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China's President Xi Jinping: Dispute over Lithuania
Photo: Li Xueren/AP
The European Union has initiated proceedings against China at the World Trade Organization (WTO).
The reason for this is the Chinese trade restrictions against the EU country Lithuania, said EU Trade Commissioner Valdis Dombrovskis.
A Taiwan representative office had recently opened there.
Beijing does not recognize the island as independent and therefore reacted with coercive measures against Lithuania.
"Since attempts to find a bilateral solution have failed, the EU has decided to initiate dispute settlement proceedings against China," Dombrovskis said.
The Chinese measures threatened the integrity of the European single market.
Brussels has "collected evidence of the various types of Chinese restrictions" in recent weeks.
German exports are stuck in customs
According to EU information, China is currently refusing to declare Lithuanian goods.
In addition, pressure has increased on other European companies to remove Lithuanian components from their supply chains.
Since then, German exports to China with supplier products from Lithuania have been stuck at the border and have not even reached German joint venture companies in China.
"This means that there is a de facto import ban for deliveries and components from Lithuania," said the Federation of German Industries (BDI).
The first step in the WTO dispute settlement process is a "request for consultations" by which the EU formally asks China for more information about its actions.
If these consultations fail within 60 days, the EU can request a body to decide the matter.
China described Brussels' initiation of the procedure as "unfounded and inconsistent".
The dispute between China and Lithuania is "political and not economic" in nature, said a spokesman for the Foreign Ministry in Beijing.
Opening of representation controversial
Taiwan assured Lithuania and the EU of its "solidarity and utmost support".
After decades of pressure from Beijing, only a few countries officially recognize the democratically governed island off mainland China as a state.
The opening of the Taiwanese representation is also controversial in Lithuania: President Gitanas Nauseda called on his own government in Vilnius to correct the "mistake".
Foreign Minister Gabrielius Landsbergis, however, rejected this.
Tensions between the governments of China and Taiwan have increased significantly in recent months.
Beijing is threatening to unite the island with the communist-ruled mainland by force if necessary.
The protecting power USA supports the government in Taipei.
rai/AFP
