Taiwan is planning to invest 200 million US dollars in Lithuania, in an effort to shield the country from China's pressure.
Eric Huang, the head of the Taiwanese Representative Office in Vilnius, said on Wednesday his government was planning to set up a special fund to invest in Lithuania's industrial sectors “strategically important” for the development of both countries.
According to him, the first investment should come this year. The money will come from Taiwan's National Development Fund as well as private investors.
“The fund has a lot of experience and expertise in the development of advanced industries,” Huang told reporters.
Lithuania has been a subject of undeclared economic sanctions from China after it opened the Taiwanese office. Beijing, which considers the self-ruled island part of China, has accused Lithuania of violating the so-called One China policy.
Lithuanian exporters have said they were facing obstacles in doing business in China. Moreover, Beijing has been reportedly pressuring international companies trading with China to drop Lithuanian suppliers.
The investment package is part of Taiwan's action plan to develop economic ties with Lithuania in the face of “unprecedented” pressure from China, Huang said.
The plan also calls for setting up a special task group to facilitate cooperation between Lithuanian and Taiwanese businesses and for taking over Lithuanian goods blocked by China, including in urgent cases.
Huang said that Taiwan had already taken over 120 containers of Lithuanian goods that were barred from entering China. He did not, however, provide any more details about which companies and goods were affected.