The Lithuanian authorities did not really expect it, or at least not so quickly: the European Union stepped up to the plate against China by seizing the World Trade Organization (WTO) on Thursday 27 January. She accuses Beijing of discriminatory trade practices against Lithuania, including blocking Lithuanian exports. Retaliation measures put in place discreetly, unofficially, since mid-November, when Vilnius agreed to set up on its soil, and this is a first in Europe, a representative office of Taiwan that China does not consider as a Independent state but as a separatist province to be reintegrated willingly or by force.
>> The article to read to understand everything about the tensions between China and Taiwan
Taiwan is only recognized by 15 small countries in the world including the Vatican, Belize, Guatemala, Honduras, Nicaragua, Paraguay. The opening of a representative office of Taiwan in Vilnius is therefore not anecdotal. Until then, the EU’s position was ambivalent: it recognizes Vilnius’ right to maintain ties with Taiwan but does not question the idea of a single China.
“Europe is a power, but it is also a Sleeping Beauty and I am very happy that it is waking up and flexing its muscles”, explains Mantas Adoménas, the Lithuanian Deputy Foreign Minister. And obviously, he is delighted that his small country can now face the Chinese giant. “We are very happy with this proof of solidarity from the European Union and the world must realize that Europe is an important and resolute player, which is capable of defending its interests and its Member States”, continues Mantas Adomenas.
Valdis Dombrovskis, Executive Vice-President and Trade Commissioner of the European Commission assures: “Committing a case before the WTO is not something we take lightly.” The European Commission explains that it has brought together “evidence regarding the different types of restrictions imposed by China”. In particular, it refuses to clear Lithuanian goods, rejects import applications from Lithuania and puts pressure on EU companies operating from other EU member states. “to remove Lithuanian components from their supply chains when exporting to China”, details the Commission.
“What China wants to do is show that investing in Lithuania is dangerous and unpredictable, explains Mantas Adomenas. Beijing wants to make our country a lawless zone, but we have as many rights as China. If the big countries, and especially the authoritarian countries, could dictate their law to the small countries, it would be a return to the practices of the middle of the 20th century.
For Lithuania, this is a question of sovereignty. In May 2021, the country left the Sino-European cooperation group “17+1” launched by China in 2012 with 17 Central European and Balkan countries. And in September 2021, the Ministry of Defense urged Lithuanians to throw away their Chinese mobile phones, as Xiaomi and Huawei equip 200 administrations and public entities in Lithuania.
A political choice, therefore, with economic consequences, but which nevertheless has certain advantages, according to the Taiwanese authorities. The small island, through the voice of its representative in Lithuania, Eric Hwang, notably promises an investment plan of nearly 200 million euros. “Ask yourself, he invites. Can you trust products that come from authoritarian countries? In Taiwan, we share the same principles: democracy and respect for human rights. What if you are suspicious of the country that produces essential components for you, for example your phones or your infrastructure? With us, you can have confidence in our economic system.”
Three sectors are mainly concerned by the Chinese retaliatory measures vis-à-vis Lithuania: wood, milk and the production of lasers for an economic impact limited to only 1% of the national wealth.