China has downgraded its diplomatic relations with Lithuania after the Baltic state allowed Taiwan to open a de facto embassy in its capital, Vilnius. The new office, which bears the name Taiwan rather than the more neutral 'Chinese Taipei,' is the island's first new diplomatic outpost in Europe in 18 years.
Beijing considers Taiwan part of China, but Taiwan sees itself as independent. China's foreign ministry said the move had 'undermined China's sovereignty and territorial integrity' and created a 'bad precedent internationally.' In response, China will reduce its diplomatic engagement with Lithuania to the level of charge d'affaires, one rung down from an ambassadorship.
Lithuanian Prime Minister Ingrida Simonyte defended her nation's decision, stating that Lithuania wants a more intense economic, cultural and scientific relationship with Taiwan, a major supplier of semiconductors and lasers. However, she emphasised that the step does not mean any conflict with the 'One China' policy.
Lithuania's move is seen as the latest sign of some central European nations seeking greater relations with Taiwan even amid pressure from Beijing. Last month, China spoke out after a delegation of Taiwanese officials were granted visits to Slovakia, the Czech Republic and Lithuania.
Taiwan currently has formal diplomatic recognition from only 15 nations, mostly Pacific or Latin American countries. While the US and Japan have extensive commercial ties with Taiwan, they uphold official diplomatic ties with China and recognise its One China policy.