Analysis-German big business piles pressure on Lithuania in China row

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

FILE PHOTO: Flags at Taiwanese Representative Office in Lithuania
1 / 3Analysis-German big business piles pressure on Lithuania in China rowFILE PHOTO: Flags at Taiwanese Representative Office in Lithuania

By Andrius Sytas and John O'Donnell

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

VILNIUS/FRANKFURT (Reuters) – Lithuania is under pressure from German companies to back down in a dispute with China to end a blockade of the Baltic state, as European trade officials struggle to defuse the row, people familiar with the matter said.

China has pressed multinationals to sever ties with Lithuania or face exclusion from its market, an unusually harsh move that has dragged companies into a political dispute and placed Beijing on a collision course with the European Union. [L1N2SU0G7]

Global Tech News Daily

The row erupted after the Baltic state allowed the opening of a de facto embassy by Taiwan, a self-ruled island that China views as part of its territory.

Some of the companies affected have asked Lithuania's political leaders to de-escalate the dispute or risk a corporate exodus, according to people involved and correspondence seen by Reuters.

Global Tech News Daily

Many multinationals are affected, but one of the most significant hits is to the German car sector.

In a letter to Lithuania's foreign and economy ministers, the German-Baltic Chamber of Commerce said imports of Chinese machinery and parts and the sale of Lithuanian products to China had ground to a halt and that some firms may have to leave.

Urging the ministers to seek a “constructive solution” to restore relations with China, the chamber said “the basic business model of the companies is in question and some … will have no other choice than to shut down production in Lithuania”.

Last month, Lithuania's Prime Minister Ingrida Simonyte met with business leaders, including executives from German car-parts giant Continental, to listen to their concerns, said one person who attended.

The overall damage to industry runs to hundreds of millions of euros, and she was told this would escalate if the dispute continues to interrupt global production, the person said.

This week, Lithuanian President Gitanas Nauseda also held talks with business executives when he was urged to make an “immediate de-escalation,” according to one person with knowledge of that discussion.

The European Union's top trade official, Valdis Dombrovskis, is also attempting to mediate between Beijing and Vilnius, ahead of a possible EU-China summit meeting in the coming months, said a person with knowledge of the matter. Lithuania belongs to the 27-state bloc.

RENAMING

The focus of the dispute is the opening of a representative office by Taiwan in Vilnius, although tensions have mounted since Lithuania's ruling coalition agreed last year to support what it described as “those fighting for freedom” on the island.

Renaming the office to remove the word Taiwan could resolve the dispute. Taiwan has other offices in Europe and the United States but they use the name of the city Taipei, avoiding reference to the island itself.

But salvaging relations will be difficult.

“The Lithuanian government has betrayed China’s trust,” the Chinese foreign ministry told Reuters in a statement.

“For China-Lithuania relations to get back on track, Lithuania must first correct its attitude and take practical actions to correct its mistakes,” said the ministry, denying that China was exerting economic pressure.

A spokesperson for the European Commission said it would resist “coercive measures”, adding: “We stand by Lithuania. Lithuanian exports are EU exports.”

The Commission said it was reaching out to China to resolve the situation and “collecting facts and evidence” to see if China was complying with international trade rules. “We will not hesitate to act to defend our rights,” said the spokesperson.

So far, there is no sign of a climbdown by Lithuania, with its president telling the business meeting this week that it was up to Brussels, home of the European Commission, to find a solution.

While one Lithuanian official, asking not to be named, said Brussels' involvement as a go-between was critical, another said EU backing was half-hearted and that its officials too urged Lithuania to compromise.

'NO-GO ZONE'

China appeared to reject Brussels' involvement.

“Problems between China and Lithuania should and can only be solved through bilateral channels between China and Lithuania,” said China's foreign ministry. “Linking China-Lithuania issues to China-EU relations is … unlikely to solve the problem.”

The stand-off threatens Lithuanian industry, which has built up clusters of factories making parts destined for overseas, such as furniture, clothing, car parts and lasers. Hundreds of containers of goods and parts are in limbo.

It has rippled through global supply chains and, in the case of Continental, has had knock-on effects on customers such as luxury carmaker BMW and Volkswagen, two of the people said.

Volkswagen said its production is not affected, while BMW and Continental declined to comment.

“Lithuania has become a no-go zone in China,” said Joerg Wuttke, president of the EU Chamber of Commerce in China.

“European companies cannot register it as a country of origin for products they are selling here. It's been taken off the map.”

France's trade minister Franck Riester promised to help Lithuania.

“If a Lithuanian company needs Chinese components for its production but cannot find them because China is blocking … we will be happy to help by putting it in contact with French companies or companies from other Member States,” he said.

Paris, which holds the EU presidency in the coming months, is attempting to speed up introduction of new EU trade defence measures, said French officials.

The measures could penalise China in such disputes, although it is unclear whether Europe, where countries such as Germany depend on it for trade, will agree to them.

Similarly, it has been difficult for Brussels to launch legal action against China because companies affected are unwilling to be publicly named, one person with knowledge of the matter said.

(Additional reporting by Leigh Thomas and John Irish in Paris and Ryan Woo in Beijing; writing by John O'Donnell; editing by Barbara Lewis)

News Related

OTHER NEWS

Rel Capital resolution: Lenders hire KPMG India, L&L Partners

Lenders to Reliance Capital have appointed KPMG India as their process advisor andetL&L Partners the legal counsel to help negotiate the challenges in the resolution of Anil Ambani-promoted Reliance Capital, ... Read more »

Soaring refining margin bodes well for oil firms

The industrial complex in the southern port city of Ulsan where production bases of Korea’s major petrochemical companies are located (Yonhap)South Korean oil refiners’ key profitability measure has been rising ... Read more »

Buckle (BKE) Gains As Market Dips: What You Should Know

Buckle (BKE) closed at $37.24 in the latest trading session, marking a +1.36% move from the prior day. This change outpaced the S&P 500’s 0.37% loss on the day. – ... Read more »

AutoNation (AN) Dips More Than Broader Markets: What You Should Know

In the latest trading session, AutoNation (AN) closed at $103.57, marking a -0.46% move from the previous day. This change lagged the S&P 500’s 0.37% loss on the day. – ... Read more »

FuboTV Inc. (FUBO) Stock Moves -0.3%: What You Should Know

fuboTV Inc. (FUBO) closed at $10.07 in the latest trading session, marking a -0.3% move from the prior day. This change was narrower than the S&P 500’s 0.37% loss on ... Read more »

Fiverr International (FVRR) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Fiverr International (FVRR) closed at $81.01, marking a -0.52% move from the previous day. This change lagged the S&P 500’s daily loss of 0.37%. – ... Read more »

Sterling Construction (STRL) Gains As Market Dips: What You Should Know

Sterling Construction (STRL) closed at $27.51 in the latest trading session, marking a +1.63% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Boise Cascade (BCC) Gains As Market Dips: What You Should Know

Boise Cascade (BCC) closed at $77.20 in the latest trading session, marking a +0.69% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

CRISPR Therapeutics AG (CRSP) Gains As Market Dips: What You Should Know

In the latest trading session, CRISPR Therapeutics AG (CRSP) closed at $62.36, marking a +0.76% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.37%. ... Read more »

Bausch Health (BHC) Dips More Than Broader Markets: What You Should Know

Bausch Health (BHC) closed the most recent trading day at $24.39, moving -0.53% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.37%. – Zacks ... Read more »

ETF Strategies to Consider for February as Fed's Rate Hike Nears

Wall Street has been mostly kind to investors so far in February after a tough January. Market participants are upbeat about improving U.S. economic conditions as reflected by encouraging fourth-quarter ... Read more »

Bank of Nova Scotia (BNS) Gains As Market Dips: What You Should Know

Bank of Nova Scotia (BNS) closed at $73.75 in the latest trading session, marking a +0.78% move from the prior day. This move outpaced the S&P 500’s daily loss of ... Read more »

Fox (FOXA) to Report Q2 Earnings: What's in the Offing?

Fox FOXA is set to report second-quarter fiscal 2022 results on Feb 9.For the quarter, the company’s current Zacks Consensus Estimate for earnings is pegged at breakeven against a loss ... Read more »

Generac Holdings (GNRC) Gains As Market Dips: What You Should Know

In the latest trading session, Generac Holdings (GNRC) closed at $279.97, marking a +0.01% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Spirit And Frontier Announce $6.6 Billion Merger

Spirit Airlines Incorporated (NYSE:SAVE) and Frontier Group Holdings Inc (NASDAQ:ULCC) have announced a $6.6 billion merger to create one of the largest low-cost airlines in the U.S. The new airline ... Read more »

First Trust Energy AlphaDEX Fund (FXN) Hits a 52-Week High

The First Trust Energy AlphaDEX Fund FXN is probably a suitable pick for investors looking for momentum. FXN hit a 52-week high and is up 59.6% from its 52-week low ... Read more »

Meta Threatens To Close Facebook And Instagram In Europe Over Data Scramble

In a document filed with the U.S. Securities and Exchange Commission (SEC), Meta Platforms Inc (NASDAQ:FB) has warned it could be forced to close Facebook and Instagram in Europe if ... Read more »

Stock futures inch higher after S&P, Nasdaq fall to start the week

U.S. stock index futures crept higher during overnight trading Monday, after the major averages moved between gains and losses during regular trading as the market awaits key inflation data later ... Read more »

White House breaks with Pelosi, says Biden backs ‘peaceful protest' at China Olympics

White House press secretary Jen Psaki said Monday that President Biden disagrees with House Speaker Nancy Pelosi’s view that American athletes should keep their mouths shut instead of criticizing China ... Read more »

Immunovant (IMVT) Reports Wider-Than-Expected Loss in Q3

Immunovant, Inc. IMVT reported a net loss of 36 cents per share in the third quarter of fiscal 2022 (ended Dec 31, 2021), wider than the Zacks Consensus Estimate of ... Read more »

Buckle's (BKE) Sales Run Continues in January, Comps Gain 4.2%

The Buckle, Inc. BKE looks well poised on the back of its robust strategic efforts, including strength in e-commerce business and an impressive sales trend. BKE has been putting up ... Read more »

6 Best-Leveraged ETF Areas of Last Week

Wall Street put up a moderate show last week with the S&P 500 (up 1.6%), the Dow Jones (up 1.1%), the Nasdaq Composite (up 2.4%) and the Russell 2000 (up ... Read more »

Interpublic (IPG) to Report Q4 Earnings: What's in the Cards?

The Interpublic Group of Companies, Inc. IPG is scheduled to report fourth-quarter 2021 results on Feb 10, before the opening bell. – Zacks Let’s check out how things have shaped ... Read more »

Mednax (MD) Buys Night Lite Pediatrics to Boost Portfolio

Mednax, Inc. MD and its affiliated practices Pediatrix Medical Group recently acquired Night Lite Pediatrics, LLC in Orlando, FL. Night Lite is a private 13-clinic pediatric urgent care practice. The ... Read more »

Best Growth Stocks to Buy for February 7th

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 7th: – Zacks Apple AAPL: This company whose business primarily runs around its ... Read more »

Gol Linhas (GOL) Stock up 16.2% in a Month: More Upside Left?

Shares of Gol Linhas GOL have displayed an uptrend on the bourses over the past month, gaining 16.2% against its industry’s 3.1% decline. – Zacks Image Source: Zacks Investment Research ... Read more »

Top Research Reports for Bank of America, Coca-Cola & salesforce

Monday, February 7, 2022 The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Bank ... Read more »

Sanofi's (SNY) Enjaymo Gets FDA Nod For Rare Blood Disorder

Sanofi SNY announced that the FDA has approved its monoclonal antibody, Enjaymo (sutimlimab-jome), to decrease the need for red blood cell transfusion due to hemolysis in adult patients with cold ... Read more »

The Zacks Analyst Blog Highlights: Alphabet, T-Mobile US, Advanced Micro Devices, Mondelez International and Chubb

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

US-born figure skater Zhu Yi breaks down in tears after 2022 Olympics tumble

American-born Chinese figure skater Zhu Yi had her second tumble of the 2022 Olympics. Zhu burst into tears on Monday after falling during the women’s free skate, the final event ... Read more »

IRS to stop using facial recognition for identity verification

Signage outside the Internal Revenue Service (IRS) headquarters in Washington, D.C.Bloomberg | Bloomberg | Getty Images The IRS on Monday announced it will stop using a controversial third-party service for ... Read more »

Why Mid-America Apartment Communities (MAA) is a Great Dividend Stock Right Now

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

Surging Earnings Estimates Signal Upside for Xilinx (XLNX) Stock

Investors might want to bet on Xilinx (XLNX), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and ... Read more »

BCB Bancorp (BCBP) is a Top Dividend Stock Right Now: Should You Buy?

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

The Zacks Analyst Blog Highlights: AbbVie, Merck, Eli Lilly, Novartis and Pfizer

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

BankUnited (BKU) Stock up 3.4% on New Share Repurchase Plan

BankUnited, Inc. BKU has announced a new share repurchase plan. The company’s board of directors has approved the repurchase of up to $150 million in shares of BKU’s outstanding stock. ... Read more »

TEGNA Inc. (TGNA) Soars 7.4%: Is Further Upside Left in the Stock?

TEGNA Inc. TGNA shares rallied 7.4% in the last trading session to close at $21.34. This move can be attributable to notable volume with a higher number of shares being ... Read more »

Can BCB Bancorp (BCBP) Run Higher on Rising Earnings Estimates?

BCB Bancorp (BCBP) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue ... Read more »

Earnings Estimates Moving Higher for Marathon Oil (MRO): Time to Buy?

Marathon Oil (MRO) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue ... Read more »

Transport ETFs to Buy on Solid Q4 Earnings

The fourth-quarter earnings picture for the transportation sector has been robust. This is especially true as earnings of 95.2% of the market capitalization of the sector that has reported so ... Read more »