Taiwan announces $1 bn credit fund for joint projects with Lithuania amid China pressure

Despite China's continuous aggression, Taiwan has decided to establish a $1 billion loan programme to fund projects by Lithuanian and Taiwanese enterprises. Taiwanese Minister of National Development Kung Ming-hsin announced on Tuesday that Taipei and Vilnius will establish a USD 1 billion loan programme to fund cooperative companies. This comes against a diplomatic row between Beijing and Vilnius over the latter's ties with Taipei.

As per the reports of Sputnik, this comes after just last week, Taiwan announced the establishment of a USD 200 million fund to invest in the Lithuanian industry. It came as Lithuanian businesses were having trouble doing business in Chinese ports after the Communist leadership apparently erased the Baltic country's name from its customs system. A considerable amount of Lithuanian exports are currently stranded in Chinese ports as a result of the change, causing fear among business owners about the future of their shipments.

Prospective investment location

Lithuanian Minister for Economy and Innovation Ausrine Armonaite called it a great move as she believes that Lithuania may be regarded as a prospective investment location for the semiconductor industry, according to AP News. She also said the trade office in Taiwan is undergoing administrative approval and will be opened soon, along with outposts across the world. The investment fund will be used to develop Lithuania's human resources and manufacturing industries. 

Beijing is penalising Armonaite's country for its favourable relations with Taiwan, which prompted Armonaite to request Taiwan's assistance with exports. Kung pledged to assist and stated that establishing a trade office in Taiwan will help to broaden the area of collaboration. Lithuanian exports to Taiwan totalled 19 million euros, which is US$21.54 million in 2020, while imports from Taiwan totalled 66 million euros, according to Taipei Times.

Enraged by Lithuania's action

Last week, Beijing slammed Taiwan's investment fund for Lithuania as dollar diplomacy and accused the US of agitating the Baltic nation as part of its containment operations, according to AP News. Lithuania is a member of the European Union and NATO with a population of 2.8 million people. China was Lithuania's 13th largest economic partner before the diplomatic crisis that erupted last year, while Taiwan was 65th. China was enraged by Lithuania's action, and it issued a barrage of threats, claiming sovereignty over Taiwan despite the island's status as a sovereign state.

(Inputs from ANI/ AP News)

Image: AP/ @ArmonaiteA/Twitter