VILNIUS — Continental will proceed investing in a manufacturing unit in Lithuania, an government was quoted as saying, regardless of a diplomatic dispute between Beijing and the Baltic state that has threatened to embroil the German provider.

Two folks conversant in the matter advised Reuters in December that China was pressuring Continental to cease utilizing parts made in Lithuania, after a row erupted over the opening of a de facto Taiwan embassy within the capital Vilnius.

Taiwan is a self-ruled island that China views as a part of its territory and following the embassy dispute China has pressed multinationals to sever ties with Lithuania or face exclusion from its market – dragging corporations into the diplomatic spat and inserting Beijing on a collision course with the European Union.

However the director of Continental’s Lithuanian manufacturing unit advised native newspaper Verslo Zinios its funding plans had not modified.

“Our plans in Lithuania are the identical as we said at first – 1,500 jobs and over 185 million euros ($210 million) investments,” Shayan Ali was quoted as saying.

Requested in regards to the Chinese language commerce stress, he mentioned the manufacturing unit “was undoubtedly affected by the altering state of affairs, we did all we will to adapt to altering circumstances.” He gave no additional particulars.

Continental mentioned in 2017 it will make investments 95 million euros within the manufacturing unit, creating 1,000 jobs. This was adopted final 12 months by the announcement of a further 90 million euros funding within the plant, creating 500 extra jobs.

“Thus far we’ve not deviated from the deliberate funding timetable,” a Continental spokesperson advised Reuters.

The EU in January launched a commerce case towards China on the World Commerce Group, backed by the US, Australia and Taiwan itself, over Beijing’s alleged commerce curbs on Lithuania.

China’s overseas ministry in December denied that Beijing had pressured multinational corporations to not use Lithuanian-produced elements, although it mentioned its corporations not trusted Lithuania.

Continental, based mostly in Hanover, Germany, ranks No. 6 on the Automotive Information Europe record of prime 100 international suppliers, with 2020 gross sales to automakers of $29.7 billion.