China has told multinationals to sever ties with Lithuania or face being shut out of the Chinese market, a senior government official and an industry body said, dragging companies into a dispute between the Baltic state and Beijing.
China downgraded its diplomatic ties with Lithuania last month after Taiwan opened a representative office in Vilnius. Lithuania's ruling coalition had agreed in November last year to support what it described as "those fighting for freedom" in Taiwan, putting its relations with China at risk.
China views self-ruled and democratically governed Taiwan as its territory and has stepped up pressure on countries to downgrade or sever their relations with the island.