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Brussels supports Lithuania in the diplomatic dispute with China

Brussels has backed Lithuania in its standoff with China over Taiwan after Beijing reacted angrily to the Baltic country’s support for Taipei.

The support came from EU foreign policy chief Josep Borrell following a meeting of Union foreign ministers in Brest, France. Borrell said there was “clear solidarity” with Lithuania in the dispute.

“Some things [mit China] going well, some not so well,” the top EU diplomat told reporters on Friday. “During the session, we specifically talked about Chinese activities in Lithuania and the impact of these activities on the EU as a whole. Member States have clearly shown solidarity with Lithuania and we have discussed how we can actively promote de-escalation in this crisis.”

Much to China’s chagrin, Lithuania last November allowed Taiwan to open a so-called representative office, a de facto embassy, ​​in its capital — the first of its kind in Europe and giving China a “clear break” with the one-China policy of the country called.

But the row has been brewing for some time, first after Vilnius left the so-called 17+1 group in May last year – a format used by China to negotiate directly with the EU’s eastern countries.

Beijing then began unannounced to block Lithuanian goods from entering the country, prompting the Baltic state to strengthen ties with Taiwan and further intensify the trade war between the two sides.

Is Lithuania backing down?

Vilnius declared in December that it would not send diplomats to the Winter Olympics in China, but the country’s foreign ministry has now refused to speak of a boycott.

Earlier this month, Lithuanian President Gitanas Nauseda also said it was a “mistake” to let Taiwan open a representative office under its own name instead of using “Chinese Taipei” to avoid threatening Beijing’s claim to Taiwan.

These latest developments could be a sign that Vilnius is retreating from its original position, likely due to China’s economic power, which is also pressuring European companies like German tire maker Continental not to use components from Lithuania.

A recent poll by the Baltic country’s Ministry of Foreign Affairs found that only 13 percent of the population supports the government’s current position on China, mainly due to the impact on Lithuanian companies.

A test of the unity and commonality of the EU

Vilnius now appears to want to mitigate the consequences of its actions, but Borrell’s words on Friday will be welcome news as it wants to sell its row with Beijing as an EU-wide issue affecting the entire single market, not just Lithuania.

The government is also encouraged by French President Emmanuel Macron’s recent words that the way China is handling the dispute with Lithuania “remains worrying us”.

Support from Taiwan itself will also bolster Lithuania’s hopes for EU harmony on the issue after the island nation launched a €1bn loan fund.

Going a step further, Taipei says it intends to invest $200 million in Lithuania, with microchip manufacturing — an area the EU is desperate to push — being one of the likely sectors earmarked for investment.

Support from Taiwan itself will also boost Lithuania’s hopes for EU harmony on the issue, after the island nation pledged a $1 billion loan fund to help Lithuanian companies confront Beijing.

Taipei also wants to invest US$200 million in Lithuania, with microchip manufacturing – an area the EU is desperate to push – being one of the most likely investment sectors.

However, the recent row with China is a real test of unity for EU member states. And how it will develop over the coming weeks and months could determine the EU’s future relationship with Beijing.

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