Lithuania seeks EU aid in China trade dispute | International Trade News

Tensions between China and Lithuania have escalated since Taiwan opened a delegation office in the Baltic nation’s capital last month, with Beijing believing that there is a lack of respect for China’s sovereignty.

Lithuania’s conflict with China escalated after local media reported that some of its companies had banned goods from entering Chinese ports.

Foreign Minister Gabrielius Landsbergis said on Friday that there were “unannounced sanctions” and that Lithuania would seek European Commission support next week to resolve the issue. “It is unprecedented when an EU member state is partially punished,” he said.

Local media reported that some Baltic forestry and furniture goods were being detained in ports after Lithuania was removed from China’s electronic customs declaration system on December 1. Lithuania has not received any official comments from China.

The European Commission has said it is in contact with Lithuania and the EU delegation in Beijing to verify the information.

“We have been informed that Lithuanian shipments are not being cleared through Chinese customs and that import orders are being rejected,” said Commission spokeswoman Nabila Massrali.

Less than 1% of Lithuania’s exports go to China and the decision should not have a “fundamental impact” on its economy, Finance Minister Gintare Skaiste said.

Tensions between China and Lithuania have escalated since Taiwan opened a delegation office in the Baltic nation’s capital last month, with Beijing believing it lacks respect for China’s sovereignty.

China recalled its ambassador and downgraded relations with Lithuania to the level of business manager. Lithuania says it respects the “one China” principle.