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EU threatens China with WTO action as reports of Lithuanian trade blockade escalate

  • The EU is investigating complaints from Lithuanian exporters that the country was ‘wiped’ from the Chinese customs system
  • Row sparked by Lithuania’s efforts to strengthen ties with Taiwan, which Beijing considers a breakaway province.

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EU Trade Commissioner Valdis Dombrovskis speaks on Tuesday about a proposed new system of trade sanctions. Photo: AP

The European Union has threatened China with a World Trade Organization lawsuit if reports of an embargo on Lithuania’s exports to and imports from China prove accurate.

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The warning follows accusations by Lithuanian business figures that Chinese customs officials have been blocking goods from being exported to China or imported from the world’s second economy to the Baltic country.

The EU confirmed that it was investigating the accusations and warned that Lithuania’s relationship with China “has an impact on overall EU-China relations”.

“If the information received were to be confirmed, the EU would also assess the compatibility of China’s action with its obligations under the World Trade Organization,” said Valdis Drombovskis, the EU’s trade chief, in a joint statement with its top diplomat, Josep Borrell.

Josep Borrell is the EU’s top diplomat. Photo: European Parliament/dpa
Josep Borrell is the EU’s top diplomat. Photo: European Parliament/dpa
At a press conference in Brussels on Wednesday, Dombrovskis proposed a powerful new trade weapon that is designed to tackle economic coercion, and said its sights would be trained on Beijing if the alleged trade blocks against Lithuania continued.
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