EU Ends WTO Dispute with China Over Lithuania Trade Row

The European Union has formally ended a major trade dispute with China at the World Trade Organization. The case centered on EU claims that China unfairly pressured Lithuania in 2021. In a statement to WTO members, the EU said it is dropping the case. It stated the "key objectives behind this dispute have been met and relevant trade has resumed." The dispute began after Lithuania allowed Taiwan to open a representative office in Vilnius, its capital. China viewed the office's name, which used "Taiwanese," as a challenge to its claim over the island. Beijing then imposed severe trade restrictions on Lithuanian exports. It also pressured multinational companies to stop using Lithuanian suppliers. The EU launched the WTO case in early 2022, arguing China's actions were coercive and broke global trade rules. The bloc said the economic pressure affected all EU member states. The resolution indicates a diplomatic and trade de-escalation between Brussels and Beijing. Both sides have recently sought to stabilize their economic relationship.