SEOUL, Aug. 10 (Xinhua) -- Decision between Seoul and Washington to deploy Terminal High Altitude Area Defense (THAAD) in South Korean soil adds worry to the already sagging economy as the deployment is expected to reduce trade with China, South Korea's largest trading partner.
Last month, South Korea and the United States agreed to house one THAAD battery in its southeastern county of Seongju by the end of next year despite strong oppositions from neighboring countries.
The THAAD's X-band radar can snoop on Chinese and Russian territories, breaking a strategic balance in the region and damaging security interests of China and Russia.
Seoul's move to join the U.S. Pivot to Asia strategy to contain China and Russia will not only have negative military, diplomatic effect on the region as arms race is expected, but also negatively affect trade between China and South Korea, which is already faced with downside risks at home and abroad.
South Korean exports, which account for about half of the export-driven economy, declined 10.2 percent in July from a year earlier. It was the longest monthly fall in history for 19 months in a row.
The country's exports to China, the world's second-largest economy, slumped 9.3 percent over the year in July. China takes up about a quarter of South Korea's total overseas shipments.
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