Lithuania braces for Beijing-led corporate boycott as fallout over Taiwan de facto embassy continues
- Sources report multinational firms cancelling contracts with Lithuanian suppliers after mainland threats to block access to Chinese market
- Lithuanian vice-minister of foreign affairs said mainland authorities were also curtailing exports to Lithuania
Beijing has told multinationals to sever ties with Lithuania or face being shut out of the mainland Chinese market, a senior government official and an industry body told Reuters, dragging companies into a dispute between the Baltic state and Beijing.
Beijing views self-ruled Taiwan as its territory and has stepped up pressure on countries to downgrade or sever their relations with the island.
Earlier last month, a Chinese foreign ministry spokesperson said in a statement that Lithuania had ignored Beijing’s “strong objection” to the opening of the Taiwan office.
Beijing’s foreign ministry did not immediately respond to a request for comment on this story.
Taiwan has other offices in Europe and the United States but they use the name of the city Taipei, avoiding reference to the island itself.
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Lithuania’s direct trade with mainland China is modest, but its export-based economy is home to hundreds of companies that make products such as furniture, lasers, food and clothing for multinationals that sell to China.