The article narrates the escalating tensions between China and Lithuania, detailing incidents and factors that have spurred the conflict. The narrative also highlights India’s interest in these dynamics and its policies relating to Taiwan.
Impetus to the Issue: Opening of Taiwan’s Representative Office in Lithuania
Tensions began to surge in November 2021 when Lithuania granted Taiwan the permission to open a representative office within its borders. This marked the first occasion of Taiwan being allowed to use its own name for official operations within the European Union (EU) member states. The development promptly instigated China to demote its diplomatic relations with Lithuania, alleging it as a violation of the “One China Policy.”
Containment via Economic Leverage: China’s Response
In response to Lithuania’s move, China unofficially boycotted Lithuanian products, regardless of whether they were directly or indirectly sourced from the nation. It accused Lithuania of colluding with the American efforts of containment using the Taiwan card, fostering discord between China and Europe.
Implications of ‘One China Policy’
The prevalent ‘One China Policy’ dictates that any country seeking to establish diplomatic relations with the People’s Republic of China (PRC, Mainland China) must sever official relations with the Republic of China (ROC, Taiwan), and vice versa.
EU’s Backing of Lithuania at WTO
The recent WTO proceedings saw EU backing Lithuania, supporting allegations by Lithuanian business leaders and officials that the conflict resulted in China blocking imports from Lithuania and imposing other economic restrictions. This measure affects numerous European nations as the Chinese crackdown on Lithuanian imports has disrupted the supply chains of countries like France, Germany, and Sweden.
Roots of Lithuania’s Assertive Stance against China
Domestic Reasons: The substantial shift in Lithuania’s policy towards China can be traced back to the government change in 2020. The incumbent Lithuanian government, advocating a “values-based” foreign policy, has shown explicit support for Taiwan.
Geopolitical Reasons: Growing geopolitical tensions have also played a part, primarily due to EU and NATO’s disputes with Lithuania’s adversarial neighbors, Russia and Belarus. As the first constituent of the Soviet Union to gain independence, Lithuania has ideological reasons to resist China’s influence.
Lithuania’s Antecedents of Opposition against China
Lithuania has been vocal about its criticisms regarding the issues in Xinjiang and Hong Kong, supporting Taiwan’s stand of becoming an observer at the World Health Organization in 2020 despite China’s opposition. Lithuania’s premise that economic relations could only be sustainable with democratic regimes further fueled the tension.
Strategic Decisions on China by Lithuania
In May 2021, Lithuania withdrew from China’s 17+1 cooperation forum with central and eastern Europe, criticizing it as “divisive”. Lithuania has also advised its citizens to refrain from buying smartphones made in China and has taken measures to keep China away from acquiring controlling stakes in its Klaipėda seaport and 5G infrastructure bids.
Geopolitical Repercussions and Support for Lithuania
In retaliation to China’s economic pressure, Taiwan proposed a USD 200 million investment plan to mitigate Lithuania’s economic losses. Lithuania has also received expressions of solidarity from the US and other EU countries like Germany.
India’s Exigency to Monitor the Situation
India needs to closely observe the developments, as they provide crucial insights into the shifting dynamics with China. Observing the EU’s approach towards China could help India formulate its own strategy and assess the benefits and costs of addressing China’s core concern — the Taiwan issue.