According to a Taiwan government minister, Taiwan will launch a $1 billion credit scheme to help fund joint projects between Lithuanian and Taiwanese enterprises in six economic categories.
Lithuania is under pressure from China, which claims democratically governed Taiwan as its own territory, to rescind a decision made last year to enable Taiwan to construct a de facto embassy in Vilnius in its own name.
China has severed diplomatic ties with Vilnius and is forcing companies such as Continental, a German auto parts manufacturer, to stop utilizing Lithuanian-made components. Lithuanian cargoes have also been barred from entering China.
In response to a question regarding the credit scheme, Chinese foreign ministry spokeswoman Wang Wenbin said, “The Taiwan authorities’ attempts to employ dollar diplomacy to increase Taiwan independence activities are bound to fail.”
Taiwan stated last week that it will create a separate $200 million fund to invest in Lithuanian businesses and enhance bilateral commerce as part of its efforts to counter China’s diplomatic pressure on the Baltic state.
“The investment and loan funds would assist us in strengthening our cooperation,” Taiwanese National Development Council Minister Kung Ming-Hsin said in an online news conference.
According to Kung, the credit fund will concentrate on fostering semiconductor talent and aiding semiconductor development, as well as biotechnologies, satellites, finance, and scientific research.
Ausrine Armonaite, Lithuania’s Minister of Economy and Innovations, said her country planned to create a trade representation office in Taiwan in the spring.
Except for unrecognized Somaliland, Taiwanese representations in other nations are named after Taiwan’s capital Taipei.
Diplomats from the United States have emphasized their strong support for Lithuania, describing China’s approach as “economic coercion.”
Lithuania’s Foreign Minister said he would meet with his European Union counterparts on Friday to discuss the Chinese pressure.
