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Tensions between the two countries have been high since last year
South Korea and China have agreed to work to get relations back on track following a year-long standoff after the US installed an anti-missile system in South Korea.
The US Terminal High Altitude Area Defence (THAAD) system angered China, which believed the radar could be used to spy on its territory.
South Korea’s foreign ministry in a statement said: “Both sides shared the view that the strengthening of exchange and cooperation between Korea and China serves their common interests and agreed to expeditiously bring exchange and cooperation in all areas back on a normal development track.”
President Moon Jae-in will hold a summit meeting with China’s President Xi Jinping on the sidelines of an upcoming summit of Asia-Pacific Economic Cooperation (APEC) countries in Vietnam between November 10-11, a Blue House official said in a separate briefing on Tuesday.
China’s foreign ministry said in a coordinated statement that the two countries have agreed to get their relations back on a normal track “at an early date”.
South Korea made it clear that the deployment of THAAD was not aimed at any third country and did no harm to China’s security interests, China’s foreign ministry said.
China repeated its opposition to the defence system but takes note of South Korea’s position, it added.
The statement added: “South Korea-China relations are very important and in accordance with spirits of joint documents, decided to develop their strategic cooperation partnership.”
China retaliated economically over the defence system.
It suspended sales of package tours and hindered the operations of South Korean companies operating in China.
The Lotte Group, which provided land for THAAD, suspended operations in most of its 99 supermarkets for alleged violations of fire-safety rules.
The Lotte Group faces a costly overhaul and is expected to sell its Chinese hypermarket stores for a fraction of what it invested.
South Korea shows off impressive military assets amid fears of North Korea attack
Thu, September 28, 2017
South Koreans are preparing for war by displaying martial arts and massive weapons in military exercises and drills.
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A South Korean Special Army female soldier performs ‘Teukgong martial arts’
A spokesman for Lotte Corp, the holding company of Lotte Group, expressed hope its business activity in China would improve following the announcement.
South Korean tourism and retail shares rallied, with Lotte Tour surging more than 18 percent and Lotte Shopping up as much as 5.7 percent.
Shares of Asiana Airlines gained as much as 4.6 percent.
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The Lotte Group suffered from the sanctions from China
Earlier this month, South Korea and China agreed to renew a $56 billion currency swap agreement, while Chinese airlines are reportedly planning to restore flight routes to South Korea that had been cut during the spat.
As part of efforts to restore relations, the two countries held high-level talks ahead of Tuesday’s agreement.
Both sides agreed to improve strategic communication and cooperation in the face of North Korea’s accelerating nuclear and missile programme.
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North Korea has conducted a series of missile and nuclear tests since July
Pyongyang has engaged in a series of missile and nuclear tests since July, angering its only major ally, China.
The summit comes as Chinese President Xi Jinping at the Chinese Communist Party Conference promised “comprehensive reform” and added that “China has and will continue issuing a series of measures to further open up”.
He also mentioned worries that foreign technology and companies could compromise the country’s security.
During the conference, the Chinese President cemented his status as China’s most powerful leader after Mao Zedong.