Why has all Lithuanian Conservative-led government to resign immediately?

  Because it has already destroyed the foundations of the Lithuanian economy. Thanks to the great sacrifices of the Lithuanian people and catastrophically low salaries, Lithuanian business has become included in the world economy. The Conservatives did not understand what we were doing here and ruined everything. Kindergarten leaders and musicians cannot run the state, despite what the Communists would tell us. China is the second largest economy in the world. China is the world's factory. Destroying the business that earns money in relations with China is now an impossible goal.

    "This is an event of great significance - what is happening between Lithuania and China is much more important than what is happening between Lithuania and Belarus," N. Mačiulis told the News Radio on Monday.

 

    The economist reminds that tensions between Lithuania and China are not new - bilateral relations have weakened after Lithuania withdrew from the 17 + 1 format connecting Central and Eastern European countries and China and established the world's first Taiwanese representation in Vilnius on behalf of the island, not its capital Taipei. Still, he says, the pressure on business so far has been milder - trade has stalled but has not stopped, and a new and much tighter tone has been emanating from the Far East in the past week.

 

    "We are now seeing a whole new dimension, a new phenomenon - we have not really heard of China interacting this way with any other country in the European Union (EU - ELTA) or any other Western country. It is very strictly said to multinational companies that if they use goods of Lithuanian origin, they will not be able to transport those goods or their import into China will be restricted. This is a very serious step, because China cannot directly do any great damage,” - says N. Mačiulis.

 

    He also notes that although China cannot officially put pressure on Lithuanian business because of agreements with the EU, it does not prevent the largest Asian economy from damaging Lithuanian companies in other ways, which, according to the expert, China is already doing "behind closed doors".

 

    "China cannot officially do so, it would be contrary to the rules of bilateral trade agreements with the EU and the World Trade Organization. China can do it behind closed doors, somewhere secret and seems to be doing so. There have already been some examples, and if they are repeated, it can certainly have much more serious consequences than the transit of potassium fertilizers,” - N. Mačiulis noted.

 

    According to the Swedbank economist, the risks that have arisen in the diplomatic space after Lithuania's actions are already being fulfilled, and China's response is unexpectedly painful and aggressive. According to him, China can use Lithuania as an example for other countries if China's political line and the "One China Principle" are not respected.

 

    "China is reacting much more painfully and aggressively than expected through a variety of secondary channels. There are also estimates that there will be cyber attacks against Lithuanian institutions. "China is certainly not a small, or weak, however it is an unpredictable country that can try to teach Lithuania in various ways and set an example for other countries not to jump against it, especially on such sensitive issues as Taiwan," -  says N. Mačiulis.

 

    On Thursday, the news agency Reuters announced that China had ordered international companies to sever ties with Lithuania, otherwise they face withdrawal from the Chinese market. A senior government official and industry organization told the news agency.

 

    Chinese Foreign Ministry spokesman Wang Wenbin said on Thursday that China was complying with international trade rules and again criticized Lithuania for its position on Taiwan.

 

    After Taiwan opened a representative office in Vilnius last month, China has curtailed its diplomatic relations with Lithuania. In November last year, Lithuania's ruling coalition agreed to support Taiwan's "freedom fighters", which threatened its relations with China.

 

    Lithuania's direct trade with China is small, but there are hundreds of companies operating in its export-oriented economy, producing products such as furniture, lasers, food and clothing for international companies that sell them to China.

 

    Meanwhile, after the Lithuanian Railways terminated the agreement with the Belarusian potassium fertilizer manufacturer Belaruskalij, which a company under the Department of Transportation will lose about $ 60 million under U.S. sanctions revenue for freight. If by 2023. According to Mantas Bartuška, the head of Lietuvos Geležinkeliai, the company will be threatened with lawsuits and hundreds of millions of euros in fines."