China is pressuring German vehicle parts giant Continental AG to stop using components made in Lithuania, two people familiar with the matter told Reuters, amid a dispute between Beijing and the Baltic state over Taipei setting up a representative office bearing the name “Taiwan” in Vilnius.
The targeting of Continental is an example of how the China-Lithuania diplomatic spat is spilling over into business in an era of global supply chains and affecting Germany’s vehicle industry, a lucrative pillar of Europe’s biggest economy.
The Chinese government last month downgraded diplomatic ties with Lithuania after the opening of the Taiwanese Representative Office in Lithuania.
Photo: AFP
Lithuania’s ruling coalition last year also agreed to support what it described as “those fighting for freedom” in Taiwan.
Continental, one of the world’s largest vehicle parts makers, has production facilities in Lithuania, making electronic parts such as controllers for vehicle doors and seats, and exports to clients globally including China.
German industry sources said that the pressure was not only being felt by Continental, but up to a dozen companies, mainly from the automotive and agricultural sectors, they said.
Continental, which supplies all of Germany’s big automakers, declined to comment on whether it had been asked by Beijing to cut links with Lithuania.
The Chinese Ministry of Foreign Affairs denied that Beijing had pressured multinational companies not to use Lithuanian-produced parts, but said that Chinese companies no longer trusted Lithuania.
“The practice of ‘one China, one Taiwan’ grossly interferes in China’s internal affairs and seriously violates China’s core interests,” a ministry spokesperson added.
“I heard that many Chinese companies no longer regard Lithuania as a trustworthy partner,” the spokesperson said. “Lithuania has to look at itself for the reason why Lithuanian companies are facing difficulties in trade and economic cooperation in China.”
Beijing has pressured countries to downgrade or sever their relations with Taiwan.
Earlier this month, a senior official and an industry body said that China had told multinationals to sever ties with Lithuania or face being shut out of the Chinese market.
Lithuania’s direct trade with China is modest, but its export-based economy is home to hundreds of firms that make products such as furniture, lasers, food and clothing for multinationals that sell to China.
The Lithuanian Ministry of Foreign Affairs said: “Companies operating in Lithuania have successfully integrated themselves into international supply chains, so China’s economic pressure measures may cause various disruptions to companies operating in Lithuania.”
“We closely monitor, analyze and evaluate each such case, including among these German companies,” the ministry said, adding that it was “looking for long-term sustainable solutions and ways to resume trade flows with China.”
Alibaba Group Holding Ltd (阿里巴巴) founder Jack Ma (馬雲) has been living in Tokyo for almost six months after disappearing from public view following China’s crackdown on the tech sector, the Financial Times reported yesterday, citing multiple unnamed sources. The billionaire has kept a low profile since the crackdown, which has included Chinese regulators scrapping the initial public offering of Ma’s Ant Group Co (螞蟻集團) and issuing Alibaba with record fines. However, the Times said he has spent much of the past six months with his family in Tokyo and other parts of Japan, along with visits to the US and Israel. The
FACTORY TUMULT: The departure of new workers impact production less than the quarantines imposed on existing employees, a worker at China’s ‘iPhone city’ said Turmoil at Apple Inc’s key manufacturing hub in Zhengzhou is likely to result in a production shortfall of almost 6 million iPhone Pro units this year, a person familiar with assembly operations said. The situation remains fluid at the plant and the estimate of lost production could change, the person said, asking not to be named discussing private information. Much depends on how quickly Hon Hai Precision Industry Co (鴻海精密), the Taiwanese company that operates the facility, can get people back to assembly lines after violent protests against COVID-19 restrictions. If lockdowns continue in the weeks ahead, production could be set further
HOLIDAY SEASON OMEN: Low-cost brands and high-end retailers had the most foot traffic, leaving mid-range stores struggling on what used to be their biggest sales day US retailers discounted heavily on Black Friday to clear out bloated inventories, but customers responded with only modest traffic, leaving profitability in doubt for many chains. Brick-and-mortar retailers, which were hit hard by COVID-19 closures and shoppers seeking to avoid the virus, saw in-store traffic on Friday tick up 2.9 percent from last year’s shopping event, data compiled by Sensormatic Solutions showed. US consumers are still spending, but they are growing more cautious after contending this year with the highest inflation rates in four decades. They are also keeping a sharper lookout for deals, and retailers — many of them still heavy
‘REVOLUTION’: Elon Musk complained over a 30 percent fee Apple collects on Apple Store transactions and said the technology company has stopped advertising on Twitter Twitter Inc owner Elon Musk on Monday opened fire against Apple Inc over its tight control of what is allowed on the App Store, saying the iPhone maker has threatened to oust his recently acquired social media platform. Musk also joined the chorus crying foul over a 30 percent fee Apple collects on transactions via its App Store — the sole gateway for applications to get onto its billion-plus mobile devices. A series of Twitter posts fired off by Musk included a meme of a car with his first name on it veering onto a highway off-ramp labeled “Go to War,” instead
RSS