The German manufacturer of car tires and components Continental would be involved in a international diplomatic war which sees on one side the China and on the other Taiwan and Lithuania. The two adjacent Asian countries and the relatively small Baltic country are at odds with each other after Lithuania opened a representative office in Taiwan. The move was seen as an affront from China, a nation that does not recognize the island as independent and indeed still considers it its own territory. Now China has reduced diplomatic links with Lithuania and invited companies that have relations with the European country to do the same.
Among these is Continental: according to the Reuters agency, China is allegedly putting pressure on the company to stop using components and materials from Lithuania. The ultimatum would be to oust Continental from the Chinese market, which is currently the richest in the automotive sector. Continental would not be the only multinational that has been ‘threatened’ by the Chinese government. The Chinese foreign minister denied such pressure, although he nevertheless wanted to point out that there is no longer any trust in Lithuania.
Continental produces electronic parts for cars in Lithuania, in particular for doors and seats. Does it seem like a question of principle? Not at all: the Baltic nation has very few direct relations with China, but there are many indirect ones given that in its territory there are several industries that then export to China. The Lithuanian government is currently considering what to do, as it is likely that there will be slowdowns and problems in the commercial chain internal and external.
This is the tip of the iceberg: underneath there is a world superpower whose strength is also represented by these dynamics that go far beyond the rules of the free market.
#Continental #international #intrigue #China #Taiwan #Lithuania #FormulaPassionit