More U.S. Allies Flirt With China

“U.S. trading partners, feeling burned by an unpredictable and transactional White House, are reassessing China in a drive to lessen their longstanding reliance on the U.S.

 

From Canada to Europe and South Korea, the U.S.'s postwar allies are scouring the globe for alternative markets. Some are weighing closer ties to China, the world's second-largest economy after the U.S., even as they worry about Beijing's economic and military might and the risk of U.S. retaliation.

 

President Trump on Saturday threatened 100% tariffs on Canadian goods if the country "makes a deal" with China, highlighting how the world's middle powers increasingly are under pressure to choose between what many of them view as bad options.

 

The threat came after Canadian Prime Minister Mark Carney month announced a sharp cut in Canada's levies on Chinese-made electric vehicles and touted a "new strategic partnership" with China. Treasury Secretary Scott Bessent later suggested that Trump's threat related to a broad free-trade deal with China -- something Carney says Canada isn't pursuing.

 

British Prime Minister Keir Starmer will travel to Beijing this week to meet with Chinese leader Xi Jinping -- the first visit by a U.K. prime minister in eight years.

 

South Korean President Lee Jae Myung said recently that he wants a "full-scale restoration" of ties with China.

 

Others are more skeptical. The European Union said recently that it is open to price floors as a replacement for tariffs on Chinese EVs, although policymakers in the bloc remain hesitant about any wider rapprochement and haven't backed down in other areas.

 

Finnish Prime Minister Petteri Orpo is set to meet with Xi in Beijing on Tuesday, and German leader Friedrich Merz is expected to travel to China in February.

 

Few expect a return to the more optimistic period of Sino-Western relations before Xi came to power in 2012. Instead, many capitals have launched delicate hedging exercises to stop relations with Beijing from deteriorating further.

 

The hope is China opens its domestic markets, imports more foreign goods and continues to invest across Western nations.” [1]

 

 

Except for Lithuania.

 

Yes, in 2026 Lithuania still remains an exception due to China's policy of economic pressure due to the Lithuania's encroachment on Chinese sovereignty in Taiwan, although efforts to normalize relations are noticeable.

 

Situation at the beginning of 2026:

 

Economic pressure: Although China declares the opening of markets, Lithuania is still subject to unofficial trade restrictions that arose after the opening of the Taiwanese representative office in Vilnius in 2021. China still uses "invisible levers", such as disruptions in customs systems or pressure on international corporations not to use Lithuanian components.

 

Minimal investment: China's foreign direct investment in Lithuania remains minimal (since 2000 it has not reached even 100 million US dollars). For comparison, in other Western countries and the Eurasian region, China is actively increasing investments in the manufacturing and energy sectors in 2025–2026.

 

Trade trends: Despite the restrictions, a slight recovery in Lithuanian exports to China was recorded at the end of 2025 (for example, in November 2025 it grew by 53.9% compared to November 2024), but overall volumes remain marginal. The main export goods are electrical control panels and laboratory reagents.

 

Diplomatic status: Lithuania seeks to normalize diplomatic relations and expects the return of ambassadors, but in 2026 the relationship de facto remains at a lower (chargé d’affaires) level.

 

Lithuania’s response: Lithuania has successfully diversified trade, increasing exports to the Indo-Pacific region by about 60% in the period 2022-2025. At the EU level, Lithuania’s case became the basis for adopting the “Anti-Coercion Instrument” to protect against similar economic pressure.

 

Although China in 2026 claims to focus its economic agenda on increasing domestic demand and global cooperation, Lithuania is still not fully included in this "openness" process due to political reasons.

 

 

1. World News: More U.S. Allies Flirt With China. Kim Mackrael; Colchester, Max.  Wall Street Journal, Eastern edition; New York, N.Y.. 27 Jan 2026: A7.