When Beijing put diplomatic and economic pressure on Lithuania, trade between the two countries plummeted. The hope that the Taiwanese market would compensate for this has not materialised – statistics show that trade between Vilnius and Taipei has been declining for the past few years.
In an interview with LRT.lt, Constace H. Wang, head of the Taiwanese representative office in Lithuania, stresses that it is important to look “not only at the dollars” but at the added value created by investments.
In Lithuania, there was a lot of hype about Taiwanese investment, especially in semiconductors, and even chip production was considered. However, it is clear that this is not going to happen, and investment seems to be moving rather slowly. What can Lithuania expect from Taiwanese investors?
The idea that things are moving too slowly or that they are not living up to people’s expectations is a myth that I dare not accept. It cannot happen overnight; the investment will bear fruit if we give it time.
I can tell you that soon, an important announcement will be made regarding the Taiwan Central and Eastern European Investment Fund. A Lithuanian company will receive the largest amount of money since the fund was established in March 2022 (Read about it here). This shows our confidence in this company and its potential.
I recently had the pleasure of visiting Teltonika. It is expanding its operations and planning a new complex for chip design, manufacturing, packaging, testing – the whole supply chain. It brings security and resilience to semiconductor supply chains, while also creating thousands of jobs. So, things are picking up and running smoothly, and Teltonika is expanding its operations in Molėtai, where it has also created thousands of jobs.
This is just one example of how we need to look beyond the monetary value of investments. The markets in both countries are quite limited and small, so we need to see the added value of cooperation. It is not only the dollars that matter but also the other added value created.
We are expanding our cooperation in other areas, we have agreements in green technology, the wind industry, we are looking at agricultural technology, scientific assets, cultural exchanges, people-to-people contacts.
Things are starting to take off. Some people have been sceptical over the last two years, but I can say with confidence that we are working together, and it is working well. Last week, our cities signed cooperation agreements, and another round of the Economic Dialogue will soon be held with the participation of the deputy prime ministers.
As I understand, Taiwan is interested in Lithuanian laser technologies. Is this one of the bargaining chips when it comes to investment and sharing technological secrets?
Before I took up this position, I went to the Research and Development Centre in Taiwan, to which 14 laser companies have contributed. So, I do not see laser technology as a bargaining chip, but as a strategic approach to our goal, a win-win situation. We are combining our strategic advantages by targeting external markets, for example in the Indo-Pacific, in South-East Asia. This is strategic planning.
I think one of the reasons why Lithuania agreed to cooperate with Taiwan in laser technology is that, while you are very good, Taiwan is also good, even though we are a little behind you. So, it’s a win-win situation.
As Lithuania intensified its relations with Taiwan, there was talk that exports to Taiwan would compensate for the decline in trade with China. But bilateral trade has not only failed to grow over the past few years but has even fallen. Why?
If we look at the whole picture, yes, it is not growing. I don’t want to make excuses, but I think it is primarily due to the global economic downturn.
Looking at individual sectors, you can see that trade is also growing, not all areas are declining, and, as I said, the markets of both countries are quite limited. But we have to look not only at direct investment and trade but also at what is behind the numbers. [...] Yes, trade can grow, and we are creating more opportunities by inviting and organising industrial trips to Lithuania and Taiwan.
In July, Taiwan will again host a food expo, and we are inviting your country’s high-quality food producers to come to Taiwan and we are trying to match them with the right partners. For example, we have very high-quality mountain tea, you have excellent herbal tea, people in both countries know how to enjoy good tea, so we think we can cooperate there. Another potential area is food processing – we can process food here and export it to the European market, and you can process food in Taiwan and export it to our neighbouring countries. This would also be a mutually beneficial cooperation.
Taiwan recently held presidential and parliamentary elections. Do you think the People’s Republic of China will continue to put pressure on Taiwan after these elections and can it grow?
The election results show that the people of Taiwan want to maintain a democratic way of life. That is why the Democratic Progressive Party (DPP) has won its third consecutive presidential election. But the people also want a counterbalancing system, and that is why the DPP lost its majority in the parliamentary elections. That is a very clear message.
As far as China is concerned, they have never stopped their violence, especially in the international arena. Of course, the threat is real, but people continue to go about their daily lives without being too frightened of the People’s Republic of China. We are calling on people to be vigilant, we are promoting media literacy so that disinformation campaigns can be identified, but everyone must be able to recognise that the situation is changing and people must be properly prepared. We are advocating the concept of total defence, the public must have the right attitude and the right skills, and that is what our government is working on.
Some say that the Taiwanese are a little too calm, and maybe sometimes they are. But we have been living with this for decades. People are cautious, but not too fearful in their daily lives because a balance has to be found.
Will the new president seek to maintain the status quo?
Yes, president-elect William Lai has made it very clear that he will continue President Tsai’s policy in the Taiwan Strait, will not take any action that might be seen as provocative and will maintain the status quo.
Peace and stability in the Taiwan Strait are of paramount importance. This is an international issue because it is international airspace and waters. Therefore, it needs the attention of the international community, and the right of free movement in the international waters of the strait must be guaranteed.
A few months ago, a media investigation revealed that Taiwanese companies were exporting components used by the Russian military industry via third countries. Is your country trying to prevent this?
We are making every effort to prevent this, but many countries face such challenges.
In the case you mentioned, machine tool components were exported via a third country, Turkey. Taiwan voluntarily complies with the agreement with the EU, the US, and Japan and we were able to identify that the Russian company IMachine had received these components, and we immediately blacklisted them. We have increased the fines for this by a factor of 15, and we have contacted our manufacturers, our companies to explain to them about export controls, to urge them to take precautions because we are constantly updating the lists of banned companies and components. Now, we are going the extra step again and installing tracking equipment in those components so that we know where they are going.
We are working hard on that. But I think it is a little unfair to single out Taiwan. It is a joint effort to prevent the circumvention of sanctions. That is why I call for a collective effort.
Did Lithuanian officials pressure you to do this?
I know how sensitive this issue is. I wouldn’t call it pressure, but I did share the information I received from Taiwan with my Lithuanian colleagues, and they were grateful for it. [...]
I would also like to mention that, in cooperation with Lithuania, we are providing humanitarian aid to Ukraine. This is the best way to show that we are reliable partners. We have already helped to rebuild a kindergarten in Irpin, and a few weeks ago, we opened a school from 1st to 11th grade, with a capacity of 700 students. We will continue this work. We also invite non-governmental organisations to cooperate.
Talking about your personal life, what have you been able to see in Lithuania so far? Do you have any hobbies?
I came to Lithuania three months ago and they were very busy. I want to learn your language so that I can really enjoy the country. I arrived here on one of the coldest days of the year when the temperature was 20 degrees below zero, but I was touched by the warm welcome. [...] I was told before I came here that the climate in Lithuania made people a bit more closed, but I would not say that is the case.
As far as hobbies are concerned, I like walking, I am not a very sporty person. Colleagues have said that you have a lot of great walking trails, and that is what I will do when the weather warms up and I finish unpacking my boxes that have only recently arrived.
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