Lithuania does not object to the European Commission’s decision to withdraw its World Trade Organization case against China over alleged trade restrictions targeting Lithuanian goods, the Foreign Ministry said Tuesday.
Before taking the step, the Commission informed and consulted with Vilnius, the ministry told BNS. The EU executive argued that Lithuania’s interests had been safeguarded and that the country’s annual exports to China had recovered to levels similar to those recorded before Beijing began applying economic pressure on Lithuania.
However, the ministry stressed that China continues to impose restrictions on five categories of Lithuanian exports, including sanitary and phytosanitary barriers.
“In August, China introduced retaliatory sanctions against two Lithuanian banks in response to EU sanctions, without any basis, and the issue of diplomatic representation also remains unresolved,” the ministry said.
Beijing imposed sanctions on Urbo Bankas and Mano Bankas in August, claiming it was responding to the EU’s 18th sanctions package against Russia, which also targeted two Chinese banks. The Lithuanian banks do not operate in China, making the move largely symbolic.
The Foreign Ministry said the Commission has committed in writing to push for the removal of the remaining restrictions at both the political and technical levels and to continue monitoring the situation. “It has been agreed with the Commission that, if necessary, the EU’s anti-coercion instrument will be activated,” the ministry said.
The EU filed its WTO complaint in 2022, arguing that Beijing’s restrictions – which reduced Lithuania’s exports by 80% that year – were unjustified. In a statement released Monday, the WTO said the EU no longer sees a need to pursue the case, as “the main objectives of the dispute were achieved and the relevant trade has resumed”.
Lithuania angered Beijing in 2021 when it allowed a Taiwanese representative office to open in Vilnius under the name “Taiwanese”, rather than “Taipei”. Beijing views Taiwan as a breakaway province that must eventually be reunited with the mainland.
China has denied employing coercive measures against Lithuania. The EU stressed that withdrawing the complaint does not change its assessment of the situation and that it will continue to monitor developments.
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