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China Opposes Taiwan’s $10m Lithuanian Chip Investment

Taiwan is creating tensions by colluding with external nations, Chinese foreign ministry spokesman Zhao Lijian said on Tuesday

China has voiced concern about Taiwan colluding with foreign nations after its chip deal with Lithuania.
Beijing will now encourage Taiwanese firms in Fujian to list on Chinese stock exchanges. Photo: Reuters


China’s foreign ministry voiced opposition on Tuesday to Taiwan’s attempts to partner with other countries after its microchip deal with Lithuania.

Colluding with external nations by Taiwan’s ruling Democratic Progressive Party (DPP) was creating tension, spokesman Zhao Lijian said at a regular briefing in the Chinese capital of Beijing.

His remark came in response to a query about a plan announced this week by the self-ruled island to invest more than 10 million euros ($10 million) towards chip production in Lithuania.

Taiwan’s Investment in Lithuania

Taiwan’s Industrial Technology and Research Institute will cooperate with Lithuania’s electronics manufacturer Teltonika to build semiconductor technology capabilities in the Baltic country, Eric Huang, head of the representative office, said.

Over two dozen Taiwanese scholarships will be offered to Lithuanians for technical training, he said.

“This is not a transaction (in exchange of Lithuania allowing opening of the office),” Huang said. “It is because Taiwan would like to work with Lithuania together to strengthen the resilience of our democratic supply chain in the face of coercion by autocracies.”

Beijing subsequently downgraded relations with Lithuania, curbed trade and pressured multinational companies to sever ties with the nation of 2.8 million people.

  • Reuters, with additional editing from Alfie Habershon



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Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.


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