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Transcript/Script U.S. Lithuania China
HEADLINE: U.S. Counters China’s ‘Economic Coercion’ Against Lithuania Over Taiwan Dispute
TEASER: As Chinas blocks Lithuanian imports in row over Taiwan office, U.S. offers Vilnius $600 million export credit
PUBLISHED AT: 02/03/2022 AT 5:05pm
BYLINE: Henry Ridgwell
CONTRIBUTOR:
DATELINE: London
VIDEOGRAPHER: Henry Ridgwell
VIDEO EDITOR: Henry Ridgwell
PRODUCER: Mary Cieslak
SCRIPT EDITORS: MAS, BR
VIDEO SOURCE (S): AFP, APTN, Reuters, VOA Teams
PLATFORMS (mark with X): WEB _X_ TV _X_ RADIO __
TRT: 3:05
VID APPROVED BY: MAS
TYPE: VPKGN
EDITOR NOTES:))
((INTRO)) [[A senior U.S. delegation visited Lithuania this week in a show of support for the Baltic state in its growing dispute with China over Taiwan. Beijing has blocked imports of Lithuanian goods – and as Henry Ridgwell reports, it has escalated into a trade tussle between the West and Beijing.]]
((NARRATOR))
Washington is supporting Lithuania in the face of what it called ‘economic coercion’ by China.
The dispute began in 2020, as Lithuania’s new government pledged to support what it called ‘freedom fighters’ in Taiwan – and criticised Beijing’s human rights record in Hong Kong and Tibet.
In November last year, Taiwan officially opened a representative office in the Lithuanian capital Vilnius.
((Eric Huang, Director of Taiwanese Representative Office in Lithuania (in English)))
“We are aiming to the strengthening of bilateral relationship comprehensively between Taiwan and Lithuania.”
((NARRATOR))
Lithuania said the opening did not affect its policy towards China. But it stoked the fury of Beijing, which counts Taiwan as part of Chinese territory.
((Grzegorz Stec, Mercator Institute for China Studies in Berlin (in English)))
“From the perspective of Beijing, it’s crossing a line, a real red line on how they approach Taiwan. And this is what led later to Beijing downgrading its embassy in Lithuania.”
((NARRATOR))
In December, China effectively blocked Lithuanian imports by delisting it as a country of origin – meaning goods can’t clear Chinese customs. Beijing also pressed multinational businesses to sever ties with the country.
((Grzegorz Stec, Mercator Institute for China Studies in Berlin (in English) ))
“And that works not only in some cases for goods that are produced in Lithuania, but also goods that include in their supply chain components produced in Lithuania.”
((NARRATOR))
The European Union accuses China of threatening the EU’s single market – and has launched a challenge at the World Trade Organization.
((Valdis Dombrovskis, European Commission Executive Vice-President (in English)))
“We are stepping forward to defend the EU's rights.”
((NARRATOR)
The WTO challenge will likely take years to resolve. Meanwhile the dispute is already hitting trade.
This shipment of 20-thousand bottles of Lithuanian rum was blocked from entering China last month. So instead, Taiwan importers snapped it up.
The Taiwanese government has offered a one-billion dollar credit program and a separate 200-million dollar fund to boost trade with Lithuania.
The United States has also stepped in. The U.S. Export-Import Bank signed a 600-million dollar export credit agreement with Lithuania, focused on manufacturing, business services and renewable energy. But it’s not just about money.
((Grzegorz Stec, Mercator Institute for China Studies in Berlin (in English) ))
“Symbolic involvement (by the U.S.) of course supports Lithuania by showing that it’s not isolated in its moves. At the same time, it also makes it harder to unravel the situation because it once again puts it in the spotlight.”
((NARRATOR))
U.S. officials also held talks in Brussels on joint measures to tackle economic coercion.
China meanwhile accuses Lithuania of ‘betrayal’ and says it is trying to hijack China-E.U. relations.
Henry Ridgwell, for VOA News, London
NewsML Media TopicsEconomy, Business and Finance, Arts, Culture, Entertainment and Media
Topic TagsU.S. Counters China’s ‘Economic Coercion’ Against Lithuania Over Taiwan Dispute
NetworkVOA
Embargo DateFebruary 3, 2022 18:01 EST
BylineHenry Ridgwell
Brand / Language ServiceVoice of America - English
