‘Two sessions’ 2022: Beijing urges EU not to ‘amplify’ China-Lithuania dispute

Spokesman for the Chinese legislature Zhang Yesui addresses China-EU relationship and the America Competes Act
But no mention of the Russia-Ukraine war or, in a break from recent tradition, China’s defence spending

Two Sessions 2022 (Lianghui)

Laura Zhou

Published: 6:31pm, 4 Mar 2022

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Beijing has said its dispute with Lithuania should not be so amplified by the European Union that it affects overall China-EU ties.

Ahead of the opening session of the National People’s Congress (NPC), spokesman for the Chinese legislature Zhang Yesui also said China condemned the US$350 billion America Competes Act as “small circle” diplomacy that could jeopardise America’s own interests.

“How the US wants to enhance its own competitive capabilities, including its chip development and manufacturing capabilities, is a matter for the US itself,” Zhang said at a press conference on Friday, before the start of the annual NPC gathering on Saturday.

“But the practice of using China’s development as an excuse and treating China as a strategic competitor will only undermine mutual trust and cooperation between China and the US, and will certainly harm the US’ own interests.”

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The America Competes Act, which was passed by the US House of Representative last month, is aimed at improving supply chains and increasing US competitiveness with China.

It offers substantial new federal initiatives in the hope of bringing advanced semiconductor manufacturing back to the US, now a bipartisan priority.

The US is also coordinating its allies, including Japan, to craft rules to contain China’s influence in semiconductors, artificial intelligence and other advanced technologies expected to define the economy and military of the future.

Zhang said stable bilateral ties would benefit both China and the US and mutual respect should be the “correct path” for the two countries to get along.

“But I want to emphasise that drawing ideological lines, forming small circles and engaging in group confrontation are … simply not feasible.”

Zhang Yesui, spokesman for the fifth session of the 13th National People’s Congress, warned the EU not to make too much of China’s dispute with Lithuania. Photo: Xinhua

China’s ties with the West, already strained by disputes over Beijing’s policies on Hong Kong, Xinjiang, Tibet and Taiwan, have been further tested since Russia’s invasion of Ukraine.

The invasion started just weeks after Chinese President Xi Jinping hosted Russian President Vladimir Putin in Beijing and the two sides issued a long statement declaring their “strategic partnership without limits”.

So far, China has refused to denounce Russia’s attack on Ukraine and has said it would not join the West-led sanctions against its northern neighbour despite EU calls for Beijing to help negotiate a ceasefire.

The Russia-Ukraine war is expected to be high on the agenda of the long-awaited China-EU summit on April 1, during which the leaders of the two sides will discuss the sanctions China and the EU imposed on each other last year.

02:23

China passes anti-sanctions law to counter punitive action by foreign countries

But on Friday, Zhang did not discuss the crisis in Ukraine, nor did he talk about China’s defence spending, a highlight of the NPC press conference in previous years.

Instead, Zhang took a question about Beijing’s coercive measures against Lithuania, an issue the EU has taken to the World Trade Organization.

Beijing was furious after Vilnius moved closer to Taiwan, a self-ruled island China vows to take back under control, by force if necessary. China has reportedly blocked imports from Lithuania as well as from companies in other EU countries that use components manufactured in the Baltic nation.

Zhang denied the claim and instead said the EU’s move was “not constructive”.

“We hope that the EU will take an objective and impartial position and will not amplify the China-Lithuania dispute, or escalate it to the level of China-EU relations.”

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He also defended China’s new anti-sanctions law that was passed in June and allows the Chinese government to hold businesses liable for refusing to help Beijing carry out countermeasures against foreign sanctions.

“China’s anti-sanctions law is a defensive measure against containment and suppression, and is fundamentally different from the ‘unilateral sanctions’ of some countries.”