Tag

Lithuania

Lithuania: Government crisis in Vilnius intensifies

Lithuania’s President Gitas Nausėda has criticized the coalition with the right-wing populist party Nemunas Dawn from the outset. Now the government of Social Democratic Prime Minister Inga Ruginienė could collapse in the dispute over the right-wing populists.

By Aleksandra Fedorska and Gabriela Masztafiak

China-Lithuania relations have been in disarray since the conflict over a Taiwan representative office in Lithuania. The reasons for the Lithuania-China conflict, the impact of China's sanctions and the future of relations: All the latest China Lithuania news from the Table.Media editorial team. What are China-Lithuania relations like? Lithuania and China have established economic and diplomatic relations since Lithuania's independence in 1991. The countries have also cooperated in the fields of culture and education. China and Lithuania are members of the World Trade Organization (WTO) and have signed a bilateral trade agreement that should promote trade and economic cooperation. Although Lithuania and China maintain relations, China is not one of Lithuania's most important trading partners. Although Lithuania's trade with China has grown steadily in 2021, in 2020, China imports accounted for only 5% of Lithuania's total import volume and exports accounted for less than 1% of Lithuania's total export volume. Lithuania's most important trading partners include Russia, Poland and Latvia. Since 2021, however, China-Lithuania relations have deteriorated rapidly. What were the first ruptures in the Lithuania-China relationship? Lithuania was part of the 17+1 format with China until May 2021. The 17+1 Forum is an initiative launched by China in 2012 to build closer economic and cultural ties between China and 17 countries in Central and Eastern Europe. The forum is also linked to China's New Silk Road project. Lithuania justified its withdrawal from the forum by stating that it had brought Lithuania almost no added value. In September 2021, Lithuania also called on people to throw away Chinese cell phones and not buy new ones. The call came after reports of possible censorship mechanisms in Chinese cell phones. Taiwan Office: How did the Lithuania-China conflict come about? However, the biggest turning point in China-Lithuania relations was the opening of a diplomatic Taiwan representation in the Lithuanian capital Vilnius in November 2021. The representation in Lithuania bears Taiwan in its title. From China's perspective, Lithuania thus recognizes Taiwan as a country. This is a violation of the Chinese government's "one-China policy", in which Taiwan is considered a renegade part of the People's Republic. All countries wishing to establish diplomatic and trade relations with the People's Republic of China must agree to this principle. There are many reasons for Lithuania's rapprochement with Taiwan. As Lithuania is not economically dependent on China, the Lithuania-China conflict does not pose any economic problems for the country. Another explanation for the close relationship with Taiwan is the parallels between Lithuania's history as part of the Soviet Union and Taiwan's status in relation to China. In addition, the political leadership in Lithuania is particularly committed to standards such as freedom, human rights and democracy. What are the consequences of the Lithuania-China conflict? The opening of the Taiwanese representation represents a red line for China. In response, China downgraded its diplomatic relations with Lithuania and blocked all trade relations with the Baltic state. However, the measures did not have much effect, partly due to the low level of trade between China and Lithuania. As a result, China imposed informal sanctions against Lithuania. The sanctions included trade restrictions for companies in China that purchased products from Lithuania. The EU and Germany had initially shown restraint in the Lithuania-China conflict. However, China's informal sanctions also affected EU internal trade, supply chains and companies. In January 2022, the EU therefore initiated a WTO case on China's trade blockade against Lithuania. China opposes the EU's complaint. Lithuania China News The Lithuania-China conflict has severely affected the relationship between the two countries. China's sanctions against Lithuania also have an impact on the EU. How will China's influence in Eastern Europe change? How will Lithuania-Taiwan relations develop? And what will be the outcome of the EU's WTO case against China? The Table.Media editorial team reports on the latest China-Lithuania news.