On July 8, South Korea and the United States announced that to counter the threat of North

Korea and to protect the national security of South Korea, Terminal High Altitude Area Defense (THAAD) will be installed in the latter's territory.

The research team at ANBOUND Consulting suggests that the installation of THAAD by the United States and South Korea will reshape the geo-politics and geo-economy of East Asia, which in turn will give China huge amount of pressure.

Sino-Korea’s political and economic relations could be worsened, and the bilateral relations will be affected.

China should grab or create more bargaining power in the East Asian arena.