Foreign investors have approached the Lithuanian government about pressure they receive from China, Economy Minister Ausrine Armonaite has said.
“We have received an appeal from an association of German businesses, addressed to the foreign minister and myself. We are in regular and direct contact with investors. These concerns were expressed to us some time ago,” she said.
However, the minister added that she did no believe there to be any real threat of major multinational companies leaving Lithuania.
Lithuania has been in a diplomatic row with China over its ties with Taiwan.
In response to Lithuania’s moves to deepen cooperation with Taiwan, including the opening of a Taiwanese representative office in Vilnius, China last autumn halted freight trains to Lithuania, stopped issuing food export permits, cut credit limits and raised prices for Lithuanian companies, and also at one time removed Lithuania from its customs systems.
According to media reports, China is also pressuring companies in other countries to stop using components made in Lithuania.
China’s acting charge d’affaires Qu Baihua has rejected the reports, saying Beijing is not using any economic sanctions on Lithuania.
The European Union should be more united in its response to China’s pressure on Lithuania, Economy Minister Armonaite said.
“Lithuania has always sought to have an EU 27+1 dialogue with China, and this is apparently the occasion where 27+1 finally has to show that it really exists as a format,” the minister said. “Because today it is Lithuania, but tomorrow it could be any other country.”
“We are starting to get small signals that there are problems with some cargoes from one or another European country, even our neighbouring country,” Armonaite said. “We need to speak to a big country like China with the powerful voice that the EU has.” (LRT/Business World Magazine)
