Exclusive-China asks Germany’s Continental to cut out Lithuania

By Andrius Sytas and John O’Donnell

VILNIUS/FRANKFURT (Reuters) – Continental, the German car tyres and parts maker, has been urged by China to stop using parts made in Lithuania, two people familiar with the matter told Reuters, amid a dispute between Beijing and the Baltic state over the status of Taiwan.

China downgraded its diplomatic ties with Lithuania last month after the opening of a representative office by Taiwan in Vilnius. Lithuania’s ruling coalition agreed last year to support what it described as “those fighting for freedom” in Taiwan.

Continental has production facilities in Lithuania, making vehicle door and seat controllers and other electronic parts, and exports to clients globally, including China.

Continental declined to comment on whether it had been asked by Beijing to cut links with Lithuania.

The Chinese foreign ministry denied that Beijing had pressured multinational companies not to use Lithuanian-produced parts. The ministry also criticised Lithuania for its stance on Taiwan, though, adding that Chinese companies did not consider Lithuania a trustworthy partner.

(Writing By John O’Donnell; additional reporting by Yew Lun Tian in Beijing; Editing by Pravin Char)