CHINA WATCHEuropean Union Supports Lithuania in Trade Fight with China
In a complaint to the World Trade Organization (WTO), Lithuania alleges that that China has violated the trade body’s rules by carrying out against Lithuania coercive actions that also interfered with the EU’s all-member-inclusive single market and supply chain.
By filing a formal complaint against China at the World Trade Organization this week, the European Union is throwing its weight into support for member state Lithuania in what is being cast as a test of the EU’s willingness to defend the interests of even its smallest members in the face of Chinese power and aggression.
The complaint, which seeks a ruling from the WTO, alleges that China has violated the trade body’s rules by carrying out against Lithuania coercive actions that also interfered with the EU’s all-member-inclusive single market and supply chain.
China’s actions are widely seen as intending to punish the Baltic country of 2.8 million people for leaving the 17+1, a regional group Beijing established, and agreeing to host in its capital a Taiwanese representative office bearing the name “Taiwanese Representative Office in Lithuania” rather than “Taipei Representative Office,” as such offices are titled elsewhere.
“Over the past weeks, the European Commission has built up evidence of … a refusal to clear Lithuanian goods through customs, rejection of import applications from Lithuania, and pressuring EU companies operating out of other EU Member States to remove Lithuanian inputs from their supply chains when exporting to China,” the EU said in a statement Thursday, adding that China’s actions “appear to be discriminatory and illegal under WTO rules.”
Before the announcement, a European Commission spokesperson in Brussels told VOA, “As we have consistently stressed, the EU will stand up against all types of political pressure and coercive measures applied against any Member State. We stand by Lithuania. Lithuanian exports are EU exports.”
Jonathan Hackenbroich, a policy fellow at the European Council on Foreign Relations, told VOA that while some within the EU initially questioned the extent to which Lithuania had consulted other member states prior to announcing its decisions concerning China and Taiwan, those concerns paled compared with the seriousness of the threat China’s actions posed to the political and economic integrity of the 27-member bloc.
If China’s action is left unchallenged, EU member states and businesses will end up losing more of their freedom, Hackenbroich warned in a recent essay, Coercion With Chinese Characteristics: How Europe Should Respond to Interference in Its Internal Trade.
The essay states that while China’s aggressive thinking and deeds “should be a source of great worry for European businesses and governments,” the EU must urgently do more to promptly identify and effectively counter China’s coercive methods against nations that defy its wishes.
