The European Union is going to adopt an anti-coercion instrument later this year, Politico reported on Wednesday. This follows the de facto sanctions imposed by China against Lithuania due to its ties with Taiwan.
According to a statement from the Council of the EU on Monday, the instrument will be signed into law on November 22.
The tool will allow the bloc to retaliate with measures, including increased customs duties, import or export licences, restrictions on trade in services or access to foreign direct investment or public procurement, the EU said in the statement quoted by Politico.
In 2021, Lithuania allowed Taipei to open a “Taiwanese” trade office in Vilnius. In response, China downgraded diplomatic ties and imposed de facto trade sanctions against Lithuania. However, the sanctions were never explicitly named as such, with Beijing denying it was retaliating with trade barriers.
The anti-coercion tool will pave the way to fight against “informal sanctions”, Foreign Minister Gabrielius Landsbergis said in March.
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However, it is “how to see how the European Council can activate” such a tool given the pro-Beijing leaders in Hungary and Slovakia, one EU diplomat told Politico.
“Germany would also be sceptical about upsetting China” due to its car industry lobbying, the diplomat said.
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