Beijing: South Korean President Moon Jae-in has arrived in China with 200 business people, a sign of thaw in frosty relations with its major trading partner.

As tensions rise between the Turnbull government and Beijing, South Korea's experience is a cautionary tale.

Moon and Chinese President Xi Jinping will meet on Thursday to discuss ways to "normalise" relations. Chinese tourism to South Korea plunged 70 per cent this year.

Beijing banned travel agencies selling group tours as retaliation for South Korea installing a US anti-missile system to protect it from North Korea. China claims the THAAD radar can spy deep into Chinese territory. South Korean retailer Lotte was forced to close stores after failing "fire safety" inspections.