South Korea Fears China Trade Hit Over Missile System
- Non-tariff barriers could be used to penalize South Korea
- Economists see exports as vulnerable to stricter rules
South Korean Air Force Hawk missiles sit on display during the Cheongju International Airport Air Show on the sidelines of the Seoul International Aerospace & Defense Exhibition 2013 at Cheongju International Airport in Cheongju, South Korea, on Oct. 25, 2013.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
China’s anger at South Korea for deciding to deploy a U.S. missile shield has officials in Seoul increasingly concerned about the risk of economic retaliation.
While they don’t expect China to hit back directly by slapping tariffs on South Korean goods -- which would create problems for Beijing with the World Trade Organization -- some see a risk that their larger neighbor may tighten customs inspections, enforce stricter certification requirements and increase bureaucratic obstacles.