Could Lithuania be a key tool in the US arsenal to deter China from attempting to use high-end chipsets for its military?
Could Lithuania be a key tool in the US arsenal to deter China from attempting to use high-end chipsets for its military?
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Last November, Taiwan was allowed to open a representative office under its own name in Lithuania. The move caused a stir in China as it was seen as a significant diplomatic departure at a time when Beijing was pursuing a one-China policy. Taipei’s move was aimed at securing its technology firms. And Washington sees Vilnius as a key ally in preventing Beijing from reaching top-end semiconductors.
Eric Huang, head of Taiwan’s representative office in Lithuania, said of the move, “Taiwan is setting up an investment fund with an initial funding of $200 million to invest in Lithuanian industries, both for Lithuania and Taiwan. is strategic.”
Mr Huang said the fund would invest in semiconductor, laser, biotechnology and similar Lithuanian industries.
Prompted to allow Taiwan to open a de facto embassy in Lithuania Beijing’s retaliation China halted exports from the Baltic EU nation. At the time, US Trade Representative Catherine Tai promised cooperation to address forced diplomatic and economic dealings.
A year later, this week, Taiwan announced plans to invest more in the EU country. Taiwan’s National Development Fund said on Monday it would invest $3.50 million in Litlit, a Lithuanian tech company that supplies laser technology to firms in Japan, South Korea, Taiwan and the European Union.
The fund further mentioned that it has two more investments on the cards which will be announced later this year or early 2023. With that update, the total Taiwanese investment in Lithuania will reach $10 million.
The growing closeness between the Baltic EU state and Taipei is making Beijing a small republic known for its stance against Moscow, which can be an effective ally for Western governments.
Lithuania’s position against Beijing took a decisive turn last May when the Baltic country said it was withdrawing from the 17+1 format. The initiative is a China-led framework for cooperation with Central and Eastern European countries.
The country also said that Huawei’s involvement in developing 5G infrastructure is a threat to its national security. It also cited cyber security risks from companies like Xiaomi and OnePlus.
The change in stance for a smaller Baltic nation is good news for the US, which last year passed a Senate resolution backing Lithuania’s ties with Taiwan.
The actions of Lithuania combine the pursuit of “politics of values, anti-communism”. take care of Washington on this territory, and the desire to move beyond the narrow space of the eternal critic of Russia,” according to a commentary in the Carnegie Endowment.
This small European nation could play a key role in America’s strategy to control China by attempting to use high-end chipsets for its military.