Story highlights China loudly objected to the planned deployment of the THAAD missile system

South Korea, US said THAAD was purely aimed at stopping North Korea

(CNN) A diplomatic dispute between South Korea and China officially ended on Tuesday, following months of tense relations and economic retaliation triggered by the deployment of a controversial missile defense system.

In statements issued by both countries' foreign ministries Tuesday, Seoul and Beijing said they recognized the "great importance" of the relationship between the two neighbors."

Both sides agreed that strengthening exchanges and cooperation between Korea and China would create harmony of interests in both sides, and agreed to resume exchanges and cooperation in all areas as soon as possible," the statement said.

Relations deteriorated after South Korea announced in July 2016 that it would deploy the US-built Terminal High Altitude Area Defense (THAAD) defense system to defend against North Korean missile threats.

The Chinese government took issue with the planned missile system, which Foreign Minister Wang Yi said could jeopardize "China's legitimate national security interests."

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