Taiwan Buys 20,000 Bottles of Lithuanian Rum
A shipment of over 20,000 bottles of Lithuanian rum bound for the Chinese market was denied permission, prompting Taiwan Tobacco and Liquor to purchase the entire supply instead. Here's why.
A shipment of over 20,000 bottles of Lithuanian rum destined for the Chinese market was reportedly denied permission to be imported by Chinese customs last year. Days after blocking the shipment, China downgraded its diplomatic ties with Lithuania. In a bid to support the Baltic nation, state-owned Taiwan Tobacco and Liquor (TTL) stepped in and bought the entire shipment. The Taiwanese government is now sharing rum cocktail recipes and cooking tips with the public to help encourage them to purchase the Lithuanian rum.
The Ongoing Diplomatic Dispute between Lithuania and Beijing
The diplomatic dispute between Lithuania and Beijing is not new. Since announcing its plans to establish mutual diplomatic posts with Taiwan, Lithuania has been hit with multiple trade restrictions.
In August 2021, Beijing recalled its ambassador stationed in Lithuania, following the Baltic country's announcement of reciprocal diplomatic offices. Beijing has asked Vilnius to follow suit. Lithuania was accused of neglecting "China's repeated representations and articulation of potential consequences" by agreeing to strengthen diplomatic ties with Taiwan, according to a statement from the Chinese Ministry of Foreign Affairs.
Currently, Taiwan has 14 diplomatic allies. While formal diplomatic ties between Lithuania and Taiwan have yet to be formalized, the relationship between the two nations continues to improve.
China and Taiwan Have Long Felt a Division
The divide between China and Taiwan has a long history. At the center of the problem is China’s view that Taiwan truly belongs as part of their country, whereas many Taiwanese people do not agree and want to live in a separate nation. In 2021, more and more nations around the world became concerned over increasing Chinese military activity in Taiwan.
The move to prevent the shipment of Lithuanian rum from entering China is seen as retaliation for Lithuania’s strengthening ties with the nation that China has been engaged in a long-running dispute with.
A Gesture of Good Will
The TTL’s move to purchase the rum that was prevented from being imported into China has thus been seen as a move to demonstrate Taiwan’s support of Lithuania, and a gesture to further cement the bilateral relationship between the two nations.
Following the purchase of over 20,000 bottles of rum, the Taiwanese National Development Council encouraged locals to buy rum via a Facebook post, where the council demonstrated how rum could be enjoyed in cocktails, such as the Dark 'n' Stormy, or in food, such as rum-infused French toast and steak.
In addition, the National Development Council also spoke of its friendly relationship with Lithuania. Recently, the two countries signed a memorandum of cooperation and hosted bilateral trade delegations.
The Political Side of Trading
International trade is often influenced by the political climate. Due to the tensions between China and Taiwan, Lithuania’s friendship with the state has led to it suffering from a loss of trade with China. While China accounts for just 1% of Lithuania’s exports, the Baltic country is not alone in being sanctioned by China, which currently has blocks on imports of various Australian imports such as beef, wine, and barley. It is unsure how the situation will develop, but it is clear that politics and trade will remain closely linked.
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