EU takes on China in WTO: China Targets Lithuania for its stance on Taiwan.
~Preet
In a strategy that the Chinese call, "Kill the chicken to scare the monkeys", China has been targeting Lithuania, the superficial reason for which is the stance of Lithuania on Taiwan. But the real reason can be other than what is visible in the current scenario.
Lithuania's current government, after being elected to power in 2020 has constantly been taking moves against the Chinese interests. The new government of Lithuania embraces a 'value based foreign policy' based on 'democracy' and 'freedom', and has been lauding support for the cause of Taiwan since the formation of the government.
There are many geopolitical factors in play as well. The tensions in Eastern Europe over EU and NATO's fallout with Lithuania's aggressive neighbours- Russia and Belarus, adds up to the issue. Lithuania was the first constituent USSR to declare itself independent from the Soviet Union, hence it has ideological reasons to stand out against China as well. Also the growing Sino-Russian partnership, had made China wary of Lithuania.
Lithuania has always been a very expressive critic of China in the European Union and has always taken up the issues of Taiwan, Hong Kong and Xinjiang. It supported Taiwan's demand to provide it with observer status in the World Health Organization in 2020, against China's opposition in the wake of COVID-19 Pandemic.
In the field of international economic relations, Lithuania's abstract has been that, in order to secure a healthy economic relation, the states must be democratic regime. This idea of Lithuania, is another reason for its detonating relations with China. Lithuania's government has been requesting its citizens to not buy Chinese smartphones, citing security reasons, and has kept away China from acquiring controlling stakes in Klaipeda Seaport and also from its 5G infrastructure bids.
Taiwan, extending a hand of support against the common enemy China, has made efforts to compensate Lithuanian economy from China's coercion. About 20,000 bottles of Lithuania's rum which was to be shipped to China, was transported to Taiwan. Also Taiwan has come up with a USD 200 million investment plan to cover the economic losses faced by Lithuania. This investment of Taiwan, will also open a gateway for it in the European market and will also make up for semiconductor supply shortages faced by it.
Taiwan is also making plans to start with a USD 1 billion credit program to help Lithuania's Business.
The USA government has expressed concerns over this issue as well. Beijing has come up harshly on this step of the European Union. It calls the acquisitions of "so-called" Chinese coercion, 'groundless' and 'inconsistent'.
EU's Trade Chief, Valdis Dombrovskis, said that, "Launching a WTO case is not a step we take lightly."
He said that- "However, after repeated failed attempts to solve the issue bilaterally, we see no other way forward than to request WTO dispute settlement consultations with China."
A period of 60 days is provided to the nations to come to a solution. The Chinese Foreign Ministry Spokesperson, Zhao Lijian said that, "The issue between China and Lithuania is a political one, not an economic one."
Now, one can only wait to know what comes ahead.
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