Tensions have arisen between Lithuania and China in recent months. Beijing reduced its diplomatic relations with the Baltic state after the latter allowed Taiwan to open a representative office in its name in the Lithuanian capital, Vilnius. China does not see democratic Taiwan, which broke away from the mainland in 1949, as an independent country and is trying to isolate it internationally.
According to Lithuanian sources, China is also flexing its economic power in the dispute. Because of the trade restrictions already imposed by Beijing on Lithuania, the European Union initiated actions against China in the World Trade Organization (WTO). “We support the EU’s decision,” Blinken said. “We must stand up for rules that maintain fair trade.”
In the dispute, the German economy in Lithuania fell between the fronts. Germany is the fourth largest investor in the three largest Baltic states. A supplier of cars Continental and Hella is active there.
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