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.”
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
Intel Corp yesterday reinforced its determination to strengthen its partnerships with Taiwan’s ecosystem partners including original-electronic-manufacturing (OEM) companies such as Hon Hai Precision Industry Co (鴻海精密) and chipmaker United Microelectronics Corp (UMC, 聯電). “Tonight marks a new beginning. We renew our new partnership with Taiwan ecosystem,” Intel new chief executive officer Tan Lip-bu (陳立武) said at a dinner with representatives from the company’s local partners, celebrating the 40th anniversary of the US chip giant’s presence in Taiwan. Tan took the reins at Intel six weeks ago aiming to reform the chipmaker and revive its past glory. This is the first time Tan