Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Add as preferred source on GoogleChina is open to dialogue with Lithuania after a diplomatic rift over Taiwan's office, urging adherence to the One-China principle.
BEIJING, Feb 6 (Reuters) - China said on Friday it was open to dialogue with Lithuania after the Baltic nation's prime minister described as a "mistake" its 2021 decision to let Taiwan set up a de facto embassy in the capital of Vilnius.
Lithuania had begun taking "small first steps" to restore ties, Inga Ruginiene, who became prime minister last September, told Baltic News Service on Tuesday.
"The door for communication between China and Lithuania remains open," Lin Jian, a spokesperson for the Chinese foreign ministry, told a regular news conference.
"We hope Lithuania will translate its willingness to improve bilateral relations into concrete actions, and promptly rectify its error," he said.
China downgraded relations with Lithuania in late 2021 after the nation of 2.9 million let Taiwan open a "Taiwanese" representative office on its soil.
Beijing views Taiwan as a Chinese province with no right to set up such offices in countries with which China has formal ties.
In contrast to Lithuania, countries such as Australia, Britain and the United States host offices that are usually known as "Taipei" representative offices, which avoids the implication of statehood and sovereignty.
Since the breakdown, Lithuania has recalled its ambassador in China and other diplomats. In late 2024, it expelled three Chinese diplomats in the country's Office of the Charge d'Affaires.
Last year, China banned Lithuanian banks UAB Urbo Bankas and AB Mano Bankas from transactions and cooperation with domestic organisations and individuals.
"I think Lithuania really jumped in front of a train and lost," Ruginiene told the news service in an interview.
Taiwan and Lithuania are important partners with shared values of freedom and democracy, and both sides agreed the name of the office, the foreign ministry in Taipei said on Thursday.
"Since the office was established, Taiwan and the Lithuanian government have continued to promote mutually beneficial, substantive cooperation," it said.
Taiwan would keep up close coordination and communication to deepen ties with Lithuania, it added.
(Reporting by Joe Cash in Beijing and Ben Blanchard in Taipei; Writing by Ryan Woo; Editing by Christian Schmollinger, Edwina Gibbs and Clarence Fernandez)
The One-China principle is a policy asserting that there is only one sovereign state under the name China, which includes Taiwan as part of its territory.
A de facto embassy refers to a diplomatic mission that operates in a country without formal recognition or official status, often serving as a representative office.
Foreign currency impacts banking by influencing exchange rates, affecting international transactions, and altering the financial stability of banks engaged in foreign trade.
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