Canadian Prime Minister Justin Trudo has acknowledged that Western countries often allow Beijing to dictate conditions by competing for access to China’s vast market.
Foto: Blair Gable/REUTERS/SCANPIX
20:46, December 28, 2021
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Valdis Bērziņš, “Latvijas Avīze”, JSC “Latvijas Mediji”
Canadian Prime Minister Justin Trudo has said that Western democracies must be united in their treatment of China, which is trying to oppose Western countries.
Beijing uses forced diplomacy
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“We need to work together better and be more united so that China cannot schema and divide us through forced diplomacy,” Trudo told Global Television. The Canadian prime minister acknowledged that Western countries often compete for access to China’s vast market, often allowing Beijing to dictate terms. “We compete, and China occasionally clashes with us very cleverly in open market competition,” he said.
Canadian and Australian beef producers compete fiercely for access to the Chinese market. Brazilian farmers have taken advantage of this competition to increase beef exports to China. At one time, China imported little meat due to the low purchasing power of its population, but the well-off middle class, which can afford it, has grown significantly in recent years.
Relations between Canada and China escalated in December 2018 when Canada arrested Menu Wenzhou, the financial director of Chinese telecommunications equipment maker Huawei, for extradition in the United States on charges of violating sanctions against Iran. China responded by detaining former Canadian diplomat Michael Kovrig and businessman Michael Spavor. Beijing accused both Canadians of espionage. All the detainees were released in September this year after Mena reached an agreement with the US prosecutor’s office, which withdrew her extradition request.
Chinese sanctions are hurting Lithuanian producers
China’s unofficial sanctions have caused problems for about 60 Lithuanian companies, but next year the losses could reach 300 million euros, said Vidmants Janulevičs, president of the Lithuanian Confederation of Industrialists (LPK). According to the information at his disposal, more than 1,200 containers with a total value of about 240 million euros are not transported to Lithuania. China has so far denied any obstacles to doing business with Lithuania, as restrictions on exports to Lithuania currently affect only industrial goods, the president of LPK said.
“The movement of consumer goods continues. The problem is with industrial goods, such as microelectronics and other components that are inserted into devices made in Lithuania, ”he told BNS in an interview. “If supplies continue to be disrupted, many companies will have to stop production because the end product cannot be made without these parts,” explained Janulevičs. “For industrial use – various raw materials and components – it accounts for two-thirds of the 1.2 billion euros worth of goods exported from China to Lithuania,” said the head of the Lithuanian Industrial Association.
“Preliminary estimates suggest that if this situation continues, Lithuanian companies will lose around € 300 million a year next year,” he added. LPK called on Lithuanian senior officials to react immediately to China’s actions against the country and its companies, including involving the European Union institutions.
China’s pressure is also affecting other EU countries
Beijing has recently put economic and diplomatic pressure on Lithuania in response to Vilnius’ decision to allow Taiwan to establish a representation in Lithuania, using the word “Taiwan” in its name as China tries to prevent any attempt by Taiwan to act as an independent state. Elsewhere in the world, such representations use the name “Taipei” as Taiwan’s capital, in line with Beijing’s “one China” policy, which does not allow Taiwan to be considered a separate country.
For this reason, both countries recalled their ambassadors for consultations this year, but diplomatic relations were later reduced to the level of temporary envoys. China has recently abolished direct freight train journeys to Lithuania and issued food export permits to Lithuanian companies, reduced credit limits for Lithuanian companies and raised prices, and temporarily excluded Lithuania from its customs system. Lithuanian businessmen acknowledge that these disagreements have made their cooperation with China significantly more difficult, but the Lithuanian government hopes that closer economic ties with Taiwan could offset these losses over time.
EU Trade Commissioner Valdis Dombrovskis has warned that the blockade of Lithuanian imports imposed by China in response to Vilnius’ rapprochement with Taiwan is increasingly affecting companies in other EU member states as well.
“We are worried that we are increasingly receiving news from other Member States about blocking imports” from China. Apparently, Chinese customs do not process goods from other EU countries if they contain components from Lithuania, “he told Die Welt. Dombrovskis added that there are many cases when goods imported from Lithuania and the EU have been stopped in Chinese ports, and the number is growing every day.
“Given the huge volume of daily trade between the EU and China, it is no wonder that [apturēto preču] is growing rapidly, ”said the commissioner.
Dombrovskis pointed out that the EC uses both political and diplomatic channels to resolve the conflict. In the event that these efforts fail, a request will be made for submission to the World Trade Organization.
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