Abstract

Subject New developments in China-South Korea economic relations. Significance China and South Korea have one of the most important bilateral economic relationships. Politics trumped economics when China imposed de facto sanctions in response to South Korea's hosting of the US military's THAAD missile defence system -- but there are more fundamental changes underway, too. Impacts South Korean companies will be more cautious about investing in China and will further diversify their investment destinations. South Korea's government and firms will work harder to develop South-East Asian markets for the country's tourism and creative industries. Links will develop further between Chinese and South Korean firms within cross-border technological chains. Overall volumes of bilateral trade will continue to increase, regardless of political tension and economic rivalry.

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