On Tuesday, Taiwan will launch a $1 billion credit programme to help fund joint projects between Lithuanian and Taiwanese companies in six business categories. Lithuania is under pressure from China which claims democratically ruled Taiwan as its own territory, to reverse a decision last year to allow the island to open a de-facto embassy in Vilnius under its own name.
China has downgraded diplomatic ties with Vilnius and is pressuring companies, such as German car parts giant Continental to stop using Lithuanian-made components. It also blocked Lithuanian cargos from entering China. Last week, Taiwan announced plans to set up a separate $200 million fund to invest in Lithuanian industries and boost bilateral trade as it tries to fend off China’s diplomatic trade as it tries to fend off China’s diplomatic pressure on the Baltic state. Taiwan National Development Council Minister Kung Ming-hsin stated, “The investment and credit funds will help us strengthen the cooperation.”
