EU launches WTO action against China over Lithuania disputes

Tags: International News

The European Union has filed a case against China at the World Trade Organization (WTO) for targeting Lithuania over its stance on Taiwan.

The move has angered China, which does not recognise Taiwan as a state and considers the self-ruled democratic island a rebellious territory of the mainland. 

This European Union move comes after Lithuania complained that China is blocking its imports and putting up a number of restrictions on economic ties between the two countries.

Background to the issue

• In July 2021, Lithuania allowed Taiwan to open a diplomatic mission in its capital Vilnius in Taiwan's name instead of Chinese Taipei which many countries do to avoid angering China.
•  It enraged China, which considers Taiwan a breakaway province of China and opposes any country which seeks to establish relations with Taiwan.
• In November 2021, China retaliated and downgraded its diplomatic ties with Lithuania and stopped issuing visas there in protest at Vilnius' decision to allow Taiwan to open the representative office under its own name.
• The European Commission handles trade policy for the EU’s 27 member states and takes the lead on conflicts at the WTO in Geneva, even if they involve a single state.
• According to the WTO rules, both sides have 60 days to resolve the issue through talks and if they fail to resolve the issue then it will be taken up by the dispute panel of the WTO.

Lithuania 

It is a European country and is the member of 27countries European Union bloc.

Capital: Vilnius 

Currency: Euro 

President: Gitanas Nauseda