Taiwan invests in Lithuanian laser company despite Chinese backlash

Taiwan has invested around €3.5 million ($3.5 million) in a laser company in Lithuania against the background of a trade conflict between the Baltic EU country and China.

This is the first investment from a $200 million investment fund set up by Taipei, the Taiwanese Representative Office in Lithuania said on Monday, adding that there would be further cooperation in the development of semiconductors.

"Our strategy is to help Lithuanian companies grow," Taiwanese envoy Eric Huang said, according to Lithuanian media reports.

"There are other planned projects that will be completed by the end of this year. There are also many other potential projects for next year and the year after," he added.

Taiwan had announced a fund to invest in the Baltic state at the beginning of the year.

The move followed tensions between Lithuania and China after Vilnius allowed Taiwan to open a representative office under its own name. In response, China downgraded its diplomatic relations with the EU member and imposed economic sanctions.

Beijing claims power over Taiwan and regards the self-governing democratic island republic as part of its territory. It firmly rejects official contacts between other countries and Taiwan.

Despite pressure from China, Lithuania also set up an office to represent its economic interests in Taiwan.

"This trade office will bring better cooperation between Lithuania and Taiwan," Economy Minister Aušrinė Armonaitė wrote on Twitter.