Following heightened hostility involving Lithuania, as well as China, Taiwan wants to invest $200 million in Lithuania.
Taiwan, officially the Republic of China, committed to spending $200 million in Lithuania, the latest iteration in the Eastern Bloc country’s dispute with Communist China.
A Diplomatic Crisis
Taiwan is establishing an industrial fund “with an initial funding of $200 million” for development in Lithuanian companies.
These developments are “important for both Lithuania and Taiwan,” according to Eric Huang, head of the Taiwanese general secretariat in Lithuania.
The fund planned to invest in Lithuanian markets, such as semiconductors, lasers, and biotechnology, with the first financing anticipated in 2022.
According to Huang, the fund was established to improve and grow ties between Lithuania and Taiwan, which are now at odds with China.
Ties between Lithuania, as well as China, have deteriorated since Lithuania defied diplomatic convention by permitting the Taiwanese mission in Vilnius (Lithuania’s capital) to use the name Taiwan, instead of the Chinese appellation ‘Taipei.’
This ended up angering Beijing.
— Gordon G. Chang (@GordonGChang) January 3, 2022
In reaction to the Vilnius embassy’s inauguration in July 2021, China summoned its envoy from Lithuania and withdrew the Lithuanian envoy from Beijing, accusing Lithuania of breaking their ‘One China’ principle.
The ‘One China’ policy requires countries to recognize Taiwan as an offshoot of China, rather than as an autonomous entity.
The European Union was also repeatedly accused of limiting Lithuanian exports to China as punishment for their “scaling back” of diplomatic ties.
Valdis Dombrovskis, vice-president of the Eu Parliament for Trade, acknowledged to German newspaper Die Welt that “imported goods from Lithuania are no longer handled by customs authority.”
“Apparently, the Chinese authorities do not clear items from other European nations if they include parts that came from Lithuania,” Dombrovskis added, implying this impacts the entire European Union.
China is Tightening Its Fist
The amount of blocked European products in Chinese ports is “growing every day,” according to Dombrovskis.
He added the EU is “gathering evidence” to “take action on China with WTO [World Trade Organization] if needed.”
Putin will speak with Biden.
Ukraine, Kazakhstan, Iran, Israel, Syria, Taiwan, China
… pipelines, missiles …
I hope @POTUS stays awake.
— End the Duopoly #AusterityKills (@keidekay) January 9, 2022
Zhao Lijian, a representative for China’s Foreign Office, refuted these accusations, calling them “baseless allegations against China” by the West.
Lijian claimed Lithuania had “complete responsibility for the grave challenges in China-Lithuania relations.” He also stated Lithuanian enterprises should “report to relevant Chinese officials through normal routes” any troubles they had exporting to China.
As the issue has worsened, Lithuanian President Gitanas Nausea called the embassy’s inauguration a “mistake,” claiming the adoption of the Taiwan name was not “planned” with him.
The name of the consulate, according to Nausea, is “the key aspect that currently greatly affects our ties with China.” However, several Lithuanian Parliamentarians (MPs) criticized the president for bowing to Chinese pressure.
“I differ from President Gitanas Nausea,” Matas Maldeikis MP wrote in support of Taiwan.
“Even if it is difficult, I believe backing freedom in Taiwan is the correct thing to do. Like me, the Lithuanian president ought to be pleased to serve a country that took a stand against the Chinese Communist Party’s demands. #StandWithTaiwan!”