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Lithuania Calls on NATO Allies, Europe to Stand Up Against Chinese Economic Coercion

Gabrielius Landsbergis urged Europe to brace for China’s economic coercion after Taiwan opened a de factor embassy in Lithuania on Sunday.

November 25, 2021
Lithuania Calls on NATO Allies, Europe to Stand Up Against Chinese Economic Coercion
Lithuanian Foreign Minister Gabrielius Landsbergis
IMAGE SOURCE: REUTERS

On Wednesday, Lithuanian Foreign Minister Gabrielius Landsbergis said his country would adapt to the short-term economic disadvantage dealt by China over the decision to promote ties with Taiwan. Landsbergis also urged Europe to brace for Chinese economic coercion by increasing its presence in the Indo-Pacific region.

Ties between China and Lithuania deteriorated after the eastern European country allowed Taiwan to open a de facto embassy in Vilnius on Sunday despite having no formal relations with the island nation. Beijing considers Taiwan as its territory and has been on the offensive with Lithuania ever since the Baltic country first announced its move to allow Taiwan to open a representative office in Vilnius and also open its own office in Taipei.

On Sunday, China downgraded its diplomatic ties with Lithuania to the level of chargé d’affaires, which is a level below ambassador. The Lithuanian government expressed regret over China’s latest retaliatory move but defended its right to expand cooperation with the self-governed island while simultaneously respecting Beijing’s “One China” policy.

Furthermore, Lithuanian officials claim that China has retaliated by cutting trade ties. Landsbergis said China has cut ties with Lithuanian companies and persuaded companies in third countries not to do business with Lithuania. “In the short term, it is painful for any country when your contracts are cut. But it is short term because markets adapt. Companies adapt,” he said. 

Against this backdrop, talking to Reuters in Washington, Landsbergis said the economic losses inflicted by China would be short-lived, as Lithuania is diversifying its supply chain to become less dependent on China. “So much of what we produce is partially produced with, or within, China. This is why we need to find ways to create supply chains and how to make them more resilient so they can withstand this coercion, the cutting of contracts, the secondary sanctions,” he said.

The Minister said the country would show the world how to withstand China’s pressure, particularly the European nations, and urged them to expand their influence in the Indo-Pacific, citing the increasing involvement of every country in the region. “Some of our NATO allies are taking big responsibility in the region, offering security guarantees to countries, and that means that we also have to have at least an understanding of what’s going on or probably play some part in this,” Landsbergis said.

Before the interview with Reuters, Landsbergis met United States (US) Deputy Secretary of State Wendy Sherman. News reports stated that Sherman expressed US solidarity with its NATO ally and discussed Russia’s military build-up near Ukraine’s eastern borders and measures to deter Russia and safeguard Ukrainian borders. In recent weeks, the US, NATO, and Ukrainian officials have raised the alarm over Russia’s increasing military influence in and near Ukraine.