For a second time in a row Hyundai Motor suspends production at its factory in China

South Korean companies are facing a backlash from China over Seoul’s decision to deploy THAAD missile defense system that China sees as threat to its national security.

In a significant development that reveals China hidden hands as it moves to back its ally North Korea, in a second such incident, Hyundai Motor has stated that it was forced to suspend production at one of its factories in China after a supplier refused to provide parts due to delays in payment.

Diplomatic tensions between China’s ally North Korea and South Korea have frayed the relationship between Hyundai Motor and its Chinese joint venture partner BAIC Motor Corp Ltd.

Thankfully, the operations of the joint venture’s three other Chinese factories have remained untouched.

On Monday, Hyundai had announced the replacement of the head of its China operations with Tao Hung Than, who is of Chinese descent.

South Korean companies are facing a backlash from China over Seoul’s decision to deploy THAAD, a U.S. missile defense system that can counter threats from nuclear-armed North Korea.

China has stated THAAD poses a threat to its national security.

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Categories: Creativity, Economy & Finance, Entrepreneurship, Geopolitics, HR & Organization, Regulations & Legal, Strategy

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