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Tiny Lithuania stands up to China as Europe freezes investment pact with Beijing

The announcement had been in the works for some time. Lithuania, like some other countries in the region, has been increasingly suspicious of China for some time.

Published on: May 23, 2021, 07:58:20 IST
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Lithuania, a tiny nation of less than 2.8 million people, said on Saturday it was quitting the China-led "17+1" grouping with central and eastern European states and asked other countries to walk out of the forum set up by China in 2012 to forge ties and expand its influence.

It was in 2019 that the Baltic state first identified Chinese espionage as a threat to its national security. (AFP)
It was in 2019 that the Baltic state first identified Chinese espionage as a threat to its national security. (AFP)

"Lithuania no longer considers itself a 17+1 format member and does not participate in this initiative," foreign minister Gabrielius Landsbergis told news agency AFP on Saturday. He also described the platform as "divisive" from the European Union’s perspective, urged EU members to pursue "a much more effective 27+1 approach and communication with China and stressed that "Europe's strength and impact is in its unity".

The announcement had been in the works for some time. Lithuania, like some other countries in the region, has been increasingly suspicious of China for some time. It was in 2019 that the Baltic state first identified Chinese espionage as a threat to its national security.

"As Chinese economic and political ambitions grow in Lithuania and other NATO and EU countries, activities of the Chinese intelligence and security services become increasingly aggressive," the State Security Department and the Second Investigation Department under the Defense Ministry said in their National Threat Assessment 2019 report, according to The Baltic Times.

To be sure, Lithuania isn’t the only one within the “17+1” grouping to have tempered its expectations from the grouping that was once expected to lead to a rush of Chinese investment and infrastructure. Five other countries, Bulgaria, Estonia, Latvia, Romania, and Slovenia, also indicated their diminished interest in the grouping and were represented by ministers at Xi Jinping’s high-profile February summit.

China watchers in Delhi say Lithuania’s moves - it has announced its decision to open a trade office in Taiwan, spoken out against human rights violations by Beijing and blocked Chinese X-ray inspection equipment at airports - is an indicator of the deteriorating relationship between China and European Union.

The EU-China investment pact, sealed in December 2020 after being negotiated for nearly seven years, was the latest casualty when European Parliament on Thursday halted ratification of the agreement which was then seen as a geopolitical win for China. It was proof of Europe’s independence from the US and Beijing’s ability to collaborate with US’ allies who adopted a moderate approach.

On Thursday, the European Parliament refused to consider the investment deal as long as its “baseless and arbitrary” penalties were in place.

According to the resolution, the parliament, which must ratify the investment deal, "demands that China lift the sanctions before Parliament can deal with the Comprehensive Agreement on Investment".

In a vote passed with 599 votes in favour, 30 against and 58 abstentions, the lawmakers also warned that lifting the sanctions would not in itself ensure the deal's ratification. The legislators said they will take into account the human rights situation in China when deciding to greenlight the multi-billion deal.

The decision to freeze the investment pact had been expected by some analysts after China retaliated against the US, UK and EU over sanctions related to allegations of human rights abuses in the western region of Xinjiang by announcing measures against 10 European politicians, scholars and research groups.

China has been criticised for its treatment of Muslim Uyghurs and other minorities in Xinjiang. A panel of UN experts in 2019 said an estimated 1 million people have been sent to counter-terrorism internment facilities in the region, part of a set of policies the U.S. has said amount to genocide.

Angela Merkel’s Germany was one of the few voices that continue to speak in favour of the EU-China pact. According to AFP, German economy minister Peter Altmaier said China "is the European Union's largest trading partner and the United States' largest trading partner, and thus plays an important role in the global economy," Altmaier said, adding: “We want to reach results with China that are in the interest of both sides".

Chancellor Merkel, who has adopted a China-friendly course, is due to step down in September this year. Annalena Baerbock, the chancellor candidate for Germany’s Greens, has condemned human rights violations in China and said that, as chancellor, she would block imports of Chinese goods produced with forced labour.

 
ABOUT THE AUTHOR
Shishir Gupta

Shishir Gupta is Executive Editor at Hindustan Times and one of India's top journalists covering national security, strategic affairs, foreign policy and geopolitics. Over the past three decades, he has extensively reported on India's military, diplomatic and security landscape, covering every major conflict and national security challenge, from the 1999 Kargil War and the 2020 East Ladakh standoff to Operation Sindoor in 2025. He has also covered major terror attacks, including the IC-814 hijacking, the 26/11 Mumbai attacks and the 2025 Pahalgam terror strike, along with numerous Pakistan-backed terrorist incidents in the Kashmir Valley and across India. He has reported on national and state elections for more than three decades. A recognised authority on strategic affairs, Gupta has covered India's nuclear programme since the Pokhran-II (Shakti series) tests in May 1998 and has written extensively on global nuclear issues, Indian diplomacy and the country's expanding global outreach. He has also reported widely on international conflicts and terrorism, with a special focus on the Indian subcontinent. Gupta has interviewed Prime Minister Narendra Modi more than four times, including Modi's first interview with the print media after becoming Prime Minister in May 2014. His other interviews include three with the Dalai Lama, as well as conversations with Benjamin Netanyahu, Amit Shah, Yogi Adityanath, S. Jaishankar, Nirmala Sitharaman and Piyush Goyal. He is the author of Indian Mujahideen: The Enemy Within (Hachette, 2011) and Himalayan Face-off: Chinese Assertion and Indian Riposte (Hachette, 2014). He was awarded the Chevening-Wolfson Joint Scholarship at Wolfson College, University of Cambridge, UK, in 1998 and participated in the International Visitor Leadership Program (IVLP) of the US State Department in 2006. He received the Ben Gurion Prize from Israel in 2011 and the K. Subrahmanyam Prize for Strategic Studies in 2015 from the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA). Since 2024, he has hosted Point Blank, Hindustan Times' weekly YouTube show on global geopolitics.

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