Brussels is not sure how to help Lithuania in weathering China's “economic blackmail”, according to EU Commissioner Virginijus Sinkevičius. However, Lithuanian MEPs say the EU must decide what is more important – the bloc’s fundamental values or economic benefits?
For now, the EC can only assess the tension between Lithuania and China and monitor Beijing’s further actions, Sinkevičius, the EU commissioner in charge of the environment, oceans, and fisheries, said in a meeting with Lithuanian President Gitanas Nausėda on Monday.
The EC itself will only assist Lithuania once it has assessed China's actions, he added.
"So far, there has been no consistent, clear Chinese action. Most of the pressure measures are 'under the table', and it is very difficult to record them and say that the state has contributed to them,” Sinkevičius said.
“In this case, any response must be proportionate and must be proportionate to the actions of the state,” he added.
But Lithuanian businesses say they have evidence of China’s “under the table” sanctions on Lithuania and urge immediate negotiations.
"Isn’t over a thousand containers sitting in ports evidence? Isn't the decrease in flows evidence? Isn't the non-fulfilment of contracts evidence? All of this has been documented, and companies have sent it to our Foreign Ministry,” said Rimas Varkulevičius, President of the Lithuanian Association of Chambers of Commerce, Industry, and Crafts.
EU's dilemma
The opening of the Taiwanese representation in Vilnius has inadvertently drawn the entire EU into conflict with China. The bloc must now decide whether it cares more about the EU‘s fundamental values or the benefits of economic ties with China, according to MEP Juozas Olekas.
"Some of my colleagues have asked: "What are you doing there?” We have to understand that there are value things that we have to fight for, and there are business things that ensure the growth of our country's economy," Olekas said.
In the words of Lithuanian MEP Petras Auštrevičius, China is challenging the entire EU through Lithuania, so the bloc must jointly react to Beijing’s pressure.
“If this process progresses, imagine what the EU will look like – a large economic power, forced to succumb to such fierce Chinese pressure,” the MEP said.
“I hope that it is not the economic interest of the EU that will prevail but the sober geopolitical calculation that, after this case with Lithuania, China’s desire to increase pressure on the entire EU may begin,” he added.
According to a former MEP Laima Liucija Andrikienė, the EU could withstand China’s pressure if all 27 member states joined the negotiations.
“It is in this format that I think we would be able to reach some solutions. However we look at the situation today, it is really difficult,” she said. “We need solutions. Some solutions need to be immediate, and for some solutions we need allies both in the European Union and across the Atlantic.”
Relations between China and Lithuania have deteriorated after Vilnius decided to deepen ties with Taiwan, which is seen as a breakaway republic by Beijing.
China is reportedly pressuring multinationals to drop Lithuanian suppliers if they want to continue doing business with Beijing.
Earlier this year, China also halted freight trains to Lithuania and stopped issuing food export permits. It also cut credit limits and raised prices for Lithuanian companies, and removed Lithuania from its customs systems.
Read more: Brussels politics hinder joint response to China’s economic blackmail of Lithuania
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