Last year, China entered into a spat with Lithuania over Vilnius allowing Taipei to open a de facto embassy using the name “Taiwan.” Beijing recalled its ambassadors from Lithuania and downgraded its diplomatic ties with the Baltic state to the “charge d’affaires” level.
In hindsight, China should realize that this move handed Lithuania on a plate to Taiwan.
China used its economic leverage as punishment. First, it tried to pressure German industry giant Continental AG to stop using Lithuanian-made components. When an EU trade commissioner said that Chinese customs were refusing to clear goods containing Lithuanian parts, China denied it was at fault, but it was too late; it had crossed the EU’s red line in adopting unfair trade measures.




