Now, Taiwan sets up investment fund for Lithuania amid China row
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Lithuania had allowed Taipei to open an office under its own name as China moved to recall its ambassador and downgraded diplomatic ties with the country.
Taiwan is set to create a $200 million investment fund for Lithuanian industries, President Tsai's government declared amid tensions with China.
In November last year, Taiwan had opened a representative office in Vilnius attracting China's ire as it considers Taiwan as a breakaway province. China has repeatedly claimed it will unify Taiwan with the mainland by force if necessary.
Lithuania had allowed Taipei to open an office under its own name as China moved to recall its ambassador and downgraded diplomatic ties with the country. The US has repeatedly backed Taiwan as US secretary of state Antony Blinken vowed to work with allies to fend off China's "intimidation".
Blinken said China was attempting to "bully Lithuania" and has been "pushing European and American companies to stop building products with components made in Lithuania" as the Biden administration promised to "address coercive diplomatic and economic behaviour" by China.
Amid frayed diplomatic relations with China, Lithuanian President Gitanas Nauseda had said it was a "mistake" to allow Taiwan to open the office using its own name as reports claimed Lithuania plans to open a trade office in Taiwan this year.
Taipei declared the investment fund would be used for laser, biotechnology and semiconductors including other products aligning it with Lithuanian industries in an attempt to build closer ties between the two countries.
The Taiwan government informed that it had redirected at least 120 ship containers from Lithuania which was reportedly blocked by China and promised to take more into its market.
On Wednesday Taiwan conducted air drills with its Air Force simulating a war scenario amid tensions with China.
(With inputs from Agencies)