FRANKFURT — China is pressuring provider Continental to cease utilizing parts made in Lithuania, two folks aware of the matter instructed Reuters, amid a dispute between Beijing and the Baltic state over the standing of Taiwan.

The Chinese language authorities, which views self-ruled Taiwan as its territory, downgraded diplomatic ties with Lithuania final month after the opening of a consultant workplace by Taiwan in Vilnius.

Lithuania’s ruling coalition had additionally agreed final yr to help what it described as “these preventing for freedom” on the island.

Earlier this month, a senior authorities official and an business physique stated China has instructed multinationals to sever ties with Lithuania or face being shut out of the Chinese language market.

Continental ranks No. 6 on the Automotive Information Europe record of the highest 100 international suppliers, with worldwide gross sales to automakers of $29.68 billion in 2020. The provider has manufacturing services in Lithuania, making digital components akin to controllers for car doorways and seats, and exports to purchasers globally together with China.

Continental declined to touch upon whether or not it had been requested by the Chinese language authorities to chop hyperlinks with Lithuania.

China’s overseas ministry denied that Beijing had pressured multinational firms to not use Lithuanian-produced components although stated its firms not trusted Lithuania.

“The apply of ‘one China, one Taiwan’ grossly interferes in China’s inside affairs and significantly violates China’s core pursuits,” a spokesperson added.

China has pressured nations to downgrade or sever their relations with democratically ruled Taiwan.

“I heard that many Chinese language firms not regard Lithuania as a reliable accomplice,” the spokesperson stated. “Lithuania has to take a look at itself for the explanation why Lithuanian firms are going through difficulties in commerce and financial cooperation in China.”

Lithuania’s direct commerce with China is modest, however its export-based financial system is dwelling to a whole lot of firms that make merchandise akin to furnishings, lasers, meals and clothes for multinationals that promote to China.

Lithuania’s overseas workplace stated: “Firms working in Lithuania have efficiently built-in themselves into worldwide provide chains, so China’s financial stress measures could trigger varied disruptions to firms working in Lithuania.”

“We intently monitor, analyze and consider every such case, together with amongst these German firms,” stated the spokesperson, including that it was “on the lookout for long-term sustainable options and methods to renew commerce flows with China.”