Beijing punishes Slovenia with sanctions for backing Taiwan

The EU has began legal action at the World Trade Organisation after China took similar steps against Lithuania.

Janez Jansa, pictured with Scott Morrison at the COP26 Climate summit in Glasgow last November, supports Taiwan joining the World Health Organisation. Picture: Adam Taylor

Beijing has imposed trade ­sanctions on Slovenia over its support for Taiwan as the EU launched legal action against China after it took similar steps against Lithuania.

Valdis Dombrovskis, the EU’s trade chief, began legal action at the World Trade Organisation on Thursday night after gathering evidence that China moved last month to “heavily restrict or de facto block imports from and exports to Lithuania” without warning or consultation.

“Launching a WTO case is not a step we take lightly,” he said. “However, after repeated failed attempts to resolve the issue bilaterally, we see no other way forward. The EU is determined to act as one and act fast against measures in breach of WTO rules, which threaten the integrity of our single market.”

China said the allegations were “groundless and inconsistent”, and warned the European Commission that the legal action could “hijack” relations, potentially hitting economic recovery in the EU, especially in Germany.

“The issue between China and Lithuania is a political one, not an economic one,” Chinese Foreign Ministry spokesman Zhao Lijian said. “We remind the EU to be wary of Lithuania’s attempt to hijack China-EU relations.”

China escalated the dispute by terminating contracts with Slovenian businesses and pulling out of investment deals after Prime Minister Janez Jansa promised to build closer ties with Taiwan. Companies represented by the Slovenian-Chinese Business Council in Ljubljana have reported a backlash mirroring the measures taken against Lithuania in what is becoming another significant geopolitical test for the EU.

China does not recognise Taiwan as a state and Lithuania’s decision in July to allow a representation to be opened bearing the name “Taiwanese”, rather than the usual diplomatic convention of Taipei, angered Beijing.

Mr Jansa told Indian television last week he hoped to follow Lithuania by mutually opening representative offices with Taiwan, while supporting its efforts to be part of the World Health Organisation.

Until now Beijing and Ljubljana had been on good terms, with Slovenia being part of Xi Jinping’s Belt and Road project aimed at boosting China’s global influence. China has now accused Slovenia of “openly challenging the One China policy and making dangerous remarks supporting Taiwan’s independence”. Mr Zhao said: “We are greatly shocked, and we strongly oppose it.”

EU officials have built a dossier of Chinese measures targeting Vilnius. Its investigation identified measures including “refusal to clear Lithuanian goods through Customs, rejection of import applications from Lithuania, and pressuring EU companies operating out of other EU member states to remove Lithuanian inputs from their supply chains when exporting to China”.

The Times