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[Blablurn]

* Closures are latest blow to S.Korean firms in China
* Come after Seoul seals land swap for missile defence system
* China objects to US system being deployed in S.Korea

Chinese authorities have closed nearly two dozen retail stores of South Korea's Lotte Group following inspections, ramping up pressure on the conglomerate amid a diplomatic standoff that has cast a chill over business ties between the two nations.

Lotte said on Monday that 23 of its China supermarket stores had been shut, reaching from Dandong on China's North Korean border to the wealthy east coast and southern Changzhou, marking a wide clamp-down on the group in its biggest overseas market.
A Lotte Mart spokesman could not provide further details, but workers at three stores said the closures - which they said were temporary - were fire-safety related. The three people asked not be identified due to the sensitivity of the issue.

The Anhui fire department said in a post on its Sina Weibo microblog account on Monday it had temporarily shut two Lotte Mart stores due to fire risks, part of a broader regional sweep over the last month that had led to the closure of 30 stores belonging to a range of companies including Lotte.

The Lotte closures are the latest in a series of incidents affecting South Korean companies in China after cyber attacks and a ban on sales of travel tours to South Korea. Lotte Mart had 115 stores in China as of January contributing to group sales there of over 3 trillion won ($2.6 billion) in 2015.

The incidents come after Lotte approved a land swap outside Seoul last week that will allow South Korea to install the US Terminal High Altitude Area Defense (THAAD) system, in response to missile threat from North Korea.

South Korea's military earlier on Monday said North Korea fired four ballistic missiles into the sea prompting acting president Hwang Kyo-ahn to call for THAAD's swift installation.
But China's government has objected to the deployment of THAAD, saying it has a radar capable of penetrating its territory, while state media has called for a boycott of South Korean goods and services.

"Declared war"

On Chinese social media on Monday, photos and videos circulated of protests outside Lotte stores, while others showed Lotte outlets with their steel grates pulled shut.
Outside one store, a red banner with large white characters read: "South Korea's Lotte has declared war on China. Lotte supports THAAD. Get the hell out of China".

The protests come days after Lotte Duty Free on Thursday said a cyber attack using Chinese internet protocol (IP) addresses had crashed its website. It is currently back online.

Political risk experts say the chill facing South Korean firms demonstrates Beijing's playbook for hitting back at the corporate interests of trade partners it disagrees with through state media and tightening regulations.
The Lotte Group in a statement on Sunday said it was seeking assistance from the South Korean government regarding the issues it was facing in China, where it employs around 20,000 people - a third of its overseas staff.

On Monday, shares in Lotte Shopping Co Ltd, of which Lotte Mart is a business division, fell as much as 4 percent compared with a near-flat benchmark share price index . The stock regained some ground in afternoon trading.
Lotte's troubles expanded to other South Korean firms on Thursday as China's tourism ministry instructed tour operators in Beijing to stop selling trips to South Korea from March 15. The order has since spread to other regions across the mainland, an official at Korea Tourism Organization said on Monday.

The moves have prompted backlash from South Korea, whose trade minister Joo Hyung-hwan said on Sunday he had "deep concerns over a series of actions in China".
China's foreign ministry said on Monday it welcomed South Korean companies to invest and operate in China, but added these firms "must operate in accordance with the law and compliance".

Source: http://www.gulf-times.com/story/535349/S-Korea-s-Lotte-reports-store-closures-in-China-am

TLDR:

Lotte, one of the biggest companies in South Korea, sold real estate to the US which allowes them to start building the THAAD.

THAAD can spy on Chinese and Russian territory.

China angry.

China closes Lotte stores (by saying its for safety reasons), urges agencies not to offer travels to SK etc.

China is very angry.

 

[andythinkpad]

This is the sequel to the anti Japan protest from a few years ago, except it targets Lotte supermarkets only.

 

[ThoseDeafMutes]

THAAD can spy on Chinese and Russian territory.

The most bizarre objection I've ever seen to a missile defense system.

 

[Proelite]

Sad!

 

[bonesmccoy]

Sad!

Thaad!

 

[Blablurn]

The most bizarre objection I've ever seen to a missile defense system.

That's literally what they said

It caused strong oppositions from China and Russia as the THAAD's X-band radar can peer into territories of the two nations. The U.S. anti-missile shield is composed of the super microwave-emitting radar, six mobile launchers, 48 interceptors and the fire control unit.

 

[davidwhangchoi]

Sad!

Thaad!

lol

 

[numble]

I guess this also is a not-so-subtle hint to American companies that they should lobby against Anti-China policies in the US.

 

[brian577]

Perhaps if China yanked on its dogs leach a little more, this wouldn't be necessary.

 

[rokkerkory]

Tooooo bad china

 

[EVOL 100%]

Korea entering a trade war we cannot win.

Also, good luck in getting substantial US support when Drumpf is in charge

 

[Akira]

Thaad!

Lol!

 

[sangreal]

That's literally what they said

I mean... so can binoculars

what I am saying is, ban binoculars

 

[Chairmanchuck]

Didnt that CEO say bad thing about Chinese though? I thought he said something along the lines "Chinese will still buy it. They are low, so they dont wanna spend much. They will still buy our things."

In the end it doesnt matter, because I also would say they buy stuff. Lotte is like Nestle in Asia. A lot of stuff you dont even knew are from Lotte, are from that company.

 

[Burt]

Probably should've kept a tighter leash on the nuclear armed state that you patronize if you didn't want people putting missile defense systems on your doorstep.

 

[andythinkpad]

I guess this also is a not-so-subtle hint to American companies that they should lobby against Anti-China policies in the US.

I don't follow the logic.

 

[Hypnotoad]

I would wish that Chinese authorities would be as thourough of inspecting fire-related hazards across all residential and commercial buildings as they are now - for totally non-political reasons - towards Lotte Stores.

(For reference, just two weeks ago, at least 10 people died in a hotel fire: http://www.cnn.com/2017/02/25/world/china-hotel-fire-nanchang/)

 

[numble]

I don't follow the logic.

Because American companies have direct and indirect investments in China, and China can retaliate against American policies by attacking American corporate interests in China through such enforcement measures. Imagine if the next iPhone release in China was delayed because they held up the review of the device for "security reasons". Or if they subjected McDonalds and Starbucks to food safety inspections.

 

[Shadow Puppetry]

Thaad!

Made me spat some tea, damn it.

 

[EvetS]

Don't get MAD, get THAAD!

 

[BocoDragon]

Poor poor China has a weapons threat on their border? If only South Korea knew how that felt.

 

[ThoseDeafMutes]

That's literally what they said

I'm not saying they didn't, I'm saying that's an extremely bizarre objection. America stations the Sea based X-band radars not far from this region with some regularity anytime North Korea is doing missile tests, military satellites routinely pass over the country and can get high resolution imagery of any part of China they like. South Korea itself has radar stations and so does Japan that are capable of reaching well into Mainland China.

Objections to missile defense systems make sense for strategic/tactical reasons, but not for privacy concerns. This feels like a pretty flimsy excuse to put forward as an objection, like they were afraid of saying "we're worried that this could potentially be targeted at us or limit our tactical capabilities in the region if a war ever broke out for some reason". When Russia objects they are always really vague about it.

 

[Syriel]

TLDR:

Lotte, one of the biggest companies in South Korea, sold real estate to the US which allowes them to start building the THAAD.

THAAD can spy on Chinese and Russian territory.

China angry.

China closes Lotte stores (by saying its for safety reasons), urges agencies not to offer travels to SK etc.

China is very angry.

Maybe China should tell NK to stop acting like a little shit and then there wouldn't be any incentive for SK to put up a missile defense system.

 

[magenta]

So China doesn't have radar installations monitoring its neighbors? Don't they have there own missiles pointed at Taiwan?

 

[andythinkpad]

Because American companies have direct and indirect investments in China, and China can retaliate against American policies by attacking American corporate interests in China through such enforcement measures. Imagine if the next iPhone release in China was delayed because they held up the review of the device for "security reasons". Or if they subjected McDonalds and Starbucks to food safety inspections.

Yeah but corporations in a classical capitalist environment never defend other corporations.

Plus China has already done it to an American company, 1 billion antitrust fine.

 

[Ratrat]

Whats the reaction in South Korea?

 

[wesleyshark]

Thaad!

Lmfao

 

[Lautaro]

China should do more about NK then.

 

[Tuck]

Perhaps if China yanked on its dogs leach a little more, this wouldn't be necessary.

.

 

[Usobuko]

The tourism part is true.

You can't find Korea in online travel e-commerce website. The Japan category is there just for a contrast.

 

[TheLaughingStock]

I guess this also is a not-so-subtle hint to American companies that they should lobby against Anti-China policies in the US.

We will definitely kick their ass in the Trump era for sure.

In any event, I think it's a hint that China can attack foreign firms, subsidize their products, and isolate industries from global competition yet still be one of the richest and most powerful countries on the planet. Wish South Korea best of luck.

 

[Dynamite Shikoku]

China is angry about something

 

[Valkerionseven]

China keeps not wanting to do anything major about NK, what did they expect. SK has to put themselves first in this situation and they did.

 

[Turbo Killer]

Is this fucking country ever not angry?

 

[spwolf]

Because American companies have direct and indirect investments in China, and China can retaliate against American policies by attacking American corporate interests in China through such enforcement measures. Imagine if the next iPhone release in China was delayed because they held up the review of the device for "security reasons". Or if they subjected McDonalds and Starbucks to food safety inspections.

China exports to the USA a lot more than imports, so you wont see that story happening. Currently USA has $347 billion trade deficit with China.

 

[Hypnotoad]

Those "China stronk, boycott foreign devils" policies always backfire. Last year, Chinese curbed group travels to Taiwan because of the election of Chai Yingwen to the presidency. In effect, that led to Taiwan diversifying its tourism approach and a record number of foreign, non-Mainland visitors who also spend larger sums in local businesses.

 

[TacticalHotdog]

I'm not saying they didn't, I'm saying that's an extremely bizarre objection. America stations the Sea based X-band radars not far from this region with some regularity anytime North Korea is doing missile tests, military satellites routinely pass over the country and can get high resolution imagery of any part of China they like. South Korea itself has radar stations and so does Japan that are capable of reaching well into Mainland China.

Objections to missile defense systems make sense for strategic/tactical reasons, but not for privacy concerns. This feels like a pretty flimsy excuse to put forward as an objection, like they were afraid of saying "we're worried that this could potentially be targeted at us or limit our tactical capabilities in the region if a war ever broke out for some reason". When Russia objects they are always really vague about it.

It's definitely more likely that they feel that THAAD tips the balance of nuclear power/deterrence against them. Can't have MAD with THAAD. Russia has made similar protests about the missile shield deployment in Romania last year

 

[Kickz]

China does care

 

[LiveFromKyoto]

"It caused strong oppositions from China and Russia as the THAAD's X-band radar can peer into territories of the two nations. "

As well as allowing two people to play Genesis Mortal Kombat against one another from anywhere in the country.

 

[numble]

China exports to the USA a lot more than imports, so you wont see that story happening. Currently USA has $347 billion trade deficit with China.

We have already seen it happening, actually with KFC food inspections, iPhone delays, and especially with the blocking of some of the US's largest companies Google and Facebook. If China announced tomorrow that they were unblocking Google and Facebook, their stock prices would shoot up. Beef futures shot up when China removed the ban on US beef imports. There is a lot of power that China can yield against American companies.

 

[Earthbound64]

That's literally what they said

It caused strong oppositions from China and Russia as the THAAD's X-band radar can peer into territories of the two nations. The U.S. anti-missile shield is composed of the super microwave-emitting radar, six mobile launchers, 48 interceptors and the fire control unit.

 

[aznpxdd]

Well, sucks for those Chinese citizens from the supermarket and travel agencies, out on the streets without a job.

 

[Blablurn]

Well, sucks for those Chinese citizens from the supermarket and travel agencies, out on the streets without a job.

China plans to create 11 million new jobs in the next year.

 

[Mistake]

Every time they get mad people boycott stores, but they all forget that it's chinese people losing jobs, and without globalization they would be nothing and have nothing. Last time they protested kfc and starbucks.

 

[Blablurn]

Every time they get mad people boycott stores, but they all forget that it's chinese people losing jobs, and without globalization they would be nothing and have nothing. Last time they protested kfc and starbucks.

It's a good way to rally the people for them. They even made them protest Apple, years after Chinese people were going to crazy for Cupertinos devices since they used to be a a huge status symbol once.

Many, especially the older people, are still very patriotic.

 

[Madness]

This is the sequel to the anti Japan protest from a few years ago, except it targets Lotte supermarkets only.

Nationalism is out of control in the mainland. It is the only way the CPC maintains its grip on the country. If they don't act tough, the people will demand it. They fomented enough anti-Japanese pressure to the point mainlanders were smashing Toyotas and Hondas on the streets, they made flash games on their news sites called pin the flag on the Daioyu/Senkaku Islands. Just last month we saw mainland Chinese citizens protest the Dalai Lama visit a US university due to claims of him being an ethnic separatist and hurting the feelings. During the HK protests my friends were heckled by brainwashed mainlanders unfurling the Chinese flag in Vancouver while they had the HK and Taiwan and Tibet flags, despite them all being ethnic chinese.

If China and Chinese citizens need to be upset and vent, direct their anger toward little fat boy the 3rd in NK and his unhinged behavior and nuclear weapons tests and international assassinations. The THAAD is almost guaranteed and SK will definitely develop anti ballistic missile capability that could overlap with the Chinese mainland.

China also ignores the fact they have turned a few atolls and reefs into military fortresses and runways and ports in the South China Sea. In this era of fake news, nationalism and propaganda, I will always push back.

 

[SolarPowered]

Perhaps if China yanked on its dogs leach a little more, this wouldn't be necessary.

My thoughts exactly

 

[Aquavelvaman]

Whats the reaction in South Korea?

There has been a lot of opposition to THAAD since it was announced last year. China has always been strongly opposed. A lot of the Korean protests seemed like they might influenced by China, like I remember reading some farmers protesting saying that the radar array was going to hurt their crops and things like that. I'm sure there are plenty of sincere protesters as well.

Edit:
”We oppose Thaad with our lives!" the residents chanted, holding banners that bore the same slogan. Local political leaders, wearing red headbands, wrote the same vow in blood after cutting their fingers...

 

[Mistake]

It's a good way to rally the people for them. They even made them protest Apple, years after Chinese people were going to crazy for Cupertinos devices since they used to be a a huge status symbol once.

Many, especially the older people, are still very patriotic.

Oh I'm no stranger, I live here haha. My latest gripe is that everyone here believes Marco Polo brought pasta from China, and they invented it. Because that's totally what I eat at all the traditional restaurants /s

Anyway, complaining and action are two different concepts when it comes to China. I always get surprised looks when I flat out refuse something or get aggressive, so it's best to ignore the whining, because that's all it is.

 

[Ragnar Blackmane]

The most bizarre objection I've ever seen to a missile defense system.

The THAAD system comes with an extremely high range AN/TPY-2 radar that can easily be configured to surveillance the northeast of China (and you can bet the US military will just do that), which besides Bejing and Shangai also is where most of the Chinese military is based including their Headquarters. And that's a radar that's able to detect missiles, in FBR mode it can also easily pick up any plane etc. The missile system isn't the problem (it couldn't shoot down any missiles launched in China that are aimed at targets outside Korea anyway and can only fire in a limited arc facing towards NK), the radar system is:

Just imagine if China was stationing one of those things in Cuba. You'd get one hell of a harsh reaction too and severity of the threat to the US wouldn't be even comparable to what the AN/TPY-2 deployment means to China.
Recently held a presentation on the topic in my international politics class, if there are questions I might be able to answer them.