Abstract: Despite 25 years of unprecedentedly friendly ties between South Korea and China, the Terminal High Altitude Area Defense (THAAD) disputes and China’s ensuing sanctions against South Korea have forced the bilateral relationship into an unprecedented standoff. Given South Korea’s growing dependence on China in economic and North Korean affairs, commentators always assumed that the South Korean government would “manage” this relationship. China has maintained a close relationship to keep South Korea within its orbit, restraining Seoul from further efforts to strengthen the U.S.–South Korean alliance. However, the Park Geun-hye government’s decision to respond to North Korea’s incessant provocations by deploying the THAAD system in South Korea caused China to implement economic retaliation. The ensuing paralysis of bilateral relations has lasted for over a year. A key problem for the future of the bilateral relationship is the fact that both countries have lost trust in each other. China views South Korea’s decision to deploy THAAD as a betrayal of its support, while South Korea objects to China’s relentless economic bullying. Consequently, post–THAAD South Korea–China relations are likely to reflect South Korea’s efforts to reduce its dependency on China and to manage its development in a more balanced way. Full text available here.