Terminal High Altitude Area Defense

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TerminalHigh Altitude Area Defense

TerminalHigh Altitude Area Defense

TerminalHigh Altitude Area Defense (THAAD) was also known as, Theater HighAltitude Area Defense. It is a missile technique created to destroyballistic missiles within a range one thousand to five thousand, fivehundred kilometers. THAAD is the most powerful defense system in theworld. Originally, it was developed by the United States Army. Theideology of came up in the year1987. Martin Marietta, a contractor, chosen by the army of the UnitedStates to create a prototype, developed the concept of THAAD (Kim,2013). After completion, the first test of the missile took place inthe year 1995, in the month of April. This test however failed. Aftersix more trials, success was reached on June 10th 2013. In the year2016, South Korea placed a deployment order for the missile in anattempt to defend themselves from attacks from North Korea. Thispaper explains how the deployment of THAAD has impacted and ruinedthe relationship between China and Korea.

Missiledeployment in South Korea

Theteam of South Korea asked for information about the Terminal HighAltitude Area Defense, on October 10th 2003. They wanted to know theprice of the missile system as well as what it is capable of causing.They did this in an attempt to create an active defense systemagainst missile attacks from North Korea. Initially, they intended touse the information acquired for their technological developments.The deployment of THAAD, however, has created concerns amongofficials in China. They believe that the missile is meant to shootdown their missiles, not those from North Korea. This suspicion hasdeveloped tension between South Korea and China.

FreeTrade Agreement between South Korea and China

Deliberationsfor a free trade agreement between South Korea and China started inthe month of May, the year 2012 and made official on 10th November2014. The Free Trade Agreement was later, on 1st June 2015. That wasthe beginning of China and South Korea’s economic relationship.

TerminalHigh Altitude Area Defense economic impact between China and SouthKorea

Afterthe military of South Korea finally decided to deploy the TerminalHigh Altitude Area Defense missile in 2016, its economic relationshipwith China has become tense. Chinese officials feel that theirsecurity system is under threat. South Korea, however, insists thatTHAAD is for their protection against North Korea. Trade activitieshad been successful between China and South Korea until the decisionby South Korea, to deploy THAAD. Now economic activities between thetwo States have decreased dramatically.

Forinstance, the Chinese have since the discouraged their citizens fromvisiting South Korea. Tourism in South Korea has, therefore,decreased. The news also that, all supermarkets in China are takingKorean products off their shelves (Dingding, 2016). China has alsogone ahead and reduced importation of goods and services from SouthKorea. The goal that China is aiming at achieving is making SouthKorea realize that her economic relationship with China is moreimportant that her need for weapons, since the economy of South Koreadepends heavily on China (Gibson, Jenna, 2016).


Theeconomic relationship between China and South Korea was clearly goodbefore THAAD. Since the deployment of THAAD, South Korea has lost alot of business with China. If this situation continues, China mightlink up with North Korea and Russia and drop South Korea for good.THAAD, therefore, has a negative economic impact on China and SouthKorea.


Dingding,C. (August 22, 2016). IsChina loosing South Korea?The Diplomat.

Gibson,J. (August 3, 2016). “IsChina Already Taking Its Revenge for Thaad?”The Diplomat.

Kim,T. (2013). SouthKorea`s Missile Dilemmas.Asian Survey, 39(3), 486-503.