Taiwan, although self-ruled, is seen by China as a territory without any rights as a state. Taiwan's other offices in Europe and the US use the name the city of Taipei instead of referring to Taiwan as a whole.
As a result of a deepening spat between Beijing and Vilnius over Lithuania's decision to give Taiwan a de facto embassy, China has imposed a customs block on Lithuanian exports, according to the Lithuanian trade group.
How Lithuania Is Being Affected
After opening Taiwan's Representative Office in Lithuania on November 18th, China downgraded its diplomatic relations with the Baltic state and suspended consular services. On Friday, Lithuanian President Gitanas Nauseda told reporters, "I regret this decision by the Chinese authorities."
He expressed remorse after explaining quite clearly that the opening of the Taiwanese representation does not conflict with the idea of “One China,” of which they are a part. Lithuania's government, he said, should find a way to compensate businesses.
Lithuania, which primarily trades with EU countries, exported 300 million euros worth of goods to China in 2020, making it the 22nd largest exporting country.
According to a spokesperson for Lithuanian Ministry of Foreign Affairs, the Foreign Ministry will ask the European Commission to defend Lithuania's interests.
The first reports of Chinese customs' move have recently surfaced, according to Vidmantas Janulevičius, President of the Lithuanian Confederation of Industrialists. Chinese customs does not list Lithuania on its list of origin countries. As a result, Lithuanian cargoes cannot file customs forms.
Confederation members account for half of Lithuania's economy, and Janulevicius says it will file a complaint with the World Trade Organization (WTO) over trade barriers.
The Chinese Charge d'Affaires in Vilnius did not respond to the report. Meanwhile, a spokesperson for the European Commission said it was in contact with Vilnius and the EU delegation in Beijing to understand the situation better.
In a regular briefing, the spokesperson indicated that Chinese customs were not clearing the Lithuanian shipments. However, the Commission declined to comment further.
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