Battery components that do not arrive at the port of Klaipeda, orders for car components that have been canceled and export goods that fill the warehouse but cannot be sold - these are just a few of the stories that Florian Schröder, Managing Director of the German-Baltic Chamber of Commerce in Riga, heard from German entrepreneurs in Lithuania in the last few days.

His phone rings every minute because China and Lithuania are involved in one of the largest trade disputes in EU history.

Many German investors who do business in the Baltic state are affected.

Kevin Hanschke

Volunteer.

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“There is cause for concern with the complicated situation.

The entrepreneurs are feverishly looking for ways to deal with the trade suspension. ”The reason for the dispute is that Taiwan was allowed to open a“ Taiwan Representation ”in Vilnius, which is an affront to the Chinese“ one China policy ”.

The effects are only now showing

Because of this, China cut diplomatic and economic relations with Lithuania.

The country withdrew its ambassador from Vilnius and declared the Lithuanian ambassador in Beijing an undesirable person.

In addition, China removed the Baltic state from its trading list.

Immediately after the diplomatic breach was announced, Schröder flew to Vilnius to assist the entrepreneurs.

“The escalation has become more massive in the last few weeks.

The effects are only now showing. "

Schröder says that many have to contend with bottlenecks, especially those who produce according to the just-in-time model. “Lithuania is part of the global supply chains, many of which start in China and many components come from there. They are missing now. ”The effects can be felt in concrete terms. He tells of a German entrepreneur who wanted to export machines to China. The container ships are on their way to Asia, but are being sent back because Lithuanian products are no longer allowed to be imported into China. "He spoke of a loss in the millions that he would have to bear." Schröder talks about other cases. A company made investments in new production lines.

“A new factory is being built.

But the production lines should come from China and will not arrive. ”Not only the industry is affected, but also the transport sector.

The German transporters would complain that the processing of orders took several weeks.

Lithuania has been deleted from the Chinese trade forms and customs documents can no longer be completed if Lithuanian company addresses are given.

Continental is getting threatening signals

The German companies that are active in Lithuania include the automotive supplier Continental, the electrical engineering group Siemens, the chemical group BASF and the technology group Bosch.

But many medium-sized companies also have small branches in the Baltic state.