The diplomatic rift began when Lithuania permitted the establishment of a de facto embassy under the name of Taiwan, prompting Beijing to retaliate with restricted trade access and downgraded diplomatic status. This standoff forced the European Union to intervene, bringing a formal challenge against China at the World Trade Organization to defend Lithuanian market interests.
Sinkevicius now signals a pivot toward normalization without retreating from the initial decision to host the Taiwanese office. By seeking a resolution that maintains existing ties while easing tensions with Beijing, the government hopes to dismantle the trade barriers that have hampered the Baltic nation’s export economy for years.



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