Integrity Score 2097
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In China's eyes, Lithuania crossed the red line sometime in August when the Baltic country allowed Taiwan to open a "representative office" at Vilnius, its capital. China swung into action, saying that it was against the "One China" policy that most world follows.
China recalled its ambassador. It's been a downhill ever since. It took a series of incremental steps. The Chinese state-owned train operator China Railway Container Transport Co announced that it would suspend direct freight trains to Lithuania. After that, export permits were halted affecting the Lithuanian imports to China.
After almost two months, China has downgraded its diplomatic relations with the Baltic country. This is after Lithuania formally opened what is called the de facto embassy. China's relations with Lithuania would be at the level of chargé d'affaires. China has called it a "solemn" protest against the Baltic state. (https://www.youtube.com/watch?v=ic0bSFKj_lY)
China may not stop at this, according to China's exports. The possibility of completely cutting off diplomatic ties cannot be ruled out, they say. The latest step by China is also seen as a warning to other countries as a warning not to try to "provoke China."
Lithuania has responded to China's decision. Its foreign ministry "regretting" the decision said, "Lithuania reaffirms its adherence to the One China policy, but at the same time has the right to expand cooperation with Taiwan." (https://www.theguardian.com/world/2021/nov/21/china-downgrades-diplomatic-relations-with-lithuania-over-taiwan-row)
China claims that Taiwan is a breakaway territory that will unite with China one day and opposes any government recognising Taiwan as a separate country.
Read more:
China downgrades Lithuania's diplomatic status over Taiwan row:
https://www.politico.eu/article/china-downgrades-diplomatic-relations-with-lithuania-over-taiwan-representative-office/
What's behind China-Taiwan divide:
https://www.bbc.com/news/world-asia-34729538