China plays down Lithuania rift as Belt and Road Initiative investments rise in Central, Eastern Europe

NDRC official says stabilising foreign investment and trade will remain an economic priority for China in 2022, and it will seek to build more infrastructure – on par with US and European standards – in belt and road countries

Statement followed last week’s central economic work conference in Beijing, and as diplomatic ties with Lithuania have soured in recent weeks

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From January-October, China invested US$16.17 billion in 57 belt and road countries, including Kazakhstan, shown here. Photo: Reuters

Published: 7:30pm, 13 Dec 2021

China has shrugged off the trade implications of souring diplomatic ties with Lithuania and pressure from the United States, as a senior economic official pointed to strong engagement with Central and Eastern Europe.

“Although Lithuania has jumped out and sent a token of loyalty to the US, countries such as Croatia, Serbia and Hungary … they continue to proactively get closer with us without caring about [pressure from] the US,” said Ning Jizhe, deputy head of China’s National Development and Reform Commission, the country’s top economic planning agency.

Speaking at a forum on Saturday, Ning also argued that Beijing’s Belt and Road Initiative has continued to make progress, despite alleged suppression and constraints by Washington.

China’s relations with Lithuania have dramatically cooled down this year after the Baltic state pulled out of the China-led 17+1 mechanism with Central and Eastern European (CEE) nations earlier this year.

And last month, Beijing formally downgraded its diplomatic relations with Vilnius after it allowed Taipei to open a de facto embassy.

Subsequently, Lithuanian exporters reported earlier this month that they were unable to send shipments to China, citing technical problems. Four days later, they had again been granted access to the Chinese market, but Lithuania’s largest trade body warned that cargos to and from the European Union member country still faced extended procedures and delays.

The European Commission laid out plans on Wednesday to retaliate against countries that put economic pressure on EU members to change their policies, while stressing that the main purpose was to create a deterrent.

In sharp contrast to the situation with Lithuania, Croatia’s largest wind farm, which was constructed by a Chinese company, was inaugurated and began its trial operation last week. Heads of government on both sides hailed the project. Ning said the ceremony was requested by the European side.