German business has appealed to the Chinese and Lithuanian governments: the negative consequences of already felt production in Lithuania's factories may close

"Warned of closure

 

    "As relations between Lithuania and China deteriorate and business continues to suffer, the German-Baltic Chamber of Commerce has issued a warning to our government, it is said that no financial assistance will help companies.

 

    The letter was sent to the Minister of Foreign Affairs Gabrielius Landsbergis and the Minister of Economy and Innovation Aušrinė Armonaitė on December 14, before it became clear that China was possibly preparing also to impose economic sanctions on Lithuania.

 

    "Recent events that have led to the deterioration of economic relations between Lithuania and China are of great concern to us. We understand that this is not just a bilateral problem between Lithuania and China. We hope that the European Union, in solidarity with Lithuania, will be able to persuade China to continue to adhere to the rules of common trade both between the EU and China and with China in the WTO system.

 

    It is hoped that all participants in this situation would find a constructive solution to restore economic relations between Lithuania and China as soon as possible," - the letter began.

 

    The letter explains that the biggest problems are faced by companies dealing with substrates and peat, lasers, automotive parts, and more. It is alleged that it is no longer possible to expand production, to obtain the parts needed for production from China and to export the finished products to China.

 

    It is warned that if no solution is found to restore economic relations between Lithuania and China, factories may have to close.

 

    "This raises doubts about the basic business model of these companies, so  companies will have no choice but to stop production in Lithuania.

 

    Some companies are already feeling the effects, others will be in the coming days or weeks. Financial assistance or financial government compensation (as discussed in meetings with the Ministry of Economy) will neither restore the business model nor solve supply chain or export problems.

 

    On behalf of our member companies, we would like to wish once again that all interested parties will quickly find a constructive solution on how to restore economic relations between Lithuania and China,” - German business wrote in the letter.

 

    The letter was signed by the heads of the Chamber of Commerce Kęstutis Bagdonavičius and Florianas Schroderis.

 

    ELTA reminds that after Taiwan opened a representative office in Vilnius with the name of Taiwan, China restricted its diplomatic relations with Lithuania. China's economic pressure has also intensified, and Lithuanian companies are being prevented from operating in the Chinese market. At the beginning of December, Lithuania was removed from the Chinese customs system, so imports of Lithuanian products to China were disrupted.

 

    Asked not to use components

 

    Delfi recalls that the German auto parts giant Continental is based in Lithuania, which has been said to be under pressure from China to stop using components made in Lithuania at its plant, Reuters reported on Friday.

 

    It was stated that such actions were related to the diplomatic conflict between Lithuania and China over the Taiwanese representation in Vilnius.

 

    Ieva Koncevičiūtė, a representative of Continental Automotive Lithuania, says that she learned this information from the press and did not comment on it. "We do not comment on political issues in general at the corporate level," -  I. Koncevičiūtė told BNS."

 

The question arises of grave concern - where will Lithuania collect taxes and how will it pay salaries to state employees and pensions for the elderly?