China’s technology companies are unfazed by their government’s series of sanctions on Korean products and services in protest to Seoul’s decision to deploy a U.S. antimissile system in their inroads into South Korea.

China’s smartphone maker Xiaomi Inc. is opening up a flagship store in Seoul or Busan around January or February next year to directly market its products to Korean consumers for the first time, according to sources from the IT industry on Wednesday. Korea would be the fourth country that the Chinese tech firm chooses to open an offline store following Mainland China, Hong Kong and Singapore. Xiaomi’s founder and chief executive officer Lei Jun is also expected to visit Korea to celebrate the opening day of the store.

Another Chinese tech giant Huawei Technologies Co. is also reinforcing its business in Korea. Yan Lida, president of Huawei Enterprise Business Group said on Monday at a press conference in Seoul that Huawei has been chosen as an official supplier for the 2018 PyeongChang Winter Olympics. Huawei will provide telecommunications equipment and services during the competition.

“We are also considering doing business with Korea’s public sector,” said Kelvin Ding, Huawei Korea chief executive officer. The Chinese firm has been supplying its communications equipment to Korea’s mobile carrier LG Uplus Crop. and is working on to provide its products to Korea’s top wireless carrier SK Telecom Co.

While Korea opens up its prized IT market, Beijing has been discriminating Korean products and services in retaliation for the plan to install Terminal High Altitude Defense Area battery in South Korea as it fears China would come under U.S. surveillance through the powerful radar system.

Chinese travel agencies reportedly had been told restrict group tours to Korea and broadcasters not to air Korean TV programs. Both big and small Korean companies were hurt by a range of restrictive actions. All of Lotte retail businesses in China came under sudden probe and Korea imports under dumping charges.

By Shin Hyun-kyu and Oh Chan-jong

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