Dispute over Taiwan: China blocks trade with Lithuania

China has completely suspended trade with Lithuania. No goods are delivered to the Baltic country or vice versa imported into China. The background to this is the simmering dispute over the status of Taiwan.

Long faces at the largest port in Lithuania in Klaipeda: “Our customers are canceling the transport to China because the Chinese neither buy nor import goods,” says Justas Kairys. He is the head of a logistics company. “The trade with China is over, they say.” Through the behavior of its customers, Kairys feels the effects of the blockade on Lithuanian products directly.

No longer exists as a trading partner

At the end of last week, it was announced that China had apparently deleted Lithuania from the official customs database. Lithuania no longer exists as an importer. Lithuanian companies have been reporting for days that their goods are being blocked – for example a timber merchant or the president of the Association of Beer Brewers, Saulius Galadauskas: “There is a lot of disappointment. Containers with our members’ beer are being rejected,” he says. There are currently containers with two types of beer in one of the ports. “In addition, our beer is being removed from stores in China – Lithuanian goods are undesirable.”

Months of conflict

This trade dispute is another culmination of a conflict that has been simmering for months between the two very unequal countries: China criticizes the rapprochement between Lithuania and Taiwan. In mid-November, an agency officially named Taiwan opened in Vilnius. An affront for China, which is why the country withdrew its ambassador from Lithuania in the summer and officially downgraded diplomatic relations a few weeks ago.

Lithuania interferes in internal affairs, so the allegation. That is not true, says Lithuanian President Gitanas Nausėda: “We have to regret the decision of the Chinese government. Unfortunately, it was taken even though Lithuania spoke and commented clearly on the Taiwan Representation,” said Nausėda. “It does not contradict the one-China principle that we adhere to.”

Support from Brussels?

The blockade of goods is initially not a major problem for the Lithuanian economy. The country does most of its trade with other EU countries; According to the Lithuanian Finance Minister Gintarė Skaistė, the Chinese market accounts for just one percent. For the companies directly affected, however, the trade freeze could mean the end. In a radio interview, the President of the Lithuanian Industry Association warned that the first companies had already relocated their headquarters to Latvia or Poland.

Lithuania’s Foreign Minister Gabrielius Landsbergis has meanwhile announced that the EU Commission will be contacted this week and asked for support. From Beijing, on the other hand, there is still no official statement on the alleged trade blockade.