Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Taiwan pledges further $1 billion Lithuania investment amid China row

Taipei is supporting its diplomatic ally Vilnius in the face of growing economic pressure from Beijing

Andrius Sytas
Tuesday 11 January 2022 15:18 GMT
Comments
File photo: A plaque at the Taiwanese Representative Office in Vilnius, Lithuania, 18 November 2021
File photo: A plaque at the Taiwanese Representative Office in Vilnius, Lithuania, 18 November 2021 (EPA-EFE)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Taiwan will launch a $1 billion (£736,000) credit programme to help fund joint projects between Lithuanian and Taiwanese companies in six business categories, a government minister said on Tuesday.

Lithuania is under pressure from China, which claims democratically ruled Taiwan as its own territory, to reverse a decision last year to allow the island to open a de-facto embassy in Vilnius under its own name rather than going by Taipei.

Taiwanese representations in other countries, except the unrecognized Somaliland, are named after Taiwan’s capital Taipei.

China has downgraded diplomatic ties with Vilnius, and is pressuring companies, such as German car parts giant Continental to stop using Lithuanian-made components. It has also blocked Lithuanian cargos from entering China.

Taiwan last week announced plans to set up a separate $200 million fund to invest in Lithuanian industries and boost bilateral trade as it tries to fend off China’s diplomatic pressure on the Baltic state.

"The investment and credit funds will help us strengthen the cooperation," Taiwan’s National Development Council Minister Kung Ming-hsin told an online news conference.

The credit fund will focus on developing semiconductor talent and facilitating semiconductor development, as well as biotechnologies, satellites, finance and scientific research, said Kung.

Lithuania’s Economy and Innovations Minister Ausrine Armonaite said her country planned to open a trade representation office in Taiwan in the spring.

"Taiwanese companies are in need of laser projects, hopefully our laser companies will soon find partners in Taiwan and we will be very happy to facilitate the partnership", she said.

Last week, a Taiwanese government-owned company announced it had bought a shipment of more than 20,000 bottles of Lithuanian rum after learning China would reject it.

Taiwan has also redirected 120 shipping containers from Lithuania blocked by China into its market, and will take “as much as possible” more, the government said.

US diplomats have expressed strong support for Lithuania, calling China’s pressure "economic coercion".

Lithuania’s Foreign Minister said he would discuss the Chinese pressure with his European Union counterparts on Friday.

Beijing has said that Lithuania’s growing diplomatic ties with Taiwan contradict the EU-proved “One-China” policy, which doesn’t recognise Taiwan as a state.

China is concerned about Western efforts to carve a bigger role for Taiwan on the world stage, and that other countries would follow suit if Lithuanians did not face the consequences for opening Taiwan’s diplomatic outpost.

Reuters

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in