The "China Post" CR Express 1st block train is unloading in Vilnius, Lithuania, April 14, 2020. Photo: Xinhua

Chinese officials on Thursday urged the EU to distinguish "right from wrong" in Lithuania's mistake over the Taiwan question and be cautious over the Baltic country's attempt to kidnap China-EU relations, vowing to handle the EU's threat of a WTO lawsuit against China in accordance to WTO rules.

The EU would launch a WTO case against China, accusing China of placing restrictive measures on Lithuanian products after an investigation into China's alleged "coercion," the South China Morning Post reported on Thursday, citing unnamed sources.

Commenting on the reported EU move, Zhao Lijian, a spokesperson for the Chinese Foreign Ministry, vehemently denied the allegation, saying that the so-called coercion against Lithuania is completely false and the issue between China and Lithuania is political rather than economical and is because of the latter's treachery that hurts China's interests.

At a regular press briefing, Zhao also said that the issue is a bilateral one between China and Lithuania, and not between China and the EU. "We also remind the EU to distinguish right from wrong and be alert of Lithuania's attempt to kidnap China-EU relations," Zhao said. 

Also commenting on the EU's threat on Thursday, Gao Feng, a spokesperson for China's Ministry of Commerce (MOFCOM) said on Thursday that China will handle the issue in accordance with relevant WTO rules.

"As members of the WTO, China and the EU have always maintained communication within the WTO dispute settlement mechanism," the MOFCOM spokesperson said, stressing that China has always handled foreign trade in line with WTO rules.  

The comments also come as Lithuanian officials are reportedly mulling moves to de-escalate tension with China, including changing the name of the "Taiwanese representative office" in Vilnius, as it starts to face economic consequences of its mistake. 

Chinese and foreign companies are abandoning Lithuania by relocating their production or sourcing products from elsewhere to avert risks, as the Baltic country's mistake on the Taiwan question continues to spark tension with China and pose risks for global businesses, firms told the Global Times on Wednesday.

For example, a Shanghai-based manager, who works in the global laser business, told the Global Times on Wednesday on condition of anonymity that the company is reducing trade with the Lithuanian side due to growing concerns posed by the strained bilateral relations.

"We are facing some problems to deliver goods from Lithuania to China… and we are cutting risks by reducing imports from there," the person said.

Germany-based Klasmann-Deilmann Group, a globally active manufacturer of substrates for professional horticulture, was moving production for the Chinese market to other European factories.

Usually, Klasmann-Deilmann produces the substrates for Chinese customers in a modern factory in Lithuania. "However, in view of the strained relations between China and Lithuania, we have stopped supplying Lithuanian substrates to China," explained CEO Moritz Böcking in an e-mail sent to the Global Times on Wednesday.

On Thursday, Zhao urged Lithuania to immediately correct its mistake and not to play a pawn for Taiwan secessionist forces and foreign anti-China forces.

Global Times