says to consider filing complaint against China

A trade ministry official, who asked not to be identified

because of the sensitivity of the matter, said the complaint

could not be categorised as a legal action but was rather a

request for the WTO to look into whether China was upholding

trade agreements fairly.

In Beijing, Chinese Foreign Ministry spokeswoman Hua

Chunying did not comment directly on the WTO complaint.

"We support normal business and other exchanges between

China and South Korea," Hua told a daily news briefing. "But

everyone knows this needs a corresponding basis in public

opinion."

Despite its concerns about the radar, Beijing also says

THAAD will do nothing to ease tensions on the Korean peninsula.

Lawmakers ramped up their criticism of what they say has

been the government's lack of an aggressive response to China's

actions, which also include a freeze on South Korean television

dramas, as well as music and product boycotts.

Seoul's options, however, look limited.

Efforts to hold direct discussions between the finance

ministers of China and South Korea at a Group of 20 meeting in

Germany at the weekend fell through after Beijing declined

Seoul's request to meet, citing scheduling reasons. 

REUTERS

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