Tensions over Taiwanese de facto embassy

Dating back to 1921, when China recognised the newly independent Lithuania, Sino-Lithuanian relations have been relatively peaceful with minimal tension and hostility. However, this all changed in July 2021 when Lithuania announced that they would open a Taiwanese representative office in Vilnius, its capital. This marks a first as, before Lithuania, no EU member state had ever allowed Taiwan to use its own name for a foreign outpost. Instead, to avoid displeasing China (who views Taiwan as an official part of its territory) most countries forgo official relations with Taiwan and use the name of their capital Taipei for their representative offices instead.

To China, Lithuania’s actions were seen as a significant act of diplomatic hostility and the Chinese government has accused them of reneging on its 1991 agreement, in which Lithuania formally recognised the One China principle. As a result, China recalled its ambassador in Vilnius, Shen Zhifei, and demanded for the removal of Lithuanian ambassador in Beijing, Diana Mickeviciene. However, this only marked the beginning of Lithuania’s problems…

China’s response and its impacts

On November 21st 2021, in condemnation of Lithuania’s support towards Taiwan, China’s Foreign Ministry announced that Sino-Lithuanian relations would be downgraded to the level of charge d'affaires, a step below ambassador. Beijing had said that this was a necessary measure “in order to safeguard its sovereignty and the basic norms of international relations.”

Trade between the two countries was also severely disrupted and on December 3rd, Lithuania reported that China had stopped all imports from the Baltic state. They reported that Beijing had prevented Lithuanian items from clearing customs and was rejecting all import applications. Additionally, as a result of this conflict over Taiwan, China pressured German multinational automotive parts manufacturing company, Continental AG, and other international companies to halt business with Lithuania. Trade boycotts such as these have not only been hard-hitting on the Baltic state but have also had severe consequences around the world. Indeed, the conflict over Taiwan has affected the whole of Europe as companies from EU countries that depend on Lithuanian supply chains are now finding they face blockades at Chinese ports.

Despite China’s lack of acknowledgement of any ban on Lithuanian products, it is evident through their state media (which provides warning that Chinese businesses will stop trade with countries that do not respect their sovereignty) the message they want to announce to the world: deepening ties with Taiwan, like Lithuania has done, will result in severe economic sanctions.

by Connie Kiew

The Sino-Lithuanian Conflict and its Consequences