Taiwan will set up a fund of 200 million. USD to invest in Lithuania in the midst of a dispute with China

VILNIUS – Taiwan said Wednesday that it would create a $ 200 million fund to invest in Lithuaniaindustries and increase bilateral trade as it seeks to avert diplomatic pressure on the Baltic State from China.

That Lithuanian government meanwhile ordered the state-owned railway company not to sign a contract with a China-owned Spanish bridge builder with reference to “national security interests,” the prime minister’s spokesman told the Baltic News Service.

Lithuania is under pressure from China, which claims democratically governed 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.

TaiwanThese representations in other countries, except the unrecognized Somaliland, are named after Taiwanthe capital of Taipei.

China has recalled his ambassador to Lithuania and downgraded diplomatic relations, forcing companies such as German car giant Continental to stop using Lithuanian-manufactured components. It has also blocked Lithuanian load from entering China.

US Secretary of State Antony Blinken mentioned Chinapressure on Vilnius https://www.reuters.com/world/China/exclusive-China-requires-germany-continental-carving-Lithuania-sources-2021-12-17 in a joint press conference with German Foreign Minister Annalena Baerbock after a meeting in Washington and promised to work with Berlin and others against such “intimidation.”

Blinken said Germany and the United States agree on the importance of transatlantic coordination China “because it poses a significant challenge to our common values, to laws, rules and agreements that promote stability, prosperity and freedom worldwide.”

“We are immediately concerned about the government Chinas attempt to bully Lithuania China pressures European and American companies to stop building products with components made in Lithuania, or risk losing access to the Chinese market, all due to Lithuania have chosen to expand their collaboration with Taiwan. “

Lithuania‘s export – based economy is home to hundreds of companies that manufacture products such as furniture, lasers, food and clothing for multinational companies that sell to China.

Leader of TaiwanRepresentation Office in Lithuania, Eric Huang, said the strategic investment fund would be fundrode off Taiwannational development fund and supported by its central bank.

“We want to establish fund as soon as possible, and we hope that this year we will have some tangible results … I can imagine that the first top priorities will be semiconductor, laser (and) biotechnology, ”he told a press conference.

Taiwan has diverted 120 freight containers from Lithuania blocked by China into its market and will take “as much as possible” more, Huang said.

Taiwan will also speed up its approval process Lithuanian dairy and grain exports to Taiwan and seek to link Lithuanian companies in Taiwanese suplayer chains, he said.

Integration Lithuania‘s laser industry for semiconductor manufacturing in Taiwan was another option, Huang said.

TaiwanDeputy Foreign Minister Tseng Hou-jen called on Chinese pressure Lithuania “disproportionate.”

“The United States and the European Union refer to Taiwan as Taiwan in their official documents, and China tier, “he said.”China‘s action seems to have targeted what it perceives as a vulnerable country for its political gains. But giving in is not the best way to deal with bullies. ” – Reuters

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