A new EU regulation will come into force later this month, protecting member states from economic coercion by third countries.
The European Commission initiated this document two years ago when Beijing imposed trade restriction on Lithuanian businesses after a diplomatic row with Vilnius, forcing it to turn to the World Trade Organization.
The case there is still pending, while Beijing denies all accusations.
Foreign Minister Gabrielius Landsbergis says that after its publication, the regulation would become a crucial instrument for protecting the EU’s economic interests.
“We have consistently supported the adoption of this legislation. Therefore, I am pleased that the EU starts 2024 stronger and better prepared to defend the interests of the EU and its member states,” Landsbergis said.
The Anti-Coercion Instrument (ACI) will enter into force 20 days after its publication in the Official Journal of the European Union (OJEU).
The new legislation is intended to serve as a deterrent for third countries targeting the EU or its member states. It will help to de-escalate and induce the discontinuation of coercive measures in trade and investment through dialogue. When this is not possible, and as a last resort, the EU will be able to adopt countermeasures.
The dispute between Lithuania and China erupted in 2021 when Vilnius allowed Taipei to open a Taiwanese mission in the country. The move angered Beijing and it downgraded relations with Vilnius and blocked trade relations.
In November, Landsbergis said that Lithuanian and Chinese officials were in talks about normalising diplomatic relations.
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