Taiwan's big investment in Lithuania
China imposed sanctions
Under the "One China policy", China considers Taiwan as its part and has been imposing economic sanctions on those who consider Taiwan a separate nation. Lithuania, a close ally of America, has chosen Taiwan to take China's displeasure. Taiwan is going to create a one billion dollar credit fund for the European country Lithuania. Under this, loans will be provided to Lithuania and Taiwanese companies to start new projects. Last week also Taiwan has announced to invest $ 200 million in Lithuania. This announcement is being made at a time when Chinese pressure on Lithuania is increasing. In fact, in November 2021, Lithuania allowed Taiwan to open the office of the Taiwanese representative in the capital Vilnius. It is similar to an embassy in which the name Taiwan is written instead of Chinese Taipei. Under the 'One China policy, China does not consider Taiwan a separate nation.
After opening Taiwan's representative office, China imposed strict economic sanctions on Lithuania and banned imports from here. The rift in the relations between Lithuania and China on this matter had increased so much that China had withdrawn its ambassador from Lithuania in August 2021. Before Lithuania's move, China was its thirteenth largest trading partner, while Taiwan was at number 65 on this list. Lithuania with a population of 2.8 million is a member of the European Union and NATO. This move of Lithuania has got the full support of America so far. Lithuania's government representatives have been visiting Washington frequently for trade and diplomatic discussions. Lithuania hopes to invest in semi-conductor, laser, satellite technology, and biotechnology sectors from this new fund. Taiwan has also stated that the investment plan and credit funds can be used for any project promoting industrial development between Taiwan and Lithuania