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Lithuania's new PM says allowing Taiwan's de-facto embassy was 'maybe too brave'

Published by Global Banking & Finance Review

Posted on July 14, 2026

3 min read

· Last updated: July 15, 2026

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Lithuania's new PM says allowing Taiwan's de-facto embassy was 'maybe too brave'

Background and Implications of Lithuania's Decision on Taiwan

VILNIUS, July 14 (Reuters) - New Lithuanian Prime Minister Mindaugas Sinkevicius said on Tuesday the 2021 decision to allow Taiwan to open a de-facto embassy in the country was "maybe too brave" as he sought to repair relations with China on his first day in the job.

China's Response and Diplomatic Fallout

China downgraded its diplomatic relations with Lithuania in late 2021 after the European Union and NATO nation of 2.9 million people let Taiwan open a "Taiwanese" representative office on its soil. The move has also hit trade ties.

Government Manifesto and Diplomatic Goals

The manifesto of the government of Sinkevicius, which was voted through on Tuesday, clearing the way for him to become prime minister, includes the goal to "normalise" the relationship back to appointing each others' ambassadors.

China's Stance on Taiwan Representation

Beijing views democratically governed Taiwan as its own territory with no right to set up such offices in countries with which China has formal ties.

International Practices on Taiwan Offices

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. 

Statements from Lithuanian Leadership

"We want a return to how it was. We've had a long-term relationship with China, and then there were these political decisions - brave ones, maybe too brave, maybe standing out from the context," Sinkevicius told parliament as he answered questions before Tuesday's vote, referring to Taiwanese representation. 

"We want same relationship level as the rest of Europe."

Taiwan's Perspective and Ongoing Cooperation

Taiwan's foreign ministry said that Taiwan and Lithuania continued to deepen bilateral relations since establishing representative offices, and that their cooperation remained "unaffected by any third party."

"The Taiwanese government and the new Lithuanian government will actively discuss cooperation plans in areas such as trade, economy, and investment to jointly achieve mutually beneficial and prosperous outcomes and strengthen the resilience of democratic economies," the ministry said in a statement to Reuters. 

Economic Consequences and EU Response

Since the Taiwanese representation was opened in 2021, China has pressured a multinational company working in China to sever ties with Lithuania, and has closed its market to Lithuanian products including beef and dairy, resulting in a World Trade Organization challenge by the European Union.

EU Measures Against Economic Coercion

The EU has also adopted an "anti-coercion instrument" which allows the bloc to retaliate against third countries that put economic pressure on its member countries to force a policy shift.

Future Prospects for Lithuania-China Relations

Sinkevicius told reporters he believed the relationship with China could be restored without a change in the Taiwanese representation. "The Foreign Ministry has several options on how to solve the situation", he said, without detailing the options.

In February, a Chinese Foreign Ministry spokesperson said "the door for communication" between the countries was open, but called on Lithuania to "translate its willingness to improve bilateral relations into concrete actions, and promptly rectify its error".

Other Government Priorities

The government's manifesto also pledged to keep defence spending above 5% of GDP and to seek a continued U.S. troop presence in the Baltic nation as a deterrent against Russia, while continuing to support Ukraine.

(Reporting by Andrius Sytas in Vilnius; Additional reporting by Ben Blanchard in Taipei; Editing by Alison Williams and Raju Gopalakrishnan)

Key Takeaways

  • Sinkevicius aims to “normalize” China ties back to full ambassador-level representation, while preserving the Taiwan office to avoid diplomatic rollback.
  • China retaliated in 2021 with trade measures against Lithuania — including blocking imports/exports and pressuring multinationals — prompting an EU‑filed WTO complaint and acceleration of the EU’s anti‑coercion instrument.
  • Sinkevicius’ government pledges defense spending above 5 % of GDP and continued U.S. troop presence as deterrence amid Russia’s aggression.

Frequently Asked Questions

Why did China downgrade diplomatic relations with Lithuania?
China downgraded relations with Lithuania after the country allowed Taiwan to open a de-facto embassy in 2021, which Beijing saw as a violation of its One China policy.
How has Lithuania's relationship with China affected its trade?
Since Lithuania allowed Taiwan's office, China closed its market to Lithuanian products, impacting exports like beef and dairy, and pressured companies to cut ties.
What steps is Lithuania's new government taking regarding China?
Prime Minister Mindaugas Sinkevicius pledged to normalize relations with China and is considering options to restore diplomatic ties without changing the Taiwanese representation.
What role has the European Union played in the Lithuania-China dispute?
The EU challenged China's trade restrictions at the WTO and adopted an anti-coercion instrument to protect member states from economic pressure.
Will Lithuania reverse its decision on the Taiwanese representation office?
The new government seeks restoration of China ties but has not indicated a change in the Taiwanese office; options are being considered.

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