Dispute between Lithuania and China following diplomatic row over Taiwan

Summary:

Information Guide concerning the rising tension between Lithuania and China over a decision that allowed Taiwan to open a representative office in Vilnius.

Further information:

In July 2021, Lithuania agreed to the opening of a Taiwanese Representative Office - seen as a de facto embassy - bearing the name of Taiwan, a first in the European continent. Elsewhere, Taiwan represents itself under the name of Taipei to avoid a reference to the island which China claims as its territory. Lithuania is one of a small set of countries nourishing diplomatic ties with Taiwan. The office opened in November 2021. This development took place in the context of increasing diplomatic cooperation between the two sides.

China reacted angrily to this decision, which progressively led to an escalation of tension between Lithuanian and Chinese authorities. China recalled their ambassador and imposed a row of economic sanctions against Lithuania. The European Union (EU) warned that the blockade of Lithuanian exports imposed by China was hitting other EU exports too. In early January 2022, Taiwan announced the creation of an investment fund to support Lithuania in its attempt to resist diplomatic and trade pressure from China.

Later in the month, the European Commission decided to launch a case against China at the World Trade Organisation (WTO) over what was seen as discriminatory trade practices against Lithuania. Other countries later asked to join this case. Even so, China decided in February 2022 to halt beef, dairy and beer imports from Lithuania claiming compliance issues.

Commentary and Analysis

RFE/RL, 17/08/2021: Beijing's Spat With Lithuania Sets The Stage For Shaky New Era of Europe-China Ties https://www.rferl.org/a/china-lithuania-spat-eu/31415235.html

GMFUS: Insights, 17/08/2021: Lithuania's Ties with China Sour, and Warm with Taiwan https://www.gmfus.org/news/lithuanias-ties-china-sour-and-warm-taiwan

LRT News, 25/08/2021: Lithuania’s stand-off with China: what’s next? https://www.lrt.lt/en/news-in-english/19/1474999/lithuania-s-stand-off-with-china-what-s-next

The Economist, 26/08/2021: China would rather be feared than defied https://www.economist.com/china/2021/08/26/china-would-rather-be-feared-than-defied

Emerging Europe: News & Analysis, 03/09/2021: Why China’s threats towards Lithuania are likely to backfire https://emerging-europe.com/news/why-chinas-threats-towards-lithuania-are-likely-to-backfire/

Foreign Policy: Report, 07/09/2021: Pressured by China, Lithuania Won’t Back Down Over Taiwan https://foreignpolicy.com/2021/09/07/lithuania-taiwan-china-dispute-geopolitics-europe-landsbergis/

Foreign Policy: Argument, 22/09/2021: The China-Lithuania Rift Is a Wake-Up Call for Europe https://foreignpolicy.com/2021/09/22/china-lithuania-taiwan-eu-nato/

Euro|topics, September 2021: Lithuania vs. China: will the West take a stance? https://www.eurotopics.net/en/268561/

Politico, 06/10/2021: How little Lithuania dragged the EU into its showdown with China https://www.politico.eu/article/lithuania-china-showdown-eu-impact/

Swedish Institute of International Affairs: Publications, November 2021: The limits of economic coercion: Why China’s red-line diplomacy is failing in Lithuania and the wider European Union https://www.ui.se/english/research/swedish-national-china-centre/Publications/the-limits-of-economic-coercion/

Carnegie Endowment for International Peace: Moscow Center: Commentary, 29/11/2021: Why Little Lithuania Is Taking On Mighty China https://carnegiemoscow.org/commentary/85873

The Economist: Explainer, 02/12/2021: Why are eastern European countries cosying up to Taiwan? https://www.economist.com/the-economist-explains/2021/12/02/why-are-eastern-european-countries-cosying-up-to-taiwan

CEPS: Policy Insights, 16/12/2021: Lithuania, China and EU lawfare to counter economic coercion https://www.ceps.eu/ceps-publications/lithuania-china-and-eu-lawfare-to-counter-economic-coercion/

Centre for Eastern Studies (OSW): Analyses, 22/12/2021: A new phase of China's pressure on Lithuania: weaponisation of European value chains https://www.osw.waw.pl/en/publikacje/analyses/2021-12-22/a-new-phase-chinas-pressure-lithuania-weaponisation-european-value

Carnegie Europe: Strategic Europe, 18/01/2022: China’s Bullying of Lithuania Spurs European Unity https://carnegieeurope.eu/strategiceurope/86208

EUObserver: Opinion, 18/01/2022: Time to stop China's economic hostage-taking of Lithuania https://euobserver.com/opinion/154103

LSE: China Dialogues Blog, 21/01/2022: Ask the Experts: Does China’s dispute with Lithuania signify a shift in its broader relationship with Europe? https://blogs.lse.ac.uk/cff/2022/01/21/ask-the-experts-does-chinas-dispute-with-lithuania-signify-a-shift-in-its-broader-relationship-with-europe/

The Economist: Charlemagne, 22/01/2022: What China’s bullying of Lithuania reveals about Europe https://www.economist.com/europe/2022/01/22/what-chinas-bullying-of-lithuania-reveals-about-europe

Friends of Europe: Insights, 28/01/2022: Economic coercion: how can we reduce our vulnerability? https://www.friendsofeurope.org/insights/economic-coercion-how-can-we-reduce-our-vulnerability/

Euro|topics, January-February 2022: Growing anger over Chinese sanctions against Lithuania https://www.eurotopics.net/en/275525/

---

News

Deutsche Welle, 20/07/2021: Taiwan to open diplomatic facility in Lithuania, angering China https://p.dw.com/p/3xjv1

Associated Press, 11/08/2021: China recalls Lithuania ambassador in row over Taiwan office https://apnews.com/article/europe-business-health-china-coronavirus-pandemic-1a689c07bfa34ab638c9b57f3235fe3e

EurActiv, 12/08/2021: Lithuania envoy in Beijing to leave China over Taiwan dispute https://www.euractiv.com/section/china/news/lithuania-envoy-in-beijing-to-leave-china-over-taiwan-dispute/

Baltic Times, 22/08/2021: Beijing stops approving new permits for Lithuanian food exports to China – service https://www.baltictimes.com/beijing_stops_approving_new_permits_for_lithuanian_food_exports_to_china___service/

Reuters, 22/08/2021: U.S. lends support to Lithuania against China pressure https://www.reuters.com/world/us-lends-support-lithuania-against-china-pressure-2021-08-22/

The Guardian, 26/08/2021: China’s trade halt with Lithuania over Taiwan ties sends warning to Europe https://www.theguardian.com/world/2021/aug/26/chinas-trade-halt-with-lithuania-over-taiwan-ties-sends-warning-to-europe

Euronews, 03/09/2021: Lithuania recalls ambassador to China over Taiwan office dispute https://www.euronews.com/2021/09/03/lithuania-recalls-ambassador-to-china-over-taiwan-office-dispute

Delfi (Lithuania), 11/09/2021: Pavilionis: China’s sanctions may benefit Lithuania over time https://www.delfi.lt/en/politics/pavilionis-chinas-sanctions-may-benefit-lithuania-over-time.d?id=88160591

France24, 15/09/2021: US discusses support for Lithuania amid China pressure https://www.france24.com/en/live-news/20210915-us-discusses-support-for-lithuania-amid-china-pressure

VOA News, 15/09/2021: US Backs Lithuania in Row With China Over Taiwan https://www.voanews.com/a/6230720.html

BBC News, 22/09/2021: Lithuania urges people to throw away Chinese phones https://www.bbc.co.uk/news/technology-58652249

Reuters, 30/10/2021: China warns Lithuania, European officials over Taiwan row https://www.reuters.com/world/china-warns-lithuania-european-officials-over-taiwan-row-2021-10-30/

Deutsche Welle, 18/11/2021: Taiwan opens representative office in Lithuania https://p.dw.com/p/438j4

The Guardian, 19/11/2021: China condemns opening of Taiwan office in Lithuania as ‘egregious act’ https://www.theguardian.com/world/2021/nov/19/china-condemns-opening-of-taiwan-office-in-lithuania-as-egregious-act

Reuters, 21/11/2021: China downgrades diplomatic ties with Lithuania over Taiwan https://www.reuters.com/world/asia-pacific/china-downgrades-its-diplomatic-ties-with-lithuania-over-taiwan-issue-2021-11-21/

Politico, 21/11/2021: China downgrades Lithuania’s diplomatic status over Taiwan row https://www.politico.eu/article/china-downgrades-diplomatic-relations-with-lithuania-over-taiwan-representative-office/

The Guardian, 21/11/2021: China downgrades diplomatic relations with Lithuania over Taiwan row https://www.theguardian.com/world/2021/nov/21/china-downgrades-diplomatic-relations-with-lithuania-over-taiwan-row

BBC News, 22/11/2021: China downgrades diplomatic ties with Lithuania over Taiwan row https://www.bbc.co.uk/news/world-asia-china-59370521

EUObserver, 07/12/2021: Lithuania seeks EU protection from Chinese bullying https://euobserver.com/world/153737

Euronews, 15/12/2021: Lithuania pulls last diplomat from China amid dispute over Taiwan relations https://www.euronews.com/2021/12/15/lithuania-pulls-last-diplomat-from-china-amid-dispute-over-taiwan-relations

RTÉ News, 24/12/2021: China's Lithuania blockade hits other EU exports, Dombrovskis says https://www.rte.ie/news/business/2021/1224/1268566-chinas-lithuania-blockade-hits-other-eu-exports/

Euronews, 24/12/2021: China blocking EU imports with Lithuanian components over Taiwan row, says Brussels https://www.euronews.com/2021/12/24/china-blocking-eu-imports-with-lithuanian-components-over-taiwan-row-says-brussels

EurActiv, 03/01/2022: Taiwan offers a port in a diplomatic storm for Lithuanian rum https://www.euractiv.com/section/all/news/taiwan-offers-a-port-in-a-diplomatic-storm-for-lithuanian-rum/

The Guardian, 04/01/2022: Taiwan ‘buys 20,400 bottles of Lithuanian rum rejected by China’ https://www.theguardian.com/world/2022/jan/04/taiwan-buys-20400-bottles-of-lithuanian-rum-rejected-by-china

Associated Press, 05/01/2022: US, Germany support Lithuania in spat with China over Taiwan https://apnews.com/article/europe-china-united-states-beijing-germany-002efa4faf558a32a2eb8373abf75fbf

BBC News, 06/01/2022: Taiwan setting up $200m Lithuania fund amid China row https://www.bbc.co.uk/news/business-59890338

Politico, 09/01/2022: Lithuania wins microchip windfall from Taiwan in China clash https://www.politico.eu/article/lithuania-taiwan-china-microchip-windfall-clash/

LRT News, 11/01/2022: Lithuania’s FM failed to anticipate China’s full retaliation over Taiwan https://www.lrt.lt/en/news-in-english/19/1585384/lithuania-s-fm-failed-to-anticipate-china-s-full-retaliation-over-taiwan

RTÉ News, 13/01/2022: Taiwan and Lithuania forge ties despite pressure from China https://www.rte.ie/news/world/2022/0112/1273334-taiwan-lithuania/

Euronews, 14/01/2022: Brussels backs Lithuania in row with China over Taiwan https://www.euronews.com/2022/01/14/brussels-backs-lithuania-in-row-with-china-over-taiwan

Reuters, 26/01/2022: Lithuania considers modifying Taiwan representation name to defuse row with China https://www.reuters.com/world/asia-pacific/lithuania-considers-modifying-taiwan-representation-name-defuse-row-with-china-2022-01-25/

BBC News, 27/01/2022: Lithuania-China row: EU escalates trade dispute with Beijing https://www.bbc.co.uk/news/world-europe-60140561

Deutsche Welle, 09/02/2022: China boycotts Lithuania over Taiwan https://p.dw.com/p/46jpb

Politico, 10/02/2022: Taiwan, Canada, Japan ask to join EU’s WTO case against China https://www.politico.eu/article/taiwan-asks-to-join-eus-wto-case-against-china/

South China Morning Post, 10/02/2022: China bans Lithuanian beef, dairy, alcohol, claiming compliance issues and label tampering https://www.scmp.com/economy/china-economy/article/3166507/chinas-lithuanian-beef-import-ban-labelled-unilateral

BBC News, 11/02/2022: China halts Lithuania beef, dairy and beer imports amid Taiwan row https://www.bbc.co.uk/news/business-60343316

---

Official

Lithuanian Foreign Ministry: News, 03/09/2021: Lithuania’s Foreign Minister Gabrielius Landsbergis: If we drop the EU27-China format, we will lose on so many fronts https://www.urm.lt/default/en/news/lithuanias-foreign-minister-gabrielius-landsbergis-if-we-drop-the-eu27-china-format-we-will-lose-on-so-many-fronts

Associated Press, 21/11/2021: China reduces ties with Lithuania in Taiwan spat https://apnews.com/article/europe-china-beijing-taiwan-lithuania-644af69e2dda15a87f517c5ee19fc6fb

European Commission: DG Trade: News, 08/12/2021: Joint Statement by High Representative/Vice-President Josep Borrell and Executive Vice-President Valdis Dombrovskis on China’s measures against Lithuania https://trade.ec.europa.eu/doclib/press/index.cfm?id=2340

European Commission: Press Release, 27/01/2022: EU refers China to the WTO following its trade restrictions on Lithuania https://ec.europa.eu/commission/presscorner/detail/en/ip_22_627

---