China considered Thursday the "so-called Chinese coercion against Lithuania" as "groundless and inconsistent," following a trade complaint launched by the European Union at the World Trade Organization which accuses Beijing of economically punishing Lithuania over its stance on Taiwan.

"The so-called Chinese coercion against Lithuania is groundless and inconsistent," said Foreign Ministry Spokesperson Zhao Lijian, adding that "the issue between China and Lithuania is a political one, not an economic one."

Zhao affirmed that "the claims that China's authorities 'are not clearing Lithuanian shipments' and that 'they are rejecting import applications from Lithuania' is not true."

 "If companies face technical problems in exporting certain products to China, they can report to competent Chinese authorities through normal channels," he said.

The Chinese Spokesperson underlined that "the Lithuanian side bears the sole responsibility for the severe difficulties in China-Lithuania relations."

Failed attempts to resolve the issue

Earlier, EU Trade Chief Valdis Dombrovskis said in a statement that "launching a WTO case is not a step we take lightly."

"However, after repeated failed attempts to resolve the issue bilaterally, we see no other way forward than to request WTO dispute settlement consultations with China," he added.

The EU claimed it found evidence of Chinese restrictions.

These included "a refusal to clear Lithuanian goods through customs, rejection of import applications from Lithuania, and pressuring EU companies operating out of other EU member states to remove Lithuanian inputs from their supply chains," claims that China refuted.

The European Commission handles trade policy for the EU's 27 member states and takes the lead on conflicts at the WTO in Geneva.

Of course, the US has signaled its support for the EU and Lithuania.

China downgrades relations with Lithuania

It is noteworthy that China officially downgraded its relations with Lithuania to the level of chargé d'affaires on November 21, 2021, according to China's Foreign Ministry, in protest of Taiwan opening a de facto representative office in Vilnius.

The Foreign Ministry protested the move, saying it downgraded diplomatic relations between the two countries to "safeguard its sovereignty."

This move, according to the Ministry, abandons Lithuania's political commitment in the communiqué on the establishment of diplomatic relations between Lithuania and China.

Earlier this month, Lithuania's President, Gitanas Nauseda, said his country's decision to open a representative office for Taiwan, using the name of the country, was a mistake.

Beijing refuses any the opening of such office and the use of the name of Taiwan, which it considers as part of its territory. Chinese President Xi Jinping had early on pledged to reincorporate Taiwan into the Chinese mainland.