Beijing is not sanctioning Lithuanian businesses and the challenges they face in China are not related to the diplomatic tensions between the two countries, Chinese acting chargé d'affaires Qu Baihua said on Wednesday.
“I don't think that this issue was political. It happens. If they have problems, they are allowed to ask Chinese authorities,” he told reporters.
The diplomat added, however, that Lithuania has lost credibility and respect in the eyes of Chinese businesses through its actions, so cooperation can become increasingly difficult.
Tensions between Vilnius and Beijing flared up after Lithuania opened a Taiwanese representative office. China regards the self-ruled island as part of its territory and has insisted that by calling the office “Taiwanese” rather than “Taipei's”, Lithuania is violating the so-called One China principle.
“The name implies sovereignty,” Qu Baihua said, adding that Beijing did not object to Lithuania developing non-governmental relations with Taiwan.
By calling the office “Taiwanese”, Lithuania is lending support to “Taiwan's separatist forces”, he insisted, and gives a false impression that “there is one China and one Taiwan”.
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Lithuanian exporters to China have said they are facing obstacles, while media have reported that foreign firms have also been pressured to drop their Lithuanian suppliers.
“These are unsubstantiated accusations,” said Qu Baihua, insisting that China did not violate World Trade Organization (WTO) rules and was not introducing any economic sanctions on Lithuania.
However, he added, the row with the Chinese government harms Lithuania's image and Chinese firms no longer see Lithuanians as reliable partners.
Qu Baihua also urged Vilnius not to block Chinese investments on the grounds that they allegedly affect Lithuania's national security. The country has recently decided to ban the involvement of China's tech giant Huawei in developing its 5G infrastructure.
Currently, relations between China and Lithuania are in a very bad condition, Qu Baihua said. If Lithuania “wants to lessen tensions, [...] it has to correct its mistake over Taiwan”, he added.

China has recently downgraded its diplomatic relations with Vilnius to the level of chargé d'affaires.
It ordered Lithuania to also change the status of its representation in Beijing. Lithuania's Foreign Ministry then recalled its diplomats for consultations, saying it was concerned about their safety.
Read more: ‘Grey area’ between diplomacy and intimidation. Why Lithuanian embassy was forced to leave Beijing
“The downgrading of diplomatic relations reflects their current status,” Qu Baihua commented, adding that China would continue to ensure the diplomatic immunity of Lithuanian envoys.
According to Qu Baihua, the issue was escalated by the Lithuanian government which recalled all its diplomats without informing Beijing. “This is child's play, this is undiplomatic,” he said.




