China’s Lithuania Blockade

January 30, 2022

The Chinese Government recently launched import sanction on Lithuania. This means the Chinese companies should not import goods or raw materials from Lithuania. Earlier in 2021, Lithuania had recognised Taiwan as an independent state and had opened a Taiwan office in its soil. According to China, Taiwan is its integral part. The Chinese are doing this to block the global supply chain and also as a counter move to Lithuanian actions. To this, the European Union has filed a case against China in the World Trade Organization.

Chinese actions

Earlier China had blocked wine imports from Australia and also Salmon fish imports from Norway. These actions say that China will not take criticisms. When India provided shelter to Dalai Lama, China brought war against India.

How will this affect global supply chains?

The total Lithuania imports in China is only 350 million USD. China is leading the trade with coountry. The German and French companies are sending their exports to China through Lithuania. These companies are now hit largely. In a wider angle this partly affects the whole of European Union. Thus, by blocking Lithuania China is creating impact on European Union trade.

Why is European Union entering the issue?

Chinese have only blocked Lithuania. However, this is affecting Germany and France. The German automotive suppliers are largely hit. They send their exports through Lithuania. Also, Lithuania is a member of European Union. The EU handles the trade issues of all its 27 members and takes lead.

US stand on the issue

The US is supporting the EU on the issue. Earlier the US had imposed sanctions on China over goods produced in the region of Uyghur Muslims. This minority Muslim population are forced to work as cheap labours in China. Thus US imposed sanctions.