Tiny Crisis

No one wants to injure the feelings of the Landsbergiai who are squeezing Lithuania. Therefore, the catastrophe caused by Gabrielius Landsbergis' attack on China is described in Lithuania only in mild words, such as the tiny crisis.

 

    "On the business side, there are fears that if the conflict drags on, we may lose not only potential new investors, but also existing ones. Vidmantas Janulevičius, President of the Lithuanian Confederation of Industrialists (LPK), has said that strained Lithuanian-Chinese relations are one of the biggest threats to Lithuanian industrial development." The question is whether companies will be able to reorient as quickly as they did seven years ago in the case of the Russian crisis, which, unlike 7 years ago, will affect tensions between Lithuania and China, which account for most of Lithuania's exports. If the buying by the companies in China will be linked to the Lithuanian origin of exports, then Lithuanian industry will lose its largest export market - the EU, to which our companies export various industrial products.

 

    The supply of raw materials and components from China, rising supply costs and delivery time will also remain the biggest challenge, ”said V. Janulevičius in a distributed comment.

 

     Asked about the consequences of the conflict and the possible withdrawal of investors, Luminor's chief economist Sigismund Mauricas noted that this was difficult to assess, as China had not officially announced economic sanctions against Lithuania. "Chinese rhetoric was having a negative impact. That spectrum can be wide enough, as China not only can limit the involvement of Lithuanian industries in global production chains and in China at the same time. Let's understand that China is the world's factory, which produces about 30 percent of world industrial production. Roughly as much as the US and the EU combined. <...> That importance is great. But because the pressure is indirect, China may be putting pressure on its partners, and it may be that some companies are trying to get out of the global supply chain, and that loss could be there," - the economist said."