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The EU criticized Beijing’s measures against Lithuania over its political stance on Taiwan. China said the issue was “political” and not “economic” so there was no room for complaint to the World Trade Organization.
The European Union (EU) has announced that it has lodged a complaint with the World Trade Organization (WTO) over China’s treatment of EU member Lithuania. Beijing dismissed the complaint as “unfounded and inconsistent.”
“Filing a complaint with the WTO is not an easy step we take,” said EU Trade Commissioner Valdis Dombrovskis. “However, after repeated failed attempts to resolve the issue bilaterally, we see no other way but to seek consultation with the WTO to resolve disputes with China.”
The apple of discord – Taiwan
The issue is Lithuania’s claim of China’s harsh response to Vilnius’ decision in July last year to allow representatives from Taiwan – which China considers a rebel territory belonging to China and not a self-governing democratic state – to open a diplomatic headquarters in the capital of this Baltic country.
The decision by one of the smallest EU countries angered China, and Beijing reacted in the hope that it would force Lithuania to change its position.
The European Commission, which on behalf of the 27 EU member states represents the EU in the event of conflict with the WTO in Geneva, said China’s measures included “refusal to clear Lithuanian goods, rejection of Lithuania’s requests for imports of goods. from China and pressure on the EU for companies operating outside other EU member states to remove raw materials or products from Lithuania from their supply chains. ”
In November, China also lowered the level of diplomatic relations with Lithuania and banned the issuance of visas.
China warns EU to be wary of Lithuania
EU Trade Commissioner Dombrovskis said the EU considered China a “vital partner”, noting that “we value this relationship.” However, he said, “our relationship requires mutual respect.” Dembovski added that “the EU is determined to act swiftly and unitedly against measures that threaten the integrity of our internal market.”
Such threatening measures include pressure on other European companies – such as German auto parts manufacturers Continental – to remove Lithuanian partners from their supply chains.
Beijing, meanwhile, has been mocked by allegations of economic pressure. “The issue between China and Lithuania is a political issue, not an economic one,” said Chinese Foreign Ministry spokesman Zhao Lijian.
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