A number of Chinese firms are considering steps that would limit the imports and investment to South Korea as a part of possible retaliation against Seoul’s decision to deploy the U.S. Terminal High Altitude Area Defense (THAAD) missile defend system on its soil.

The Chinese government is reviewing measures that would restrict imports of Korean goods and services and also suspend Chinese firms’ investment deals in Korea, according to Bloomberg News on Friday. It, based on multiple sources, projected Korean electronic car battery makers Samsung SDI Co. and LG Chem Ltd. would be excluded from the Chinese’s government’s list of suppliers meeting its technical standards.

The Beijing government earlier this year decided to grant subsidies only to the vehicles equipped with the batteries of which standards live up to its regulation but the two Korean battery makers in June were disqualified from Beijing’s certification and have been working hard to make the list. Both firms made investment in production facilities in China in a bid to win the world’s largest electric vehicle market, and they would face losses amounting hundreds of millions of dollars if they fail to obtain the Chinese’s government qualification on their batteries.

It is reported that Chinese automaker Anhui Jianghuai Automobile Co. already suspended manufacturing the electric vehicles that use Samsung SDI batteries in a fear of unsold stocks.

The buyout deal over ING Life Insurance Korea Ltd. also has been put on hold. Three Chinese firms - Hong Kong-based investment manager JD Capital Taiping Insurance Group, and Fosun International – have been tapping to purchase the life insurance firm that was put on sale by Korean private equity MBK Partners, but the firm has delayed the final bidding, which was scheduled to take place late July, upon the Chinese firms’ request.

Industry watchers predict that Chinese government would further expand its intervention over trades with Korea to apply pressure on Seoul not to deploy the THAAD in Korea.

By Park Man-won

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]