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foreign affairs reporter Stephen Dziedzic and political reporter Matthew Doran

Australia backs Lithuania over 'weaponised' economic sanctions from China due to Taiwan ties

Lithuania's Minister of Foreign Affairs Gabrielius Landsbergis is in Australia. Lithuania has been hit with trade sanctions from China due to its ties to Taiwan. (AP: Mindaugas Kulbis)

Australia has thrown its diplomatic support behind Lithuania, as the small European nation grapples with "weaponised" economic sanctions by the Chinese government over its support for Taiwan.

Lithuanian Foreign Minister Gabrielius Landsbergis has met with Foreign Minister Marise Payne in Parliament House, ahead of the opening of the country's new diplomatic mission in Canberra.

Australia and Lithuania have both provoked the ire of Beijing in recent years, with the Chinese government targeting exports and industries with crippling sanctions and tariffs in what has been described as "economic coercion".

Last year, the Lithuanian government allowed Taiwan to establish a trade office in its capital Vilnius.

The move infuriated Beijing, because the office was allowed to use the name "Taiwan" rather than the conventional "Taipei" — which China demands in its efforts to claim sovereignty over the democratic island.

In January, the European Union (EU) announced it was taking China to the World Trade Organization (WTO), after China started blocking imports from Lithuania, as well as products linked to Lithuania.

Shortly after that, Australia applied to join the WTO case, in a clear signal that it is backing Lithuania in the dispute.

"For quite a while, Australia was one of the main examples when China was using economy and trade as a political instrument or one might say even as a political weapon," Mr Landsbergis said in a press conference alongside his Australian counterpart.

"Now Lithuania joins this exclusive club.

"But it is apparent that we are definitely not the last ones, especially if these practices are not stopped with the instruments that we have."

Senator Payne said Australia was not considering renaming its Taipei office to "Taiwan", but would continue to oppose Beijing's actions.

"There are many colleagues with whom the Foreign Minister [Landsbergis] and I work and engage on these issues," she said. 

Chinese Foreign Ministry spokesperson Zhao Lijian has described his country's relationship with Lithuania as "fruaght". (AP: Andy Wong)

Last night, China's Foreign Ministry accused Lithuania of "maliciously hyping things up" and trying to "rope other countries in to gang up on China".

"The ins and outs of the fraught China-Lithuania relations are very clear," spokesman Zhao Lijian said.

"China always follows WTO rules. The so-called 'coercion' of China against Lithuania is purely made out of thin air.

"China urges Lithuania to face up to the objective facts, mend its ways, and come back to the right track of adhering to the one-China principle."

Russia-China joint strategy criticised

Senator Payne has criticised a new joint strategy unveiled by China and Russia, saying the two authoritarian states have laid out a "vision of the global order" which would increase instability and allow powerful states to bully weaker ones.

Foreign Minister Marise Payne condemned the vision of a global order put forward by China and Russia. (ABC News: Tamara Penniket)

Chinese President Xi Jinping and Russian leader Vladimir Putin met last week and issued a joint statement declaring a new partnership which they called "superior to political and military alliances of the Cold War era". 

China affirmed support for Russia's position in the Ukraine Crisis while Russia rejected any notion of Taiwanese independence from the mainland.

Analysts say while the declaration falls short of a formal alliance, the two countries are increasingly determined to challenge the United States as a global power, reinforce the legitimacy of their regimes and undermine liberal democracy around the world.

Senator Payne said Australia had read the joint statement "closely".

"The vision of the global order it presents is completely at odds with the vision Australia has and the vision our allies and partners have," she told RN Breakfast.

"The approach of authoritarian states — Russia and China are the two you have cited here but there are others … they are not contributing to security or stability and this comes at a time of great difficulty for many nations in the Indo-Pacific in trying to emerge from COVID-19.

"We stand for the rights of all countries large and small to pursue their own interests.

"And we do see daily examples of coercion from authoritarian states that as a strong liberal democracy, Australia is not willing to tolerate or condone."

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