Recently, 211 foreign exporters, 203 foreign manufactures and 217 Chinese importers received a warning notice from the Chinese authorities. These blacklisted firms have been either denied customs clearance at least once or were found to have brought in low quality products into China more than once in the past three years. Among them were 24 South Korean manufactures and exporters of foods and cosmetics.
The news of the blacklisting immediately pulled down the stock prices of Korean cosmetics firms. The move is generally believed to be Beijing’s economic retaliation against Seoul’s deployment of the Terminal High Altitude Area Defense system in Seongju in March. Beijing regards THAAD as a security threat, while Seoul and the US say the missile defense system is there to safeguard the Korean Peninsula.