South Korea's decision to deploy THAAD missile system has not only affected the relations between China and South Korea but also brought new variables to the geopolitical and geo-economic relations in North East Asia.

The researchers at ANBOUND Consulting are of the view that although the deployment of THAAD missile system has undermined the relationship between China and South Korea, it has yet to ruin the bilateral relations completely.

It is possible that following this incident, China and South Korea might achieve a new balance in their relationship.

ANBOUND Consulting is of the view that the bilateral relations between China and South Korea will deteriorate and the mutual political trust between the parties will be severely undermined.

The question of whether the changes in the political relations between China and South Korea will affect their bilateral economic relations depends to a large extent on China’s attitude.

Under the new balance in the "post-THAAD" era, China still has ample policy room to maneuver.

Even if China does not sanction South Korea economically, there are still ways to sanction South Korea in other areas.