>> With America's THAAD anti-missile system almost fully set up in South Korea, friction between Beijing and Seoul is only getting worse. And from manufacturing to tourism, South Korean businesses in China continue to be unwitting victims. China loathes the fact that THAAD is bringing US radar assistance close to its territory and wants to punish South Korea for letting that happen.
Reuters Adam Jordan reports from an area where Beijing is making an example of one of South Korea's most famous brands.>> We're here in Jiaxing, a satellite city outside Shanghai on China's east coast. And right behind me you can see a Lotte Supermarket, part of the giant South Korean conglomerate, Lotte Group.
And one of around 90 of their supermarkets here in China that was shut down early this year, growing tensions between the two countries. And as you can see, remains closed, remains shuttered as a stark reminder that those tensions are yet to go away.>> On the doors, a date can still just be read, March 6, 2017, when the store was ordered to temporarily close by the Chinese government over alleged fire safety issues.
But there's a flip side to Beijing's mission to punish South Korea. Local Chinese businesses are also suffering.>> We've spoken to local shopkeepers and workers and residents around the area. And what they say is that the closure of this Lotte Mart Store has had a sort of a rippling effect on the sort of microeconomy of this little area.
There are stores, there's a barber shop in the same building, and they have a notice pinned on their window which says, we're very sorry but because of the closure of the supermarket they've had to close down as well and move elsewhere.>> That problem doesn't look likely to go away anytime soon.
Lotte Mart staff tell Reuters, there's no sign the stores will be reopening in the near future.