China condemned for THAAD retaliation
By Kim Jae-kyoung
SINGAPORE — China is facing growing criticism from the international community for its retaliatory actions against South Korea over the deployment of a U.S. missile defense system.
Asia experts and economists said that Beijing’s attempt to push South Korea around with economic blackmail is not the proper way to solve the political dispute caused by North Korea’s nuclear brinkmanship.
The reactions came as China has expanded the scope of its economic retaliation by allegedly interfering with a Korean company’s private business deal in Malaysia. Before this, it only focused on boycotting Korean goods and restricting its people’s travels to Korea.
“In one word, it (China’s retaliation) is irrational,” William Brown, adjunct professor at Georgetown School of Foreign Service in the U.S., told The Korea Times.
“We have had a sense that China acts with ruthless objectivity when it comes to its own interests but this apparent ‘blunder’ shows a crack in that country’s governance,” he added. “That makes it hard for Seoul to deal with.”
According to industry sources, China has recently pressured a Malaysian firm to cancel a business agreement with a large Korean chemical company to start a joint venture in the Southeast Asian country. Chinese capital is the largest shareholder of the Malaysian firm.
The Washington-based Korea expert pointed out that China must understand that North Korea’s provocations are the biggest factor for Korea’s decision to deploy a Terminal High Altitude Area Defense (THAAD) battery.
“Simply put, THAAD is a useful platform for U.S. and South Korean forces to defend themselves against the very missiles North Korea is testing,” he said. “For China to be worried about the radar is nonsense.”
Observers say that China’s strategy will only damage its reputation as a global power failing to achieve its intended goal of having Korea give up the defense system.
“I believe that China has gone too far,” said a business executive at a Singapore-based company on condition of anonymity, citing its alleged attempt to hinder a Korean firm’s business deal in Malaysia.
“China is emerging as one of the world’s biggest powers both economically and politically,” he added. “However, what’s happening is not suitable for its status. It is not right to use political forces to affect a private deal.”
Alicia Garcia-Herrero, chief Asia-Pacific economist at Natixis, said that it is time for South Korea to make its position clearer by moving toward more assertive support of the U.S.
“I realize that this might not be clever in economic terms in the short run but it will pay off in the medium run. Others are watching China’s attitude toward Korea and reacting accordingly,” said the Hong Kong-based economist.
“Nobody likes to be blackmailed. The sooner Korea moves, the better, since its position will be clear to North Korea,” she added. “U.S. airstrikes in Syria are another way to help in that direction.”
Experts said that it is important for Korea to remain steadfast in its determination to push for the deployment of the missile defense system.
“Once China realizes that Korea will go forward with the missile defense system anyway, it may decide to back off somewhat,” said Sohn Sung-won, professor at California State University.
“Also, the pressure coming from the U.S. could play a role in convincing China that it is not in their best interest to continue to boycott Korean goods and services.”
According to him, the American public and politicians have learned of Chinese actions only recently and many are appalled by what is happening.
Sohn stressed that as a longer-term matter, Korea must learn from what Japan has gone through in the past.
“Japan has decided to decrease its export dependence on China and diversify its markets. Korea also must reduce its export dependence and rely more on domestic consumption as a source of future economic growth,” he said.
“Since China’s economic growth will continue to slow in the future, this is a good strategy.”
Brown of Georgetown said that the bottom line is that Seoul needs to resist the worry that it is too dependent on China to fight for legitimate interests.
“China has plenty of vulnerabilities and Seoul may do well to hint that it plans to wean itself away from too much integration,” he said.
In particular, he stressed that Seoul needs to use Japan, Taiwan and the U.S. as “balancers,” saying, “Better relations with these will make Beijing realize it can’t push Seoul around.”