Chinese state media has warned South Korean conglomerate Lotte Group that it may have to face big financial losses, if it does not stall the ongoing negotiation with South Korean government over deployment of U.S anti missile system.  

"Lotte will hurt the Chinese people and the consequences could be severe. The Chinese people will not support a company complicit in damaging China's interests," China's state owned agency Xinhua said.

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Xinhua reminded the conglomerate that it may very well lose the "Chinese customers and the Chinese market," which constitutes a big part of their business.

Lotte Group, which is South Korea's fifth largest conglomerate, has huge business interest across China. The group has been facing increase scrutiny by Chinese authorities ever since the report emerged that it may trade off a huge land to South Korean government for deployment of THAAD missile, or more commonly known as Terminal High Altitude Area Defense missile. This land that is reportedly part of a huge golf course is apparently owned by the Lotte Group.

In December last year, reports surfaced in the South Korean media that group's premises across China is been increasingly scrutinized for violation of health, of safety and of tax compliances. As a result of these punitive actions, the group said earlier this month that it would shut down three retails stores in capital city of Beijing.

The Chinese government is reportedly piling up huge pressure on several South Korean companies as well as artists in response to the proposed deployment of THAAD in Korean peninsula. China alleges that instalment of THAAD will comprise region's peace and security, but South Korea and the U.S claim that the missile deployment is necessary in the wake of imminent danger from North Korea.       

Meanwhile, the Chinese government last week announced complete suspension of coal import from North Korea in response to its missile test carried out last week. However, this time China's coal ban will last for much longer time, with the ban lasting up to the end of this year.      

TagsSouth Korea, Lotte Group, THAAD Missile, South Korea and China, North Korea