Linas Jegelevičius
Lithuanian President Gitanas Nausėda after his meeting with World Trade Organization’s Director-General Ngozi Okonjo-Iweala said that China is «softening its stance».
But Lithuanian industrialists and analysts disagree with the notion, calling it «wishful thinking.»
«One-sided recognition of Taiwan by allowing it to open a Taiwanese representative office in Vilnius in 2021 has been a mistake. Lithuania acted on its own, not coordinating its decision with the European Union. No other EU county followed in our footsteps,» Kęstutis Girnius, a prominent Lithuanian political analyst of American descent, told BNN.
After the Baltic country upgraded Taiwan’s representative status in Vilnius, Beijing went berserk – it restricted its relations with Vilnius and blocked Lithuanian exports and imports. This led the European Union to take the matter to the WTO early last year.
«The Chinese side is changing its position a little bit, and from that aggressive and, I would say, even a little bit dominant position, we see certain willingness to discuss, and that position is likely to continue changing,» the president said in Davos, stressing that the EU’s solidarity is crucial in this case.
«The WTO chief informed us of a situation that is still developing, namely our lawsuit, if it can be called that way, over China’s unfriendly trade policy,»
Nausėda was quoted as saying in a comment sent by the presidential press service.
Presidential adviser Asta Skaisgirytė – obviously, coordinating her communications with her boss, the president – also hurried to hint that, although the economic pressure has not gone anywhere, Lithuanian businesses have managed to adapt to the deteriorated relations with China after a Taiwanese representative office was opened in Lithuania in the fall of 2021.
«It’s very unreasonable to fall out with China and get nothing in return. Yes, we get raw materials from other regions, but the main point was about the raw materials needed for Lithuania’s industry to continue with successful development. The transition has taken place. Smoothly? The results vary. But the overall picture is not bad as businesses have managed to adjust and this is the main message,» the presidential adviser told the Žinių Radijas news radio on Tuesday, the 17th of January.
In her words, stalled Chinese investments are expected to be replaced by Taiwanese investments or those of Western allies.
Vidmantas Janulevičius, president of the Lithuanian Confederation of Industrialists (LPK), also said on Wednesday that China’s stance towards Lithuanian companies has been softening for some time now.
«There has been lately a certain softening toward the export of Lithuanian goods to China,» Janulevičius told BNS. According to him, talks have started about resuming exports of Lithuanian goods to China.
«Food product and beverage exports from Lithuania to China have not yet begun, but some talks are getting underway with importers who used to import Lithuanian beverages and food,» the LPK president said.
But Sigitas Besagirskas, President of the Vilnius Association of Industry and Business (VAIB), disagrees, claiming that the fallout to Lithuanian business from the deterioration of Lithuania-China relations has been painful.
«The volume of trade we have now with Taiwan and the scope we will ever have will never outweigh the volume of trade we had and could potentially have with China,» Besagirskas told BNN.
«The claim that Lithuanian businesses found alternative markets for China is just a lie. The majority of Lithuanian companies that had trade ties with China continue sending their goods there – through secondary or tertiary companies, especially through Polish companies.
And those who decided to halt the exports, sold their goods cheaply to the other countries in the region, relatively close to China, like Australia, for example, with which our trade, not surprisingly, sees a tangible uptick lately,» the VAIB head emphasized to BNN.
Lithuania’s IoT solution provider Teltonika IoT Group, high-tech solar module maker SoliTek of Global BOD Group, and biotechnology start-up Oxipit signed 14-million-euro-worth agreements Wednesday, the 18th of January, on joint projects with Taiwan in Vilnius.
Under the agreement, Teltonika will acquire the right to use the licences for semiconductor chip manufacturing technologies and devices developed by the Taiwanese institute.
Taiwan’s Foreign Ministry will contribute 10 million euros to the agreement, with the remaining 4 million euros coming from Teltonika. The semiconductor projects are scheduled to be completed by 2027.
«We have enough potential to establish ourselves in the global semiconductor market, and this partnership with Taiwan will help Lithuania to move forward rapidly, to match the world’s strongest players, and to realise our ambitious goals,» Aušrinė Armonaitė, Lithuanian Economy and Innovation Minister, said in a statement.
According to Arvydas Paukštis, founder and president of Teltonika IoT Group, this will be the largest cooperation project between Taiwan’s Industrial Technology Research Institute and a foreign country.
«This agreement proves that we are capable and reliable partners for such complex projects. I believe that the implementation of the planned works will help Lithuania to be among the most advanced countries in the world,» he said.
But Besagirskas calls the sums «insignificant», saying that they will not expand noticeably in the foreseeable future.
Last week, the Lithuanian Economy Minister met with Taiwan’s Minister of Digital Affairs Audrey Tang in Vilnius on the 11th of January and discussed new cooperation projects and progress in carrying out earlier agreements.
The program of the visit included signing a memorandum of understanding with the Innovation Agency on cooperation in developing the digital skills of students and teachers in Lithuanian regions and introducing digital technologies in business.
The memorandum provides not only for the development of digital literacy among students and teachers but also for talent exchange and internship programs, which will enable young Lithuanian professionals to gain international experience in leading technology innovation and digital economy companies.
Previously, a group of Lithuanian MPs and businessmen paid a visit to Taipei. Commenting on it, Beijing claimed Vilnius has created «the false impression» of an independent Taiwan.
«We have pointed out repeatedly that Lithuania violated its commitment made upon the establishment of diplomatic ties with China and blatantly created the false impression of «one China, one Taiwan» in the world,» Wang Wenbin, the Chinese foreign ministry’s spokesperson, told reporters last week, urging Lithuania to «return to the one-China principle as soon as possible».