Taiwan plans $200 million investment in Lithuania amid rising tensions with China

Taiwan is establishing an investment fund and contemplating or measures to assist Lithuania, which is under intense economic pressure from China for allowing island to build a representative office in European Union country, according to Taiwanese officials on Wednesday.

Taiwan's Tsai Ing-wen led government has announced $200 million fund to invest in Lithuanian industry due to customs clearance delays at Chinese ports, according to Sputnik.

Eric Huang, he of Taiwan's representative office in Lithuania, declared that Taipei will spend $200 million in Baltic country. Lithuanian enterprises are experiencing difficulty at Chinese ports after Communist regime purportedly erased Baltic nation's name from its customs system, prompting Taipei to take action.

A considerable amount of Lithuanian exports are currently stranded in Chinese ports as a result of change, causing fear among business owners about future of ir shipments.

" $200 million fund will be used for investments into Lithuanian economy and help its business, primarily into semiconductors, laser technology, biotech and or key industries," Eric Huang, a spokesman of Taiwanese mission in Lithuania, told reporters in Vilnius.

Lithuania has been targeted by Beijing recently

Beijing has targeted Lithuania in recent months as a result of former's decision to allow Taiwan to operate a representative office in Lithuania. Taiwan's representative office serves as an embassy. China was enraged by Lithuania's action, and country was threatened severely. China claims sovereignty over Taiwan despite fact that it is a sovereign country in globe.

Lithuania defied diplomatic convention by consenting to call Taiwanese embassy in Vilnius as Taiwan rar than Chinese Taipei, which or countries do to avoid hurting Beijing. China believes Taiwan to be a part of its territory and does not recognise it diplomatically. Lithuania plans to create its own tre office in Taiwan later this year, and office, which functions as a de facto embassy, opened in November.

This has enraged China, which has withdrawn its ambassor from Vilnius and dismissed Lithuania's envoy from Beijing. Lithuania, which is a member of European Union and NATO, has shuttered its embassy in Beijing due to conflict. Taiwan has stated that it is willing to assist Lithuania in resupplying tre despite island's claim that commodities are being prohibited from entering China.

(With inputs from agencies)

Image: AP